Smart factory market to reach almost $400 billion by 2033

The smart factory market is expected to increase to $388.7 billion by 2033 as smart technologies become more common.

By Future Market Insights July 7, 2023
Courtesy: Cincinnati Incorporated/Steve Rourke, CFE Media and Technology

Smart factory insights

  • The smart factory market is expected to reach almost $400 billion by 2033 as acceptance of smart technologies continue to grow throughout manufacturing and other industries.
  • Double-digit compound annual growth rate (CAGR) is expected in many areas including the United States.

The smart factory market is expected to increase in size from $140.7 billion in 2023 to $388.7 billion by 2033 and is anticipated to climb at a compound annual growth rate (CAGR) of 10.7% throughout the projected period.

Owing to the increased acceptance of intelligence technologies across a variety of industries, smart factories have become increasingly popular in recent years. During the forecast period, the manufacturing sector’s increased use of technology is anticipated to enhance the market for smart factories.

Moreover, the rising industrial robot adoption and the development of the Internet of Things are also expected to push market expansion. The emergence of Industry 4.0 and the usage of intelligent devices to carry out repetitive and tiresome tasks will enhance the development prospects for the market for smart factories.

The Internet of Things (IoT), machine learning (ML), artificial intelligence (AI), and other technologies will all contribute to the market for smart factories growing more quickly. In such developments, collaborations and research and development efforts will contribute to accelerating the market growth for smart factories.

Industrial automation solutions are offered by several organizations for various processes and distinct sectors. Utilization of high-tech equipment and tools has increased, highlighting both production and technical advancements.

An environmentally friendly, energy-efficient, and smart factory helps increase efficient output. As a result, throughout the projection period, the accompanying advantages are anticipated to encourage businesses to use smart manufacturing approaches.

North America is likely to lead the smart factory market over the forecast period. This rise can be linked to an increase in government initiatives for IoT technology development. Moreover, there is a growing focus on boosting manufacturing output in nations like the U.S. and Canada.

Recent market developments

  • In March 2022, Emerson Electric Company with MT Connect has updated the industrial control platform Movicon.NExT 4.1.33. It has the potential to boost productivity while reducing downtime and improving efficiency.
  • In October 2020, together with Microsoft, Rockwell Automation created market-ready, integrated solutions that support industrial clients in becoming more digitally agile. The two companies will work together for five years to create cutting-edge edge-to-cloud solutions that combine data from the development, operations, and maintenance teams through a single trusted data environment.

Future Market Insights is a CFE Media and Technology content partner.