Skip to main content

Digital Factory Investment will Reach $673 Billion

The manufacturing sector will undergo a transformation as new technologies enable innovative factory automation solutions. The 'Digital Factory' market will grow at a compound annual growth rate of 33 percent to reach $673 billion in 2026, according to the latest worldwide market study by ABI Research.

These new technology investments include the actual hardware for entire industrial robots, collaborative robots, connected PLCs, intelligent industrial battery management systems, electric motors, pumps, tank management systems and smart glasses.

Digital Factory Market Development

It also includes data and analytics service, device and app platform, device interconnections, network service, professional service and security service revenues for all the above applications plus asset tracking and other equipment monitoring.

Of these applications, only asset tracking solutions include connections both on and off the factory floor.

“Currently, most manufacturing equipment still communicates in proprietary protocols and connecting it in a cost-efficient way without too much custom code often requires the expertise of Industrial Internet of Things (IIoT) integration specialists such as Telit or PTC Kepware,” said Pierce Owen, principal analyst at ABI Research.

For new factories, ABI analysts have started to see how telecom service providers and network infrastructure vendors can deploy private LTE, but so far, it only works if the plant owner has the negotiating power to demand cellular connected equipment from all its suppliers.

According to the ABI assessment, these early deployments could build trust and open new opportunities for wireless cellular technology in factories.

The automotive industry leads the way in the adoption of most digital factory technology technologies and represents the largest opportunity globally with $139 billion in digital factory revenues forecast for 2030, but this does vary somewhat country to country.

For instance, by the end of 2022, digital factory revenues in electronics manufacturing will overtake those in the automotive industry in South Korea, the fifth largest 'Smart Manufacturing' market.

Outlook for Industry Transformation Applications

“The automotive industry has demonstrated a willingness to scale transformative technologies ranging from generative design and additive manufacturing to IIoT connectivity and robotics of all kinds more than any other industry, but other industries will start to catch up over the next decade,” Owen concluded.

The companies that follow automotive OEMs’ lead first and scale technologies with proven value will gain a competitive advantage. Likewise, vendors that not only compete at the highest level in automotive but also continuously pursue new types of customers in other industries will build sustainable relationships and advantages across the sector.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es