As per MRFR analysis, the India Artificial Intelligence in Manufacturing Market Size was estimated at 387.8 (USD Million) in 2023.The India Artificial Intelligence in Manufacturing Market is expected to grow from 447.3(USD Million) in 2024 to 2,068.5 (USD Million) by 2035. The India Artificial Intelligence in Manufacturing Market CAGR (growth rate) is expected to be around 14.937% during the forecast period (2025 - 2035).
Key India Artificial Intelligence in Manufacturing Market Trends Highlighted
Due to a number of important market factors, the artificial intelligence in manufacturing market in India is expanding significantly. Manufacturers are adopting AI technology in response to the growing demand for operational efficiency and the aim to lower manufacturing costs.
AI integration is becoming more common in the manufacturing industry as a result of government efforts like "Make in India" and "Digital India," which are also increasing the adoption of cutting-edge technologies.
By promoting the deployment of smart factory concepts and increasing local manufacturing capabilities, these projects hope to accelerate the rate of AI adoption. As manufacturers look to reduce downtime and improve product quality, recent trends show an increasing emphasis on AI-powered predictive maintenance and quality control.
Businesses are spending money on AI-powered solutions that evaluate data instantly, facilitating speedier decision-making and increasing output all around. To meet the demands of AI integration, the workforce is being upskilled, demonstrating a dedication to competence and innovation in the industrial industry.
The creation of AI solutions designed especially for different manufacturing processes, such supply chain management and inventory optimization, is one opportunity that should be investigated. Partnerships between Indian entrepreneurs and well-established manufacturing companies are producing cutting-edge solutions that tackle certain issues the sector faces.
Additionally, AI has the potential to help manufacturing processes become more sustainable, which is in line with India's environmental objectives. India's industrial and technology integration is paving the way for a more competitive and efficient environment, which will greatly boost the nation's chances for economic expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Artificial Intelligence in Manufacturing Market Drivers
Government Initiatives and Support for AI Adoption
The Indian government has been proactive in promoting the adoption of Artificial Intelligence in various sectors, including manufacturing. Initiatives like the National Strategy for Artificial Intelligence, which aims to position India as a global leader in AI innovation by supporting Research and Development (R&D) and encouraging investments in AI technologies.
The government has allocated substantial funds to develop AI infrastructure and has been pushing for AI integration in smart manufacturing processes. This is evidenced by the 'Make in India' initiative, which encourages local manufacturing and the adoption of advanced technologies.
As a result, organizations such as Tata Consultancy Services and Infosys are investing in AI solutions, powering the growth of the India Artificial Intelligence in Manufacturing Market, indicating a significant shift in manufacturing capabilities.
The government's commitment to AI is reflected in the expectations of major advancements by 2025, supported by a projected increase in AI-related patents registered in the country, reported by the Indian Patent Office, showcasing a robust growth trajectory in AI applications.
Increasing Demand for Automation and Efficiency
With the rising demand for automation in manufacturing processes, companies in India are increasingly adopting AI technologies to streamline operations and enhance productivity. Reports suggest that manufacturing companies implementing AI can realize up to a 20% boost in efficiency and reduce operational costs significantly.
The need for precision engineering and real-time analytics has never been more critical, pushing firms in sectors such as automotive and electronics to embrace AI-driven solutions. For example, major manufacturers like Mahindra and Mahindra are utilizing AI to optimize production lines, enhance quality control, and boost supply chain efficiency.
This growing trend of automation significantly contributes to the rapid expansion of the India Artificial Intelligence in Manufacturing Market, as businesses strive to stay competitive and agile in a fast-evolving market landscape.
Rising Focus on Data-Driven Decision Making
The shift towards data-driven decision-making in the manufacturing sector is significantly driving the growth of the India Artificial Intelligence in Manufacturing Market. Manufacturers are increasingly realizing the value of data analytics powered by AI, which allows them to make informed decisions based on actionable insights.
According to the National Association of Software and Service Companies, more than 60% of Indian manufacturers are now utilizing AI to analyze production data, which leads to improved product quality and reduced waste.
Organizations like Wipro and Siemens are at the forefront of this transformation, using AI algorithms to decode complex datasets for better outcomes. The strong demand for data intelligence solutions highlights the pivotal role AI plays in enhancing operational performance and driving innovation in manufacturing, thus solidifying its position within the industry.
