BOSTON, Dec. 11, 2025 (Globe Newswire) — According to a new study from BCC Research, “AI in Manufacturing: Global Market” is projected to grow from $7 billion in 2025 to $35.8 billion by the end of 2030, at a compound annual growth rate (CAGR) of 38.7% from 2025 to 2030.
This report provides a comprehensive analysis of the global market for AI in Manufacturing, segmented by component, technology, application, and end-use industry. It examines factors such as technological advances, regulatory frameworks, competitive dynamics, and economic influences shaping the market. Detailed patent analysis provides insight into innovation and competition, and regional assessments cover current trends in North America, Europe, Asia Pacific, the Middle East, Africa, and South America. The report also profiles key industry players and provides market forecasts from 2025 to 2030.
This report is especially relevant now as AI is transforming manufacturing operations across industries. Organizations are increasingly recognizing AI not only as a strategic necessity to improve efficiency, but also to maintain competitiveness, enhance security, and unlock economic potential. Beyond improving operations, AI is reshaping business strategies and workforce structures. Strategic partnerships are further driving the adoption of AI solutions, making this report timely and valuable in understanding the evolving landscape.
Factors driving market growth include:
Production and process optimization: Manufacturers are increasingly leveraging AI to streamline operations. AI algorithms analyze production data to identify inefficiencies, reduce waste, and improve product quality. This shortens production cycles, lowers costs, and improves resource utilization.
Demand for IIoT and automation: The rise of the Industrial Internet of Things (IIoT) and automation is driving the adoption of AI. Smart sensors and connected devices generate real-time data, and AI uses that data to automate processes, monitor equipment, and make quick decisions. This increases productivity and reduces human error.
Transitioning to smart manufacturing: The industry is moving towards smart manufacturing, where AI plays a central role in creating flexible, data-driven production systems. AI can help with real-time monitoring, predictive analytics, and adaptive control, allowing factories to quickly respond to changing demands and conditions.
Smarter supply chain: AI is transforming supply chain management by enabling better forecasting, inventory management, and logistics planning. This allows businesses to predict demand, avoid delays, optimize routes and resources, and create more efficient and resilient supply chains.
Predictive maintenance opportunities: AI-powered predictive maintenance allows manufacturers to monitor equipment health and predict failures before they occur. This reduces unplanned downtime, lowers maintenance costs and extends machine life, while also increasing safety and reliability.
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Report summary
| Report metrics | detail |
| Base year considered | 2024 |
| Forecast period considered | 2025-2030 |
| Base year market size | 5.5 billion dollars |
| Market size forecast | $35.8 billion |
| growth rate | CAGR from 2025 to 2030 is 38.7% |
| Target segment | Components, technology types, applications, end-user industries and regions |
| Target area | North America, Europe, Asia Pacific, Middle East and Africa (MEA), South America |
| market drivers |
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Interesting facts:
- AI solution providers are focused on entering emerging markets and winning new contracts through partnerships. For example, in July 2025, Microsoft and Accenture teamed up to invest in the development of advanced generative AI-powered cyber solutions to help organizations reduce threats and integrate technology tools while optimizing operational costs.
- The machine learning segment (ML) is dominant among the technology segments and will have a share of 33.1% in 2024. The growth of this segment is mainly attributed to its widespread application in industrial activities that helps in increasing operational efficiency and reducing downtime.
- North America AI in the manufacturing market is expected to account for 37.3% in 2024, with a value of $11,067.4 million by the end of 2030. The growth in the region can be attributed to the increasing demand for AI solutions from industry and supportive government regulations that encourage the adoption of AI in industrial activities.
Emerging startups:
- Kurt trim: Krutrim was founded in 2023. The company provides silicon chips and AI computing stacks. Its agent assistant, Kruti, actively and intentionally listens, adapts, and acts in the desired language.
- Draft aid: DraftAid introduces AI-powered automated CAD drawings. This tool helps you draw 3D models into manufacturing drawings in one click using AI. The company was founded in 2023.
- Acridata: Founded in 2018, Akridata provides AI solutions for visual inspection in manufacturing. In 2023, we introduced Data Explorer, a platform that provides data science teams with tools to explore, search, analyze, and compare visual data to improve data sets and model training.
This report addresses the following questions:
- What is the expected size and growth rate of the market?
- The market is It is projected to reach $35.8 billion by the end of 2030, at a CAGR of 38.7% during the forecast period.
- What are the factors driving market growth?
- The factors driving the market growth are the increasing adoption of production and process optimization technologies, rising demand for IIoT and automation technologies, and growing shift towards smart manufacturing across industries.
- what Are the market segments covered in the report?
- This study categorizes the market by component, technology, application, and end-use industry.
- Which technology sector will dominate until 2030?
- natural language processing (NLP) will be a mainstream technology until 2030.
- Which region has the largest market share?
- North America accounts for the largest share of the global market.
- What are the market challenges and opportunities?
- Lack of technical knowledge and expertise and high initial investment are the main challenges/constraints in the market. Industries seeking smarter supply chain optimization and the growing demand for predictive maintenance in the manufacturing sector represent significant opportunities in the market.
Market leaders include companies such as:
- Alphabet Inc. (Google Inc.)
- Amazon Web Services Co., Ltd.
- Cisco Systems Co., Ltd.
- GE Vernova
- IBM Co., Ltd.
- Intel Corporation
- Micron Technology Co., Ltd.
- microsoft
- Mitsubishi Electric Corporation
- NVIDIA Corporation
- oracle
- rockwell automation
- Salesforce Co., Ltd.
- SAP SE
- siemens
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