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India Artificial Industrial In Manufacturing Market

ID: MRFR/ICT/60829-HCR
200 Pages
Aarti Dhapte
October 2025

India Artificial Intelligence in Manufacturing Market Research Report By Application (Predictive Maintenance, Quality Control, Supply Chain Management, Process Optimization), By Technology (Machine Learning, Natural Language Processing, Computer Vision), By End Use (Automotive, Electronics, Aerospace, Pharmaceuticals), and By Deployment Mode (On-Premises, Cloud-Based)-Forecast to 2035

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India Artificial Industrial In Manufacturing Market Summary

As per MRFR analysis, the artificial industrial-in-manufacturing market size was estimated at 245.0 USD Million in 2024.. The artificial industrial-in-manufacturing market is projected to grow from 290.15 USD Million in 2025 to 1575.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 18.43% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The India artificial industrial-in-manufacturing market is poised for substantial growth driven by automation and sustainability initiatives.

  • The largest segment in the market is automation solutions, which is experiencing a notable surge in adoption.
  • Sustainability practices are becoming increasingly integral to manufacturing processes, reflecting a broader industry shift.
  • The fastest-growing segment is AI-driven analytics, which is gaining traction due to its potential for enhancing operational efficiency.
  • Key market drivers include technological advancements in AI and government initiatives aimed at promoting industrial innovation.

Market Size & Forecast

2024 Market Size 245.0 (USD Million)
2035 Market Size 1575.0 (USD Million)

Major Players

Siemens (DE), General Electric (US), Rockwell Automation (US), Honeywell (US), ABB (CH), Schneider Electric (FR), Mitsubishi Electric (JP), Emerson Electric (US), Bosch (DE)

India Artificial Industrial In Manufacturing Market Trends

The artificial industrial-in-manufacturing market is currently experiencing a transformative phase, driven by advancements in technology and increasing demand for automation. The integration of artificial intelligence and machine learning into manufacturing processes appears to enhance efficiency and productivity. Companies are increasingly adopting smart manufacturing practices, which leverage data analytics and IoT to optimize operations. This shift not only reduces operational costs but also improves product quality, thereby meeting the evolving expectations of consumers. Furthermore, the emphasis on sustainability is prompting manufacturers to explore eco-friendly practices, which may lead to the development of innovative solutions that align with environmental regulations. In addition, the artificial industrial-in-manufacturing market is witnessing a surge in investment from both domestic and international players. This influx of capital is likely to accelerate research and development initiatives, fostering innovation in automation technologies. As a result, the market may see the emergence of new players and solutions that cater to specific industry needs. The focus on skill development and workforce training is also becoming increasingly relevant, as companies seek to equip their employees with the necessary skills to operate advanced manufacturing systems. Overall, the landscape of the artificial industrial-in-manufacturing sector is evolving rapidly., presenting numerous opportunities for growth and advancement.

Increased Automation Adoption

The trend towards automation in the artificial industrial-in-manufacturing market is gaining momentum. Companies are increasingly implementing automated systems to streamline production processes, reduce human error, and enhance overall efficiency. This shift is driven by the need for faster production cycles and the ability to respond swiftly to market demands.

Focus on Sustainability

Sustainability is becoming a central theme within the artificial industrial-in-manufacturing market. Manufacturers are exploring eco-friendly practices and technologies to minimize their environmental impact. This trend is likely to influence product design and production methods, aligning with regulatory requirements and consumer preferences for sustainable products.

Investment in R&D

Investment in research and development is on the rise within the artificial industrial-in-manufacturing market. Companies are allocating resources to innovate and develop new technologies that enhance manufacturing processes. This focus on R&D is expected to lead to breakthroughs in automation and efficiency, positioning firms competitively in the market.

