Smart manufacturing has many economic and social benefits, but most companies are hesitant to move from traditional manufacturing to smart manufacturing mainly due to the high investment cost required in the implementation, which resulted in a sluggish growth in the market. However, the smart factory market was valued at US 51.9 Bn in 2014 and is expected to register a CAGR of 9.3% from 2017 to 2022, reaching US205.42 Bn in 2022. Looking at its market structure, the smart factory market can be segmented into system connection, data collection, data analysis and remote control, with the data analysis segment growing at a 15.2 % CAGR. In terms of market revenue, the remote control segment, particularly in supervisory control and data acquisition (SCADA) is dominating the overall market. On the basis of manufacturing vertical, the smart factory market in Asia is top by automotive and transportation sectors, and with Asian manufacturers continuing to invest in automation and acquire IoT technologies, Asian manufacturing is expected to lead the market through 2025. On the other hand, Asia is set to dominate the global smart manufacturing sector with 39% of market share but the Middle East and Africa are on the rise with rapid developments in infrastructures.
Benefits of AI in manufacturing
IoT integrating with artificial intelligence and big data have brought intelligence into manufacturing equipment and enabled manufacturers to efficiently produce a range of diverse and small amounts of products, an increasing type of manufacturing demand. Shortage of staff and advancement in technology have pushed manufacturing and precision machinery industries in Asia to adopt a new technology mindset to accelerate development of factory automation. Big data analytics is now used to reduce manufacturing error and provide an early and predictive warning of equipment malfunction and product defects detections. By using advanced analytics to access and evaluate the historical data, operations managers can easily control production efficiency, product quality and personnel safety all at once. Moreover, integration of IoT and artificial intelligence has enabled a machine to understand the surroundings and make rational decisions for upgrading production processes by equipping it with learning mechanism. With AI, a machine will have the ability to learn and improve from experience, retaining only the useful knowledge and skills for optimizing production efficiency, enhancing man-machine cooperation, and overcoming staff shortage.
Smart factory pavilion at Secutech 2018
IoT and artificial intelligence are inevitably the trends in smart factories. Catch the wave of smart manufacturing at Smart Factory Pavilion, featuring technologies and products like video based analysis, machine vision, heat map visualization, robotics, environmental monitoring system, RFID logistics system, LPWAN enabled system, big data analytics platform and more for improving factory safety and automation management. Register today