Artificial Intelligence in Manufacturing Market Application Insights
The Application segment of the India Artificial Intelligence in Manufacturing Market plays a critical role in driving efficiency and innovation across various manufacturing processes. As industries increasingly adopt artificial intelligence technologies, applications such as Predictive Maintenance, Quality Control, Supply Chain Management, and Process Optimization are gaining traction.
Predictive Maintenance has emerged as a significant focal point for manufacturers seeking to minimize downtime through data-driven insights, thereby enhancing operational efficiency. This application leverages real-time data to predict equipment failures before they happen, which can lead to substantial reductions in maintenance costs and production interruptions.
Quality Control is essential in ensuring products meet stringent standards and customer expectations. Employing AI in this domain enables manufacturers to automate inspections and identify defects that human inspectors might overlook, thus ensuring higher product quality and satisfaction.
Supply Chain Management benefits greatly from AI by optimizing logistics, inventory management, and forecasting demand more accurately. This not only streamlines operations but also improves overall customer service, which is especially crucial in India's rapidly growing market.
Moreover, Process Optimization focuses on improving manufacturing workflows and productivity. By utilizing AI tools to analyze and refine processes, manufacturers can achieve higher efficiency and lower operational costs.
The intersection of these applications illustrates the evolving landscape of the manufacturing industry in India, highlighting significant growth drivers such as the push for Industry 4.0 initiatives and government support for digital transformation.
As these applications continue to evolve, they present substantial opportunities for Indian manufacturers to harness AI technologies, thus positioning themselves as competitive players in the global market. The integration of AI in these applications is expected to lead to enhanced operational metrics, minimize wastage, and ultimately enable manufacturers to adapt to changing market demands effectively.
Overall, the trends observed in the Application segment underscore the importance of leveraging artificial intelligence in modern manufacturing, promising substantial advancements and improvements in various operational areas across the industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Artificial Intelligence in Manufacturing Market Technology Insights
The Technology segment of the India Artificial Intelligence in Manufacturing Market is experiencing robust development, contributing significantly to the industry's evolution. Machine Learning, one of the dominant areas, plays a crucial role in optimizing processes and improving predictive maintenance, thus enhancing operational efficiency in manufacturing.
Simultaneously, Natural Language Processing facilitates better communication between machines and operators, leading to streamlined operations and faster decision-making. On the other hand, Computer Vision is enhancing quality control and inspection processes, allowing for faster defect detection and improved product quality.
The integration of these technologies is driven by the growing demand for automation and smart manufacturing solutions in India, supported by government initiatives aimed at fostering innovation and technological adoption.
With a rising emphasis on digital transformation among Indian manufacturers, these technologies are becoming indispensable in developing advanced manufacturing capabilities. The sector holds significant growth potential as the country aims to strengthen its position in the global manufacturing landscape, thereby opening avenues for further advancements in AI applications within the industry.
The increasing focus on Industry 4.0 is also acting as a catalyst for the adoption of AI technologies in manufacturing, thus enhancing the overall competitiveness of the Indian manufacturing ecosystem.
Artificial Intelligence in Manufacturing Market End Use Insights
The End Use segment of the India Artificial Intelligence in Manufacturing Market is diverse and plays a critical role in driving efficiency and innovation across various sectors. The Automotive segment is highly significant, leveraging artificial intelligence for optimizing supply chains, enhancing production processes, and improving safety features, contributing to the growth of smart vehicles.
In the Electronics sector, artificial intelligence helps streamline operations through predictive maintenance and quality control, facilitating faster time-to-market and reducing costs. The Aerospace industry, with its complex manufacturing processes, benefits from AI in areas such as predictive analytics and automated inspections, ensuring higher precision and safety.
Lastly, the Pharmaceuticals segment utilizes artificial intelligence for drug discovery and production efficiency, allowing for faster responses to market demands. Each of these sectors demonstrates the importance of integrating artificial intelligence in manufacturing, driving not only operational excellence but also innovation within the overall industry landscape in India.
The alignment of advanced technologies with manufacturing practices positions these sectors favorably for future growth within the country, supported by government initiatives promoting digital transformation and automation.
Artificial Intelligence in Manufacturing Market Deployment Mode Insights
The Deployment Mode segment of the India Artificial Intelligence in Manufacturing Market is gaining traction as industries increasingly view AI as a critical driver of efficiency and productivity. This segment primarily encompasses On-Premises and Cloud-Based solutions.
On-Premises deployments are often favored by larger manufacturers due to their control over data security and compliance, particularly in sectors where sensitive information must be safeguarded.
Conversely, Cloud-Based systems have emerged as a rapidly growing choice among smaller enterprises seeking scalability and cost-effectiveness, allowing for quicker deployment and lower upfront capital investment.