India Artificial Industrial In Manufacturing Market Drivers

Rising Labor Costs

Increasing labor costs in India are compelling manufacturers to seek automation solutions within the artificial industrial-in-manufacturing market. As wages rise, companies are exploring AI and robotics to maintain competitiveness and reduce operational expenses. The cost of labor in India has seen an annual increase of approximately 8%, prompting a shift towards automated systems that can perform tasks traditionally done by human workers. This trend is likely to accelerate the adoption of AI technologies, as businesses aim to optimize their workforce and enhance productivity, thereby driving market growth.

Technological Advancements in AI

The rapid evolution of artificial intelligence (AI) technologies is a primary driver for the artificial industrial-in-manufacturing market. In India, advancements in machine learning, computer vision, and natural language processing are enhancing operational efficiencies. For instance, AI-driven predictive maintenance solutions can reduce downtime by up to 30%, thereby increasing productivity. The integration of AI in robotics is also transforming manufacturing processes, allowing for greater precision and speed. As companies increasingly adopt these technologies, the market is projected to grow at a CAGR of 25% over the next five years, indicating a robust demand for AI solutions in manufacturing.

Increased Focus on Quality Control

Quality control remains a critical aspect of manufacturing, and the artificial industrial-in-manufacturing market is responding to this need through advanced AI solutions. In India, manufacturers are leveraging AI-driven inspection systems to enhance product quality and reduce defects. These systems can analyze products at a speed and accuracy that surpasses human capabilities, leading to a decrease in rejection rates by up to 15%. As quality standards continue to rise, the demand for AI technologies in quality assurance is expected to grow, further propelling the artificial industrial-in-manufacturing market.

Government Initiatives and Policies

The Indian government has been actively promoting the adoption of artificial industrial-in-manufacturing market technologies through various initiatives. Programs such as 'Make in India' and 'Digital India' aim to enhance manufacturing capabilities and encourage the use of advanced technologies. Financial incentives, tax benefits, and subsidies for companies investing in AI and automation are also being offered. This supportive policy environment is expected to drive market growth, with an estimated increase in investment in AI technologies reaching $10 billion by 2026. Such initiatives are likely to create a conducive ecosystem for the artificial industrial-in-manufacturing market.

Demand for Customization and Flexibility

The growing consumer demand for customized products is influencing the artificial industrial-in-manufacturing market in India. Manufacturers are increasingly required to adapt their production processes to meet specific customer needs, which necessitates the integration of AI technologies. These technologies enable real-time data analysis and agile manufacturing practices, allowing companies to respond swiftly to market changes. As a result, the market is expected to expand, with projections indicating a potential growth rate of 20% over the next few years. This demand for flexibility is reshaping manufacturing strategies and driving investments in AI solutions.

Market Segment Insights

By Application: Predictive Maintenance (Largest) vs. Robotics (Fastest-Growing)

In the India artificial industrial-in-manufacturing market, the application segment showcases a varied distribution of market share among five key areas: Predictive Maintenance, Quality Control, Supply Chain Management, Robotics, and Production Planning. Among these, Predictive Maintenance holds the largest share, reflecting its critical role in minimizing downtime and optimizing equipment performance. Robotics is quickly gaining traction, driven by advancements in automation and operational efficiency, positioning it as the fastest-growing segment within the application landscape. Growth trends indicate that the increasing demand for automation and data-driven decision-making is propelling the expansion of the application segment. Predictive Maintenance is experiencing sustained growth as organizations seek to enhance reliability and reduce maintenance costs. Simultaneously, the Robotics segment is witnessing a surge due to technological innovations and the push for smarter manufacturing solutions. This combination of stability in traditional areas and rapid growth in emerging applications paints a promising picture for the future of the application segment.

Predictive Maintenance (Dominant) vs. Robotics (Emerging)

Predictive Maintenance is established as the dominant force in the application segment, characterized by its proactive approach to maintenance, reducing equipment failure rates significantly. It leverages real-time data analytics to predict potential failures, ensuring minimal disruption and enhancing productivity across various manufacturing sectors. On the other hand, Robotics is emerging as a transformative application, offering innovative solutions that enhance efficiency and precision in manufacturing processes. With the rise of artificial intelligence and machine learning, Robotics is set to redefine operational capabilities by automating complex tasks, thereby supporting manufacturers in achieving higher output levels and maintaining competitive advantages. This dynamic interplay between predictive maintenance and robotics signals an evolution in the sector.

