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(I-AutoNewsWire.com, July 22, 2022 ) According to a new market research report titled, “AI in Manufacturing Market By Component, Technology (ML, NLP, Computer Vision), Application (Predictive Maintenance Quality Management, Supply Chain, Production Planning), Industry Vertical, and Geography — Global Forecast to 2028”, published by Meticulous Research®, the artificial intelligence (AI) in manufacturing market is expected to grow at a CAGR of 38.6% during the forecast period to reach $13.96 billion by 2028.
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The rising popularity of artificial intelligence in manufacturing industry for optimizing logistics & supply chains, enhancing production outcomes, advancing process effectiveness, reducing costs and downtime in production lines while delivering finished products to consumers are expected to drive the growth of the AI in manufacturing market. Additionally, the advent of Industrial 4.0, the increasing volume of large complex data, and the rising adoption of industrial IoT further contribute to market growth.
However, the lack of infrastructure and high procurement and operating costs are expected to restrain the growth of this market to a certain extent.
Impact of COVID-19 on AI in Manufacturing Market
The COVID-19 pandemic outbreak created serious challenges to the world’s economy and for industry verticals. The SARS-CoV-2, the virus responsible for the global COVID-19 pandemic, started showing its distressing collision on most profitable businesses across the globe, leading to a remote workforce, ensuring people’s health & safety, and business application integrity. The impact of the COVID-19 outbreak has varied by each industry sector's level of resilience. Additionally, the lockdowns imposed to contain the pandemic resulted in severe losses to businesses. Manufacturers across the globe faced grave challenges, such as diminished demand, production, and revenues, as the COVID-19 pandemic intensified in 2020. The automobile, semiconductors & electronics, and heavy metal & machinery manufacturing industries witnessed raw material shortages, with manufacturers temporarily closing down factories or minimizing production.
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According to the United Nations Conference on Trade and Development (UNCTAD), the COVID-19 pandemic is expected to reduce the global FDI by around 5–15% due to the temporary shutdown of the manufacturing sector. A survey conducted by the National Association of Manufacturers (NAM) stated that around 78% of manufacturers anticipated a financial impact, and 35.5% faced supply chain disruptions due to COVID-19. These factors led manufacturing companies to deprioritize their digital transformation strategies, including equipping their production units with AI.
Consequently, the AI in manufacturing market witnessed a sharp decline in 2020. Thus, manufacturing industries require considerable productive time and assistance from local governments to get back on track and overcome the COVID-19 crisis. Several governments plan to launch favorable initiatives, such as incentive programs promoting investments in the private sector, tax exemptions, and lowering corporate interest rates. For instance, in 2021, Cisco Systems, Inc. (U.S.) launched a collaborative framework under Cisco’s Country Digital Acceleration (CDA) program to accelerate digitization and support inclusive pandemic recovery across South Korea. Such developments and initiatives are exhibiting positive impacts on the growth of the market. Based on geography, the EU countries were affected the most by the COVID-19 pandemic, followed by the U.S. On the other hand, China is gradually recovering from the pandemic, with positive developments in the supply chain industry.
Several organizations post-COVID-19 pandemic might strategize to downsize by cutting business lines considered as non-critical. Many leading AI in manufacturing players are eying this crisis as a new opportunity for restructuring and revisiting their existing strategies with advanced product portfolios. AI technology providers for manufacturing industries are focused on new applications and delivery models to create smart automation technologies, digitization, and advanced AI applications. For instance, in 2021, Nvidia Corporation (U.S.) partnered with Google Cloud (U.S.) to create the industry’s first AI-on-5G Lab. This partnership helped accelerate the creation of smart cities, smart factories, and other advanced 5G and AI applications. Also, in 2021, General Electric Company (U.S.) partnered with the Global Manufacturing and Industrialization Summit (GMIS) (UAE) to explore the role of digitization, lean manufacturing, and workplace safety. Such developments and initiatives are expected to help manufacturing companies recover faster and reduce dependencies on physical process handling.
Hence, despite the pandemic affecting the AI in manufacturing market, it still holds considerable potential to bounce back with the gradual recovery of the manufacturing sector.
The AI in manufacturing market is segmented based on component (hardware [processors, memory solutions, and networking solutions], software [AI platforms and AI solutions], service [deployment & integration, support & maintenance]), technology (machine learning, natural language processing, computer vision, speech & voice recognition, context-aware computing), application (predictive maintenance & machinery inspection, quality management, supply chain optimization, industrial robot, production planning, material handling, field services, safety planning, cybersecurity, energy management), industry verticals (automotive, semiconductors & electronics, heavy metals & machine manufacturing, energy & power, aerospace & defense, medical devices, pharmaceuticals, and FMCG), and region. The study also evaluates industry competitors and analyses the market at the regional and country levels.
