AI in Manufacturing Market: Current Analysis and Forecast (2024-2032)

The growth rate of Artificial Intelligence in the Manufacturing Market comes from businesses using AI technology to boost production efficiency and reduce costs while improving product quality. AI through machine learning and computer vision technology gives automatic output to check production quality levels and tool health conditions. Suppliers turn to AI systems for better automated workflows, and the system handles malfunction prevention alongside product checking operations. IIoT helps smart factories enhance their operations in this industry.

The AI in Manufacturing Market is expected to grow at a robust CAGR of 32.7% during the forecast period, driven by increasing demand for automation, predictive maintenance, and quality control. The market research indicates that Asian-Pacific manufacturing companies will shift to using AI systems at a fast pace. Because of its 2025 stated $38 billion investment plan, China leads all others in chipmaking funding backed by government programs to reduce chip imports and shield against international pressures. China focuses on building industrial robotic systems with artificial intelligence functions because it plans to bring AI into manufacturing facilities. South Korea and India send resources into developing AI technology for factories under government programs and support from emerging technology companies.

Based on Component, the AI in Manufacturing market is segmented into Hardware, Software, and Services. The Software segment acquired a substantial share of the AI in Manufacturing market and is expected to showcase a substantial growth rate during the forecast period. Noticeable demand for AI-powered solutions drives the Software segment in the AI Manufacturing Market as manufacturers use them to enhance production optimization and decrease expenses. The software segment gives manufacturers tools that use machine learning to spot quality problems while planning maintenance and supply chain operations. AI software is more popular because of cloud and edge computing, which helps manufacturers apply AI results directly to their existing systems while expanding their operations.

Based on End Users, the AI in the Manufacturing market is divided into Automotive, Electronics & Semiconductor, Medical devices, Metals & Machinery, Energy & Power, and Others. The Automotive AI in Manufacturing market is expected to showcase a substantial growth rate during the forecast period. Customers have more demand for automated production methods to make their cars better and save money on costs. Automakers use AI to scan vehicle systems for faults and check supply chain products, which lets them fasten output at lower maintenance times as they build cars to meet present-day consumer preferences. Manufacturers use AI more because they produce electric vehicles with connected car technologies.

Based on Technology, the AI in the Manufacturing market is divided into Machine Learning, Computer Vision, Robotics & Automation, and Natural Language Processing. The Robotics & Automation AI in Manufacturing market is currently the largest segment in the AI Manufacturing Market. The Robotics & Automation segment leads the AI in Manufacturing Market because manufacturers seek better operations with higher precision and lower production costs. Manufacturers use AI robots to make products faster and better while decreasing errors in their production process. These systems run operations accurately and produce dependable results. The manufacturing industry keeps expanding as companies require newer ways to produce items and standardize production with robotic help.

For a better understanding of the market adoption of the AI in Manufacturing industry, the market is analyzed based on its worldwide presence in countries such as North America (U.S.A., Canada, and Rest of North America), Europe (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), Rest of World. The Asia Pacific area grows at a fast pace in the AI for Manufacturing business because of advanced industrial automation and major investments in AI technology. Countries across the world are using AI-based robots and smart production tools to become more productive and save money, especially China, India, Japan, and South Korea. Manufacturing activities spread across the Asia Pacific, and rising industrial 4.0 demand creates perfect conditions there for developing AI innovations worldwide.

Some of the major players operating in the market include Microsoft Corporation, ABB, IBM Corporation, Amazon Inc., NVIDIA Corporation, Siemens AG, Fanuc, SAP SE, Rockwell Automation, Inc., and Mitsubishi Electric Corporation.