AI in manufacturing market size to reach US$4798mn by 2026
Latest market research released by Valuates Reports - provider of extensive market research reports - has projected that the global artificial intelligence (AI) in manufacturing market size will reach US$4798m by 2026, at a CAGR of 28.1% between 2021 and 2026.
The report attributes the drive in growth to the increasing number of large and complex datasets, volving industrial IoT and automation, improving computing power, and increasing venture capital investments. As well as the added value of predictive maintenance which can reduce operational costs and increase productivity.
AI in manufacturing trends
“In smart manufacturing, artificial intelligence is most widely used in factory automation, order management, and automated scheduling. During the forecast period, an increasing number of AI technologies will be used for quality monitoring and fault management, supported by advancements in computer vision technology,” commented Valuates Reports.
IoT and automation
Expected to drive the growth of AI in manufacturing, the evolution of industrial IoT and automation will play a key role in implementing AI-based technology.
“By allowing an architecture that provides real-time information on operational and business systems, industrial IoT makes industrial processes efficient. The AI-based system takes less time and can operate without errors.”
Manufacturing performance and government and private institution investments
In addition to IoT and automation, Valuates Reports highlights that manufacturing performance is also improving which is contributing to business growth. As well as government and private institution investments
Deep learning technology
Finally, the growing use of deep learning technology in the manufacturing industry is also expected from Valuates Reports to drive the growth of AI in manufacturing.
About Valuates Reports
Valuates Reports - founded in 2017 - helps companies make intelligent and strategic decisions based on current and forecasted Market trends.
Gartner: Leaders Lack Skilled Smart Manufacturing Workers
With organisations rapidly adopting industry 4.0 capabilities to increase productivity, efficiency, transparency, and quality as well as reduce cost, manufacturers “are under pressure to bring their workforce into the 21st century,” says Gartner.
While more connected factory workers are leveraging digital tools and data management techniques to improve decision accuracy, increase knowledge and lessen variability, 57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support their smart manufacturing digitalisation plans.
“Our survey revealed that manufacturers are currently going through a difficult phase in their digitisation journey toward smart manufacturing,” said Simon Jacobson, Vice President analyst, Gartner Supply Chain practice.
“They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills. A truly connected factory worker in a smart manufacturing environment needs both.”
Surveying 439 respondents from North America, Western Europe and APAC, Gartner found that “organisational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives.” Combined they represent “the largest change management obstacle [for manufacturers],” adds Gartner.
“It’s interesting to see that leadership commitment is frequently cited as not being a challenge. Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent,” added Jacobson.
Technology and People
While the value and opportunities smart manufacturing can provide an organisation is being recognised, introducing technology alone isn’t enough. Gartner emphasises the importance of evolving factory workers alongside the technology, ensuring that they are on board in order for the change to be successful.
“The most immediate action is for organisations to realize that this is more than digitisation. It requires synchronising activities for capability building, capability enablement and empowering people. Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making,” said Jacobson.
Long term, “it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity,” concluded Gartner.