The flexibility offered by Cloud-Based solutions means that manufacturers can leverage advanced AI capabilities without the need for significant infrastructure, thus stimulating market growth. As the Indian government pushes for digital transformation in manufacturing through initiatives like "Make in India," the demand for both deployment modes is expected to escalate.
This trend aligns with the ongoing digitalization wave across the nation, further propelled by the increasing adoption of Industry 4.0 practices. The integration of AI-driven technologies into manufacturing processes not only enhances operational efficiencies but also opens avenues for innovation and competitiveness.
As industries continue to navigate the complexities of modern manufacturing, the Deployment Mode segment will be pivotal in shaping the future landscape of the India Artificial Intelligence in Manufacturing Market.
India Artificial Intelligence in Manufacturing Market Key Players and Competitive Insights
The India Artificial Intelligence in Manufacturing Market is witnessing rapid advancements, driven by the increasing adoption of AI technologies across various manufacturing sectors. As organizations seek to enhance efficiency, reduce operational costs, and improve product quality, the integration of AI into manufacturing processes has become essential.
Key players are leveraging AI to optimize supply chain management, predictive maintenance, quality control, and automation. The competitive landscape of this market is characterized by both established technology companies and emerging startups, each vying to secure their share by offering innovative AI solutions tailored to the needs of Indian manufacturers.
As a result, the market dynamics are shaped by innovation, strategic partnerships, technological capabilities, and the evolving landscape of consumer demand.
NVIDIA's involvement in the India Artificial Intelligence in Manufacturing Market is pivotal, particularly with its advanced GPU technology that powers AI applications. By offering high-performance computing solutions, NVIDIA stands out in the domain of deep learning and machine learning applications tailored for the manufacturing sector.
The company's deep learning framework, alongside software libraries and development platforms, enables manufacturers to harness the power of AI for various applications including visual inspection, predictive maintenance, and intelligent automation.
NVIDIA has gained traction in India through strategic partnerships with local manufacturers and tech developers, allowing it to enhance its market presence. The company also actively engages in mergers and acquisitions, seeking to expand its technological capabilities and broaden its AI solution offerings.
As a result, NVIDIA is positioned as a key player in facilitating the digital transformation journey of Indian manufacturers through its innovative technologies and strong market presence.
Key Companies in the India Artificial Intelligence in Manufacturing Market Include
India Artificial Intelligence in Manufacturing Market 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.
India Artificial Intelligence in Manufacturing Market Segmentation Insights
Artificial Intelligence in Manufacturing Market Application Outlook
Artificial Intelligence in Manufacturing Market Technology Outlook
Artificial Intelligence in Manufacturing Market End Use Outlook
Artificial Intelligence in Manufacturing Market Deployment Mode Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 387.8(USD Million) |
| MARKET SIZE 2024 | 447.3(USD Million) |
| MARKET SIZE 2035 | 2068.5(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 14.937% (2025 - 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 | Oracle, NVIDIA, Siemens, Tata Consultancy Services, Accenture, HCL Technologies, GE Digital, SAP, L&T Technology Services, Tech Mahindra, Wipro, Infosys, IBM, Cognizant, Microsoft |
| SEGMENTS COVERED | Application, Technology, End Use, Deployment Mode |
| KEY MARKET OPPORTUNITIES | Predictive maintenance solutions, Quality control automation, Supply chain optimization, Workforce efficiency enhancement, Smart robotics integration |
| KEY MARKET DYNAMICS | increased automation adoption, rising demand for efficiency, growing data analytics integration, government support for AI initiatives, skilled workforce shortage |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ):
The India Artificial Intelligence in Manufacturing Market is expected to be valued at 447.3 million USD in 2024.
By 2035, the market is projected to reach 2068.5 million USD.
The expected CAGR for the India Artificial Intelligence in Manufacturing Market is 14.937% from 2025 to 2035.
Predictive Maintenance has the highest market value in 2024 at 120.0 million USD.
The projected market value for Quality Control in 2035 is 480.0 million USD.
Major players in the market include Oracle, NVIDIA, Siemens, Tata Consultancy Services, and Accenture among others.
The expected market value for Supply Chain Management in 2024 is 90.0 million USD.
Process Optimization is expected to reach a market value of 588.5 million USD by 2035.
Growth drivers include advancements in technology, increasing demand for automation, and the need for efficiency in manufacturing.
The market outlook remains positive, driven by innovation and technological adoption amidst global challenges.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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