The AI in manufacturing market is forecasted to grow at a high rate owing to the accelerating innovations in industrial IoT and automation
The Global AI in Manufacturing Market was valued at USD 2.1 Bn in 2020 and is expected to reach USD 11.5 Bn by 2027, with a growing CAGR of 27.2% during the forecast period.
Artificial Intelligence (AI) technology is one of the fastest-growing technologies in recent years. The usage of artificial intelligence in manufacturing processes is increasing with the increase in advanced technological infrastructure in varied sectors.
Global AI in manufacturing market is expected to propel at a significant rate during the forecast period owing to the extensive application of artificial intelligence technology in varied industries such as automobile, energy and power, pharmaceuticals, and food & beverages. According to Capgemini’s report 2020, there has been increasing in the implementation of AI technology solutions in manufacture processes. The report suggested that European manufacturers interchanged 51% of processes with AI technology, whereas, Japan stood in the second position with 30% and the US with 28% of implementation. This statistic suggests that the AI demand in the manufacturing processes is increasing and is expected to propel market growth.
Moreover, different challenges such as defective product delivery or unexpected machinery failure are often faced by manufacturers. Implementing Artificial Intelligence (AI) and Machine Learning (ML) in the manufacturing process helps in the enhancement of launching new products, operational efficiency, customizing product designs, and planning future financial actions to progress on their AI transformation. For instance, according to a recent MIT survey, approximately 60% of manufacturers are using artificial intelligence to ensure faster speed and visibility throughout their supply chain, optimize inventory management and improve product quality.
Global AI in Manufacturing Market by Region Outlook (Revenue, USD Billion, 2021-2027)
In terms of geography, the Asia Pacific region was accounted to hold the largest market share in 2020 and is anticipated to grow at a significant pace throughout the forecast period. The dominance is majorly attributed to the growing manufacturing plants in developed and developing countries such as India, South Korea, China, and Japan. For instance, in May 2018, the South Korean Government announced its plan to invest 2.2 trillion South Korean Won for AI research till 2022. The Ministry of Information and Communication along with the Ministry of Education, Science and Technology established the artificial intelligence R&D strategy called ‘National Strategy for Artificial Intelligence. The investment is expected to create various developments and advantages in the AI in manufacturing market.
Moreover, the outbreak of covid-19 pandemic has disrupted the supply chain for various industries and also the manufacturing process in several countries including in APAC region. However, China was successful in preventing destructions to human health in Wuhan by implementing a lockdown. With decreasing risk to human health in Wuhan, the manufacturing activities are normalizing in China, thus boosting the AI in manufacturing market.
The Global AI in Manufacturing Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the AI in manufacturing market are: