With the ongoing fourth industrial revolution, the need for automation and digital industrial technologies in manufacturing processes has escalated drastically. More connected machines and automated solutions are required both in hardware and software sides that laid the foundation of the smart factory and manufacturing industry.
Presently, the smart factory and manufacturing market are witnessing a high growth rate owing to the rising trends of new digital industrial technologies and the growing need for improved productivity, speed, and efficiency. Furthermore, recent innovations and government funding in industrial IoT and connected environments have enabled the solution providers to reach a wider segment of consumers in the industry.
However, the reluctance to adopt this emerging technology solution by SMEs due to high initial deployment cost and integration with traditional current systems contributes to major challenges for market growth. Additionally, increasing competition among the companies in the near future as well as increasing the utilization of automation solutions for varied end-users such as automotive, oil & gas, food & beverages, fast-moving consumer goods (FMCG), pharmaceuticals, and others.
A significant number of new players have emerged in the market that provides advanced cloud robotics platforms for different industries and applications. Several leading companies, such as ABB Ltd., Siemens AG, Emerson Electric, and Honeywell, have adopted inorganic growth strategies such as mergers and acquisitions to strengthen their product portfolios. With the ongoing efforts of industry players to develop high-end solutions for different end-users, the global smart factory and manufacturing market are anticipated to grow at an exponential rate in the next five years (2020-2025).
According to the market study by BIS Research, the global Smart Factory and Manufacturing Market generated overall revenue of $64.64 billion in 2019 and is projected to reach the mark of $105.12 billion by 2025. During the forecast period 2020-2025, the market shows a remarkable CAGR of 8.71%, while providing ample opportunities for market players and new entrants.
Market Segmentation
Market Outlook by Solution
Based on the type of solution, the hardware solution segment is expected to gather the largest market share during the forecast period. Due to the wide array of adoption of hardware segments for industrial robots and IIoT sensors and the high cost of devices associated with them, this market segment gathered a share of 57% of the overall market in 2019. Major companies such as ABB Ltd., Honey Well, Schneider Electric, Siemens AG, Rockwell Automation, and Emerson Electric CO are efficiently developing smart factories and manufacturing hardware solutions widely utilized in different manufacturing industries.
Market Segmentation by End-User
Industrial automation software has many potential applications across several domains, namely, automotive, oil & gas, pharmaceuticals, metal and machining, food & beverages, and FMCG. In 2019, the automotive segment held the largest market share, with 25% of the overall market size. However, the pharmaceutical industry is estimated to register the highest growth rate during the forecast period 2020-2025, due to the increasing adoption of smart factory solutions by new startups and SMEs in the industry, that would result in increased production capacity for medical supplies.
Market Segmentation by Region
In 2019, the Asia-Pacific region held the highest market share in the overall smart factory and manufacturing market, followed by Europe and North America. This market growth is mainly due to the increasing adoption of automation solutions in APAC countries such as China, Japan, and South Korea. During the forecast period 2020-2025, the Asia-Pacific region is expected to witness the highest growth rate of 9.26% and generate $65.65 billion by 2025.
Request Sample – https://bisresearch.com/requestsample?id=905&type=download
Key Questions Answered in this Report :
- What was the revenue generated by different solutions including hardware and software in the global smart factory and manufacturing market in 2019, and what are the estimates for the forecast period 2020-2025?
- What is the revenue generated by different end users in the smart factory and manufacturing market?
- What is the revenue generated by different regions such as North America, Europe, Asia-Pacific, and Rest-of-the-World (RoW)?
- Which are the key companies operating in the smart factory and manufacturing market?
- Which global factors are expected to impact the smart factory and manufacturing market?
- What are the key market strategies adopted by the smart factory and manufacturing market players?
BIS Research Offerings – https://bisresearch.com/our-offerings/subscriptions
You May Also Like –
Mobile Robot Market – Size, Share, Analysis, Growth, Trends, Industry Report 2020-2025
0
