Smart Factory Market Size, Share, Industry Growth & Trends by Component (Industrial Sensors, Industrial Robots, Industrial 3D Printers, Machine Vision Systems), Solution (SCADA, Manufacturing Execution System, Industrial Safety, PAM), Industry and Region - Global Forecast to 2029
Smart Factory Market Size, Share & Growth
[272 Pages Report] The global Smart factory market size is expected to grow from USD 100.6 billion in 2024 to USD 164.0 billion by 2029, registering a CAGR of 10.3%. The smart factory market is thriving due to heightened workplace safety awareness, stringent regulatory compliance, and widespread integration of automation technologies across global industries, fostering substantial growth.
Smart Factory Market Forecast to 2029
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Smart Factory Market Trends & Dynamics
Driver: Rising demand for technologies such as IoT and artificial intelligence in industrial environments
Artificial intelligence (AI) in manufacturing plants constitutes technologies such as deep learning, computer vision, natural language processing (NLP), and context awareness. These technologies not only enable machines to execute activities that are currently being performed by humans but also enhance business processes and overcome challenges that manufacturers face. Big data and computer vision technologies are increasingly being used because of the growing adoption of AI-based solutions in manufacturing industries such as semiconductor & electronics, energy & power, pharmaceuticals, automotive, heavy metals and machinery manufacturing, and food & beverage.
The integration of IoT has revolutionized various industries, notably manufacturing, giving rise to the term Industrial IoT (IIoT). IIoT is reshaping manufacturing plants by connecting intelligent devices through SCADA systems, establishing fully digitalized facilities. SCADA systems, infused with IoT and AI technologies, empower industries to monitor and control applications, enhance response times, and predict machine failures more accurately. This results in reduced operational costs and heightened efficiency. Utilizing IoT- and AI-based SCADA platforms facilitates seamless data transmission and analysis, streamlining plant operations. Smart factories enable automatic data collection and analysis, empowering managers to make well-informed decisions and optimize production. Sensors and machines communicate data to the cloud via IoT connectivity solutions at the factory level.. Using such IoT devices in smart factories leads to high productivity and improved quality. Manual inspection business models are replaced by AI-powered visual insights, which reduce manufacturing errors and save money and time. Many solutions providers across the world provide IoT-based smart factory solutions; for instance, in May 2021, Zyter Inc., an IoT enablement platform, launched “Zyter Smart Factories”, an end-to-end intelligent solution that connects factory floor machinery, workers, and building systems using the latest IoT technology devices on Zyter’s digital transformation platform.
Restraint: Need for significant capital investments.
The evolution of a conventional manufacturing facility into a sophisticated smart manufacturing unit necessitates significant capital investment in advanced machinery, software, and IT infrastructure. This includes crucial elements like smart field devices, industrial robots, and advanced communication technologies for seamless industrial automation. However, this shift poses a financial challenge for industries in price-sensitive regions like Asia Pacific and South America. Industry experts cite overall costs, encompassing expenses for upgrading traditional systems, as a major impediment in transitioning to smart factories. The upfront setup cost for overhauling the entire manufacturing process is often impractical for many companies due to its high magnitude. Additionally, ongoing maintenance and upgrades required for automation software systems pose further financial burdens, particularly for small businesses.
Opportunity: Emergence of 5G technology in smart factory
Smart factories integrate Internet of Things (IoT), sensors, robots, and computerized maintenance management systems (CMMS) to collaborate, generating real-time analytics. This enables automated processes, enhancing productivity and minimizing downtime. Typically linked via Ethernet, Wi-Fi, or 4G LTE, smart factories drive large-scale industrial automation. The emergence of 5G technology, expected to be ten times faster than 4G, promises to expand the accessibility of individual factories. With 5G, factories comprise powerfully connected and continuously updated components. Smart factory owners leverage 5G for secure cellular technology use, tailored to specific use cases. Placing sensors on equipment connected to 5G networks enables seamless real-time optimization by extracting data without connecting to machines. Manufacturers increasingly adopt 5G networks for robust, uninterrupted connections. The installation of 5G in factories eliminates the need for wired connectivity, fostering a high-speed, flexible manufacturing environment with reduced downtime. A network supporting speed, coverage, and reliability becomes crucial for industries. The emergence of 5G networks is poised to offer a comprehensive solution for factories, creating significant opportunities for smart manufacturing.
