Advancements in technology are expected to have positive influence on the industrial automation. Smart factory comes across as an affordable and integrated solution for factory automation. It helps streamlining the material flow with help of the manufacturing facilities. It will illuminate the quality of the factory work, while reduce the time and cost spent on all the production operations. Smart factory technology is boasted to be the future of industrial automation in true sense of the words. The budding smart factory market is growing at a rapid rate in both developed and emerging markets, which is a great sign. The industry is expected to maintain an impressive pace for the near future, creating greater business opportunities and revenue channel in its way.
Smart Factory and Your Business
Factories of the future are expected to be the pinnacle of manufacturing and technological developments. This hope is also working as the motivation for the smart factory industry, which is loaded with opportunities and expectations from future. Industry experts claim smart factory to be the next big thing in the current industrial revolution of the world. This technology offers factory specification techniques and manufacturing execution system or MES. It also enables problem visibility and helps deliver factory reports and dashboards. All these activities improve decision making abilities and provide better inventory control. Owing to all these factors, smart factory technology is also referred as the fourth industrial revolution and ‘industry 4.0’.
Segments and Sub-Segments
Smart factory market has been segmented on the basis of the field devices, smart market technologies, their applications and demand patterns based on different geographical locations. Based on geography, the industry is segmented into Americas, Asia Pacific, Europe and rest of the world.
- Based on Technology: The basic segments include Industrial Control System (ICS), Enterprise Resource Planning (ERP), Information Technology Systems (ITS) and Manufacturing Execution Systems (MES). These segments are further divided into various sub-segments.
- Based on Devices: RFID systems, control devices, industrial network and industrial robotics. These field devices are sub-segmented further into switches, sensors, chip based devices, relays, wired and wireless networks and various types of industrial robots.
- Based on Applications: Process industry and discrete industry are the two basic types of application areas for smart factory market. these are further sub-segmented into automotive, transportation, pharmaceuticals, mining, packaging, minerals, metals and others.
Drivers and Forecasting
Global smart factory market is expected to become worth $246.03 billion by 2018. The market is expected to grow at an estimated CAGR of over 8% from 2013 to 2018. The MES segment is expected to maintain the highest compound annual growth rate in the forecasting period. ICS on the other hand is expected to be the largest segment based on revenue. Thanks to increasing demand and business opportunities in North America and especially U.S., Americas as expected to lead the smart factory industry based on geographical locations. However, rapid growth in the Asia Pacific market is poised to make greater impact on the global market. Growing markets in China and Korea are expected to grow at the highest CAGR. These are positive sign for the global market, which is currently in its budding stage.