AI in Industrial Machinery Market Analysis

AI in Industrial Machinery Market Analysis

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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.