Challenge: Vulnerability to cyberattacks
Developing a sensor-based network for monitoring and controlling critical infrastructures must address the significant challenge of cyberattacks. SCADA systems, comprising sensors, mainframe computers, and communication and storage systems, are susceptible to such threats. These systems, managing critical infrastructure operations, face the risk of disruption, impacting organizations, communities, and economies. Catastrophes like oil or sewage leaks and electricity grid failures can result in long-term consequences. SCADA systems, with diverse communication systems, are vulnerable to cyberattacks at various nodes, causing malfunctions and potential disasters such as oil spills, radiation leaks, and transportation delays. While using common technology standards like IPv5 and IPv6 enhances connectivity and accessibility of real-time data for effective decision-making, it also increases vulnerability to external attacks in shared networks. In the construction of SCADA systems, prioritizing real-time data availability over data confidentiality underscores the threat cyberattacks pose to the smart factory market.
Smart Factory Market Segmentation
Industrial sensors holds the largest market share among the component of smart factory market in the year 2023.
The industrial sensor market has seen significant worldwide expansion, propelled by a surge in demand for automation and data-driven decision-making. Various industries, including manufacturing, healthcare, and energy, are increasingly embracing sensor technologies to boost efficiency. Technological progress, particularly the incorporation of IoT and AI, is accelerating the adoption of sensors. The growing recognition of the advantages associated with real-time data monitoring and analytics is a key factor driving the widespread growth of the global industrial sensor market.
Manufacturing Execution Systems (MES) segment to hold largest market share among the solution of smart factory market in 2023.
The global expansion of Manufacturing Execution Systems (MES) is gaining momentum, propelled by widespread adoption of Industry 4.0. MES plays a pivotal role in real-time monitoring, data analysis, and process optimization, enhancing overall manufacturing efficiency. Its integration with cutting-edge technologies such as IoT and AI is amplifying its appeal, providing advanced production visibility and traceability. In response to the growing emphasis on smart manufacturing, MES implementation is on the rise across various industries, leading to streamlined operations, cost reduction, and increased competitiveness on a global scale.
Metal & Mining is expected to register highest CAGR during the forecast period
The metal and mining sector has experienced notable growth in the adoption of smart factory practices, incorporating cutting-edge technologies such as IoT, AI, and automation. These smart factories contribute to heightened operational efficiency, real-time monitoring, and predictive maintenance, resulting in streamlined production processes and optimized resource utilization. This transformation has substantially elevated safety standards, minimized downtime, and boosted overall productivity within the metal and mining industry. The ongoing integration of smart technologies remains a key driver of innovation and competitiveness, heralding a significant departure from conventional industry practices.
Medical devices is expected to register highest CAGR during the forecast period
The medical devices sector is experiencing substantial growth in smart factory adoption. Integration of advanced automation, IoT connectivity, and data analytics enhances operational efficiency and precision in manufacturing. Smart factories optimize production processes, minimize errors, and ensure stringent quality control, resulting in heightened production speed and cost reduction. Real-time monitoring capabilities further revolutionize the medical device manufacturing landscape, fostering innovation and boosting competitiveness within the industry.
Asia Pacific to hold largest market share in the year 2023
The smart factory industry in the Asia-Pacific region is experiencing robust growth, driven by increasing industrial automation and adoption of advanced technologies. Factors such as the demand for improved efficiency, rising investments in Industry 4.0, and government initiatives promoting smart manufacturing contribute to the sector's expansion. The integration of technologies like IoT, AI, and robotics further accelerates the smart factory market's evolution, positioning the Asia-Pacific region as a key player in the global smart manufacturing landscape.
Smart Factory Market by Region
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Top Companies Smart Factory Market - Key Market Players
The Smart factory companies players have implemented various organic and inorganic growth strategies, such as product launches, collaborations, partnerships, and acquisitions, to strengthen their offerings in the market. The major players in the market are
- ABB (Switzerland), Emerson Electric Co. (US),
- Siemens (Germany),
- Schneider Electric (France),
- Mitsubishi Electric Corporation (Japan),
- General Electric (US),
- Rockwell Automation, Inc. (US),
- Honeywell International Inc. (US),
- Yokogawa Electric Corporation (Japan),
- OMRON Corporation (Japan),
- Endress+Hauser (Switzerland),
- FANUC Corporation (Japan),
- WIKA (Germany),
- Dwyer Instruments, LLC. (US),
- Stratasys (US),
- 3D Systems Corporation (US)
The study includes an in-depth competitive analysis of these key players in the Smart factory market with their company profiles, recent developments, and key market strategies.
Scope of the Smart Factory Market Report
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Report Metric |
Details |
| Estimated Market Size | USD 100.6 billion in 2024 |
| Projected Market Size | USD 164.0 billion by 2029 |
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Market Growth Rate
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CAGR of 10.3% |
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Years Considered |
2020–2029 |
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Base Year Considered |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD Million/Billion) |
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Segments Covered |
By Component, By Solution By Process Industry, By Discrete Industry and By Region |
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Regions Covered |
North America, Asia Pacific, Europe, and the Rest of the World |
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Companies Covered |
ABB (Switzerland), Emerson Electric Co. (US), Siemens (Germany), Schneider Electric (France), Mitsubishi Electric Corporation (Japan), General Electric (US), Rockwell Automation, Inc. (US), Honeywell International Inc. (US), Yokogawa Electric Corporation (Japan), OMRON Corporation (Japan), Endress+Hauser (Switzerland), FANUC Corporation (Japan), WIKA (Germany), Dwyer Instruments, LLC. (US), Stratasys (US), 3D Systems Corporation (US) and a total of 25 players covered |
Smart Factory Market Highlights
This report has segmented the Smart factory market based on Component, Solution and Process Industry, Discrete Industry and Region.
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Segment |
Subsegment |
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By Components |
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By Solution |
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By Process Industry |
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By Discrete Industry |
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By Region |
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Recent Developments:
- In December 2023, Mitsubishi Electric India has unveiled a cutting-edge smart manufacturing facility for advanced Factory Automation Systems in Talegaon Industrial area, Maharashtra, India. This facility adheres to top industry standards, ensuring the production of high-quality and reliable products.
- In November 2022, ABB Measurement & Analytics inaugurated its first smart instrumentation facility in Bangalore, India, supporting the region's goal of becoming a global manufacturing hub. Equipped with advanced technology, it aligns with the "Make in India" program, fostering efficient and sustainable customer operations.
- In May 2022 Stratasys Ltd., a frontrunner in polymer 3D printing solutions, has unveiled an array of new manufacturing materials spanning three distinct 3D printing technologies. Notably, this release includes third-party materials specifically tailored for FDM® 3D printers, marking a significant milestone. With the introduction of 16 new materials, Stratasys significantly broadens its capabilities, enabling diverse applications in a wide range of manufacturing environments.
Frequently Asked Questions:
What will the size of the smart factory market be in 2024?
The Smart factory market will be valued at USD 100.6 billion in 2024.
What CAGR will be recorded for the Smart factory market from 2024 to 2029?
The global smart factory market is expected to record a CAGR of 10.3 % from 2024 to 2029.
Who are the top players in the Smart factory market?
The significant vendors operating in the Smart factory market include ABB (Switzerland), Emerson Electric Co. (US), Siemens (Germany), Schneider Electric (France), Mitsubishi Electric Corporation (Japan), General Electric (US), Rockwell Automation, Inc. (US), Honeywell International Inc. (US), Yokogawa Electric Corporation (Japan), OMRON Corporation (Japan), Endress+Hauser (Switzerland), FANUC Corporation (Japan), WIKA (Germany), Dwyer Instruments, LLC. (US), Stratasys (US), 3D Systems Corporation (US) and among others.
Which significant countries are considered in the Asia Pacific region?
The report includes an analysis of China, Japan, India, and the rest of the Asia Pacific region.
Which Components have been considered in the Smart factory market?
Industrial Sensors, Industrial Robots, Industrial 3D Printing, and Machine Vision are considered in the market study.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involves four significant activities for estimating the size of the Smart factory market. Exhaustive secondary research has been conducted to collect information related to the market. The next step is to validate these findings and assumptions related to the market size with industry experts across the value chain through primary research. Both top-down and bottom-up approaches have been employed to estimate the overall size of the Smart factory market. After that, market breakdown and data triangulation procedures were used to determine the extent of different segments and subsegments of the market.
Secondary Research
Secondary sources for this research study included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications, articles by recognized authors; directories; and databases. The secondary data has been collected and analyzed to determine the overall market size, further validated through primary research.
