Market Overview
The global smart factory market size was valued at USD 209.96 Billion in 2024 and is projected to reach USD 452.54 Billion by 2033, exhibiting a CAGR of 8.82% during the forecast period from 2025 to 2033. Asia Pacific dominates the market with a 45.5% share in 2024. Market growth is driven by rising industrial automation, adoption of Industrial Internet of Things (IIoT), connected devices integration with AI, cloud computing, and IoT.
Study Assumption Years
Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033
Smart Factory Market Key Takeaways
The global smart factory market size was USD 209.96 Billion in 2024.
The market is expected to reach USD 452.54 Billion by 2033.
CAGR during 2025-2033 is 8.82%.
Asia Pacific holds over 45.5% market share in 2024.
The increasing adoption of refurbished industrial robots and RFID systems is propelling market growth.
Industrial robots hold approximately 35.3% market share in 2024.
Automotive and transportation segment leads with around 25.4% market share in 2024.
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Market Growth Factors
The smart factory market is propelled by a growing need for operational efficiency and cost reduction in manufacturing. The rising adoption of Industrial Internet of Things (IIoT) technologies enables real-time monitoring, data-driven decision-making, and predictive maintenance, bolstering market expansion. For example, LG Electronics accelerated its smart factory business by integrating AI and Digital Twin technologies, targeting growth in semiconductors and pharmaceuticals by 2030.
Another key growth driver is the adoption of Industrial Internet of Things (IIoT), which enables connectivity of devices, sensors, and machines in real-time. This connectivity improves operational efficiency through predictive maintenance and reduced downtime. Huawei Technologies highlights that 5G wireless technology could fuel smart factory growth valued over USD 740 billion by 2030, supporting critical IIoT applications.
Sustainability and environmental responsibility also play a role in market growth. Smart factories optimize energy efficiency, minimize waste, and reduce greenhouse gas emissions by leveraging IoT, AI, and data analytics. Emerson's integration of renewable energy capabilities with its automation platform exemplifies this trend, enabling green energy management and remote operations. Predictive maintenance in smart factories further supports sustainable manufacturing by extending equipment life and reducing emergency repairs.
Market Segmentation
By Field Devices:
Industrial Robots: Dominating with around 35.3% market share in 2024, these robots transform manufacturing by integrating automation, AI, and connectivity, leading to higher productivity, precision, and safety.
By Technology:
Distributed Control Systems (DCS): Leading with approximately 23.8% market share in 2024, DCS offers decentralized control of complex processes, scalability, real-time monitoring, and integration with IoT, AI, and cloud computing.
By End Use Industry:
Automotive and Transportation: Holding around 25.4% market share in 2024, this segment adopts smart factory technologies to enhance production efficiency, supply chain management, and supports electric and autonomous vehicle manufacturing.
Regional Insights
Asia Pacific is the dominant region, accounting for over 45.5% of the smart factory market share in 2024. The dominance is attributed to a strong manufacturing base, established industries like automotive and electronics, government initiatives promoting industrial automation, investments in R&D, and availability of advanced technologies such as AI, robotics, and IoT. These favorable factors drive robust market growth in the region.
Recent Developments & News
November 2024: Schneider Electric launched a smart factory in Dunavecse, Hungary, spanning 28,000 m², aiming to increase production capacity by 90% for engineering-to-order solutions exported throughout Europe.
October 2024: ABB Ltd. revealed a new brand positioning "Engineered to Outrun" focusing on accelerating electrification and automation for digital transformation leadership.
October 2024: Mitsubishi Electric Corporation plans an USD 86 Billion investment in its U.S. subsidiary to enhance advanced switchgear and power electronics capabilities amid the renewable energy focus.
2021: Dassault Systèmes partnered with Capgemini to accelerate digital transformation in manufacturing via combined platform solutions.
2021: Emerson Electric Co. launched the Plantweb Optics platform integrating analytics, digital twins, and IIoT for real-time industrial process optimization.
2019: ABB Ltd. collaborated with Ericsson to develop wireless automation solutions utilizing 5G technology.
Key Players
ABB Ltd
Dassault Systèmes
Emerson Electric Co.
General Electric Company
Honeywell International Inc.
Johnson Controls International
Microsoft Corporation
Mitsubishi Electric Corporation
Robert Bosch GmbH
Schneider Electric SE
Siemens AG
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