Industrial AI Market Set to Soar 20-Fold by 2032

The industrial AI market in global manufacturing is set to reach a staggering $103.3 billion by 2032, marking a 20-fold increase from 2023, according to a new report by SNS Insider. This explosive growth is driven by advancements in AI software platforms, computer vision, and the rapid industrialization of the APAC region.

Global AI spend in manufacturing is expected to surge from $3.4 billion in 2023 to $103.3 billion by 2032, representing a compound annual growth rate (CAGR) of 46 percent. The US currently leads the market, with a 2023 value of approximately $0.8 billion, projected to reach $23.9 billion by 2032, growing at a rate of 45.73 percent annually.

However, the APAC region is poised to grow the fastest, driven by the electronics and automotive industries. Rapid industrialization, smart manufacturing initiatives, and increased AI adoption in emerging economies like China, India, and South Korea are fueling this growth. AI integration in these sectors is particularly focused on predictive maintenance, quality inspections, and flexible production systems.

The industrial AI sector is broken down into componentry, applications, technologies, and usage. Hardware currently drives the most AI spend, accounting for 42 percent of the revenue in 2023. This includes high demand for AI-enabled sensors, edge devices, and embedded chips in manufacturing equipment, as well as investments in robotics, automated material handling, and industrial cameras.

However, AI software is expected to see the highest CAGR in terms of total revenue spend. This segment currently holds around 30-35 percent of the market and is projected to grow significantly. The demand for flexible, subscription-based software platforms that can easily scale AI models and integrate with ERP and MES systems is driving this innovation.

By application, production planning currently dominates the market. However, predictive maintenance and machinery inspection are expected to see the fastest growth. Machine learning was the top technology in 2023, but computer vision for quality control is growing at the fastest rate.

In terms of usage, medical devices dominated in 2023, but the automobile segment is expected to grow the fastest. AI enables automatic welding, painting, and inspecting parts, improving consistency and throughput. AI-powered flexible manufacturing is becoming a competitive edge in the shift from petrol cars to electric and driverless vehicles.

This rapid growth in the industrial AI market underscores the transformative impact of AI on manufacturing, with significant implications for efficiency, innovation, and global economic dynamics.