Artificial Intelligence In Manufacturing Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Offering (Hardware, Software, Services), By Technology (Natural Language Processing , Machine Learning , Deep Learning, Image Recognition, Others), By End-User Industry (Automotive, Consumer Electronics, Healthcare, Food & Beverage, Others), And By Geography - Forecasts From 2022 To 2027
- Published : Sep 2022
- Report Code : KSI061612925
- Pages : 110
The global artificial intelligence in the manufacturing market is projected to grow at a CAGR of 49.58% during the forecast period, reaching a total market size of US$740.843 billion by 2027 from US$44.219 billion in 2020.
Artificial intelligence is strengthening its footprints across the global manufacturing industry as it continues to become more competitive. Increasing competition across the sector is pushing industry players towards pumping heavy investments into research and development and into the integration of advanced technologies across all major business functions.
The increasing focus of end-user enterprises on reducing costs is boosting the demand for artificial intelligence in manufacturing.
Continuously increasing adoption of artificial intelligence by various sub-sectors is driving the market, and market players are investing heavily in research and development to introduce new and updated products to gain market share. Companies are heavily investing in artificial intelligence as it is the future of manufacturing. With the growing popularity of Industry 4.0, there has been an increase in the application of artificial intelligence across many business functions as it aids in achieving fewer errors, shorter reaction times, clearly assigned tasks, and optimization of production systematically and sustainably. Industrie 4.0 is also helping in increasing the output and providing safety for employees and factory assets, and it has also enabled the manufacturers to manufacture customized goods at lower costs and in less time. This is further increasing the demand for artificial intelligence in manufacturing.
The growth of artificial intelligence in manufacturing will continue to be driven by the widespread usage of machine vision cameras in manufacturing applications like inspection, material movement, field service, and quality control. Artificial Intelligence in the manufacturing market has been segmented by offering, technology, end-user, and geography. By offering, the market has been segmented into hardware, software, and services. By technology, the market has been segmented into natural language processing, machine learning, deep learning, image recognition, and others. By end-user industry, the market has been segmented into automotive, consumer electronics, healthcare, food and beverage, and others.
Hardware is required for sensing and transferring important data
Hardware in artificial intelligence is required for sensing important information and transmitting the same for further analysis, thereby aiding in making informed decisions. The market for hardware in AI in the manufacturing market is majorly attributed to its increasing use in high-performance computing processors, which run artificial intelligence algorithms in order to find out important insights from huge volumes of data. The software also holds a significant share in this market, and the market growth is being driven by advancements in technologies and an increasing number of vendors offering advanced software solutions for AI in manufacturing. Solid growth of the market for services is anticipated over the forecast period. The availability of a good number of vendors offering integration, maintenance, training, and other services for different enterprise and business types will continue to drive market growth in this segment.
Machine learning has enabled the handling of big data
The demand for machine learning is increasing due to its ability to collect and handle big data and its applications in various functions like predictive analytics and machinery inspection, quality control, and cybersecurity. A growing market for machine learning is also driven by its ability to increase productivity, reduce machine downtime, and reduce operational costs. Machine learning is a subset of deep learning, and artificial intelligence is a subset of machine learning. The demand for deep learning is increasing due to its ability to learn from data, detect patterns, and make decisions on its basis. This feature is helpful in supply chain operations, which is contributing to its growing demand among end-users who seek to gain a competitive edge over their rivals by streamlining operations and offering differentiated products to customers.
An increase in the use of robots in the automotive industry is increasing the demand for artificial intelligence in the manufacturing
The increase in the use of robots and robotic components in the production of vehicles in the automotive industry is leading to an increase in demand for artificial intelligence in manufacturing. The increase in the usage of artificial intelligence and machine learning has helped in minimizing errors, reduce lead times, assign tasks more clearly, and optimise production systematically and sustainably. The consumer electronics industry is expected to have a rise in demand for artificial intelligence on account of continuously shifting trends towards miniaturization. The market’s growth in other sectors is expected to remain solid over the projected period.
By geography, North America has a notable share in the market
Regionally, artificial intelligence in the manufacturing market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. North America holds a significantly large share of this market on account of the early adoption of advanced technologies by companies in this region. Several manufacturing companies are using automation technologies to improve their production, contributing to market growth. The market in the Asia Pacific is expected to witness solid growth owing to the forecast period. The growth will be majorly attributed to the heavy inflow of investments by industry players in this region on account of the easy availability of resources here. Companies in the growing manufacturing sector in the region, especially in countries like China and India, are focusing on improving production by implementing new and advanced technologies that use artificial intelligence. Europe has a high share in the market and will remain a huge contributor to the growth of the market throughout the projected period on account of the availability of state-of-the-art infrastructure here, which favours the use of advanced AI technologies in manufacturing facilities. As a result of strict regulations in this region regarding climate change, companies in this region are adopting more sustainable ways of manufacturing goods.
- July 2021: Google Cloud and SAP have expanded strategic partnerships to help customers execute business transformations, migrate critical business systems to the cloud, and augment existing business systems with Google Cloud capabilities in artificial intelligence (AI) and machine learning (ML) as per July 2021 press release by Google. As part of this expanded partnership, Google Cloud will be a strategic cloud partner for SAP's RISE solution.
- March 2020: Siemens and NEC Corporation have collaborated to provide a monitoring and analysis solution for manufacturing using MindSphere, the cloud-based AI, open Internet of Things (IoT) operating system from Siemens, and NEC's System Invariant Analysis Technology (SIAT) as per press release by NEC in March 2020. With Siemens, NEC will also have access to specialized technical training and support as well as joint go-to-market capabilities.
Impact of COVID-19 on Artificial Intelligence in Manufacturing Market
Globally, the COVID-19 outbreak severely impacted economies and industry verticals. Manufacturing, oil & gas, construction, automotive & transportation industries were all severely affected by the pandemic's lockdowns. In the manufacturing industry, shortages of raw material and labour, supply chain disruptions, and capacity restrictions severely impacted business operations. Due to these factors, manufacturing companies deprioritized their digital transformation strategies, including the equipment of their production units with artificial intelligence. To mitigate the COVID-19 impact on their businesses, companies turned to artificial intelligence. Therefore, several AI and automation experts suggested increasing investments in advanced technologies, such as AI, to create remote operating capabilities like process automation, industrial robots, predictive maintenance, and automated material movement. Companies are investing in automation technologies, digitization, and advanced AI applications in vertical industries. Companies are automating their operations, streamlining supply chain management, and enhancing their decision-making.
Artificial Intelligence in Manufacturing Market Scope:
|Market Size Value in 2020||US$44.219 billion|
|Market Size Value in 2027||US$740.843 billion|
|Growth Rate||CAGR of 49.58% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Offering, Technology, End User Industry, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Hewlett Packard Enterprise, ABB, Emerson Electric Co., Schneider Electric, Tripp Lite (Eaton), Rittal GmbH & Co. KG, Raritan Inc., Delta Electronics, Inc., General Electric Company|
|Customization Scope||Free report customization with purchase|
- By Offering
- By Technology
- Natural language Processing
- Machine Learning
- Deep Learning
- Image Recognition
- By End-User Industry
- Consumer Electronics
- Food & Beverage
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
Q1. What will be the artificial intelligence in manufacturing market size by 2027?
A1. The global artificial intelligence in manufacturing market is projected to reach a total market size of US$740.843 billion by 2027.
Q2. What is the size of the global artificial intelligence in manufacturing market?
A2. Artificial Intelligence In Manufacturing Market was valued at US$44.219 billion in 2020.
Q3. What are the growth prospects for artificial intelligence in manufacturing market?
A3. The artificial intelligence in the manufacturing market is projected to grow at a CAGR of 49.58% during the forecast period.
Q4. Which region holds the largest market share of artificial intelligence in the manufacturing market?
A4. North America holds a significantly large share of artificial intelligence in the manufacturing market on account of the early adoption of advanced technologies by companies in this region.
Q5. What factors are anticipated to drive artificial intelligence in manufacturing market growth?
A5. The increasing focus of end-user enterprises on reducing costs is boosting the demand for artificial intelligence in manufacturing.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Global Artificial Intelligence in Manufacturing Market Analysis, By Offering
6. Global Artificial Intelligence in Manufacturing Market Analysis, By Technology
6.2. Natural language Processing
6.3. Machine Learning
6.4. Deep Learning
6.5. Image Recognition
7. Global Artificial Intelligence in Manufacturing Market Analysis, By End-User
7.3. Consumer Electronics
7.5. Food & Beverage
8. Global Artificial Intelligence in Manufacturing Market Analysis, By Geography
8.2. North America
8.3. South America
8.4.3. United Kingdom
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.3. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Hewlett Packard Enterprise
10.3. Emerson Electric Co.
10.4. Schneider Electric
10.5. Tripp Lite (Eaton)
10.6. Rittal GmbH & Co. KG
10.7. Raritan Inc.
10.8. Delta Electronics, Inc.
10.9. General Electric Company
Hewlett Packard Enterprise
Emerson Electric Co.
Tripp Lite (Eaton)
Rittal GmbH & Co. KG
Delta Electronics, Inc.
General Electric Company
|Report Name||Published Month||Get Sample PDF|
|Artificial Intelligence Processor Market Size: Report, 2022-2027||Oct 2022|
|Artificial Intelligence as a Service (AIaaS) Market Size: 2021-2026||Sep 2021|
|Artificial Intelligence in Education Market Size: Report, 2022 – 2027||Sep 2022|
|Artificial Intelligence (AI) in Banking Market Size: 2022-2027||May 2022|
|Artificial Intelligence (AI) in Life Sciences Market Size: 2022 – 2027||Jul 2022|