By Technology: Machine Learning (Largest) vs. Natural Language Processing (Fastest-Growing)

In the India artificial industrial-in-manufacturing market, Machine Learning holds the largest market share among the technology segment values, reflecting its widespread adoption across various manufacturing processes. Following closely, Natural Language Processing has emerged as a significant player due to its increasing application in operations and customer service, indicating a robust interest from businesses looking to improve efficiency and engagement. Growth trends indicate that while Machine Learning is currently dominant, Natural Language Processing is projected to witness the fastest growth in the coming years. This upward trajectory is fueled by advancements in AI technology, greater investment in training data, and companies' need to automate and enhance decision-making processes, ultimately transforming manufacturing landscapes throughout the sector.

Technology: Machine Learning (Dominant) vs. Natural Language Processing (Emerging)

Machine Learning is characterized by its ability to analyze large datasets and provide predictive insights, making it the backbone of innovation in the manufacturing sector. Its dominant position enables companies to optimize production efficiency and reduce operational costs. In contrast, Natural Language Processing, as an emerging technology, facilitates seamless interaction between machines and human operators, making it increasingly essential in customer-related applications and increasing automation in processes like quality control. As this technology continues to evolve, it is expected to play a pivotal role in enhancing customer engagement and streamlining operations, thereby driving further investments and adoption.

By Deployment Type: On-Premise (Largest) vs. Cloud (Fastest-Growing)

In the deployment type segment, On-Premise solutions currently hold the largest market share, benefiting from longstanding corporate infrastructure and data security concerns. Cloud deployment, meanwhile, is rapidly gaining traction, driven by the demand for scalability and flexibility, allowing manufacturers to adapt quickly to changing market conditions. Hybrid solutions also play a crucial role, offering a balanced approach that combines the strengths of both On-Premise and Cloud strategies, catering to diverse user preferences. The growth in the deployment type segment is significantly influenced by digital transformation initiatives across various sectors. As businesses seek to enhance operational efficiency and reduce overhead costs, the adoption of Cloud solutions continues to surge. Furthermore, the increasing need for remote access and data analytics capabilities is propelling the Hybrid model's popularity, allowing organizations to leverage both onsite and cloud resources effectively. This trend is expected to persist as more companies recognize the benefits of integrated deployment strategies.

On-Premise (Dominant) vs. Cloud (Emerging)

On-Premise deployment remains the dominant choice for many organizations in the India artificial industrial-in-manufacturing market, primarily due to its robust security features and control over sensitive data. Companies deploying On-Premise solutions can ensure compliance with local regulations and maintain dedicated resources, which is critical in industries that require stringent quality and safety standards. In contrast, the Cloud segment is emerging rapidly, being favored for its cost efficiency and ease of deployment. This model allows businesses, particularly smaller manufacturers, to access advanced technologies without significant upfront investments. The shift towards hybrid models is also becoming prevalent, balancing the benefits of both On-Premise and Cloud environments.

By End Use Industry: Automotive (Largest) vs. Electronics (Fastest-Growing)

The market share distribution within the artificial industrial-in-manufacturing sector reveals that the automotive segment leads significantly, accounting for a substantial portion of the overall market. The electronics segment follows, showcasing a remarkable presence yet still trailing behind automotive. Other segments such as aerospace, food and beverage, and pharmaceuticals provide additional support to the market but hold smaller shares comparatively. In terms of growth trends, the automotive segment is driven by continuous advancements in technology, necessitating innovative manufacturing solutions. Conversely, the electronics segment is experiencing accelerated growth due to the rise in consumer electronics and the increasing demand for automation in manufacturing processes. This trend highlights a shift towards more efficient production methodologies, fostering expansion in both segments.

