Future of Factories

Factories in and after 2030 will undergo profound transformation primarily based on technological innovation and changed circumstances in markets. Factories will rely more on smart manufacturing, accepting artificial intelligence, IoT, 5G & 6G, and advanced automation to create connected systems to optimize production efficiency and the quality of their products. These smart factories will use real-time analytics of big data to make decisions that quickly adapt manufacturing flows and become more responsive to the changed consumer demand for customization and faster delivery. Integrating these technologies will help the factories optimize operations and make factories more sustainable and resilient. As we look beyond 2030, the future of factories will be more automated, customizable, and more focused on sustainability.

Source: Secondary Literature and MarketsandMarkets Analysis

Source: Secondary Literature and MarketsandMarkets Analysis

Key factors and technology driving the Future of Factories Market

Collaborative robots are driving the future of flexible and efficient factories

Collaborative robots, also known as cobots, are revolutionizing the future of factories as they enhance human and robot cooperation, leading to increased output and handling of the scarcity of human labor. Because of their small size, low relative weight, and minimal programming needs for complex operations, they are easily adaptable and relatively inexpensive for a number of fields such as automotive, electronics, and pharmaceuticals. Cobots function well in material, assembly, quality inspection, welding, and packaging while outperforming flexible robots. For instance, Nissan installs UR10 cobots to change the orientations of engine models, while Comprehensive Logistics improves the quality of their engines by using cobots to check and evaluate them. Cobots are transforming the factories into more amorphous and effective production facilities for advanced manufacturing and industrial development by improving performance, maintaining accuracy, and minimizing downtime.

Impact of AI on Enhancing Factory Efficiency and Resilience

AI is rapidly becoming a popular and standard aspect that enhances efficiency in the manufacturing compartment without much human interference. As per the analysis, ~39% of manufacturers today are already using AI, and the leaders are industries such as machinery and aircraft components. Big investments from firms such as Cisco, which has pledged USD 1 billion; Microsoft, which has USD 3.3 billion; and partnerships, such as NVIDIA-Foxconn, are making this change. They are laying down requirements for nurturing complex AI-based solutions that can improve production performance, product quality, and predictive maintenance. Doing so has improved current manufacturing processes and enabled current and future dynamic and sustainable factories.

The rise of micro-factories unlocking opportunities for localized production

Micro-factories are currently being adopted as a strategic innovation that defines factories. These define small and medium production modes that apply smart technologies, including AI, automation, and machine learning, which are proven more efficient, cost-saving, and flexible than typical production methods. Such ideas are already in practice today – Arrival has tiny micro-factories where electric vehicles are assembled, and GE Appliances constantly uses small-batch production to test certain appliances and quickly bring them to the market. In 2023, micro-factories will contribute to roughly 15% of gross manufacturing capability, and in 2030. Micro-factories correct inefficiencies of traditional manufacturing while providing localized production, reducing costs, and speeding up product development, not only revolutionizing the current manufacturing industry but also fueling economic development and transformation of the global manufacturing system.

Additive manufacturing is transforming factory production for a faster, more efficient future

3D printing or additive manufacturing rapidly reshapes factories through effective, efficient, and inexpensive processes. The aerospace, healthcare, and automobile sectors are pioneers, with prominent players such as GE Aerospace and Bentley Motors investing in 3D printing for advancement and reliability. By 2030, most commercial and industrial 3D printers will feature integrated AI, enabling them to detect maintenance issues and adjust prints for specific requirements autonomously. In addition, small-scale 3D printing services will emerge and provide various solutions to consumers. These are some of the advances of additive manufacturing, which will revolutionize manufacturing and provide a scale that will create opportunities for smart factories.

5G and 6G are key to unlocking new possibilities and enhancing the future of factories

The manufacturing industry nowadays depends heavily on advanced technologies such as robots, IoT devices, and digital twins, and all these are made possible by 5G. According to the research, it aids in addressing labor deficits, with a projected more than ~2.0 million workers in 2030. In the future, 6G will build upon this even further. The next generation, 6G, is predicted to emerge around 2030, 100 times faster, even if it can reach a chip of 1 terabit per second. This will create opportunities for industries. Manufacturing organizations and other industrial organizations are already looking at 6G to develop better connectivity and new solutions that will take factories to the next level can be developed by companies such as Apple, Qualcomm, and Nokia.

Future of Manufacturing in North America

North America is embarking on great transitions in the manufacturing frontier to remain a hub of advanced manufacturing. The US, Canada, and Mexico are experiencing the progression of innovative technologies, including Artificial Intelligence, Digital Twins, and sustainability. Large investments are currently being made; of the USD 100 million, USD 285 million is dedicated to AI research in semiconductors and the same is done for digital twin technologies. Canada will invest USD 427 million to support a project to enhance innovation and the generation of 50,000 employees by 2028. Various federal laws such as the Infrastructure Investment and Jobs Act, Inflation Reduction Act, and CHIPS and Science Act are now aiding the region to regain manufacturing by bringing back jobs at home, diversifying its supply chains and the green energy field. Mexico’s positioning and investment in automotive and electric vehicles are also contributing to manufacturing growth.

India's strategic investments will drive smart manufacturing growth by 2030

India is making significant investments in various industries such as semiconductors, renewable energy, defense, data centers, and others, making the country a world leader by 2030. For instance, in the semiconductor industry, Tata Electronics (India) and Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) (Taiwan) are planning to invest USD 11 billion to set up fabrication plants in the country. In addition, the defense sector is also on the rise due to plans such as Aatmanirbhar Bharat and plans for more or less self-dependence. Furthermore, the digital infrastructure is being powered by some of the data center investments that is building India. For instance, Adani Group has announced a USD 6 billion investment in data center infrastructure in India. Furthermore, the country is investing highly in other sectors, such as logistics, pharmaceuticals, aviation, and others, to boost the country's economy and to become a global leader. In the next decade, India will become an innovative, sustainable, strong economic power, and a global perspective.

The "MarketsandMarkets – Future of Factories Market– Forecast to 2030" report is designed to be a vital tool for consumers and market leaders searching for their way through a rapidly changing manufacturing landscape. This report is based on years of experience in this rapidly changing manufacturing sector; it incorporates insights from experts in the industry and includes thorough evaluations conducted by analysts. The report offers an all-rounded view of the trends, opportunities, and challenges shaping the future of factories through a wide-ranging interview process with stakeholders around the globe. It is to prepare businesses with the necessary information to help them respond to the dynamic nature of the environment.