The future factory concept in IoT helps reduce operational costs by connecting machines and systems to share real-time data. To understand what a smart factory is, it is a setup where automated machines monitor performance, predict failures, and reduce downtime. This improves efficiency and lowers maintenance and energy expenses. In the factory of the future, smart factory solutions reduce manual work, minimize errors, and control wastage through better resource planning. Conclusion: By adopting the future factory concept in IoT, manufacturers cut costs, improve productivity, and move toward a smarter and more efficient factory of the future.