Automotive: Dominant vs. Electronics: Emerging

The automotive segment serves as the dominant force in the India artificial industrial-in-manufacturing market, characterized by its robust demand for advanced manufacturing technologies that enhance production efficiency. This segment benefits from a well-established supply chain and continuous investments in innovation. On the other hand, the electronics segment is emerging rapidly, driven by technological advancements and the surging demand for electronic components across various industries. This upward trajectory is encouraged by the increasing integration of smart technologies and automation, positioning electronics as a key player that could rival automotive in the near future. Both segments exhibit distinctive characteristics that cater to evolving market needs.

Get more detailed insights about India Artificial Industrial In Manufacturing Market

Key Players and Competitive Insights

The artificial industrial-in-manufacturing market in India is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for automation solutions. Key players such as Siemens (DE), General Electric (US), and Rockwell Automation (US) are strategically positioned to leverage innovation and digital transformation. Siemens (DE) focuses on integrating AI and IoT into its manufacturing solutions, enhancing operational efficiency and reducing downtime. General Electric (US) emphasizes sustainability through its eco-friendly technologies, while Rockwell Automation (US) is committed to providing comprehensive automation solutions that cater to diverse industrial needs. Collectively, these strategies foster a competitive environment that prioritizes technological advancement and sustainability.

In terms of business tactics, companies are increasingly localizing manufacturing to reduce costs and enhance supply chain resilience. This approach is particularly relevant in a moderately fragmented market where collaboration and partnerships are essential for growth. The competitive structure is influenced by the collective efforts of these key players, who are optimizing their supply chains and investing in localized production facilities to meet the growing demand for automation in various sectors.

In October 2025, Siemens (DE) announced the opening of a new manufacturing facility in Pune, aimed at producing advanced automation solutions tailored for the Indian market. This strategic move not only enhances Siemens' local presence but also aligns with the government's push for 'Make in India,' potentially increasing market share and fostering innovation in the region. Similarly, in September 2025, General Electric (US) launched a new line of energy-efficient industrial equipment designed to reduce carbon emissions by 30%. This initiative underscores GE's commitment to sustainability and positions the company as a leader in eco-friendly manufacturing solutions.

In August 2025, Rockwell Automation (US) entered into a strategic partnership with a leading Indian software firm to develop AI-driven manufacturing solutions. This collaboration is expected to enhance Rockwell's capabilities in providing cutting-edge automation technologies, thereby strengthening its competitive edge in the market. The partnership reflects a broader trend of companies seeking to integrate advanced technologies into their offerings, which is crucial for maintaining relevance in an increasingly digital landscape.

As of November 2025, the most pressing trends shaping competition in the artificial industrial-in-manufacturing market include digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming increasingly vital, as companies recognize the need to collaborate to enhance their technological capabilities and market reach. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technological advancement, and supply chain reliability. This shift suggests that companies that prioritize these aspects will be better positioned to thrive in the rapidly changing market environment.

Key Companies in the India Artificial Industrial In Manufacturing Market market include

Industry Developments

By providing Reliance Industries with Blackwell AI processors and working with tech companies like Tech Mahindra to boost computing capacity about 20 times around the nation, NVIDIA has considerably increased its footprint in India's AI infrastructure as of October 2024.

Tech Mahindra and NVIDIA established an AI Center of Excellence in Pune and Hyderabad in October 2024 with the goal of creating industrial digital twins using the Omniverse platform and autonomous large-language models such as Project Indus 2.0 for Hindi and regional dialects.

In the meantime, in 2024, Tata Consultancy Services (TCS) also adopted NVIDIA Omniverse, launching a set of digital twin tools for car assembly, manufacturing environment simulation, and the deployment of generative AI agents for industrial processes.

