Unleashing the Power of AI in Manufacturing

News

1. Core42 and Qualcomm Launch Compass 2.0 to Boost AI Efficiency and Accessibility

2. Data Debt Emerges as Core Business Issue for Enterprises

3. Are Organizations Investing in AI Achieving Positive ROI?

4. Are Increasing Breaches Due to the Cyber Skills Gap?

5. What Are the Challenges Firms in the UAE and Saudi Arabia Face in GenAI Implementation?

6. Enterprises See the Promise of Generative AI But Lack the Guardrails to Mitigate Operational Risks

There is a rising growth of AI in the manufacturing industry. This is mostly driven by the adoption of Industry 4.0 and smart manufacturing, the growing need for predictive maintenance and quality control, and the increasing demand for automation and operational efficiency. 

Furthermore, the increasing number of manufacturing operations in emerging economies and the adoption of AI in supply chain management and logistics generate growth opportunities for the stakeholders in this market.

According to a Meticulous Research report, AI in the manufacturing market is projected to reach $84.5 billion by 2031, at a CAGR of 32.6% during the forecast period 2024–2031.

However, a shortage of skilled workforce restrains the growth of this market. Data security and privacy concerns are also major challenges impacting the growth of AI in the manufacturing market.

Based on components, in 2024, the hardware segment is expected to account for the largest share, 44.6%, of the global AI in the manufacturing market. This segment’s large market share can be attributed to the growing adoption of AI hardware in the manufacturing sector, the increasing R&D expenditure to develop AI hardware, and stringent regulations to ensure safe manufacturing practices. 

However, the services segment will record the highest CAGR during the forecast period. The growth of this segment is driven by the growing adoption of smart manufacturing services and the shortage of skilled professionals.

Based on technology, in 2024, the machine learning segment is expected to account for the largest share of 67.7% of the global AI in the manufacturing market. The natural language processing segment will register the highest CAGR during the forecast period. This segment’s growth is driven by the increasing demand for NLP technology for analyzing machinery data to predict and prevent failures, automating inspection report analysis, ensuring adherence to safety protocols through real-time analysis, enabling personalization based on customer feedback analysis, and optimizing manufacturing processes by evaluating production data.

In application, the predictive maintenance & machinery inspection segment is expected to account for the largest share of 20.6% of the global AI in the manufacturing market. This segment’s large market share can be attributed to the rising demand for self-monitoring systems, the increasing need to reduce the costs of heavy equipment operation and maintenance, and the growing demand for real-time plant monitoring in the manufacturing sector. Moreover, the predictive maintenance & machinery inspection segment is projected to register the highest CAGR during the forecast period.

Based on the end-use industry, in 2024, the automotive segment is expected to account for the largest share of 18.0% of the AI in the market. This segment’s large market share can be attributed to the increasing adoption of AI by automotive manufacturers, increasing demand for advanced driver-assistance systems (ADAS) and autonomous vehicles, and consumers’ preference for vehicles with advanced safety features.

Based on geography, in 2024, Asia Pacific is expected to account for the largest share of 53.1% of the global AI in the manufacturing market, followed by Europe, North America, Latin America, and the Middle East & Africa. 

This can be attributed to the rising demand for automation, the increasing adoption of industrial robots, the advent of Industry 4.0, the growing adoption of cloud-based manufacturing solutions, and the presence of prominent market players in the region.