AI in Manufacturing Market to Reach $15,273.7 Million by 2025 – Transforming Efficiency & Automation

The growing adoption of IoT and rising awareness of customer satisfaction are driving the demand for AI in manufacturing, fueling market growth globally.

WILMINGTON, DE, UNITED STATES, February 10, 2025 /EINPresswire.com/ -- As per the report published by Allied Market Research, the global AI in manufacturing market size was $513.6 million in 2017, and is anticipated to reach at $15.27 billion by 2025, growing at a CAGR of 55.2% during the forecast period.

Rise in demand for artificial intelligence in manufacturing due to increasing adoption of Internet of Things and rise in awareness about customer satisfaction augment the growth of the global artificial intelligence in the manufacturing market. However, high cost of implementing this technology and high threat to human dignity restrain the market growth. Moreover, expansion of smarter and efficient robots is anticipated to offer lucrative opportunities to the market, in the near future.

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COVID-19 Scenarios:

The global pandemic has affected a major part of the manufacturing industry which, in turn, impedes the adoption of artificial intelligence by companies. However, certain manufacturing companies including food & beverages and pharmaceuticals are permitted to continue the production amid COVID-19. Moreover, the global lockdown has urged other manufacturing companies to halt the production.

Increase in use of machine vision and computer vision globally drives the growth of artificial intelligence in the manufacturing market. In addition, growth in venture capital investments also significantly contributes to the market growth. Furthermore, rise in standards of living and recent developments in emerging economies such as China and India have created a major growth potential for AI in the manufacturing sector. However, disinclination among manufacturers to adopt AI-based technologies and threat of lots of jobs substituted by AI-based technology systems is expected to hinder the market demand. Conversely, enduring technological advancements such as smarter AI chips and others by key players is expected to create lucrative opportunities for the growth of the market.

Artificial intelligence (AI) is one of the most advanced technologies in the field of computer science. It is associated with human intelligence through similar characteristics such as better decision-making, language understanding, and others. Industrialists in the market experience huge underlying intellectual challenges in the development and revision of technology. Increase in demand for artificial Intelligence in the manufacturing market has been witnessed owing to rise in the adoption of Internet of Things and increase in awareness about customer satisfaction. In addition, development of smarter and efficient robots is expected to propel the market growth. However, high cost of implementing this technology and high threat to human dignity are anticipated to restrain the market growth.

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The increase in use of machine vision and computer vision globally drives the growth of artificial intelligence in the manufacturing market. In addition, growth in venture capital investments also significantly contributes to the market growth. Furthermore, rise in standards of living and recent developments in emerging economies such as China and India have created a major growth potential for AI in the manufacturing sector. However, disinclination among manufacturers to adopt AI-based technologies and threat of lots of jobs substituted by AI-based technology systems is expected to hinder the market demand. Conversely, enduring technological advancements such as smarter AI chips and others by key players is expected to create lucrative opportunities for the growth of the market.

The AI in Manufacturing Market is experiencing rapid growth as industries adopt artificial intelligence (AI) to enhance efficiency, automation, and decision-making. AI-driven technologies such as machine learning, computer vision, and predictive analytics are transforming manufacturing processes by optimizing production lines, reducing downtime, and improving quality control. The integration of AI with Industrial Internet of Things (IIoT) is further accelerating innovation by enabling real-time data analysis and automation.

Market Drivers
One of the primary factors driving market growth is the increasing adoption of IoT in manufacturing. Connected devices generate vast amounts of data, which AI algorithms analyze to improve operational efficiency and predictive maintenance. Additionally, rising awareness of customer satisfaction is pushing manufacturers to leverage AI for personalized production, demand forecasting, and supply chain optimization.

Another key driver is the growing need for automation to address labor shortages and reduce operational costs. AI-powered robotics and automated quality inspection systems are streamlining production, leading to higher productivity and cost savings. Furthermore, advancements in cloud computing and edge AI are making AI adoption more accessible to manufacturers of all sizes.

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Challenges & Restraints
Despite its potential, the AI in manufacturing market faces challenges such as high implementation costs, lack of skilled professionals, and data security concerns. Small and medium enterprises (SMEs) often struggle with the initial investment required for AI-driven systems. Additionally, ensuring data privacy and cybersecurity in connected manufacturing environments remains a critical challenge.

Market Trends & Opportunities
The rise of smart factories and Industry 4.0 is expected to create significant growth opportunities for AI in manufacturing. AI-powered digital twins, automated supply chain management, and AI-driven quality control are emerging trends reshaping the industry. Moreover, government initiatives promoting AI adoption and investments in research and development are further propelling market expansion.

Key Findings of the Artificial Intelligence in Manufacturing Market:

1. In terms of application, the predictive maintenance and machinery inspection segment dominated the market in terms of revenue in 2017, and is anticipated to maintain its lead position throughout the study period. In addition, the segment is estimated to grow at a CAGR of 54.9% during the forecast period.

2. Based on region, North America generated the highest market share in terms of revenue in 2017. Furthermore, the region is anticipated to grow at a CAGR of 55.5% from 2017 to 2025.

3. Based on technology, the computer vision segment held the highest revenue share in 2017, and is estimated to grow at a CAGR of 56.0% from 2017 to 2025.

4. In Asia-Pacific region, China contributed for the largest market share in 2017.

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Based on the deployment, the on-premise segment is expected to garner the largest share in the global market during the forecast period. According to the industry segment, the automobile sector is expected to dominate the market in terms of revenue in 2017, owing to the capability of artificial Intelligence in manufacturing to achieve less errors and mass production.

By technology, the market is segmented into machine learning, computer vision, context awareness, and natural language processing. Among these, the computer vision segment is expected to dominate the artificial intelligence in manufacturing market in terms of revenue during the forecast period.

The key players profiled in the global artificial intelligence in manufacturing market report includes General Electric Company, IBM Corporation, Intel Corporation, Microsoft Corporation, Mitsubishi Electric Corporation, Cisco Systems, Inc., NVIDIA Corporation, Siemens AG, Oracle Corporation, and. Bosch.

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