PUBLISHER: The Business Research Company | PRODUCT CODE: 1653399
PUBLISHER: The Business Research Company | PRODUCT CODE: 1653399
Smart factories represent facilities where traditional manufacturing processes merge with digital technology, intelligent computing, and extensive data utilization, forming a more dynamic system tailored for companies emphasizing manufacturing automation and supply chain management.
The primary product categories in the smart factory market encompass machine vision systems, industrial robotics, control devices, sensors, communication technologies, and other related items. Industrial robots are mechanical machines programmed to autonomously execute production-related tasks within industrial settings. The various components include smart factory hardware, smart factory software, and smart factory services, finding applications in diverse industry verticals such as automotive, aerospace and defense, electrical and electronics, food and beverages, healthcare and pharmaceuticals, among others.
The smart factory market research report is one of a series of new reports from The Business Research Company that provides smart factory market statistics, including global market size, regional shares, competitors with a smart factory market share, detailed smart factory market segments, market trends and opportunities, and any further data you may need to thrive in the smart factory industry. This smart factory market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The smart factory market size has grown strongly in recent years. It will grow from $82.07 billion in 2024 to $89.56 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to adoption of industry 4.0 and digital transformation, increasing adoption of data analytics and big data, automation and robotics, cyber-physical systems, cloud computing and edge computing.
The smart factory market size is expected to see rapid growth in the next few years. It will grow to $144.69 billion in 2029 at a compound annual growth rate (CAGR) of 12.7%. The growth in the forecast period can be attributed to government support and regulatory initiatives, increasing focus on sustainability, supply chain resilience and visibility, flexible and scalable manufacturing solutions, greater emphasis on cybersecurity. Major trends in the forecast period include customization and personalization in production, remote monitoring and management, sustainable manufacturing practices, human-centric design in human-machine collaboration, smart sensors and actuators, collaborative robotics (cobots).
The increasing demand for industrial robots is anticipated to drive the growth of the smart factory market in the future. Industrial robots are mechanical machines programmed to automatically carry out production-related tasks in industrial settings. A smart factory emphasizes the optimization and automation of its resources, utilizing tools such as information and smart sensor technologies, robotics, the Internet of Things (IoT), and artificial intelligence. For instance, in September 2024, the International Federation of Robotics, a Germany-based non-profit organization, reported a surge in industrial robot installations, with the global count of operational robots reaching a record high of 3.9 million in 2022. Thus, the rising demand for industrial robots is fueling the growth of the smart factory market.
The smart factory market is also set to expand due to the demand for cost reduction and waste minimization. Cost reduction involves identifying and cutting operational costs, while waste minimization focuses on systematically implementing new techniques to reduce hazardous waste. Operational efficiency in smart factories hinges on these two factors, achieved through process optimization, waste elimination, and efficiency improvements. For example, the National Environment Agency in Singapore reported that in 2022, 4. 19 million tons out of 7. 39 million tons of solid waste were recycled. The emphasis on cost reduction and waste minimization is a significant driver for the growth of the smart factory market.
Technological advancements are a significant trend gaining traction in the smart factory market. Leading companies in the smart factory sector are adopting advanced technologies to enhance production processes and achieve greater efficiency. For example, in July 2024, Hexagon AB, a Sweden-based industrial technology company, launched its Digital Factory solution, which allows manufacturers to create accurate digital replicas of their factories to improve production and efficiency. This solution has the potential to save manufacturers millions annually by reducing costs and minimizing errors in factory planning and construction. Hexagon utilizes its expertise in precise reality capture, 3D simulation software, and cloud-native collaboration tools to tackle the unique challenges faced by the manufacturing sector. While digitalization has been widely employed in areas such as civil infrastructure and public safety, its potential in manufacturing remains largely underexplored, especially for owners of brownfield sites.
In the smart factory market, major companies are integrating new and innovative technologies like Industry 4. 0 solutions to automate production and enhance efficiency during the setup of new production lines or units. Industry 4. 0 involves incorporating IoT, cloud computing, analytics, AI, and machine learning into manufacturing facilities. Deloitte, a UK-based professional services network company, opened a 9,000-square-foot smart factory in Montreal in February 2023, showcasing various Industry 4. 0 solutions for production and warehousing automation. These solutions include AI, sensors, robots, IoT, big data, and cloud technology.
In October 2024, Nulogy, a Canada-based technology company, acquired Mingo Smart Factory for an undisclosed amount. The purpose of this acquisition is to improve Nulogy's manufacturing supply chain solutions by incorporating Mingo Smart Factory's real-time analytics and productivity technology, thereby offering greater value to the extended supply chain. Mingo Smart Factory is a Canada-based technology company that focuses on manufacturing productivity solutions.
Major companies operating in the smart factory market include ABB Ltd., Emerson Electric Co., General Electric Company, Honeywell International Inc., International Business Machines Corporation, Johnson Controls International PLC, Mitsubishi Electric Corporation, Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Yokogawa Electric Corp., Cisco Systems Inc., Dassault Systemes SE, Endress+Hauser AG, Kollmorgen Corp., Kuka AG, Omron Corporation, Oracle Corporation, Microsoft Corporation, PTC Inc., SAP SE, Hitachi Ltd., Amazon. com Inc., Fanuc Corporation, Cognex Corporation, FLIR Systems Inc., CoreTigo Ltd., Airbus Group Inc., Cellares Corp.
Asia-Pacific was the largest region in the smart factory market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart factory market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the smart factory market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.
The smart factory market consists of sales of blockchain manufacturing, the industrial internet of things, and asset management. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Smart Factory Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on smart factory market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for smart factory ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart factory market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.