AI in Industrial Machinery Market
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AI in Industrial Machinery Market size was valued at USD 2.45 billion in 2023 and is estimated to grow at a CAGR of 27.2% from 2024 and 2032. Artificial Intelligence (AI) is making rapid progress in the manufacturing sector by implementing sophisticated technological innovations, such as analytics, Augmented Reality (AR), and Virtual Reality (VR), within production facilities.
The manufacturing sector is currently undergoing digital transformation and is expected to adopt AI-driven services soon. In addition to this, the establishment of Industry 4.0 and the rise of complex information are driving expansion in the industrial machinery sector. Furthermore, growing efficiency and adoption of contemporary manufacturing technology in emerging markets necessitate significant enhancements in product development abilities.
AI in the manufacturing sector exhibits a high level of innovation as well as quick market expansion. This market is characterized by constant technological improvements, which are primarily driven by advances in Machine Learning (ML) algorithms. These algorithms analyze data from sensors, mechanical inputs, and other sources to gain valuable insights and make informed decisions. Furthermore, software solutions seek to incorporate Al technology into existing business systems such as Supervisory Control and Data Acquisition (SCADA) and Systems Operation.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| AI in Industrial Machinery Market Size in 2023: | USD 2.45 Billion |
| Forecast Period: | 2024 - 2032 |
| Forecast Period 2023 - 2032 CAGR: | 27.2 |
| 2023 Value Projection: | USD 20.87 Billion |
| Historical Data for: | 2021 - 2023 |
| No of Pages: | 487 |
| Tables, Charts & Figures: | 428 |
| Segments Covered: | Component, Technology, Application, End Use, Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Integrating Al technology into business processes may necessitate significant investments. For certain companies, particularly small and medium-sized enterprises, the expense of technical personnel, software, and hardware can be too high. Moreover, it is difficult to modify Al solutions to fit certain systems and procedures. Al methods and models can be time & resource-intensive to modify to suit requirements. These factors could hinder market expansion throughout the predicted period.
The market is expanding as a result of Al's integration with cloud computing and the Internet of Things (IoT) in industrial machinery. Industrial machinery that has IoT built in it produces a huge amount of real-time data. Furthermore, it offers companies with higher information security, cost savings, scalability, remote monitoring, and improved collaboration. The use of cloud computing eliminates the need for on-site maintenance and infrastructure. Additionally, it enables businesses to maximize resources using cloud-based AI capabilities, negating the need for significant hardware investments.
Based on components, the global market is classified into hardware, software, and services. The software AI in industrial machinery segment dominated the market, accounting for USD 1.29 billion in 2023 and is expected to grow at a CAGR of 24.1% during the forecast period from 2024-2032. AI software and algorithms are critical for intelligent decision-making, predictive maintenance, and business automation. ML algorithms are used in software to perform tasks including predictive maintenance, defect identification, optimization, and quality control.
For instance, a report published by International Business Machines Corporation (IBM) in May 2022 highlights that over a third of organizations (35%) indicated employing AI in their operations, marking a four-point rise compared to 2021 globally. Additionally, 42% of companies are planning to explore the use of AI.
Based on technology, the global AI in industrial machinery market is classified into ML, computer vision, context awareness, and natural language processing. The ML segment dominated the market, accounting for 42.8% of the market in 2023. ML algorithms use sensor data from commercial machinery to predict breakdowns and maintenance requirements. This efficient method of maintenance eliminates unplanned downtime and improves equipment reliability. The integration of ML algorithms and technologies improves monitoring, operations, efficiency, quality control, and decision-making. These drivers make ML easier to accept and use in the business machine market's artificial intelligence technology.
In the global AI in industrial machinery market, North America accounted for the largest market share of USD 1.32 billion in 2023. It is projected to reach USD 9.53 billion by 2032. North America is one of the largest commercial regions in terms of market size and usage of AI in the technology industry. The growing need for automation and optimization across diverse industries has propelled the market's consistent expansion. Furthermore, North America has a robust technological ecosystem that includes all technology providers, software firms, and technology manufacturers. Leading the way in Al R&D, the region is advancing innovations and the applications of Al in industrial machinery.
The U.S. accounted for USD 1.17 billion in 2023. It is a leader in technical innovation, especially in AI R&D, driving the incorporation of AI into industrial machinery and boosting production and efficiency. Furthermore, the U.S. government promotes this progress through projects, funding, tax breaks, and regulations that stimulate the use of AI in industries, supporting ongoing innovations and technological growth.
China dominates the Asia Pacific AI in industrial machinery market, accounting for 35.2% of market share in 2023 and is expected to grow at a CAGR of 29.4% over the forecast period from 2024 to 2032 as these technologies are being rapidly adopted by China's vast manufacturing sector to increase competitiveness, efficiency, and production. The integration of AI, IoT, and robots into industrial machinery is being driven by the growing applications of AI in automation, quality control, and predictive maintenance, as well as by the rapid breakthroughs in these fields.
In 2023, the market players, such as Amazon Web Services (AWS), Google LLC, Intel Corporation, Nvidia corporation, collectively held around 15%-20% market share. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions and facility expansions & collaborations, to expand their product portfolios, extend their reach to a broader customer base, and strengthen their market position.
Major players operating in the AI in industrial machinery industry are:
Market, By Component
Market, By Technology
Market, By Application
Market, By End Use
The above information is provided for the following regions and countries:
ABB Ltd., Amazon Web Services (AWS), Cisco Systems, Inc., FANUC Corporation, Google LLC, Hitachi, Ltd., Honeywell International Inc., IBM Corporation, Intel Corporation, NVIDIA Corporation, Qualcomm Technologies, Rockwell Automation, Inc., Schneider Electric SE, and Siemens AG
North America AI in industrial machinery market size is projected to reach USD 9,531.1 million by 2032, on account of the growing need for automation and optimization across diverse industries
AI in industrial machinery market from the component segment recorded USD 1,292.4 million in 2023 and may witness 24.1% CAGR from 2024-2032 driven by rising need for intelligent decision-making, predictive maintenance, and business automation.
AI in industrial machinery industry size was valued at USD 2,456.5 million in 2023 and is estimated to record 27.2% CAGR from 2024 to 2032, due to the rapid progress in the manufacturing sector and the rising implementation of sophisticated technological innovations.