Artificial Intelligence in Manufacturing Industry worth $20.8 billion by 2028

Artificial Intelligence in Manufacturing Market Size, Share & Industry Growth Analysis Report by Offering (Hardware, Software, Services), Technology

According to new research report of MarketsandMarkets "The Artificial Intelligence in Manufacturing Market is expected to reach USD 20.8 billion by 2028 from USD 3.2 billion in 2023, at a CAGR of 45.6% during 2023�"2028. The significant growth factor associated with the Artificial Intelligence in Manufacturing Market growth is the Rising need to handle increasingly large and complex dataset, emerging industrial IoT and automation technology. The AI in manufacturing market is witnessing significant growth because of the extensive usage of big data, industrial robots, and the evolution of the Internet of Things (IoT), along with a few macro drivers such as emphasis on value creation and experiential customers." 

Hardware segment to grow with higher CAGR during the forecast period.

The artificial intelligence in manufacturing market based on offering has been segmented into hardware, software, and services. The market for the hardware segment has been sub-segmented into processors, memory, and network. Different types of processors considered in the scope of this report are microprocessor units (MPUs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs). The demand for high-computing processors to run AI algorithms is rising significantly. In the processor market, the GPU sub-segment is expected to witness substantial growth in the coming years owing to its high parallel computing capabilities.

Computer vision technology segment to grow with higher CAGR during the forecast period.

 Computer vision technology is concerned with the physical structure of 3D objects attached to an intelligent computing system. Computer vision analyzes the information of different geometric shapes, volumes, and patterns and provides visual feedback to the user, which is used to draw the inference. Computer vision is mainly used for predictive maintenance and machinery inspection purposes. The technology is mainly used in the automotive, energy & power, and heavy metals & machine manufacturing industries. In the automotive industry, this technology is used for 3 stages�"gauges, inspections, and identification.

Predictive maintenance & Machinery Inspection to hold largest market share through the forecast  period.

Predictive maintenance and machinery inspection is a regular and systematic application of AI, which ensures the proper functioning of different equipment and reduces their rate of deterioration. AI technology in predictive maintenance and machinery inspection is used in regular examination, inspection, lubrication, testing, and equipment adjustments. The growing need to reduce operational costs due to untimely machine failures and machine downtime is crucial in adopting AI-based solutions in predictive maintenance and machinery inspection applications. Factors such as the generation of a large volume of machine data, advantages offered by AI systems to manufacturers in predictive maintenance and machinery inspections, and the entry of many startups in this segment are driving the growth of the the artificial intelligence in manufacturing market.  

Automotive industry to hold largest market share in 2023.

The artificial intelligence in manufacturing market for the automotive industry held the largest share of the overall market in 2023. To reduce costs and improve vehicle production quality, automakers have started using computer vision and machine learning technologies. Use of AI in Automotive industry reduces downtime, vehicle recalls, and financial losses. Moreover, Predictive analytics can be used to evaluate whether a flawed part can be reworked or needs to be scrapped.

Asia Pacific is anticipated to grow at the highest CAGR during the forecast period.

Asia Pacific consists of some of the fastest-growing economies�"such as China, Japan, and India. The market in Asia Pacific is propelled by factors such as rapid industrialization, the substantial growth of e-commerce, rising labor costs, technological advancements in warehouses, progressing logistics and warehousing sectors, and the extensive focus on Industry 4.0. Moreover, the strong economic growth in this region is attracting further investments from AI in manufacturing suppliers for establishing sales and support facilities.

The report profiles key players such Siemens (Germany), IBM (US), Intel Corporation (US), NVIDIA Corporation (US), and General Electric Company (US) and others.