DELRAY BEACH, Fla., Aug. 21, 2025 /PRNewswire/ — The global AI in manufacturing market is projected to grow from USD 34.18 billion in 2025 to USD 155.04 billion by 2030, registering a CAGR of 35.3% during the forecast period according to a new report by MarketsandMarkets™. The market’s expansion is driven by the increasing need for real-time data analysis, intelligent automation, and operational agility across industries such as automotive, electronics, aerospace, pharmaceuticals, and industrial equipment. As manufacturing operations become more data-intensive and interconnected, AI technologies are playing a pivotal role in enabling smart decision-making, optimizing production workflows, and enhancing overall plant efficiency. The adoption of AI is gaining momentum through advanced applications such as machine vision, predictive maintenance, digital twins, and robotic process optimization. These solutions empower manufacturers to detect anomalies early, reduce unplanned downtime, and achieve higher yield and quality outcomes.
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Browse in-depth TOC on “Artificial Intelligence in Manufacturing Market”
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Artificial Intelligence in Manufacturing Market Scope:
| Report Coverage | Details |
| Market Revenue in 2025 | $ 34.18 billion |
| Estimated Value by 2030 | $ 155.04 billion |
| Growth Rate | Poised to grow at a CAGR of 35.3% |
| Market Size Available for | 2021–2030 |
| Forecast Period | 2025–2030 |
| Forecast Units | Value (USD Million/Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Offering, Application, Technology, Industry, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of World |
| Key Market Challenge | Difficulty in managing real-time AI decision feedback loops is a significant challenge that limits responsiveness and disrupts tightly synchronized production workflows |
| Key Market Opportunities | The increasing focus on remote operations is significantly boosting the use of AI for real-time optimization and coordination across multiple manufacturing sites |
| Key Market Drivers | The rapid growth of industrial IoT (IIoT) and connected devices is playing a major role in advancing the use of artificial intelligence (AI) in manufacturing |
The demand for AI-driven insights is further amplified by the integration of AI with industrial IoT platforms, edge computing, and cloud analytics, enabling responsive, scalable, and real-time operations across diverse environments. Growing investments in smart factory infrastructure, cybersecurity, and AI model customization are accelerating the deployment of intelligent systems in both greenfield and brownfield facilities. Furthermore, the shift toward energy efficiency, sustainability, and autonomous production systems is reshaping manufacturing strategies and creating new use cases for AI. As manufacturers continue to align with Industry 4.0 principles and seek to modernize legacy systems, AI is emerging as a foundational technology. Its role in enhancing performance, reducing cost, and increasing system resilience positions it as a critical enabler of next-generation manufacturing capabilities worldwide.
By offering, the hardware segment is expected to witness the highest growth amid the rising deployment of intelligent edge devices and smart sensors.
The hardware segment in the AI in manufacturing market is projected to record the highest CAGR during the forecast period, driven by the rapid adoption of AI-enabled devices such as edge computing modules, AI processors, industrial cameras, sensors, and robotic systems across factory floors. As manufacturers strive to bring intelligence closer to production assets, the demand for high-performance, energy-efficient hardware capable of real-time data capture and inference is accelerating. AI hardware plays a vital role in enabling functions such as machine vision, equipment condition monitoring, robotics coordination, and automated inspection. These components serve as the foundation for executing on-site analytics, reducing latency, and minimizing reliance on centralized cloud infrastructure, especially in environments that require fast decision cycles and uninterrupted operations. The hardware growth is particularly strong in industries with high-speed, precision manufacturing needs such as electronics, automotive, semiconductors, and food & beverage, where AI-capable edge devices enable autonomous control and continuous system optimization. Additionally, rising interest in cobots (collaborative robots), AI-enabled programmable logic controllers (PLCs), and industrial IoT gateways are boosting hardware demand. The shift toward distributed intelligence architectures, coupled with increasing investments in smart infrastructure and AI-powered machinery, is expected to drive sustained hardware innovation and deployment. As manufacturers continue to modernize their plants to meet Industry 4.0 objectives, hardware offerings that combine speed, reliability, and AI compatibility will see strong growth and play a central role in scaling intelligent manufacturing ecosystems.
By industry, the pharmaceutical sector holds a prominent share of AI in the manufacturing market.
The pharmaceutical industry holds a prominent share in the AI in the manufacturing market, supported by the sector’s growing reliance on data-driven production, stringent regulatory compliance, and the need for high-precision operations. As drug manufacturing processes become increasingly complex, AI is being adopted to enhance process control, ensure batch consistency, and accelerate product development timelines. AI technologies are widely used in formulation prediction, adaptive process optimization, and in-line quality inspection, enabling manufacturers to maintain strict compliance with good manufacturing practices (GMP) while improving operational efficiency. The use of machine learning algorithms helps identify correlations in vast data sets from bioreactors, cleanrooms, and filling lines, supporting both product quality and yield improvements.
The industry is also leveraging AI for real-time monitoring of environmental conditions, automated deviation detection, and predictive maintenance of critical equipment, minimizing risk and ensuring continuity in highly controlled environments. These capabilities are particularly valuable in biologics, vaccine manufacturing, and personalized medicine, where process precision and regulatory transparency are paramount. Furthermore, the growing focus on digital twins, AI-assisted compliance reporting, and cloud-based analytics platforms is transforming how pharmaceutical firms approach operational agility and risk mitigation. As companies aim to scale production, reduce costs, and ensure faster time to market, AI is emerging as a strategic tool, making the pharmaceutical sector a significant contributor to the market’s expansion.
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By region, North America is anticipated to record the highest market share during the forecast period.
North America holds the largest share of AI in the manufacturing industry, driven by early technology adoption, robust industrial infrastructure, and strong investments in digital transformation across sectors. The region is home to a concentration of major AI technology providers, advanced manufacturing facilities, and innovation-focused enterprises, particularly in the US and Canada. Manufacturers in North America are integrating AI to enhance operational agility, streamline production workflows, and respond quickly to supply chain disruptions. The presence of well-established industries, including automotive, semiconductor & electronics, energy & power, food & beverages, and pharmaceuticals, has accelerated the deployment of AI-powered solutions for real-time decision making, adaptive process control, and demand forecasting.
Government support for smart manufacturing initiatives and industrial AI research is further boosting market growth. Programs promoting digital twin adoption, workforce upskilling in AI, and funding for AI-driven automation are contributing to the region’s leadership in the global market. Additionally, manufacturers in North America are focusing on cybersecure AI architectures and interoperable systems to protect intellectual property and ensure regulatory compliance. The region’s proactive approach to incorporating AI ethics, governance, and data transparency also makes it a favorable environment for long-term investment. As companies prioritize productivity, cost efficiency, and supply chain resilience, North America is set to maintain its dominant position in shaping the future of AI-driven manufacturing.
Major companies operating in the AI in manufacturing companies are NVIDIA Corporation (US), IBM (US), Siemens (Germany, Intel Corporation (US), and Microsoft (US).
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