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

AI in Manufacturing Market Size & Forecast

The AI in Manufacturing market was valued at USD 3,126.7 Million in 2023 and is expected to grow at a robust CAGR of around 32.7% during the forecast period (2024-2032), driven by increasing demand for automation, predictive maintenance, and the adoption of Industrial IoT (IIoT) for smart factories.

AI in Manufacturing Market Analysis

The growth rate of the Artificial Intelligence in 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. IoT helps smart factories enhance their operations in this industry.

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.

AI in Manufacturing Market Trends

This section discusses the key market trends that are influencing the various segments of AI in Manufacturing as identified by our team of research experts.

End User Industries Supporting the AI in Manufacturing Industry

The AI in Manufacturing industry is supported by several key end-user industries that utilize this technology for various applications:

1. Automotive manufacturers apply AI extensively to boost production operations by operating robots programmed by AI systems and operating automated assembly operations for predictive maintenance applications. The automotive industry uses advanced AI to create autonomous vehicles and has become a major user of automation technologies to produce better-quality vehicles at reduced costs.

2. Many electronic and semiconductor companies use AI to automate complicated production lines and make better defect identification while enhancing their supply network. By using AI systems, manufacturers can monitor product quality and manufacturing schedules better while predicting needs to produce top-quality semiconductors with less expense and fewer resources wasted.

3. Medical Devices: Through AI technology, the manufacturing sector produces better medical testing results and enhances automated device assembly, along with predicting equipment failure. With AI technologies, medical device manufacturers can produce better quality products accurately while following ISO requirements. The system also makes high-precision medical equipment faster to make more efficiently.

4. Metals and machinery plants rely heavily on AI to predict when equipment will fail and enhance quality control checks as well as make their production processes more efficient. AI systems enhance metal manufacturing processes by decreasing downtime while extending equipment life and making work steps more efficient to bring lowered operational expenses and better plant operations.

5. The energy and power sector uses AI systems effectively for better equipment monitoring and power systems while managing energy resources effectively. By monitoring energy activities through AI technology, power plants run at their highest production effectiveness. AI technology supports power grid connections and detects problems to predict power usage, which produces better energy resources.

6. Aerospace and defense companies depend on AI for making precise products and foreseeing equipment issues, plus monitoring product quality. AI systems help craft exact aircraft parts while keeping military products and air vehicles in perfect working order with reduced stoppages. AI systems help companies run their operations better while making the work area safer in both environments.

7. Consumer Goods companies use AI to make production lines run faster and boost their inventory controls, plus supply chain planning. Companies use AI for better future sales predictions, and they avoid manufacturing excess products. The use of Artificial Intelligence in packaging operations makes the entire production process run better and reduces product defects. It also optimizes productivity in sorting and quality checking.

Management of these industries uses AI technology to make businesses run better and lower expenses while making better products. Manufacturing methods now perform better and more cost-effectively because AI enhances their operations to match exactly what customers want.

AI in Manufacturing Industry Segmentation

This section provides an analysis of the key trends in each segment of the global AI in Manufacturing market report, along with forecasts at the global, regional, and country levels for 2024-2032.

The Software segment dominates the AI in Manufacturing market

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.

The Automotive AI in Manufacturing segment dominates the AI in Manufacturing market

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 segment 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.

APAC is Expected to Grow with Significant CAGR During Forecast Period

The APAC region develops quickly through AI in manufacturing because its nations possess advanced technologies and strong manufacturing sectors, particularly in China, Japan, South Korea, and India. These nations are at the forefront of using artificial intelligence technologies to automate manufacturing processes and minimize running expenses. Companies in APAC lead global smart factory implementation through AI to control supply flows and manufacture better products while enabling versatile operations. The Chinese and Japanese governments dedicate substantial funds to artificial intelligence science, which helps different sectors undergo digital transformation.

Advanced countries and developing markets in India and Southeast Asia are quickly adopting AI systems to upgrade their manufacturing systems. Companies now rely on AI tools to track customer needs and optimize their supply chains plus production processes to make better competitors. Appealing business growth results from the growing use of Industrial IoT (IIoT) systems, which give manufacturers instant information to optimize their operations. APAC gained importance as an AI innovation center because its extensive manufacturing workforce uses AI infrastructure investments to support sustainability goals.

AI in Manufacturing Industry Overview

The AI in Manufacturing market is competitive and fragmented, with the presence of several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Microsoft Corporation, ABB, IBM Corporation, Amazon Inc., NVIDIA Corporation, Siemens AG, Fanuc, SAP SE, Rockwell Automation, Inc., and Mitsubishi Electric Corporation.

Recent Developments in the AI in Manufacturing Market

• In March 2025, Advanced Micro Devices (AMD) completed a $4.9 billion acquisition of ZT Systems, a company specializing in data-center equipment for cloud computing and AI, aiming to enhance AMD's data-center offerings and compete with industry leaders like NVIDIA.

AI in Manufacturing Market Report Coverage

Reasons to buy AI in Manufacturing Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.

• The report presents a quick review of overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional level analysis of the industry.

Customization Options:

The global AI in Manufacturing Market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.