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An intelligent robotic system fills small bottles on a conveyor in an automated pharmaceutical packaging production line in Japan. Photo: iStock

The industrial robots segment is expected to witness significant growth in the smart factory market during the forecast period. This growth is mainly attributed to the increasing need for automation, precision, and speed in manufacturing operations in the automotive, electronics, and food and beverage industries. Industrial robots help companies perform repetitive tasks, reduce human errors, improve productivity, and lower labor costs.

The Oil and Gas Industry Is Modernizing

The oil and gas industry held a significant share of the smart factory market in 2024. Companies in the industry are increasingly adopting smart factory technologies to improve real-time monitoring, predictive maintenance, and remote asset management in both onshore and offshore environments.

Digital solutions such as industrial IoT, AI-based analytics, robotics, and cloud-based platforms are helping oil and gas companies reduce downtime, improve decision-making, and optimize production output. Intelligent sensors and automation tools monitor pipeline integrity, equipment condition, and environmental factors to prevent accidents and ensure compliance.

In addition, the volatility of global oil prices and the growing demand for energy security are driving oil and gas operators to modernize their infrastructure.

"Made in China 2025"

Asia-Pacific is expected to witness significant CAGR in the smart factory market over the forecast period, driven by rapid industrialization, strong government support, and growing demand for automation across sectors.

Countries such as China, Japan, South Korea, and India are actively investing in digital manufacturing technologies to improve productivity, reduce costs, and enhance operational efficiency. China’s Made in China 2025 initiative and India’s Make in India and PLI programs are driving large-scale adoption of industrial IoT, AI, robotics, and cloud-based automation systems.

In addition, Japan and South Korea are advancing AI-enabled robotics and smart manufacturing to remain competitive in high-tech exports. The growing need for real-time information, quality control, energy management, and predictive maintenance is accelerating the shift toward smart manufacturing practices in the automotive, electronics, pharmaceutical, and oil and gas industries.