AI in manufacturing is an important area of interest for many manufacturers, mainly because of the potential of AI to improve productivity and reduce costs of manufacturers significantly. A few companies have already deployed AI in their manufacturing shop floors, and more are likely to follow suit in the coming years.The adoption of AI for asset maintenance can help detectand predict defects in machineries in advance. This can help reduce costs of manufacturers to a great extent.
AI is also playing a key role in the Industry 4.0 revolution. The growth of the global AI in manufacturing ecosystem will be mainly driven by the availability of big data and an increase in venture capital investments. Industrial automation and IoT are two other factors that are going to play a huge role in the growth of the global AI in manufacturing market. Driven by these factors, the global AI in manufacturing ecosystem is expected to grow at a CAGR of 25% during 2018 to 2023.
By increasing the adoption of AI, manufacturing companies are aiming to achieve higher operational efficiency. The adoption and implementation of technologies like big data, IoT, and ML have been increasing gradually in the manufacturing sector. These technologies generate a huge volume of data, and this is compelling manufacturers to adopt AI-based solutions to extract valuable insights from these data.
However, the global supply chain is currently going through a disruption like never before. Already, some manufacturers have ceased production, while others have seen a huge reduction in demand due to the global coronavirus pandemic and the lockdowns due to the pandemic. As not all manufacturing jobs can be carried out remotely, thisis affecting production in many manufacturing facilities.
The financial constraint faced by the manufacturing sector due to Covid-19 may cause manufacturers to cut down their non-essential spending and investments, which in turn, can affect the implementation of AI in manufacturing adversely. However, the severity and duration of the impact will be determined by how long the pandemic and the consequent lockdown last. It will also depend on how much time the global economy takes to bounce back in the post Covid-19 scenario.
Currently, North America is an important market in the global AI in manufacturing ecosystem. The Asia-Pacific market is also a major market for global AI in manufacturing ecosystem. The region has the maximum number of manufacturing plants in the world and therefore, the deployment of AI and robots is expected to increase significantly in this region. China already has some plants where only robots work. With the implementation of AI, robots are likely to become smarter and more productive, which will increase their adoption in manufacturing facilities.
The increasing adoption of industrial robots is anticipated to boost the growth of the AI in manufacturing market in the APAC region.The major players operating in the global AI in manufacturing ecosystem are IBM corporation, NVIDIA, Intel, Google, Microsoft, AWS, Siemens, Mitsubishi Electric, GE, Amazon, and General Vision.