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Rising Automobile Demand Accelerates AI Integration In Manufacturing: A Key Factor Shaping the Future of the AI in Manufacturing Market in 2025
AI in Manufacturing Market Size
In recent years, the Artificial Intelligence in manufacturing market has seen substantial growth. Its market size is projected to rise from $4.11 billion in 2024 to $5.82 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 41.5%. Factors such as energy efficiency and sustainability, customized and personalized services, cost-cutting initiatives, efforts towards workforce training and skill enhancement, and supply chain optimization have contributed to this growth during the historical period.
The market size of AI in manufacturing is projected to experience rapid expansion in the forthcoming years, reaching a worth of $25.23 billion by 2029 with a CAGR of 44.3%. This forecasted progression during the prediction period can be linked to the increased adoption of edge computing, green manufacturing practices, attention towards cybersecurity, increased collaboration between humans and machines, and resilience in the supply chain. Pivotal trends anticipated during this period encompass the integration of robotics and automation, quality control and identification of defects, applications of augmented reality, data-centric decision making, and autonomous manufacturing procedures.
What Are the Main Catalysts for Growth in the AI in Manufacturing Market?
The surge in the need for automobiles is anticipated to boost the expansion of artificial intelligence (AI) in manufacturing market in the future. An automobile, often referred to as a car or a motorcar, is a wheeled vehicle devised for transporting people or commodities on roads. The automobile sector integrates AI in its manufacturing processes in multifarious ways like the creation of autonomous vehicles, predictive upkeep, data gathering and breakdown, as well as quality monitoring and inspection. Making use of AI in automotive sector allows the designing of the vehicle plus the apparatuses and robots responsible for its creation. AI is presently being utilized in the manufacturing, supply chain, post-production, and design phases of automobile creation. For example, as per the European Automobile Manufacturers Association, a trade organization located in Belgium, the count of motor vehicles produced worldwide in 2022 amounted to 85.4 million, which is up by 5.7% compared to 2021. Thus, the escalating need for automobiles is fuelling the growth of AI in the manufacturing market.
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Which Businesses Are at the Forefront of AI in Manufacturing Market Development?
Major companies operating in the AI in manufacturing market report are Nvidia Corporation, The International Business Machines Corporation, Siemens AG, General Electric Company, SAP SE, Amazon Inc., Mitsubishi Electric Corporation, Rockwell Automation Inc., Robert Bosch GmbH, Google LLC, Intel Corporation, Micron Technology Inc., Oracle Corporation, Cisco Systems Inc., Microsoft Corporation, Hilscher Gesellschaft für Systemautomation GmbH, Beckhoff Automation GmbH, Phoenix Contact GmbH & Co. KG, Veo Robotics, Automation Anywhere, Machina Labs Inc., Advanced Micro Devices Inc., SoluLab, Keyence Corporation, LeewayHertz, Citadel Analytics, Omron Corporation, Yokogawa Electric Corporation, Cognex Corporation, Bosch Rexroth AG
What Are the Latest Innovations in the AI in Manufacturing Market?
The trend of technological innovation is seeing increasing traction in the AI in manufacturing market. Firms that are part of AI's application in manufacturing are putting their efforts into embracing novel technologies to retain their market stronghold. For instance, Leela AI, a software development firm based in the United States, introduced its maiden 'commonsense' visual AI platform, termed Leela Platform, in March 2023 to enhance manufacturing productivity. The Leela Platform enables manufacturers to gain visibility into aspects of their production processes that are undetectable by Industrial Internet of Things (IIOT) sensor analytics. This software provides insights that facilitate productivity comparison among shifts, workstations, and places, and also helps in identifying performance bottlenecks and effective practices. The Leela Platform, which is advantageous to industrial engineers, CI officers, and line supervisors, operates like a continuous time-and-motion study by identifying and tracking front-line activities as personnel interact with equipment, machines, components, and products.
How Is the AI in Manufacturing Market Segmented?
The AI in manufacturing market covered in this report is segmented -
1) By Offering: Hardware, Software, Services
2) By Technology: Machine Learning, Natural Language Processing, Context-Aware Computing, Computer Vision
3) By Deployment: Cloud, On-Premise
4) By Application: Predictive maintenance and machinery inspection, Material Movement, Production Planning, Field Services, Quality Control, Cybersecurity, Industrial Robots, Reclamation
5) By Industry: Automobile, Energy And Power, Semiconductor And Electronics, Pharmaceutical, Heavy Metal And Machine Manufacturing, Food And Beverage, Other Industries
Subsegments:
1) By Hardware: Sensors, Robots, Processors, Automation Systems, IoT Devices
2) By Software: Machine Learning Software, Data Analytics Software, Quality Control Software, Supply Chain Management Software, Customer Relationship Management (CRM) Software
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Where Is the AI in Manufacturing Market Growth Most Prominent?
Asia-Pacific was the largest region in the AI in manufacturing market in 2024. It is expected to be the fastest-growing region in the global AI in manufacturing market report during the forecast period. The regions covered in the ai in manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
What Is Covered In The AI in Manufacturing Global Market Report?
- Market Size Analysis: Analyze the AI in Manufacturing Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the AI in Manufacturing Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall AI in Manufacturing Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the AI in Manufacturing Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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