In 2024, HCL Technologies enhanced engineering simulations and automation use cases in manufacturing sectors by integrating NVIDIA AI Enterprise and Omniverse into its SmartTwin and AI Force platforms.Through its Enterprise GenAI Studio and Inspect AI, Wipro demonstrated AI-powered solutions at the NVIDIA AI Summit India 2024 in October, showcasing manufacturing AI accelerators among other things.

In order to assist customers in quickly implementing manufacturing AI applications, Infosys also introduced its Topaz AI solutions in 2024, utilizing NVIDIA's AI stack.

Future Outlook

India Artificial Industrial In Manufacturing Market Future Outlook

The artificial industrial-in-manufacturing market in India is projected to grow at 18.43% CAGR from 2024 to 2035, driven by automation, AI integration, and demand for efficiency.

New opportunities lie in:

  • Development of AI-driven predictive maintenance solutions
  • Implementation of smart factory technologies for real-time monitoring
  • Expansion of robotics in assembly line processes

By 2035, the market is expected to achieve substantial growth and innovation.

Market Segmentation

India Artificial Industrial In Manufacturing Market Technology Outlook

  • Machine Learning
  • Natural Language Processing
  • Computer Vision
  • Robotic Process Automation
  • Deep Learning

India Artificial Industrial In Manufacturing Market Application Outlook

  • Predictive Maintenance
  • Quality Control
  • Supply Chain Management
  • Robotics
  • Production Planning

India Artificial Industrial In Manufacturing Market Deployment Type Outlook

  • On-Premise
  • Cloud
  • Hybrid

India Artificial Industrial In Manufacturing Market End Use Industry Outlook

  • Automotive
  • Electronics
  • Aerospace
  • Food and Beverage
  • Pharmaceuticals

Report Scope

MARKET SIZE 2024 245.0(USD Million)
MARKET SIZE 2025 290.15(USD Million)
MARKET SIZE 2035 1575.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 18.43% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Siemens (DE), General Electric (US), Rockwell Automation (US), Honeywell (US), ABB (CH), Schneider Electric (FR), Mitsubishi Electric (JP), Emerson Electric (US), Bosch (DE)
Segments Covered Application, Technology, Deployment Type, End Use Industry
Key Market Opportunities Integration of advanced robotics and AI to enhance manufacturing efficiency and reduce operational costs.
Key Market Dynamics Rising automation and AI integration drive efficiency and competitiveness in the artificial industrial-in-manufacturing market.
Countries Covered India

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FAQs

What is the expected market size of the India Artificial Intelligence in Manufacturing Market in 2024?

The India Artificial Intelligence in Manufacturing Market is expected to be valued at 447.3 million USD in 2024.

What will the market size be by 2035?

By 2035, the market is projected to reach 2068.5 million USD.

What is the expected CAGR for the market from 2025 to 2035?

The expected CAGR for the India Artificial Intelligence in Manufacturing Market is 14.937% from 2025 to 2035.

Which application in the India Artificial Intelligence in Manufacturing Market has the highest market value in 2024?

Predictive Maintenance has the highest market value in 2024 at 120.0 million USD.

What is the projected market value for Quality Control in 2035?

The projected market value for Quality Control in 2035 is 480.0 million USD.

Which key players are leading the India Artificial Intelligence in Manufacturing Market?

Major players in the market include Oracle, NVIDIA, Siemens, Tata Consultancy Services, and Accenture among others.

What is the expected market value for Supply Chain Management in 2024?

The expected market value for Supply Chain Management in 2024 is 90.0 million USD.

What will be the market value for Process Optimization by 2035?

Process Optimization is expected to reach a market value of 588.5 million USD by 2035.

What are the growth drivers for the India Artificial Intelligence in Manufacturing Market?

Growth drivers include advancements in technology, increasing demand for automation, and the need for efficiency in manufacturing.

How does the India Artificial Intelligence in Manufacturing Market outlook look considering the current global scenario?

The market outlook remains positive, driven by innovation and technological adoption amidst global challenges.

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