AI Statistics in Manufacturing 2024

Artificial Intelligence (AI) is often seen as one of the most important technologies after the Internet. The global AI in manufacturing market size was USD 1.82 billion in 2019.

It is projected to reach USD 9.89 billion by 2027 at a compound annual growth rate (CAGR) of 24.2% by 2028. Unlike traditional manufacturing processes, AI systems can operate around the clock without fatigue.

For manufacturing businesses, AI is incredibly helpful. Because AI can make AI-driven decisions and solve problems, it’s quickly being used in many industries, including manufacturing.

AI makes smart manufacturing better by automating important tasks, finding defects in products, and improving product quality.  Using AI can make manufacturing businesses more productive, efficient, and high-performing.

In this article, we’ll explain how AI is changing manufacturing and share some interesting statistics about its use in the industry.

Key AI Statistics: The Booming Market for AI in Manufacturing

The market for AI in manufacturing is growing at an unprecedented rate, transforming the industry with innovative solutions. Let’s get into the numbers and see just how big this boom is:

• The AI in manufacturing market size was USD 5.07 billion in 2023 and is forecasted to reach USD 68.36 billion by 2032, growing at a CAGR of 33.5% from 2023 to 2032.

• North America led the AI in manufacturing market in 2023, with a market share exceeding 35.1%, driven by technological advancements, significant investments in R&D, and supportive government policies.
• AI is transforming the manufacturing industry, with more than 40% of North American manufacturers now investing in AI solutions.
• According to a study by Capgemini Research Institute, Europe is at the forefront of AI adoption in manufacturing. Germany leads with 69% of its manufacturers using AI in their operations. France follows with 47%, and the UK with 33%. On a global scale, Japan and the U.S. take the second and third spots for AI implementation in manufacturing.

AI in manufacturing is rapidly expanding, offering significant benefits such as increased productivity, enhanced quality control, and cost savings. The market is poised for substantial growth, with widespread adoption across various sectors and regions, creating numerous job opportunities and driving innovation in manufacturing processes.

And its not just the Manufacturing industry, whether it’s Writing, Imaging, Videos, Presentations or the dynamic world of email marketing, AI is the newest revolution in the entire global business landscape.

Global Leaders: Regional Market Share in AI Manufacturing

From Europe’s strong leadership to the competitive strides made by Japan and the U.S., see how different parts of the world are shaping the future of manufacturing with AI. Let’s look at the stats that highlight the global race to integrate advanced technologies in production processes.

Here’s the regional market share data:

This table highlights the expected rapid growth in the AI in manufacturing market, with a significant increase projected in market size by 2028. North America and Europe are shown as leading regions in terms of market share, with significant contributions from the Asia Pacific region. The growing market size underscores the accelerating adoption of AI technologies to enhance manufacturing processes globally.

Looking at this chart, I find it fascinating to see the projected growth in the AI manufacturing market. It’s incredible to think that by 2028, the market size is expected to reach a whopping $20.8 billion. 

What stands out to me is how evenly distributed the growth is expected to be across different regions. North America, Europe, Asia Pacific, and the rest of the world (RoW) are all contributing to this surge.

It’s a clear indicator that AI is not just a regional trend but a global movement, reshaping manufacturing industries everywhere.

This kind of growth and innovation makes me optimistic about the future of manufacturing as AI continues to drive efficiency and productivity worldwide.

Understanding the importance of cybersecurity in AI adoption is crucial, as these technologies become increasingly integral to our manufacturing capabilities.

Revolutionizing Manufacturing: The Rise of AI Adoption

With rapid advancements in AI, manufacturers worldwide are adopting this technology to enhance efficiency, reduce costs, and drive innovation. Let’s explore via numbers how AI is revolutionizing manufacturing processes and setting new standards for the future:

• According to Forbes Advisory, 56% of surveyed businesses use AI tools to enhance operations.
• In 2023, 35% of manufacturing companies were already using AI, particularly in areas such as predictive maintenance and quality control.
• Currently, 41% of manufacturers use AI-based applications to gather and manage supply chain data.
• 27% of companies report that AI has already added value to operations, while 56% expect to see results in the next 2 to 5 years.
• AI technologies have been implemented in various capacities by 60% of major US automotive manufacturers.
• Manufacturers have reported a significant 50% reduction in production time through the implementation of AI.
• General Electric reduced unplanned downtime by 10-20% using AI.
• Research by Capgemini reveals that currently, 44% of organizations in the manufacturing sector are implementing AI prototypes.
• According to Deloitte survey, 93% of companies believe AI is crucial for fostering innovation and growth in manufacturing.
• 66% of manufacturers using AI in daily operations report a high dependency on transformative technologies and plan to continue adopting AI.
• Among vendors providing AI solutions for the manufacturing sector, 64% focus primarily on supervised learning models.
• About 90% of leading machine manufacturers are investing in predictive analytics technology.
• Predictive maintenance using AI can reduce maintenance costs by up to 25% and decrease unexpected downtime by as much as 30% by the end of 2024.
• More than 60% of manufacturing companies have developed a strategy to integrate AI into their operations, including efforts to understand AI’s burgeoning role in various sectors.

AI is not just changing the way we think about production and efficiency in manufacturing, but also leading the way in logistics.

For example, AI-powered logistics in manufacturing has seen significant advancements, including AI-powered electric forklifts being integrated into major distribution centers.

AI is rapidly transforming the manufacturing industry, significantly improving production efficiency, reducing costs, and driving substantial market growth.

The adoption of AI technologies is expected to have a profound financial impact on the industry in the coming years.

Deloitte Survey on AI Adoption in Manufacturing

Data Generation in Manufacturing: Manufacturing generates about 1,812 petabytes (PB) of data annually, surpassing industries such as communications, finance, and retail.

Manufacturing leads significantly in annual data creation, producing more than twice the data of the next highest industry, government, and far exceeding other sectors like communications, banking, and healthcare.

AI Adoption Across Manufacturing

The majority of AI adoption in manufacturing is focused on smart production, accounting for over half of the applications (51%). Products and services also see significant AI integration (25%), followed by supply chain and business operations, both at 8%. A small portion of the industry is still either planning or not adopting AI (4%).

AI In Manufacturing by Share 

Hardware (48%):

Hardware holds the largest market share at 48%. This indicates that the majority of investments in AI for manufacturing are directed towards physical components such as sensors, robotics, and other machinery that incorporate AI technologies. The significant investment in hardware suggests a strong emphasis on enhancing the physical infrastructure of manufacturing with AI capabilities. This can include AI-driven robotics for automation, advanced sensors for real-time monitoring, and other AI-integrated equipment to boost production efficiency and precision.

Software (32%):

Software represents 32% of the market share. This includes AI algorithms, data analytics platforms, and decision-support systems that help manufacturers optimize processes and improve decision-making. The substantial share of software highlights its critical role in processing and analyzing data collected from various manufacturing processes. Software solutions enable predictive maintenance, quality control, supply chain optimization, and more, underscoring their importance in modern manufacturing.

Services (20%):

Services account for 20% of the market share. This category includes consulting, integration, maintenance, and support services related to AI implementation in manufacturing. While smaller in comparison to hardware and software, the services sector is essential for ensuring the successful deployment and ongoing management of AI technologies. Services facilitate the integration of AI systems into existing manufacturing processes and provide necessary support to maintain these systems.

Key Statistics on AI Implementation in Manufacturing by Function (Capgemini Survey)

AI Implementation Focus in Manufacturing: Maintenance and Quality

• Research across four manufacturing segments shows that AI efforts are primarily directed toward maintenance (29%) and quality (27%).

Manufacturers in the AI Experimentation Phase for Strategic Planning

• Currently, 57% of manufacturing companies are piloting or experimenting with AI technologies. These companies aim to pinpoint the most effective AI applications for their operations, workforce, and future business models.

Manufacturing Companies with Formal Corporate AI Plans

• While many companies are developing AI projects at the business unit or divisional level, only 29% have formalized their AI initiatives into corporate strategies.

Operational AI Implementation in Manufacturing and Inventory Management

• At present, 28% of manufacturing companies are operationally using AI, particularly in manufacturing and inventory management. Over one-third of companies prioritize AI for tasks such as IoT data analysis on the plant floor and preventative maintenance, with almost a quarter leveraging AI to enhance supply chain and quality management.

Expected Increase in Hiring in an AI-Enabled Manufacturing World

• Contrary to fears that AI adoption will reduce human roles in manufacturing, nearly one-third (32%) of companies anticipate needing to hire more people. AI is expected to automate routine tasks, enabling workers to shift to more value-added and engaging roles.

Productivity Increase: Utilizing AI and image recognition can boost factory productivity by up to 50%.

Defect Detection Accuracy: AI-driven systems can achieve up to 90% accuracy in detecting defects.

Production Throughput: Manufacturers can increase production throughput by 20% with AI.

Quality Improvement: AI implementation can improve product quality by up to 35%.

Analysis of Generative AI in Manufacturing Market Share, by Deployment, 2022 (%)

• By 2024, it is anticipated that more than 60% of new product introductions in the manufacturing sector will utilize generative AI for design and concept creation.
• The generative AI segment is expected to reach USD 10.5 billion by 2033, with applications in predictive maintenance, energy optimization, and product design, significantly enhancing efficiency and innovation in manufacturing processes.
• 30% of large manufacturing companies (earning over USD 10 billion annually) and 10% of smaller companies (earning between USD 500 million and USD 10 billion annually) have implemented generative AI with positive results.

• On-Premises Deployment: Represents 57.00% of the market share. This indicates a majority preference for on-premises solutions in the manufacturing sector in 2022. The higher percentage for on-premises deployment suggests that manufacturers may prioritize control, security, and possibly legacy system integration that on-premises solutions offer.

• On the Cloud Deployment: Accounts for 43.00% of the market share. While slightly less than on-premises, cloud deployment still holds a significant portion of the market. The substantial share of cloud deployment reflects a strong trend toward digital transformation, leveraging the flexibility, scalability, and cost-efficiency of cloud solutions.

The close percentages (57% vs. 43%) indicate a competitive landscape where both deployment types are crucial. Future shifts may depend on advancements in cloud security, reliability, and cost advantages, potentially increasing the cloud adoption rate.

How AI is Transforming Quality Control in Manufacturing

One of the most significant ways AI is impacting manufacturing is through its role in quality control. Automated inspection systems, a key component of AI-integrated manufacturing ecosystems, are revolutionizing defect detection, offering higher precision and reliability compared to traditional processes.

AI-driven algorithms can detect minute imperfections that may go unnoticed by human inspectors, leading to enhanced consistency in production. By automating quality control tasks, AI frees up human resources for more strategic roles, contributing to overall operational efficiency and cost-effectiveness.

In addition to inspection systems, AI-powered data analytics tools provide crucial insights into production processes. These tools analyze vast amounts of data to identify patterns and trends, helping manufacturers preemptively address potential quality issues, thereby improving product quality and enhancing customer satisfaction.

The Rise of AI: Transforming the Future of Manufacturing

The manufacturing industry is undergoing a revolutionary transformation driven by the integration of (AI). This technological evolution is not only enhancing efficiency and productivity but also redefining traditional manufacturing processes. From predictive maintenance to advanced quality control, AI is paving the way for smarter, more innovative manufacturing solutions.

• AI will contribute up to $15.7 trillion to the manufacturing industry by 2025.
• Forbes noted that 29.7% of AI implementations in manufacturing focus on maintaining machinery and production assets.
• AI can cut forecasting errors by 50% and reduce downtime losses by up to 50%.
• The AI market in China’s manufacturing sector is expected to exceed USD 2 billion by 2025.
• By 2025, China is projected to invest approximately $128 billion in AI technologies across various industries, including manufacturing.
• 93% of companies believe AI will be pivotal for growth and innovation in the manufacturing sector.
• 93% of companies recognize AI as key for propelling growth and innovation in manufacturing.

The integration of AI in manufacturing is just one aspect of a broader movement towards the digital transformation of industries.

In particular, AI in marketing is another domain experiencing rapid changes and benefits, showcasing the versatile applications of AI across different business sectors.

Job Market Implications in the Manufacturing Sector

• AI is expected to create more than 12 million job opportunities, outweighing the number of jobs it may replace, including those in areas that are traditionally considered jobs AI can’t replace.
• By 2025, there will be a demand for 97 million AI experts.
• 69% of leadership roles believe AI will create new job opportunities.

Sector-specific Insights

• AI’s share in industrial robotics is expected to reach USD 10.72 billion in 2024 and USD 20.64 billion by 2030.
• Predictive maintenance can save up to 40% of repair costs.
• Operators using AI in manufacturing reported a 10% to 15% boost in production processes and a 4% to 5% increase in EBITA.
• 60% of industrialists use AI for quality monitoring, detecting 200% more supply chain disruptions.

FAQs

Conclusion

Artificial Intelligence is revolutionizing the manufacturing industry, bringing in fresh ideas and making everything more efficient. It’s like having a super-smart assistant that helps automate tasks and predict future needs, transforming the way things are made.

AI is a crucial component of industrial automation technologies, driving advancements across various manufacturing processes.

One of the most significant ways AI is helping is in production and quality control. Imagine having an expert who constantly watches over the manufacturing process, spotting errors and suggesting improvements. That’s what AI does, and it makes everything run smoother and boosts productivity.

AI can take raw data and turn it into useful insights. Think of it as turning a jumble of puzzle pieces into a clear picture. These statistical insights help manufacturers make better decisions, improving efficiency and productivity.

AI and Manufacturing in a Nutshell: AI isn’t just changing the game; it’s shaping the future of manufacturing. It’s like having a crystal ball that provides key insights, driving growth and innovation in the industry.

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