Artificial Intelligence (AI) in Manufacturing Market Size By Component (Hardware [Processor {Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC)}, Memory], Solution [Software, AI Platform, Application Program Interface(API)], Services [Managed Services, Professional Services]), By Technology (Machine L
Published Date: April - 2025 | Publisher: MRA | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationArtificial Intelligence (AI) in Manufacturing Market Size By Component (Hardware [Processor {Central Processing Unit (CPU), Graphics Processing Unit (GPU), Field Programmable Gate Array (FPGA), Application Specific Integrated Circuit (ASIC)}, Memory], Solution [Software, AI Platform, Application Program Interface(API)], Services [Managed Services, Professional Services]), By Technology (Machine L
Artificial Intelligence in Manufacturing Market Size
AI in Manufacturing Market size exceeded over USD 1 billion in 2018 and is anticipated to grow at 40% CAGR from 2020 to 2025. Increasing venture capital investments in AI are fostering growth of artificial intelligence in manufacturing industry.
To get key market trends
Download Sample Ask for Discount Request Customization
Investments in the technology led by tech giants and digital native companies including Google, Nvidia, and Intel. They are collectively investing billions of dollars in a wide variety of AI-based applications ranging from machine learning to robotics, virtual autonomous vehicles, assistance technology, and natural language to computer vision.
The exponential growth in digital data is driving growth of AI in the manufacturing market. It is estimated that by 2020, approximately 1.7 megabytes of new data will be created every second. It is further estimated to rise at an annual growth rate of 40% over the next 10 years. This growth is credited to the increasing adoption of big data technologies and IoT devices along with the rise in popularity of cloud platforms among enterprises. This is encouraging the adoption of the advance data analytics solutions among the manufacturers to process the data and extract actionable insights.
| Report Attribute | Details |
|---|---|
| Base Year | 2018 |
| AI in Manufacturing Market Size in 2018 | 1 Billion (USD) |
| Forecast Period | 2019 to 2025 |
| Forecast Period 2019 to 2025 CAGR | 40% |
| 2025 Value Projection | 16 Billion (USD) |
| Historical Data for | 2014 to 2018 |
| No. of Pages | 300 |
| Tables, Charts & Figures | 611 |
| Segments covered | Component, Technology, Application, End-use and Region |
| Growth Drivers |
|
| Pitfalls & Challenges |
|
What are the growth opportunities in this market?
Download Sample Ask for Discount Request Customization
However, the adoption of the technology in the manufacturing sector is still in the nascent stage due to the presence of several challenges in implementation of the AI technology in the industries. The complex nature of the industrial data and lack of skilled IT workforce in the industrial plants is hindering the adoption of the technology.
Artificial Intelligence in Manufacturing Market Analysis
Hardware is leading the AI in manufacturing market with over 57% share in 2018 driven by the increasing demand for the AI processors among the industry sectors. GPUs account for more than 45% market share in 2018 and estimated to dominate the market through 2025. Its heavy compute capabilities are encouraging its demand among the organizations. Moreover, the increasing need for enhanced visual content and high memory graphic is augmenting the market.
Learn more about the key segments shaping this market
Download Sample Ask for Discount Request Customization
Software segment is projected to expand at above 48% CAGR from 2019 to 2025 propelled by the increasing demand of the customized AI powered solutions among the manufactures. By deploying the right combination of the AI solutions, manufacturers can increase their operational efficiency, accelerate process, gain flexibility, and can optimize the operations. It has been estimated that the AI can reduce the operational cost by 20% with increasing the workforce productivity by more than 70%. It can also assist manufactures in increasing their sales by enabling manufacturers to develop customized products for the customers.
AI in the manufacturing services sector is projected to experience growth of about 54% over the next 7 years driven by the mounting use and implementation of AI solutions. The unavailability of skilled professional among the industry sector as well as the heightened demand for the third-party service providers is contributing to the increased market growth. Further, the mounting requirement among the manufactures to concentrate on the core business strengths is driving the services market forward.
Machine learning dominated more than 47% of the AI in manufacturing market share during 2018. The tech is applied in the manufacturing sector because of increasing needs to provide quality management at all levels of the manufacturing process. ML forecasts the product quality from initial production stages with high level of accuracy. This detects infinitesimal variations from perfect product specifications and its autonomous learning algorithms enable it to identify mistakes, which existed without anyone knowing.