Based on component, the hardware segment is estimated to account for the largest share of the AI in manufacturing market in 2021. The large market share of this segment is primarily driven by the increasing demand for robust and cost-effective devices, including servers, storage, and networking devices. However, the software segment is slated to grow at the fastest CAGR during the forecast period due to the high adoption of cloud-based technologies and the increasing demand for AI platforms to streamline processes and operations.
Based on technology, the machine learning segment is estimated to account for the largest share of the AI in manufacturing market in 2021. The large market share of this segment is primarily driven by the rising need for identifying, monitoring, and analyzing the critical system variables during the manufacturing process, growing demand for predictive maintenance & machinery inspection, and the increase in unstructured data generated by the manufacturing industry. However, the natural language processing segment is slated to grow at the fastest CAGR during the forecast period due to the need to strengthen interactions with search engines by allowing queries to be assessed faster in an efficient manner and the growing demand for cloud-based NLP solutions to reduce overall costs, facilitate smart environments, and enhance scalability.
Based on application, the predictive maintenance & machinery inspection segment is estimated to account for the largest share and witness the fastest CAGR of the AI in manufacturing market in 2021. This segment's large market share and high growth rate are primarily driven by the increasing demand to reduce costs related to operating heavy equipment, growing demand for equipment uptime & availability, reducing maintenance planning time, improving production capacity, and real-time reporting of manufacturing issues in industries.
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Based on industry vertical, the automotive industry is estimated to account for the largest share of the overall AI in manufacturing market in 2021. The large market share of this segment is primarily driven by the rising adoption of advanced AI automotive solutions for fault detection & isolation, quality management, smart manufacturing, production monitoring, and the need for predictive maintenance & machinery inspection solutions.
However, the medical devices manufacturing sector is slated to grow at the fastest CAGR during the forecast period due to the outbreak of the COVID-19 pandemic and the rising focus on preventive medical equipment maintenance to reduce unplanned downtime, enhance production quality control, and improve operational productivity.
Based on geography, Asia-Pacific is estimated to account for the largest share and witness the fastest CAGR of the AI in manufacturing market in 2021. This region’s large market share and high growth rate are primarily attributed to the presence of major AI in manufacturing players along with several emerging startups in the region, increasing investments by technology leaders, and increasing digitization along with the strong presence of automobile and electronics and semiconductor companies and their focus on developing advanced solutions to optimize manufacturing operations and processes in the region.
The report also includes an extensive assessment of the key strategic developments adopted by the leading market participants in the industry over the past four years. The AI in manufacturing market has witnessed various strategies in recent years, such as partnerships & agreements. These strategies enabled companies to broaden their product portfolios, advance capabilities of existing products, and gain cost leadership in the AI in manufacturing market. For instance, in 2021, SAP SE (Germany) partnered with Google Cloud (U.S.) to augment existing business systems with Google Cloud capabilities in Artificial Intelligence (AI) and Machine Learning (ML). Also, SAP SE partnered with Plataine Ltd. (U.S.) to integrate IIoT and AI-based software for digital manufacturing. This partnership enabled customers to benefit from a holistic smart factory solution that extends across production operations. In 2021, Robert Bosch (Germany) collaborated with Capgemini SE (France) for intelligent manufacturing, digitization, and sustainability of their production plants.
The AI in manufacturing market is fragmented in nature. The major players operating in this market include Alphabet, Inc. (U.S.), IBM Corporation (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), Nvidia Corporation (U.S.), Oracle Corporation (U.S.), Amazon Web Services, Inc. (U.S.), Siemens AG (Germany), General Electric Company (U.S.), SAP SE (Germany), Robert Bosch GmbH (Germany), Cisco Systems, Inc. (U.S.), Rockwell Automation, Inc. (U.S.), Advanced Micro Devices, Inc. (U.S.), and Sight Machine Inc. (U.S.) among others.
To gain more insights into the market with a detailed table of content and figures, click here: https://www.meticulousresearch.com/product/artificial-intelligence-in-manufacturing-market-4983
Scope of the Report:
AI in Manufacturing Market, by Component
Deployment & Integration
Support & Maintenance
AI in Manufacturing Market, by Technology
Natural Language Processing
Speech and Voice Recognition
AI in Manufacturing Market, by Application
Predictive Maintenance & Machinery Inspection
Supply Chain Optimization
Industrial Robot/Robotics & Factory Automation
AI in Manufacturing Market, by Industry Vertical
Semiconductors & Electronics
Heavy Metals & Machine Manufacturing
Energy & Power
Aerospace & Defense
AI in Manufacturing Market, by Geography
Rest of Europe
Australia & New Zealand
Rest of Asia-Pacific
Rest of Latin America
Middle East and Africa
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Mr. Khushal Bombe