South Korea Smart Factory Market Overview, 2029

South Korea has emerged as one of the world's top industrial economies. The nation is in the best possible position to remain competitive during the Fourth Industrial Revolution. This involves the integration of digital technology and intelligent manufacturing processes. Manufacturing is the backbone of the Korean economy, accounting for 30% of total GDP. The Korean government is advising businesses to adapt to the latest industrial trend, digitalization. Both Korea's commercial and public sectors have agreed to increase the number of local smart factories. A smart factory is a fully integrated technology-based manufacturing system that links the whole production process. The Korean private and public sectors have agreed to boost the number of domestic smart factories, with the goal of having 30,000 such manufacturers running countrywide using cutting-edge digital and analytical technology by 2023. Furthermore, promises aim to establish 20 smart industrial zones by 2030 as part of measures to sustain Korea's declining working-age population. According to the target, 2,000 new AI-powered smart factories will be constructed by 2030 to keep up with the rapid expansion of full digitalization and automation in the Fourth Industrial Revolution. In 2022, the Korean government has invested more than USD 1.5 billion in R&D programs to encourage SME enterprises to progress and grow automated technology. As a result, smart factories are increasingly directed toward automated manufacturing settings that use artificial intelligence (AI) optimization and real-time monitoring via Industrial Internet of Things (IoT) devices. Government-funded research and testbed projects will encompass big data, cyber-physical systems, smart sensors, wireless networks, and cooperation robots. MOTIE's government strategy calls for 4,500 smart factories in each of ten important areas by 2025.

According to the research report "South Korea Smart Factory Market Overview, 2029," published by Bonafide Research, the South Korea Smart Factory market is predicted to grow with more than 12.50% CAGR from 2024 to 2029. In South Korea, efforts are ongoing to create a comprehensive smart manufacturing environment. This entails establishing an integrated network of cyber-physical systems, IoT devices, and advanced data analytics platforms to optimize production processes, reduce downtime, and enable data-driven decisions. The use of artificial intelligence in smart industries is becoming increasingly common. Artificial intelligence applications are utilized for predictive maintenance, quality control, and process optimization. Machine learning algorithms examine data from sensors and production systems to detect patterns, make predictions, and increase overall manufacturing efficiency. The use of digital twin technology is gaining traction in South Korea's smart manufacturing scene. Digital twins generate virtual versions of physical production systems, enabling simulation, analysis, and optimization. This technology enhances decision-making, improves product design, and optimizes operational processes. Efforts are being made to extend smart manufacturing benefits to small and medium-sized enterprises (SMEs). Initiatives and support programs aim to facilitate the adoption of smart factory technologies among smaller businesses, contributing to a more widespread transformation of the manufacturing sector. Collaboration between different industries and sectors is a notable trend. Cross-industry partnerships and collaborations between manufacturers, technology companies, and research institutions foster innovation and the exchange of best practices in smart factory implementation.

The component segment of the market includes industrial sensors, industrial robots, industrial 3D printing and machine vision. Among them industrial 3D printing component segment is projected to grow at fastest rate in South Korea smart factory market. South Korea has established itself as a major player in smart industrial automation, utilizing cutting-edge technology such as robotics, artificial intelligence, and the Internet of Things to enhance manufacturing processes. Industrial 3D printing perfectly complements this concept, providing exceptional flexibility and agility in component manufacturing. Unlike traditional subtractive processes, 3D printing produces parts layer by layer directly from digital models, removing the need for expensive equipment and allowing for the on-demand manufacture of sophisticated components. This is perfectly aligned with the smart manufacturing aims of shorter lead times, increased customization, and optimal resource usage. Based on industry segment market is divided into process industry and discrete industry. Process industry is significantly adopting smart factory in South Korea. The process industry frequently incorporates complex and continuous manufacturing processes, such as those found in the chemical, petrochemical, and pharmaceutical sectors. Smart factories provide real-time monitoring and control systems to improve the efficiency and precision of various processes, resulting in consistent product quality. Smart factories use cutting-edge technology such as the Internet of Things (IoT) and automation to optimize and streamline business processes. In the process industry, where efficiency is crucial, these technologies help to reduce waste, minimize downtime, and improve overall operating efficiency.

The discrete industry segment of the market is divided into automotive, semiconductor & electronics, aerospace & defense, machine manufacturing and textiles. Semiconductor & electronics industries are significantly adopting smart factory in South Korea. These industries operate in a fiercely competitive environment where even tiny cost savings and efficiency gains can make a big difference. Smart factories, with data-driven decision-making, improved automation, and predictive maintenance, enable businesses to optimize production processes, reduce downtime, and eliminate errors, giving them a significant competitive advantage. The demand for newer and faster electronics necessitates quick product development and shorter manufacturing cycles. Smart factories, with their flexible production lines and digital processes, allow for faster adaptability to changing market demands as well as speedier product creation and prototyping, reducing time-to-market and increasing agility. Based on process industry segment market is bifurcated into oil & gas, chemicals, pharmaceuticals, energy & power, metal & mining, pulp & paper, food & beverages and cosmetics & personal care. Pharmaceuticals industry are significantly adopting smart factory in South Korea. Quality control is paramount in the pharmaceutical industry. Smart factories integrate technologies such as sensors and real-time monitoring systems to ensure the highest standards of product quality. This level of control helps in preventing defects and maintaining consistency in pharmaceutical manufacturing. Pharmaceutical manufacturing often involves batch processing. Smart factories utilize automation and data analytics to optimize batch processing, ensuring efficiency and precision. This contributes to faster production cycles, reduced costs, and improved overall operational efficiency.

Considered in this report:
• Geography: South Korea
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029



Aspects covered in this report:
• South Korea Smart Factory market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component:
• Industrial Sensors
• Industrial Robots
• Industrial 3D Printing
• Machine Vision

By Industry:
• Process Industry
• Discrete Industry

By Process Industry:
• Oil & Gas
• Chemicals
• Pharmaceuticals
• Energy & Power
• Metal & Mining
• Pulp & Paper
• Food & Beverages
• Cosmetics & Personal Care

By Discrete Industry:
• Automotive
• Semiconductor & Electronics
• Aerospace & Defense
• Machine Manufacturing
• Textiles

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Smart Factory industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.