by Brianna Crandall — May 29, 2017 — According to a new market research report on the Industry 4.0 phenomenon from MarketsandMarkets that reflects trends in smart buildings, the increasing adoption of the industrial Internet and increased focus on efficiency and cost of production are the major drivers for the Industry 4.0 market. Industry 4.0 is explained as the fourth industrial revolution: the growing trend of automation and data exchange in manufacturing technologies. Components include cyber-physical systems, the Internet of Things (IoT) and cloud computing, working together to create so-called “smart factories.”
According to the report, Industry 4.0 Market by Technology (Industrial Robotics, Cyber Security, Internet of Things, 3D Printing, Advanced Human-Machine Interface, Big Data, Augmented Reality & Virtual Reality, Artificial Intelligence), Vertical, Region — Global Forecast to 2022, the market was valued at USD66.67 billion in 2016 and is expected to reach $152.31 billion by 2022, at a compound annual growth rate (CAGR) of 14.72% between 2017 and 2022.
Industrial robotics to be the largest segment of the Industry 4.0 market
Industrial robotics forms an important part of implementing Industry 4.0, as it improves productivity, reduces chances of human errors, and increase the production volume. The industrial robotics market was valued at $41.75 billion in 2016 and is expected to reach $81.47 billion by 2022, at a CAGR of 11.70% during the forecast period.
Growing demand for vehicles, especially from developing countries, has encouraged automotive manufacturers and OEMs to opt for automation to increase production volume and meet market demand. This has contributed to the high demand for industrial robotics systems from this vertical. For example, in April 2017, Tesla received a huge shipment of robots for its production line at its Fremont factory, Kuka AG (Germany).
Market for industrial equipment vertical to grow at the highest rate
Industrial equipment manufacturing comprises the production of various kinds of machinery used in defense, construction, or manufacturing applications. Some important processes for manufacturing these devices are stamping, bending, forming, and machining, which are required to shape the individual pieces of metals. The market for industrial equipment vertical is expected to be valued at $22.79 billion by 2022, growing at the highest CAGR of 18.45% during the forecast period.
The implementation of Industry 4.0 in this sector can help manufacturers in analyzing the machine conditions in advance to avoid unplanned downtime and wastage. Machine breakdown and unplanned downtime cause huge loss to industrial equipment manufacturers as they delay the production process. Thus, a need for preventive maintenance solutions is increasing significantly in this vertical. Industry 4.0 solutions offer predictive maintenance capabilities, which help this industry to save up to 50 percent on their maintenance cost.
Asia Pacific to hold the major share of the Industry 4.0 market
Asia Pacific (APAC), comprising India, China, Japan, and rest of the Asia-Pacific region, holds the largest share of the Industry 4.0 market. The APAC market for Industry 4.0 is expected to witness the highest growth during the forecast period of 2017-2022. The major contributors to the Asia-Pacific market are Japan and China. China has a huge potential in terms of Industry 4.0 applications and is also the fastest-growing market in Asia Pacific. Higher adoption of robotics in countries such as China, Japan, and South Korea is the major factor for larger shares in the Industry 4.0 market. The low cost of production enabling various manufacturers to set up manufacturing facilities is the key driver for the robotics market in APAC.
The major players in the Industry 4.0 market are General Electric Company (USA), International Business Machines Corporation (USA), Cisco Systems (USA), Microsoft Corporation (USA), Stratasys Ltd. (USA), Alphabet Inc. (USA), ABB Ltd. (Switzerland), Mitsubishi Electric Corporation (Japan), Intel Corporation (USA), Hewlett-Packard Enterprise Company (USA), Siemens AG (Germany), Qualcomm Inc. (USA), Samsung Electronics Co. Ltd. (South Korea), Texas Instruments Inc. (USA), Rockwell Automation Inc. (USA), 3D Systems Corporation (USA), Cognex Corporation (USA), Basler AG (Germany), and Denso Group (Japan).
The 224-page report, Industry 4.0 Market by Technology (Industrial Robotics, Cyber Security, Internet of Things, 3D Printing, Advanced Human-Machine Interface, Big Data, Augmented Reality & Virtual Reality, Artificial Intelligence), Vertical, Region — Global Forecast to 2022, is available for purchase from the MarketsandMarkets Web site. Early buyers will receive 10% customization on reports, says the firm.