Artificial Intelligence in Manufacturing Market Size 2025

Analysts presented their findings during Gartner IT Symposium/Xpo, which is taking place here through Thursday. Raw material cost estimation and vendor selection are two of the most challenging aspects of production. Factory worker safety is improved, and workplace dangers are avoided when abnormalities like poisonous gas emissions may be detected in real-time. Advertise with TechnologyAdvice on Datamation and our other data and technology-focused platforms.

  • The tool can develop human-like text, from writing short stories, term papers, and music to solving math problems, programming basic code, and doing translations.
  • Furthermore, many manufacturers are doubtful about the capabilities of AI-based solutions in terms of the accuracy of the maintenance and inspection processes.
  • Industrial robots, often known as manufacturing robots, automate monotonous operations, eliminate or drastically decrease human error, and refocus human workers’ attention on more profitable parts of the business.
  • In addition, computer vision can be used in service robots to guide material handling, reduce hazards at the workplace and increase efficiency.
  • Gartner, Inc. today announced its list of 10 top strategic technology trends that organizations need to explore in 2024.
  • But that takes AI to ensure that even the slightest deviation from standard practices and workflows is detected at once.

Industries like automobiles, chemical, electronics, food among others are witnessing the need for production optimization due to competitive environment. Artificial intelligence and Machine Learning the two powerful tools to minimize the consumption of resources in every industrial process and maximize the output by optimizing the power consumption. AI and ML are build a statistical model using available data from various sensors, material used in manufacturing and various software’s. Based on this data it predicts the accurate parameter for final product resulting in saving extra material and additional resources in the production process.

Artificial Intelligence (AI) in Manufacturing Market

In addition to Artificial Intelligence, with the help of Machine learning and pattern recognition, the manufacturing sector can transform completely. The use of AI in Manufacturing Market plant allows the user to analyse and predict consumer behaviour, predict preventive maintenance to prevent unwanted shutdown, detect abnormalities in production process and much more. AI also facilitates the use of real time information which could improves the decision-making time boosting the growth of organization. Whereas, the lack of skilled expertise and infrastructure and high operation along with lack of awareness are some of the factor that are about to hamper the growth of AI in Manufacturing Market. The growing adoption of IoT, big data, and factory automation is one of the prominent trends in artificial intelligence in manufacturing market. Additionally, the advent of industry 4.0 is another trend driving AI in manufacturing market growth.

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Manufacturers are leveraging AI to improve day-to-day operations, launch new products, customize designs, and plan their future financials. The report profiles key players such Siemens (Germany), IBM (US), Intel Corporation (US), NVIDIA Corporation (US), and General Electric Company (US) and others. Computer AI in Manufacturing vision technology segment to grow with higher CAGR during the forecast period. The market is currently led by the Asia-Pacific region because of economic countries such as China, India, South Korea, and the Philippines being main centers of semiconductors, electronics, energy & power, and pharmaceuticals.


A number of applications also were developed to help stabilize the system as a whole. AI is being used by manufacturers to enhance day-to-day operations, introduce new products, personalize designs, and forecast future financials. According to an MIT survey, about 60% of industry players are already using artificial intelligence. The key players in the global market are enriching their partner ecosystem to gain a competitive edge over the other players. The companies adopt this strategy to develop new opportunities by building new solutions together; generate revenue by co-selling together; expand their presence, and share marketing strategies.

ai in manufacturing market

Furthermore, the industry vertical segment is sub-segmented into automotive, pharmaceuticals, food & beverages, semiconductor & electronics, energy & power, and others (aerospace, mining, and textile). Based on our analysis, the automotive segment generated significant revenue in 2021, while the semiconductor & electronics segment achieved a robust growth rate in the coming years. The global artificial intelligence in manufacturing market is segmented based on deployment, technology, application, industry, and region. The On-Premise segment is anticipated to dominate the global artificial intelligence in manufacturing market throughout the study period. By technology, the market is divided into machine learning, computer vision, context awareness, and natural language processing.

Artificial Intelligence (AI) in Manufacturing Market Synopsis:

The artificial intelligence coupled with computer vision techniques helps to complete tasks more efficiently. With the help of computer vision, the robots can understand better and navigate in the factory environment and around humans safely. In smart factories, the implementation of AI-based computer vision helps to detect faults and defects in the product result. This process is highly precise and complex, with very high possibilities of defects that are invisible to the human eye. The company has installed an AI-based computer vision technique in its manufacturing factory to spot the defects that has improved the manufacturing effectiveness and efficiency.

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Therefore, on a short-term basis, the demand for AI in the manufacturing industry is steady. Also, in such uncertain financial conditions only large and established manufacturers will be able to invest. However, as the pandemic condition is under control to some extent, the demand for AI is likely to grow significantly. Large enterprises and SMEs are likely to invest in this technology to boost their production process. During these unprecedented times, managing people and taking the right decision has become all the more critical. The pandemic is likely to create a huge financial impact on the business, especially to those that highly depend on the workforce to achieve results.

ai in manufacturing market

Along with thirty AI startups of USD 4 billion, Google LLC tops the AI acquiring companies list. It is offering Cloud AI to boost and maximize the speed of process along with protecting the health and safety of workers. Also, it is investing in creating solutions and tools to ease the deployment and usage of AI in the manufacturing industries.

Management of Supply Chains With Artificial Intelligence

North America dominates the market due to the presence of hyper scalers such as IBM Corporation and Microsoft Corporation, and others. The recent ongoing generative AI trend pushed these hyper scalers to upgrade their AI technologies and develop solutions that could cater to changing user requirements. According to the Skynova survey in 2023, nearly 80% of U.S.-based small business owners were optimistic about their AI deployments. According to deployment, the market is further bifurcated into cloud and on-premises. AI keeps developing daily; for instance, the ongoing trend of generative AI pushed companies to invest in and develop AI tools.

ai in manufacturing market

The companies have been upgrading their partner program to enhance support and benefits, inside access, competitive incentives, marketing and demand generation support. Asia Pacific dominated the AI in manufacturing market with about 43% share in 2018 and is anticipated to resonate the trend through 2025. The highly developed manufacturing plants in the countries such as Japan, South Korea, and China will fuel the regional market demand. The rapid adoption of the industry 4.0 revolution in the region also promotes the adoption of AI solutions.


North America market is likely to witness similar growth trends as APAC and will grow at 43% CAGR during the forecast time period. The increasing investments by companies to modernize their manufacturing facilities are driving market growth. The early adoption of various advanced technology, such as IoT, is also fueling the penetration of AI-enabled manufacturing systems. Additionally, efforts by the government to bring back manufacturing operations to North America are supporting the use of AI technologies in the manufacturing sector.

ai in manufacturing market