Smart Factory Market Size, Industry Analysis Report By Components (Software, Hardware, Service), By Connectivity (Wired connectivity, Wireless connectivity), By Industry Vertical (Electronics and semiconductor, Aerospace and defense, Automotive, Oil and gas, Chemicals , Healthcare and pharmaceuticals) & Region – Forecasts

  • 31/10/2022
  • 226
  • Information Communication & Technology
Smart Factory Market: Overview
The smart Factory Market size was valued at USD 289.55 Billion in 2022 and is projected to reach USD 842.45 Billion by 2028, growing at a CAGR of 12.55 % over the forecast period. A highly networked and digital production facility that relies on smart manufacturing is referred to as a ""smart factory."" The idea of the ""smart factory"" is seen as a key result of Industry 4.0, or the fourth technological revolution. The majority of smart factories are being adopted by the manufacturing industry, which uses cutting-edge technology like robotics, big data analytics, artificial intelligence, as well as the Internet of Things. These factories have the capacity to self-correct and operate autonomously on a big scale. An intelligent factory delivers connectivity, autonomy, & visibility. Although businesses have already used automation, smart factories go one step further and operate automatically. Smart factories are more adaptable than their predecessors because they embrace contemporary technology, which allows them to learn and change in real time.

Smart Factory Market - Growth Factors
Digital technologies provide several advantages, including automated processes, predictive maintenance, self-optimization of operational efficiencies, and—most importantly—a new level of efficiency and customer response. The manufacturing sector has a fantastic potential to join the fourth industrial revolution by developing smart factories. Real-time visibility of production assets is ensured by the analysis of enormous volumes of big data gathered from industrial sensors, which can also offer tools for undertaking preventative maintenance to minimize downtime. High-tech IoT-enabled smart factories have improved productivity and better product quality. Manufacturing errors are decreased, money is saved, and time is saved by replacing manual inspection business models with AI-powered visual insights. Additionally, increasing focus on energy absorption, manufacturing effectiveness, and expanding use of an established base for manufacturing are major aspects projected to support the growth of the smart factory market. Further factors that are anticipated to favorably impact the growth of the smart factory market during the forecast period include the industry's focus on the cyber world, in which every component of the value chain would be linked to ensure informed manufacturing with no time lags and zero defects.

Smart Factory Market – Market Trends
• Major players in the industry have been using various organic as well as inorganic growth strategies such as mergers & acquisitions, new product launches, expansions, agreements, joint ventures, partnerships, and others to increase their footprints in this market.
• The smart factory is a new stage of industrial transformation and upgrading
• The development trend of the smart factory will drive the market growth
• The smart factory will boost the development of artificial intelligence and promote the growth of IoT technology

Smart Factory Market – Segmentation
Based on Components, the market is segregated into
• Software
• Hardware
• Service

Based on Connectivity, the market is categorized into
• Wired connectivity
• Wireless connectivity

Based on Industry Vertical, the market is divided into
• Electronics and semiconductor
• Aerospace and defense
• Automotive
• Oil and gas
• Chemicals
• Healthcare and pharmaceuticals
• Others.

Smart Factory Market –Regional Analysis
The tight government administrations and the advancement of the industrial sector are the factors that are projected to further accelerate the expansion of the smart factory market in the region during the projected timeframe, and Asia Pacific is predicted to have considerable growth in this market. On the other hand, due to the presence of multinational firms investing in the research and development of industrial technologies, industrial Internet of Things (IoT), as well as cloud technology, North America currently holds a dominant position in the global market for smart factories.

Smart Factory Market – Key Market players
The major players in the market are: ABB, Siemens, General Electric, Rockwell Automation, Inc., Schneider Electric, Honeywell International Inc., Emerson Electric, Fanuc, and others.

Report scope
Global Smart Factory Market: Historical Years- 2018-2021
Global Smart Factory Market: Forecast Years- 2022-2030
Global Smart Factory Market 2022- USD 289.55 Billion
Global Smart Factory Market CAGR- 12.55%

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Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).


The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.

Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.


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