Artificial Intelligence in Manufacturing Market to Grow at a CAGR of 35.1% from 2025 to 2032; Rising use of AI to Smooth Production Workflow Drives Market Growth

The global artificial intelligence in manufacturing market size was valued at USD 5.98 billion in 2024. The market is predicted to increase from USD 7.60 billion in 2025 to USD 62.33 billion by 2032, exhibiting a CAGR of 35.1% during the forecast period.

Fortune Business Insights™ presents this information in its report titled “Artificial Intelligence In Manufacturing Market Size, Share & Industry Analysis, By Component (Hardware, Software, and Services), By Technology (Computer Vision, Machine Learning, Natural Language Processing, and Context Awareness), By Application (Predictive Maintenance & Inspection (PMI), Production Planning, Supply Chain Management, Energy Management, Quality Management, Industrial Robotics, and Others), By Industry (Automotive, Healthcare, Semiconductor & Electronics, Energy & Power, Metals & Machinery, FMCG, and Others ), and Regional Forecast, 2025 – 2032”.

AI technologies such as machine learning, deep learning, computer vision, and natural language processing are transforming manufacturing by boosting efficiency, minimizing downtime, and solving real-world challenges. These innovations drive resilience and decision-making through massive data generation and analysis. The artificial intelligence in manufacturing market is expected to ramp up, owing to the heightened need for deploying AI to process a massive amount of information to streamline production workflow.

Impact of Generative AI

Surging Uptake of AI to Minimize Repetitive Tasks Boosts Market Progress 

Modern AI tools in manufacturing drive innovation, streamline workflows, and reduce repetitive tasks. Airbus used AI to design a new aircraft at no additional cost, while Siemens and Microsoft’s April 2023 collaboration applied generative AI to boost efficiency across product lifecycles, integrating Teamcenter with Microsoft Teams and Azure AI for smarter cross-functional teamwork.  

Siemens AG is Planning to Buy Dotmatics from Insight Partners in a USD 5.1 billion Deal to Extend Its AI-driven PLM Solutions

In April 2025, Siemens AG declared that it will acquire Boston-based life sciences software firm Dotmatics from Insight Partners for USD 5.1 billion. The deal is expected to expand Siemens's AI-powered product lifecycle management (PLM) portfolio into life sciences, strengthening its industrial software market position.

Increasing Investments in Industry 4.0 to Stimulate Market Growth

Driven by Industry 4.0, AI technologies such as ML, digital twins, and AR/VR are transforming manufacturing with predictive maintenance, automated workflows, and self-learning robots. These solutions cut risks, enhance productivity, and improve product quality by detecting and fixing even minor defects. Automation has transformed numerous industries by performing predefined tasks. Rapid integration of intelligent robots to avoid risks, decrease the number of steps, and enhance productivity on the production floor is fueling the artificial intelligence in manufacturing market growth.

However, rising concerns about data protection are likely to deter the demand for artificial intelligence in manufacturing.  

Industry Participants Focus on Implementing Automated Solutions to Improve Production Quality

The global artificial intelligence in manufacturing market is being driven by industry leaders integrating automated solutions to enhance production quality, reduce defects, and cut costs, supported by government incentives and targeted investments. In April 2024, Microsoft joined hands with G42 to deliver advanced AI solutions via Azure, investing USD 1.5 billion for a minority stake and backing a USD 1 billion fund to boost AI skills in UAE.

Key Industry Development

• March 2025- Siemens introduced generative AI-driven maintenance capabilities to its industrial co-pilot, supporting all stages of the maintenance cycles for enhanced efficiency.

List of Key Players Mentioned in the Report

• Microsoft Corporation (U.S.)
• Siemens AG (Germany)
• General Electric Company (GE) (U.S.)
• IBM Corporation (U.S.)
• SAP SE (Germany)
• Rockwell Automation Inc. (U.S.)
• Mitsubishi Electric Corporation (Japan)
• Schneider Electric SE (France)
• ABB Ltd. (Switzerland)
• Honeywell International Inc. (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/artificial-intelligence-ai-in-manufacturing-market-102824

Further Report Findings

• The Asia Pacific region captures the key artificial intelligence in manufacturing market share, fueled by the rising adoption of AI across diverse manufacturing activities. The soaring spending on AI development, particularly in key markets such as South Korea, China, Japan, and India, is another key factor driving market expansion.
• The market for artificial intelligence in manufacturing in Europe is set to grow at a moderate pace in the coming years. Rapid integration of AI in modern manufacturing methods to avoid defects in manufacturing and automate tasks is boosting market expansion.
• On the basis of component, the hardware segment takes the lead in the market due to increased deployment of modern AI infrastructure chipsets, AR/VR devices, IoT sensors, and edge computing systems.

Table of Segmentation