AI in Manufacturing Global Market Opportunities and Strategies to 2033

This report describes and explains the AI in manufacturing market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global AI in manufacturing market reached a value of nearly $2.93 billion in 2023, having grown at a compound annual growth rate (CAGR) of 27.7% since 2018. The market is expected to grow from $2.93 billion in 2023 to $17.5 billion in 2028 at a rate of 42.9%. The market is then expected to grow at a CAGR of 39.4% from 2028 and reach $92.08 billion in 2033.

Growth in the historic period resulted from the widespread adoption of industrial robots, increased demand for electronic devices, increased demand for renewable energy. Factors that negatively affected growth in the historic period were lack of expertise in AI.

Going forward, the growing automobile sector, increasing government initiatives on AI, growing digital transformation, growing adoption of IoT devices will drive the growth. Factor that could hinder the growth of the AI in manufacturing market in the future include privacy and security challenges.

The AI in manufacturing market is segmented by offering into hardware, software and services. The software market was the largest segment of the AI in manufacturing market segmented by offering, accounting for 47.8% or $1.4 billion of the total in 2023. Going forward, the services segment is expected to be the fastest growing segment in the AI in manufacturing market segmented by offering, at a CAGR of 50.7% during 2023-2028.

The AI in manufacturing market is segmented by technology into machine learning, natural language processing, context aware computing and computer vision. The machine learning market was the largest segment of the AI in manufacturing market segmented by technology, accounting for 35.3% or $1.03 billion of the total in 2023. Going forward, the natural language processing segment is expected to be the fastest growing segment in the AI in manufacturing market segmented by technology, at a CAGR of 51.9% during 2023-2028.

The AI in manufacturing market is segmented by industry into automobile, energy and power, semiconductor and electronics, pharmaceuticals, heavy metal and machine manufacturing, food and beverage and other industries. The automobile market was the largest segment of the AI in manufacturing market segmented by industry, accounting for 24.3% or $713.2 million of the total in 2023. Going forward, the pharmaceutical segment is expected to be the fastest growing segment in the AI in manufacturing market segmented by industry, at a CAGR of 55.6% during 2023-2028.

The AI in manufacturing market is segmented by deployment into cloud and on-premise. The on-premise market was the largest segment of the AI in manufacturing market segmented by deployment, accounting for 56.9% or $1.67 billion of the total in 2023. Going forward, the cloud segment is expected to be the fastest growing segment in the AI in manufacturing market segmented by deployment, at a CAGR of 45% during 2023-2028.

North America was the largest region in the AI In Manufacturing Market, accounting for 39.6% or $1.16 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the AI in manufacturing market will be Asia Pacific and South America where growth will be at CAGRs of 45.5% and 44.3% respectively. These will be followed by Western Europe and Eastern Europe where the markets are expected to grow at CAGRs of 43% and 41.4% respectively.

The global AI in manufacturing market is concentrated, with a few large players operating in the market. The top ten competitors in the market made up to 49.7% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. International Business Machines Corporation was the largest competitor with a 12% share of the market, followed by Microsoft Corporation with 8.4%, Amazon.com, Inc. with 5.8%, Oracle Corporation with 4.9%, Siemens AG with 4%, Alphabet Inc. with 3.8%, Intel Corporation with 3.3%, SAP SE with 2.8%, NVIDIA Corporation with 2.5% and Mitsubishi Electric Corporation with 2.2%.

The top opportunities in the AI in manufacturing market segmented by offering will arise in the software segment, which will gain $7.98 billion of global annual sales by 2028. The top opportunities in the AI in manufacturing market segmented by technology will arise in the natural language processing segment, which will gain $5.3 billion of global annual sales by 2028. The top opportunities in the AI in manufacturing market segmented by industry will arise in the automobile segment, which will gain $4.27 billion of global annual sales by 2028. The AI in manufacturing market size will gain the most in USA at $4.85 billion.

Market-trend-based strategies for the AI in manufacturing market include transformative AI services for enhanced manufacturing efficiency, advancements in visual AI solutions transforming manufacturing operations, innovative AI inspection software revolutionizing manufacturing competitiveness, innovative AI solutions for predictive maintenance in manufacturing, fostering innovation through strategic collaborations.

Player-adopted strategies in the AI in manufacturing market include focus on new product solutions to better serve the industry and to strengthen their position, focus on strengthening its operational capabilities through new product developments, focus on enhancing its business operations through strategic collaborations and partnerships, focus on expanding its operational capabilities through strategic partnerships and collaborations and focus on developing new product solutions through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the AI in manufacturing companies to focus on tailored AI solutions for manufacturing growth, focus on visual AI solutions for manufacturing advancement, focus on AI inspection software for manufacturing advancement, focus on AI-powered predictive maintenance solutions, focus on machine learning and computer vision segments, focus on cloud segment, expand in emerging markets, continue to focus on developed markets, focus on collaborative technological partnerships, provide competitively priced offerings, continue to use B2B promotions, and focus on automobile and semiconductor and electronics segments.