The context awareness technology market is expected to register approximately 41% CAGR during the forecast period of 2025. The requirement for extremely flexible manufacturing processes is driving the implementation of context awareness systems. The technology increases the availability and efficiency of contemporary production systems at the same time. It facilitates self-adaptation to enable variability in process parameters with the objective of enhancing flexibility and efficiency. It also enables efficient knowledge acquisition & sharing to facilitate maintenance, thereby enhancing the availability of production systems.
The application of quality management is projected to hold 20% share in the AI in manufacturing market by 2025. Increased competition in the manufacturing industry is encouraging AI technology as a major differentiator to provide quality control. Poor quality is a significant threat to the performance and competitive standing of the company in the market, resulting in high expenses to the company. This is prompting manufacturing businesses to implement deep learning & machine learning platforms to support their current infrastructure and actively identify errors & errors that may compromise the production chain and the quality of goods.
The material movement segment is expected to witness at a CAGR of 43% between 2019 and 2025. Since an experienced workforce is becoming harder to hire and retain, businesses are turning towards AI-driven machine movement solutions to control their labor issues while maintaining productivity and profitability.
The energy & power end-use application segment is expected to see gains at over 41.2% until 2025. Firms are investing in AI technology as it can learn and adapt according to the changes in the environment. The technology will allow power generation firms to generate predictions about the energy demand and its production on the basis of weather forecasting. This will minimize the reliance on backup systems for forecasting & managing the fluctuations in the production. The velocity and the intricate nature of the task are promoting the utilization of sophisticated AI technologies in the manufacturing industry.
The heavy metal & machinery sector is expected to reach a CAGR of approximately 43% over the next 7 years. The operators in the heavy metal & machinery segment are leveraging AI technology to improve raw material utilization, melt cost, and ensuring quality finished products. It helps manufacturers create correct models from historic raw material utilization. It lowers the amount of raw materials consumed, allowing major cost savings if raw materials consumed are valuable materials like gold, zinc, or copper.
Asia Pacific held sway in the market for AI in manufacturing with around 43% share during 2018 and is projected to echo the trend up to 2025. The technologically advanced manufacturing facilities in the nations like Japan, South Korea, and China will drive regional market demand. The speedy embracing of the industry 4.0 revolution across the region also facilitates the adoption of AI solutions. In addition, the rising investment in the AI technology of the emerging nations like India and China are fueling the market revenue.
Market in North America is also expected to observe similar growth patterns as APAC and will develop at 43% CAGR throughout the forecast period. The growing investments made by companies in upgrading their manufacturing plants are driving the market growth. The early implantation of different cutting-edge technology, including IoT, is also driving the penetration of AI-powered manufacturing systems. Moreover, government initiatives to restore manufacturing activities to North America are assisting the deployment of AI technologies in the manufacturing industry.
Artificial Intelligence in Manufacturing Market Share
Multinational players, such as
are investing heavily in developing new and high-performance enterprise AI solutions. The major players in the AI in manufacturing market are forming partnerships with various technology players to develop new product offerings. With the increasing adoption of industry 4.0 manufacturing technologies, the demand for AI chips has grown significantly driven by traditional chipmakers to invest in enterprise solutions. They are also acquiring new start-ups working on machine learning to solidify their position in the market.
This market research report on AI in the manufacturing sector includes in-depth coverage of the industry with estimates & forecast in terms of shipment in units and revenue in USD from 2016 to 2025 for the following segments
Click here to Buy Section of this Report
Market, By Component
- Hardware
- Processor
- Field-Programmable Gate Array (FPGA)
- Application-Specific Integrated Circuits (ASICs)
- Control Processing Unit (CPU)
- Graphics Processing Unit (GPU)
- Memory
- Processor
- Solutions
- Software
- AI platforms
- Application Program Interfaces (APIs)
- Services
- Managed services
- Professional services
Market, By Technology
- Machine Learning (ML)
- Computer vision
- Context awareness
- Natural Language Processing (NLP)
Market, By Application
- Quality management
- Predictive maintenance & machinery inspection
- Material movement
- Production planning
- Cybersecurity
- Field services
Market, By End-Use
- Semiconductor & electronics
- Energy & power
- Pharmaceuticals & chemical
- Automobile
- Heavy metals & machine manufacturing
- Food & beverages
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Netherlands
- Asia Pacific
- Australia
- China
- India
- Japan
- South Korea
- Taiwan
- Latin America
- Mexico
- Brazil
- MEA
- UAE
- Israel
- South Africa
Related Reports
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy