Worldwide AI in manufacturing industry is expected to Reach USD 9.89 Billion by 2027 at a CAGR of 24.2% from 2020-2027
The global AI in manufacturing industry size is expected to rise owing to increasing demand for collaborative robots and growing semiconductor industry. According to Fortune Business Insights, its latest report, titled "Artificial Intelligence (AI) in Manufacturing Industry Market Size, Share & COVID-19 Impact Analysis, By Offering (Hardware, Software, and Services), By Technology (Computer Vision, Machine Learning, Natural Language Processing, and Context Awareness), By Application (Process Control, Production Planning, Predictive Maintenance & Machinery Inspection, Logistics and Inventory Management, Quality Management, and Others), By Industry (Automotive, Medical Devices, Semiconductor &Electronics, Energy & Power, Heavy Metal & Machine Manufacturing, and Others), and Regional Forecast, 2020-2027.", observes that the market will hit USD 9.89 Billion by 2027, while exhibiting a promising 24.2% CAGR between 2020 and 2027. This market is expected to witness substantial growth owing to the COVID-19 impact and hence the 2020-2027 CAGR is high/very high, as a large section of industry would look to adopt AI in order to automate the operation with less human intervention.
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Artificial intelligence (AI) is believed to be a game-changing modern technology for the manufacturing industry. The adoption of AI in manufacturing provides multi-faceted benefits such as accurate and rapid data-driven decisions, minimizing of operational costs, optimizing several processes, and improving the overall experience of customer satisfaction. In addition to this, AI can be easily embedded to the existing products and services offered by the companies to render them reliable, effective, and safe. For instance, in the automotive industry, AI-based technology such as computer vision is used to accurately detect obstructions to prevent road fatalities, while promoting safe driving.
What does the Market Report Offer?
The AI in manufacturing industry report offers an exhaustive study of several factors such as drivers, restraints, challenges, and opportunities that will affect the growth of the market in the forthcoming years. The report covers regional demographics that include qualitative and quantitative information about the regions that are further divided into nations that are contributing to the growth of the market between 2019 and 2026. Furthermore, the competitive landscape has been discussed in-depth that include information of several players operating in the market. Moreover, information on the adoption of strategies such as merger and acquisition, collaboration, partnerships, and joint ventures by the companies that will drive the growth of the market has been included during the projected horizon.
Regional Analysis:
Increasing Investment for AI-based Platform in Asia-Pacific to Drive the Market
Among the regions, the AI in manufacturing industry in Asia-Pacific that hit USD O.68 Billion in 2019 is expected to hold the highest global AI in manufacturing market revenue during the projected horizon. This is ascribable to factors such as increasing investment for AI-based platforms in countries such as India, China, and Japan in the region.
The AI in manufacturing industry in Europe is expected to be the second-most leading region in the forthcoming years. Countries such as the UK investing a huge sum of about USD 1.3 Billion in developing AI technology will drive the market growth in the region. North America, on the other hand, will witness significant growth owing to increasing investment in R&D activities and a growing number of startups for AI technology between 2020 and 2027.
Drivers and Restraints:
Increasing Adoption of Cobots to Promote Growth
The emergence of automation and robotics has propelled the rise of collaborative robots (Cobots) across several manufacturing industries. Cobots are perceived as an essential addition to implementing several industrial operations such as detecting failure scenarios, analyzing the result, and further taking appropriate action to resolve the issues. The increasing adoption of Cobots by the manufacturers is anticipated to drive the growth of the AI in the manufacturing industry market during the forecast period. For instance, MVI Maskinfabrik, a Danish kitchen utility manufacturer, invested in Cobot to cater to the increasing demand for its several products. According to the company, the investment proved to be the right decision as it reduced the 50% of time required in the welding process of its products. Furthermore, the total cost procured to buy a Cobot was far less than a welding machine.
Competitive Landscape:
Rockwell Automation Introducing New AI Module to Augur Growth
In April 2019, Rockwell Automation, Inc. announced its launch of a new AI module, FactoryTalk Analytics LogixAI to enhance industrial production. The new AI module efficiently predicts analysis for precise decision-making without interference from data scientists. In addition to this, the module detects data anomalies, while alerting the workers to attain precise results. A major focus of the companies to provide AI-based solutions to strengthen market position will bode well for the growth of the market in the forthcoming years. Furthermore, amid the global pandemic, COVID-19, the adoption of AI technology by manufacturers will contribute to the market growth during the projected horizon.