AI in Manufacturing Market to Grow at Explosive 38.7% CAGR, Reports BCC Research

Boston, Dec. 11, 2025 (GLOBE NEWSWIRE) -- According to the latest study from BCC Research, “AI in Manufacturing: Global Markets" 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, segmenting it by component, technology, application, and end-use industry. It explores factors such as technological advances, regulatory frameworks, competitive dynamics, and economic influences shaping the market. A detailed patent analysis offers insights into innovation and competition, while regional assessments cover current trends in North America, Europe, Asia Pacific, the Middle East and Africa, and South America. The report also profiles major industry players and presents market forecasts for 2025 to 2030.

This report is especially relevant now because AI is transforming manufacturing operations across industries. Organizations increasingly view AI as a strategic necessity not just for improving efficiency but also for maintaining competitiveness, enhancing security, and unlocking economic potential. Beyond operational improvements, AI is reshaping business strategies and workforce structures. Strategic partnerships are further driving the adoption of AI solutions, making this report timely and valuable for understanding the evolving landscape.

The factors driving the market’s growth include:

Production and Process Optimization: Manufacturers are increasingly using AI to streamline operations. AI algorithms analyze production data to identify inefficiencies, reduce waste, and improve product quality. This leads to faster production cycles, lower costs, and better resource utilization.

Demand for IIoT and Automation: The rise of the Industrial Internet of Things (IIoT) and automation is driving AI adoption. Smart sensors and connected devices generate real-time data, which AI uses to automate processes, monitor equipment, and make quick decisions. This improves productivity and reduces human error.

Shift to Smart Manufacturing: Industries are moving toward smart manufacturing, where AI plays a central role in creating flexible, data-driven production systems. AI helps in real-time monitoring, predictive analytics, and adaptive control, allowing factories to respond quickly to changing demands and conditions.

Smarter Supply Chain: AI is transforming supply chain management by enabling better forecasting, inventory control, and logistics planning. It helps companies anticipate demand, avoid delays, and optimize routes and resources, resulting in more efficient and resilient supply chains.

Predictive Maintenance Opportunities: AI-powered predictive maintenance allows manufacturers to monitor equipment health and predict failures before they happen. This reduces unexpected downtime, lowers maintenance costs, and extends the life of machinery, while also improving safety and reliability.

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Report Synopsis

Interesting facts:

• AI solution providers focus on entering the emerging market through partnerships and obtaining new contracts. For instance, in July 2025, Microsoft and Accenture collaborated to invest in the development of advanced generative AI-driven cyber solutions to help organizations mitigate threats and consolidate technology tools while optimizing operational costs.

• The machine learning segment (ML) dominates the technology segment, with a share of 33.1% in 2024. The growth of the segment is primarily attributed to its wide-scale application in industrial activities that help bolster operational efficiency and reduce downtime.

• The North America accounted for 37.3% of the AI in manufacturing market, with a share of 37.3% in 2024, and its value is projected to reach $11,067.4 million by the end of 2030. The region’s growth is attributed to the growing demand for AI solutions from industries and supportive government regulations that encourage adoption of AI in industrial activities.

Emerging startups:

• Krutrim: Krutrim was established in 2023. The company offers silicon chips and an AI computing stack. Its agentic assistant, Kruti, listens, adapts, and acts proactively, purposefully, and in the desired language.

• DraftAid: DraftAid has introduced AI-powered Automated CAD drawings. This tool helps draw 3D models to production drawings using AI as a single click. The company was founded in 2023.

• Akridata: Akridata was founded in 2018. The company provides AI solutions for visual inspection in the manufacturing industry. In 2023, it introduced Data Explorer, a platform that provides data science teams with the tools to explore, search, analyze, and compare visual data to improve data sets and model training.

The report addresses the following questions:

1. What are the projected size and growth rate of the market?

• The market is projected to reach $35.8 billion by the end of 2030, at a CAGR of 38.7% through the forecast period.

2. What factors are driving the growth of the market?

• The factors driving the market’s growth are the growing implementation of production and process optimization techniques, rising demand for IIoT and automation technologies, and the growing shift toward smart manufacturing across industries.

3. What market segments are covered in the report?

• The study segments the market by component, technology, application, and end-use industry.

4. Which technology segment will be dominant through 2030?

• Natural language processing (NLP) will be the dominant technology through 2030.

5. Which region has the largest market share?

• North America holds the largest share of the global market.

6. What are the challenges and opportunities of the market?

• Lack of technical knowledge and expertise, and high initial investment are the primary challenges/restraints in the market. Industries seeking smarter supply chain optimization and rising demand for predictive maintenance in the manufacturing sector are the key opportunities in the market.

Market leaders include:

• ALPHABET INC. (GOOGLE INC.)
• AMAZON WEB SERVICES INC.
• CISCO SYSTEMS INC.
• GE VERNOVA
• IBM CORP.
• INTEL CORP.
• MICRON TECHNOLOGY INC.
• MICROSOFT
• MITSUBISHI ELECTRIC CORP.
• NVIDIA CORP.
• ORACLE
• ROCKWELL AUTOMATION
• SALESFORCE INC.
• SAP SE
• SIEMENS

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Generative AI: Global Markets: This report presents an overview of the global generative AI market, analyzing trends in software, hardware, and services as well as data types, applications, end-user industries, and regions. It explores foundational software models, deployment modes, and hardware components like CPUs, GPUs and TPUs. Applications range from content management to generative design, serving industries such as BFSI, healthcare, IT, manufacturing, and retail. The report also examines market drivers, challenges, regulatory and ESG developments, patent activity, emerging technologies, and competitive dynamics, concluding with strategic profiles of key generative AI companies.

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