DUBLIN, Aug. 7, 2020 /PRNewswire/ — The “Artificial Intelligence in Manufacturing Market by Offering (Hardware, Software, and Services), Technology (Machine Learning, Computer Vision, Context-Aware Computing, and NLP), Application, End-user Industry and Region – Global Forecast to 2026” report has been added to ResearchAndMarkets.com’s offering.
The AI in the manufacturing market is expected to be valued at USD 1.1 billion in 2020 and is likely to reach USD 16.7 billion by 2026; it is expected to grow at a CAGR of 57.2% during the forecast period.
The major drivers for the market are the increasing number of large and complex datasets (often known as big data), evolving Industrial IoT and automation, improving computing power, and increasing venture capital investments. The major restraint for the market is the reluctance among manufacturers to adopt AI-based technologies. The critical challenges facing the AI in the manufacturing market include limited skilled workforce, concerns regarding data privacy, and significant financial and operational impact of the COVID-19 outbreak on manufacturing.
The machine learning technology is expected to account for the largest size of the AI in manufacturing market during the forecast period.
Machine learning’s ability to collect and handle big data and its applications in real-time speech translation, robotics, and facial analysis is fuelling its growth in the manufacturing market. AI constitutes various technologies that play a vital role in developing its ecosystem. As AI enables machines to perform activities similar to those performed by human beings, enormous market opportunities have opened.
The predictive maintenance and machinery inspection application of the AI in manufacturing market is projected to hold the largest share during the forecast period.
The predictive maintenance and machinery inspection application held the largest share of the AI in the manufacturing market in 2019. Extensive use of computer vision cameras in machinery inspection, adoption of the Industrial Internet of Things (IIoT), and use of big data in the manufacturing industry are the factors driving the growth of the AI in the manufacturing market for predictive maintenance and machinery inspection application. The increasing demand for reducing the operational costs and machine downtime is also supplementing the growth of predictive maintenance and machinery inspection application in industries.
The automobile industry held the largest size of the AI in manufacturing market in 2019.
The extensive use of computer vision cameras in machinery inspection and adoption industrial IoT are the factors driving the growth of the AI in the manufacturing market for the automobile industry. The application of AI to boost employee productivity, improve quality control, and gain better control over business support functions is supporting the growth of AI in the automobile industry.
Impact of COVID-19 on the AI in the manufacturing market
The market is likely to witness a slight plunge in terms of year-on-year growth in 2020. This is largely attributed to the affected supply chains and limited adoption of AI in manufacturing in 2020 due to the lockdowns and shifting priorities of different industries. The ongoing COVID-19 pandemic has caused disruptions in economies. It is likely to cause supply chain mayhem and eventually force companies and entire industries to rethink and adapt to the global supply chain model.
Many manufacturing companies have halted their production, which has collaterally damaged the supply chain and the industry. This disruption has caused a delay in the adoption of AI-based software and hardware products in the manufacturing sector. The industries have started to restructure their business model for 2020, and many SMEs and large manufacturing plants have halted/postponed any new technology upgrade in their factories in order to recover from the losses caused by the lockdown and economic slowdown.
Research Coverage
The AI in the manufacturing market has been segmented based on offering, technology, application, industry and region. It also provides a detailed view of the market across 4 main regions: North America, Europe, APAC, and RoW.
Key Topics Covered
1 Introduction
2 Research Methodology
3 Executive Summary3.1 COVID-19 Impact Analysis: AI in Manufacturing Market3.1.1 Pre-COVID-19 Scenario
3.1.2 Post-COVID-19 Scenario