Primary Research
Extensive primary research has been conducted after gaining knowledge about the current scenario of the Smart factory market through secondary research. Several primary interviews have been conducted with experts from the supply and demand sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data has been collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, top-down and bottom-up approaches and several data triangulation methods have been implemented to estimate and validate the size of the Smart factory market and other dependent submarkets listed in this report.
- The key players in the industry and markets have been identified through extensive secondary research.
- The supply chain of the industry and the market size, in terms of value, have been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Smart Factory Market: Bottom-Up Approach
- The bottom-up approach was used to arrive at the overall size of the Smart factory market from the revenue of key players and their market share.
- Identifying various industries using or expected to deploy Smart factory by its component & Solution at their facilities.
- Analyzing the use cases across different regions and companies.
- Estimating the size of the Smart factory market on the basis of the demand from these industries and companies
- Tracking the ongoing and upcoming installation contracts, acquisitions, expansions, and product launches by various companies, and forecasting the market based on these developments and other critical parameters.
- Conducting multiple discussions with key opinion leaders to understand Smart factory component by companies in these industries to analyze the break-up of the scope of work carried out by each major company providing Smart factory components.
- Arriving at the market estimates by analyzing the country-wise sales of Smart factory solutions companies and combining this data to get the regional market estimates.
- Verifying and crosschecking the estimates at every level through discussions with key opinion leaders, including CEOs, directors, operations managers, and domain experts at MarketsandMarkets
- Studying various paid and unpaid information sources, such as annual reports, press releases, and white papers.
Smart Factory Market: Top-Down Approach
- In the top-down approach, the overall market size has been used to estimate the size of the individual markets (mentioned in the market segmentation) through percentage splits obtained from secondary and primary research.
- For calculating the Smart factory market segments, the market size obtained by implementing the bottom-up approach has been used to implement the top-down approach, which was later confirmed with the primary respondents across different regions.
- The bottom-up approach has also been implemented for the data extracted from secondary research to validate the market size of various segments.
- Each company’s market share has been estimated to verify the revenue shares used earlier in the bottom-up approach. With the help of data triangulation and validation of data through primary, the size of the overall Smart factory and each market have been determined and confirmed in this study.
Data Triangulation
After arriving at the overall market size, the total market has been split into several segments. The market breakdown and data triangulation procedures have been employed wherever applicable to complete the overall market engineering process and arrive at exact statistics for all segments. The data was then triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Market Definition
A smart factory epitomizes a profoundly digital and interconnected production system. It possesses the capability to self-optimize performance within an expansive network, adapt autonomously to real-time shifts in production conditions, and independently oversee the entire production system. Its primary strength lies in its adaptability to the evolving organizational requirements. By employing a network to link virtual and physical facets of the production process, a smart factory creates an autonomous manufacturing environment. This environment adeptly manages real-time production challenges through fragmented information and communication structures, ensuring optimal control of production processes.. The key players operating in this market are ABB (Switzerland), Emerson Electric Co. (US), FANUC Corporation(Japan), General Electric (US), Honeywell International Inc (US), Mitsubishi Electric Corporation (Japan), Rockwell Automation Inc (US), Schneider Electric (France), Siemens AG (Germany), and Yokogawa Electric Corporation(Japan).
Key Stakeholders
- Original equipment manufacturers (OEMs)
- Providers of technology solutions
- Research institutes
- Market research and consulting firms
- Forums, alliances, and associations related to Smart factory
- Technology investors
- Governments and financial institutions
- Analysts and strategic business planners
- Existing end users and prospective ones
Report Objectives:
- To describe and forecast the Smart factory market in terms of value based on Component, Solution, Process Industry, and Discrete Industry
- To describe and forecast the Smart factory market size in terms of value for four main regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the Smart factory market
- To provide a detailed overview of the supply chain of the ecosystem
- To analyze opportunities in the market for various stakeholders by identifying the high-growth segments of the market
- To analyze the probable impact of the recession on the market in the future
- To benchmark the market players using the proprietary company evaluation matrix framework, which analyzes the market players on various parameters within the broad categories of market ranking/share and product portfolio.
- To analyze competitive developments such as acquisitions, product launches, partnerships, expansions, and collaborations undertaken in the Smart factory market
Available Customization:
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for this report:
- Company Information: Detailed analysis and profiling of additional five market players
Generating Response ...
Growth opportunities and latent adjacency in Smart Factory Market
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