The global smart factory market is expected to witness significant growth over the forecast period. This rise in demand can be attributed to the emergence and adoption of intelligent technologies across all the major industries comprising mining, energy, petrochemicals, and manufacturing.
A smart factory represents the manufacturing and technological development, perfect integration of high-tech machinery, and high-tech tools. It is the advanced factory system, which creates cyber-physical systems allowing effective movement of materials across the factory floor. It offers real-time quality and time benefits, which are expected to accentuate the industry growth over the forecast period. Additionally, it provides greater intelligence, serves to decentralize manufacturing, and creates an overall cognitive and self-healing system.
Key factors expected to drive the market include a rising focus on energy consumption, manufacturing efficiency, and increasing practice for an advanced base for manufacturing. Further, the industry shift towards the cyber world in which every component of the value chain would be connected to ensure informed manufacturing with no-time lags and zero defects is projected to positively impact industry growth.
Technological enhancements in sensing components such as sensors and actuators within the industrial set-up owing to their increasing self-sufficiency with low power consumption and integrated computing abilities are projected to drive the demand over the forecast period. These advanced solutions offer integrated computing codes offering automation solutions.
Smart factory offers manufacturing execution systems (MES), factory-specific templates, and data models for rapid usage. Additionally, it boosts productivity combined with cutting down operational costs in comparison with traditional production systems, which may drive the demand over the next seven years. Growing industries of refurbished robots combined with untapped fields such as RFID and industrial robots are expected to offer lucrative opportunities for industry growth over the forecast period.
Technical advancements in intelligent electronic sensing, communication, and control are leading to enhanced levels of factory automation, offering greater effectiveness and delivering high-end products to customers. Equipment manufacturers are anticipated to add and introduce more sophisticated electronics to enhance assembly and chemical processes closely followed by improved usage of Programmable Logic Control (PLC) units and enhanced software, which is projected to offer significant opportunities for the industry demand.
However, a lack of standardization and interoperability coupled with a shortage of skilled workers is projected to hinder the market growth. Further, the sensitivity of cyber-physical system security threats and high software system costs can also act as a challenge for the demand.
The smart factory market can be segmented on the basis of technology into manufacturing execution system (MES), industrial control system, product life cycle management (PLM), industrial logistics, supervisory control, data acquisition system, and enterprise resource planning (ERP).
ERP is the most significant revenue-generating segment owing to the software usage application for embodying the products and processes, relationships between functions, activities, and information flow.
The smart factory market can be categorized on the basis of field devices into articulated robots, industrial robotics, industrial network, and control devices. Control devices can be further classified into switches, relays, drives, and motors. The industrial network can be further sub-segmented into RFID systems, wired networks, and wireless networks. Owing to its different products for varied purposes, the demand for industrial networks is projected to grow over the forecast period. On the basis of application, the industry can be classified into electronics and electrical, automotive, food and beverages, pharmaceuticals, and mining materials.
North America is projected to be the dominant region owing to rising adoption in the automotive segment. The Asia Pacific is expected to emerge as a prominent region owing to the stringent government regulations and the emerging industrial sector in this region.
Major smart factory vendors include System Insights Inc., Invensys PLC, Mitsubishi Electric Corporation, Ubisense Group PLC, CMC Associates, Johnson Controls Inc., Microsoft, General Electric Co., Apriso Corporation, Siemens AG, Rockwell Automation, and ABB Ltd. The prominent strategies applied by the players include product launches, mergers and acquisitions, collaborations, and agreements to expand the industry. These strategies would provide strongly performing and efficient products, which exhibit better customer satisfaction and support the market regulations which are further expected to impel market growth.
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