AI in Manufacturing Market is projected to reach $29.1 billion by 2030, at a CAGR of 42.1% from 2023 to 2030. The growth of the AI in manufacturing market is driven by the advent of Industry 4.0 and the increasing volume of complex datasets. However, high procurement & operating costs and a lack of infrastructure may restrain the market's growth. Furthermore, the growing scale of manufacturing operations in emerging economies and the rising acceptance of modern manufacturing techniques are expected to offer significant growth opportunities for the AI in manufacturing market. However, privacy and data protection concerns may hinder the growth of this market.
Growing Scale of Manufacturing Operations in Emerging Economies to Offer Growth Opportunities for the AI in Manufacturing Market
Operational efficiency is an important factor for the effectiveness of a business, as low efficiency can lead to congested workflows, production, and order fulfillment, especially considering the growing scale of manufacturing operations. AI has emerged as an effective solution for the manufacturing industry due to its benefits, such as enhancing production efficiencies and bringing machine interactions closer to human interactions.
AI allows manufacturers to gather & extract data, analyze patterns, and learn & adapt to new things or environments through machine intelligence, NLP, and computer vision technologies. This offers enhanced production outcomes; improved process effectiveness; minimized operational costs, and superior scalability & product development. For instance, according to an article published by Capgemini SE (France), computer vision allowed General Motors Company to detect more than 70 instances of component failure, preventing massive downtime, as a single minute could have cost the company up to USD 20,000. Also, Danone achieved a 30% reduction in lost sales by using machine learning to predict demand in 2019 and modifying its manufacturing strategies accordingly.
AI can enhance and extend human capabilities and help manufacturing companies achieve better outcomes. AI can be integrated with organizations’ existing software to analyze vast volumes of data and, at the same time, customize results. For instance, the BMW Group (Germany) uses AI to evaluate component images from its production line, which allows it to identify deviations from standards in real time, thereby increasing productivity. These benefits of AI are expected to create growth opportunities for the market, especially in emerging economies where manufacturing industries largely rely upon conventional techniques and technologies.
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Key Findings in the AI in manufacturing Market Study:
The Software Segment to Register the Highest CAGR During the Forecast Period
Based on component, the software segment is slated to register the highest CAGR during the forecast period. The increasing usage of learning analytics, high adoption of cloud-based technology, growing acceptance of assistants driven by machine learning, NLP, computer vision techniques, and rising demand for AI platforms for manufacturing operations are expected to support the growth of this segment.
In 2023, the Machine Learning Segment is Expected to Dominate the AI in Manufacturing Market
Based on technology, in 2023, the machine learning segment is expected to account for the largest share of the AI in manufacturing market. The growing demand for AI-based intelligent solutions and predictive maintenance and machinery inspection, material handling and production planning and the increasing unstructured data generated by the manufacturing industry are expected to support the large market share of this segment.
In 2023, the Predictive Maintenance & Machinery Inspection Segment is Expected to Dominate the AI in Manufacturing Market
Based on application, in 2023, the predictive maintenance & machinery inspection segment is expected to account for the largest share of the AI in manufacturing market. The increasing demand for self-monitoring, the increasing need to reduce costs related to operating heavy equipment and maintenance costs and downtime, and the increasing demand for real-time plant monitoring in manufacturing industries are expected to support the large market share of this segment.
The Medical Devices Segment to Register the Highest CAGR During the Forecast Period
Based on end-use industry, the medical devices segment is slated to register the highest CAGR during the forecast period. The rising prevalence of chronic diseases and the increasing geriatric population, the outbreak of the COVID-19 pandemic, the rising focus on preventive medical equipment maintenance to reduce unplanned downtime and improve operational productivity, and the increasing need to reduce the operational cost of medical equipment are expected to support the growth of this segment.
Asia-Pacific to Register the Highest CAGR During the Forecast Period
Asia-Pacific is slated to register the highest CAGR during the forecast period. The increasing investment by technology leaders, growing AI spending, increasing digitization, and favorable government initiatives to promote the adoption of advanced technologies are expected to support the growth of this region. Further, the presence of a large number of manufacturing companies in China, South Korea, and Japan, along with the strong presence of automobile and electronics, and semiconductor companies, is also encouraging the fast growth of this market.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by major market players in the last three to four years. The key players profiled in the AI in manufacturing market study are Alphabet, Inc. (U.S.), IBM Corporation (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), Nvidia Corporation (U.S.), Oracle Corporation (U.S.), Amazon Web Services, Inc. (U.S.), Siemens AG (Germany), General Electric Company (U.S.), SAP SE (Germany), Robert Bosch GmbH (Germany), Cisco Systems, Inc. (U.S.), Rockwell Automation, Inc. (U.S.), Advanced Micro Devices, Inc. (U.S.), and Sight Machine, Inc. (U.S.).
Scope of the Report:
AI in Manufacturing Market Assessment, by Component
- Hardware
- Processors
- Networking
- Memory
- Software
- AI Platforms
- AI Solutions
- Services
- Deployment & Integration
- Support & Maintenance
AI in Manufacturing Market Assessment, by Technology
- Machine Learning (ML)
- Natural Language Processing (NLP)
- Context-Aware Computing
- Computer Vision
- Speech and Voice Recognition
AI in Manufacturing Market Assessment, by Application
- Field Services
- Quality Management
- Cybersecurity
- Robotics & Factory Automation
- Predictive Maintenance & Machinery Inspection
- Material Handling
- Production Planning
- Safety Planning
- Energy management
- Supply Chain Optimization
AI in Manufacturing Market Assessment, by End-use Industry
- Semiconductor & Electronics
- Energy & Power
- Pharmaceuticals
- Medical Devices
- Automotive
- Heavy Metals & Machine Manufacturing
- Fast-moving Consumer Goods
- Aerospace and Defense
- Other End-use Industries
AI in Manufacturing Market Assessment, by Geography
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Netherlands
- Russia
- Turkey
- Ireland
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- South Korea
- Australia & New Zealand
- Indonesia
- Thailand
- Taiwan
- Vietnam
- Rest of Asia-Pacific
- Latin America
- Mexico
- Brazil
- Rest of Latin America
- Middle East & Africa
- UAE
- Israel
- Rest of Middle East & Africa
Key questions answered in the report: