PUBLISHER: The Business Research Company | PRODUCT CODE: 2070272
PUBLISHER: The Business Research Company | PRODUCT CODE: 2070272
Artificial intelligence (AI) in manufacturing refers to the use of advanced computational systems that enable machines and software to perform tasks that normally require human intelligence within industrial production environments. These technologies analyze large volumes of operational and production data to automate processes, optimize workflows and improve decision-making across manufacturing operations.
The AI in manufacturing market consists of sales by entities (organizations, sole traders, or partnerships) of AI technologies and solutions tailored for industrial applications like predictive maintenance, quality control, and process automation. These include machine learning algorithms for real-time data analysis, robotics integration, and digital twins that optimize production workflows and reduce downtime.
The global AI in manufacturing market was valued at $1,082.1 million in 2020 which grew till 2025 at a compound annual growth rate (CAGR) of more than 40.00%.
Government Initiatives For Digital Manufacturing
During the historic period, the AI in manufacturing market was significantly driven by the government initiatives for digital manufacturing. Government initiatives for digital manufacturing refer to programs and policies launched by governments to promote the adoption of advanced technologies-like AI, IoT, robotics, and digital twins in manufacturing, aiming to improve efficiency, competitiveness, and innovation in the industrial sector. Government initiatives for digital manufacturing accelerate AI adoption in manufacturing by providing infrastructure, funding, and policy support that enable smart factories, data-driven automation, and advanced analytics integration. For instance, in February 2024, according to the Digital Transformation Agency (DTA), an Australia-based government agency, the Australian Government sourced more than $6.4 billion worth of digital products and services from industry via marketplaces and agreements in 2023-2024. Therefore, the AI in manufacturing market was significantly driven by the government initiatives for digital manufacturing during the historic period.
Generative AI Platforms Transforming Smart Factory Decision-Making
Major companies operating in the AI in manufacturing market are focusing on developing innovative platforms, such as generative AI-powered manufacturing intelligence platforms, to enhance real-time decision-making, optimize production processes, and improve operational efficiency across manufacturing facilities. Generative AI-powered manufacturing intelligence platforms are advanced software systems that use generative artificial intelligence to analyze factory data, generate insights, and provide real-time recommendations to optimize production processes and improve operational efficiency in manufacturing. For instance, in February 2025, OFS, an Australia-based manufacturing efficiency software company, launched Mayvn AI, a generative AI-powered platform designed to transform manufacturing operations. The platform analyzes complex production data and provides real-time insights into factory performance, enabling leaders to quickly identify bottlenecks, equipment failures, and operational inefficiencies. It acts as an AI co-pilot for manufacturing executives, allowing them to ask natural-language questions about production lines, site performance, or investment needs and receive data-driven recommendations instantly. Mayvn AI can also summarize plant performance, generate shift reports, highlight recurring issues, and recommend capital investments to improve efficiency.
The global AI in manufacturing market is fairly concentrated, with a large number of small players operating in the market. The top 10 competitors in the market made up 36.12% of the total market in 2024.
AI In Manufacturing Global Market Opportunities And Strategies To 2035 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global AI in manufacturing market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for AI in manufacturing? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The AI in manufacturing market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider AI in manufacturing; and compares it with other markets.