AI in manufacturing market to see over 40% growth, to hit US$16bn by 2025
According to a new research report by the market research and strategy consulting firm, Global Market Insights, Inc, the Artificial Intelligence (AI) in Manufacturing Market will reach US$16 billion (€14.2 billion) turnover by 2025. AI in manufacturing market is driven by the rapid adoption of industry 4.0 technologies.
The growing need among manufacturers to reduce the cost of operation and enhance operational efficiency is the primary factor driving the adoption of Industry 4.0. The new technology solutions are enhancing operational efficiency and reducing the time to market the products.
It allows enterprises to analyse the customer demand, align their operations to meet the customer’s requirement, and analyse the process in real-time. These solutions are more reliable, cost-effective, and provides organisations with an opportunity to scale their operations without incurring an intensive capital cost.
Changing customer behaviour and demand is fostering the growth of AI in manufacturing market. Globally, customers have access to over one billion products offered by a wide variety of dynamic new entrants and traditional competitors experimenting with new business models and methods of customer engagement. As the choices among the customers increase, the demand for more customised and tailor-made products also arises.
The integration of intelligent AI-powered algorithms into manufacturing allows organisations to analyse customer demand and develop products that meet customer requirements. The new era of empowered customers is accelerating the adoption of Artificial Intelligence in manufacturing sector.
The AI platforms market will grow significantly over the forecast timespan. The increasing need for customised AI solutions in the manufacturing industry is promoting the use of AI platforms. These AI platforms provide pre-built algorithms with simplistic workflows along with features, such as drag & drop modelling and visual interfaces, that easily connect necessary data to the end solution.
The GPU market accounted for more than 46% of the market share in 2018. The low costs associated with GPU products and their compatibility with various legacy systems are promoting their adoption in the manufacturing industry.
The computer vision market is predicted to grow at a CAGR of more than 45% during the projected time period. The rise in automation and a widespread adoption of IoT technologies is driving the adoption of computer vision technology in the manufacturing industry. The rising need for quality inspection and automation is encouraging the use of computer vision systems.
The natural language processing market will grow rapidly over the forecast timeline. The technological advancements in the machine-to-machine technology and the rising need for the machinery to communicate with the operators in their own language are promoting its use.
The predictive maintenance and machine inspection segment of AI in the manufacturing market is projected to grow at a CAGR of more than 44% over the projected time period. There is rising pressure on the manufacturing facilities to increase productivity. Maintenance has become a key area to drive major cost savings and production value.
The cost of machine downtime has been increasing over time. According to the International Society of Automation (ISA), over US$647 billion (€575 billion) is lost annually to machine downtime. The technology eliminates the need to periodically shut down equipment and machinery to conduct preventive maintenance tasks, thereby increasing productivity.
The pharmaceutical market accounts for over 8% of the market share in the AI in manufacturing market. Manufacturing in the pharmaceutical industry is always known to generate large amounts of data. The companies are using AI technology to improve efficiencies in biotech manufacturing and process development to improve their gross margins.
With margins already high in the industry, identifying new additional efficiencies requires analysing complex sets of data and interrelationships within these data sets. The manufacturers are using AI to identify different patterns and relationships between the data to develop different models for anticipating impacts of minor changes.
Europe’s market for AI in manufacturing is anticipated to grow at a CAGR of more than 44% over the forecast timespan. The extensive proliferation of advanced technologies, such as robotics, big data, and industrial IoT, in the manufacturing sector is the primary factor driving the market. The rising labour costs in the region are also driving the adoption of advanced manufacturing technologies. High investment by the major automakers to incorporate next-generation production technologies is also adding to market growth.
The players in the Artificial Intelligence in manufacturing market are advantageously conducting acquisitions of various technology players in the market to develop customised product offerings to multiple industry sectors. For instance, in August 2017, Qualcomm acquired Scyfer, a Machine Learning start-up, for an undisclosed amount. Scyfer builds AI and machine learning solutions for various industry verticals.
Some of the companies present in AI in manufacturing market are Advanced Micro Devices, AWS, Canvas Analytics, Falkonry, General Vision, Google, Graphcore, IBM, Intel, Landing AI, Microsoft, Nvidia, Oracle, Progress Software, Qualcomm, SAP, Sight Machine, Ubtech Robotics, and Vicarious.
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