Artificial Intelligence in Manufacturing Market size was valued at USD 4.14 billion in 2023 and is set to cross USD 457.1 billion by 2036, registering more than 43.6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of artificial intelligence in manufacturing is evaluated at USD 5.58 billion. The growth of the market can primarily be attributed to the increasing penetration of advanced technologies, such as, artificial intelligence, machine learning, and augmented reality in the manufacturing industry. With the help of AI, manufacturers can test for design errors in their product. Moreover, product designers can use the inbuilt algorithm and machine learning tools while designing their products. Besides, artificial intelligence has the ability to enhance compatibility, safety, and reduce cost of manufacturing. Along with this, the rapidly growing investment in AI technology, and the rising revenue generated by AI industry, are forecasted to boost the market growth. It is observed that AI industry generated a revenue of around USD 325 billion in 2021. Moreover, the increasing investment in the manufacturing sector, especially automotive sector, is anticipated to boost the market growth. In addition to this, the growing advancements in technology, backed by rising investment in R&D activities, is foreseen to boost the market growth.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
43.6% |
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Base Year Market Size (2023) |
USD 4.14 billion |
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Forecast Year Market Size (2036) |
USD 457.1 billion |
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Regional Scope |
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The market is segmented by end-user into automotive, electronics, semiconductor, and others, out of which, the automotive segment is anticipated to hold the notable share in the global artificial intelligence in manufacturing market over the forecast period. This can be attributed to the need of high accuracy and precision for manufacturing any automobile, which is easier to achieve with the help of AI. Moreover, application of AI in manufacturing automobiles can make the process cost effective, which is further estimated to boost the market growth.
Our in-depth analysis of the global market includes the following segments:
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By Component |
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By Application |
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By End-User |
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On the basis of geographical analysis, the global artificial intelligence in manufacturing market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the Asia Pacific industry is anticipated to dominate majority revenue share by 2036, on account of growing manufacturing sector in the region, backed by rapid development of countries, such as, Japan, India, Singapore, South Korea, and others. Moreover, the presence of major automotive and electronics manufacturers in the APAC region, coupled with rising adoption of advanced technology is estimated to boost the regional market growth. The increasing demand for automobiles is also anticipated to boost the market growth. For instance, according to the data by India Brand Equity Foundation (IBEF), in 2019-20, the total passenger vehicles sales in India crossed 2.8 million units. The market in the North America region is anticipated to gain the largest market share throughout the forecast period owing to the presence of major market players in the region, along with availability of advanced technology in the region. Moreover, adoption of industrial IOT in the region is further anticipated to fuel the market growth.
November, 2021: Habana Labs, a subsidiary of Intel Company, announced the collaboration with DDN and Supermicro, to provide enterprise-scale artificial intelligence (AI) training solution. This features the Supermicro X12 Gaudi AI training server and DDN AI400X2 storage system.
June, 2020: Wipro limited to collaborate with IBM corporation to provide security across public or private cloud and on-premises IT environments.
Author Credits: Abhishek Verma
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