India Artificial Intelligence AI in Manufacturing Market Research Report By Application (Predictive Maintenance, Quality Control, Supply Chain Management, Robotics, Production Planning), By Technology (Machine Learning, Natural Language Processing, Computer Vision, Robotic Process Automation, Deep Learning), By Deployment Type (On-Premise, Cloud, Hybrid) and By End Use Industry (Automotive, Electronics, Aerospace, Food and Beverage, Pharmaceuticals)- Forecast to 2035

India Artificial Intelligence AI in Manufacturing Market Overview

As per MRFR analysis, the India Artificial Intelligence AI in Manufacturing Market Size was estimated at 258.12 (USD Million) in 2023.The India Artificial Intelligence AI in Manufacturing Market Industry is expected to grow from 400(USD Million) in 2024 to 2,500 (USD Million) by 2035. The India Artificial Intelligence AI in Manufacturing Market CAGR (growth rate) is expected to be around 18.128% during the forecast period (2025 - 2035).

Key India Artificial Intelligence AI in Manufacturing Market Trends Highlighted

Driven by technology developments and higher operational efficiency, India Artificial Intelligence AI in the Manufacturing industry is seeing notable industry trends. Programs by the government, like "Make in India," are motivating producers to use artificial intelligence and automation technologies. As businesses strive to improve output and lower costs, this trend lays a solid base for expansion. Moreover, corporations are investing in artificial intelligence systems that can examine real-time data to maximize manufacturing processes and enhance quality control as smart manufacturing becomes more and more demand. The Indian market presents chances for investigation in machine learning and artificial intelligence's interaction with the Internet of Things (IoT).

By means of predictive maintenance and improved supply chain management, these technologies provide manufacturers with a competitive advantage. Growing interest in artificial intelligence solutions catered to industrial demands is shown by the development of startup ecosystems in locations like Bangalore and Hyderabad. Furthermore, cooperation between academic institutions and business entities is generating opportunities for research in artificial intelligence applications and innovation, thereby addressing local issues. Recent trends also show a move toward sustainable manufacturing methods, in which artificial intelligence may aid in lowering energy use and waste generation. By means of AI-algorithm-driven insights, firms may implement environmentally beneficial policies in line with world sustainability objectives.

Furthermore, given the need for skills development, upskilling the workforce for AI technologies is under more and more importance. This not only fills up the talent gap but also guarantees efficient cooperation between people and robots on manufacturing sites. Thus, the confluence of skill and technology is determining the direction of artificial intelligence in Indian industry.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Artificial Intelligence AI in Manufacturing Market Drivers

Rapid Technological Advancements

The India Artificial Intelligence AI in Manufacturing Market Industry is experiencing significant growth driven by rapid technological advancements in AI and related fields. With the rise of machine learning, robotics, and big data analytics, manufacturers in India are increasingly adopting AI technologies to streamline their operations. For instance, a report by the Ministry of Electronics and Information Technology of the Government of India showed that the AI market in the country is expected to grow to USD 7.8 billion by 2025.

This transformation is also highlighted by industry leaders, such as Tata Consultancy Services and Infosys, as they invest heavily in artificial intelligence solutions. Both organizations have been pivotal in integrating AI into manufacturing processes to enhance productivity and reduce operational costs, thus playing a significant role in the market's growth.

Government Incentives and Support

The Indian government has implemented various policies and initiatives aimed at promoting the adoption of Artificial Intelligence in the manufacturing sector. Programs such as 'Make in India' and 'Digital India' provide a conducive environment for AI technologies to thrive. 

According to the Department for Promotion of Industry and Internal Trade, the government aims to encourage investments of USD 1.5 billion into AI by 2023 specifically for manufacturing enhancements.This influx of financial support and strategic initiatives significantly contributes to the growth of the India Artificial Intelligence AI in Manufacturing Market Industry, fostering innovation and technological adoption.

Growing Demand for Automation

The increasing demand for automation in manufacturing processes is a crucial driver for the India Artificial Intelligence AI in Manufacturing Market Industry. Many Indian manufacturers are focusing on automation to increase efficiency and maintain competitiveness. 

A survey conducted by the National Association of Software and Service Companies (NASSCOM) indicated that approximately 50% of Indian manufacturers are in the process of implementing automated solutions within the next two years.This trend showcases not only the critical need for integrated AI solutions but also the market's future potential. Established firms like Larsen & Toubro are embracing automation to redefine their operational strategies, thereby solidifying AI's crucial role in the manufacturing landscape of India.

India Artificial Intelligence AI in Manufacturing Market Segment Insights

Artificial Intelligence AI in Manufacturing Market Application Insights

The Application segment of the India Artificial Intelligence AI in Manufacturing Market is witnessing substantial development driven by various transformative technologies. Predictive Maintenance has emerged as a crucial application, leveraging AI to minimize downtime and enhance the efficiency of manufacturing operations. By analyzing equipment data, AI algorithms can forecast potential failures, allowing for timely interventions and significantly reducing operational costs. Quality Control is also critical as manufacturers seek to maintain high standards of production. 

AI-powered systems facilitate real-time monitoring of production processes, ensuring adherence to quality benchmarks while detecting defects early in the production line, leading to cost savings and improved customer satisfaction. In the realm of Supply Chain Management, AI applications streamline logistics and inventory management, optimizing the flow of materials and finished products. This leads to enhanced transparency in operations and better decision-making capabilities. Furthermore, Robotics plays an integral role as intelligent automation systems are increasingly adopted to perform hazardous or repetitive tasks, improving worker safety and productivity. With AI systems capable of learning and adapting, these robotic solutions can perform tasks with precision and efficiency, significantly boosting operational capabilities. 

Lastly, Production Planning benefits from AI by leveraging data analytics to optimize production schedules and resource allocation, ultimately enhancing productivity and reducing waste. This growing trend towards incorporating AI in these applications is a response to the demand for innovation and efficiency within India's manufacturing sector, which is geared towards achieving global competitiveness. As the Indian government promotes digital initiatives and manufacturing excellence, the integration of AI technologies in various applications represents a major leap forward. 

The ongoing advancements in AI technology continue to present opportunities for manufacturers to enhance their operations by leveraging data-driven insights and automating processes. Collectively, these segments are poised to contribute significantly to the growth and evolution of the India Artificial Intelligence AI in Manufacturing Market, establishing a new paradigm of operational excellence and sustainability in Indian manufacturing.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Artificial Intelligence AI in Manufacturing Market Technology Insights

The India Artificial Intelligence AI in Manufacturing Market, particularly within the Technology segment, is witnessing substantial advancements, driven by the increasing need for automation and efficiency in production processes. Machine Learning stands out as a key technology, enabling manufacturers to analyze vast datasets, thus optimizing operations and minimizing downtime. Natural Language Processing facilitates effective communication between machines and humans, enhancing decision-making processes. 

Computer Vision is instrumental in quality control, allowing for real-time monitoring of production lines to identify defects and ensure product integrity.Robotic Process Automation streamlines repetitive tasks, thereby enhancing productivity and freeing human workers for more complex responsibilities. Lastly, Deep Learning provides profound insights through neural networks, refining predictive analytics and driving innovation in smart manufacturing practices. This segmentation reflects a robust landscape of opportunities where companies are embracing these technologies to maintain competitive advantages and meet evolving consumer demands in the manufacturing sector across India.

Artificial Intelligence AI in Manufacturing Market Deployment Type Insights

The Deployment Type segment of the India Artificial Intelligence AI in Manufacturing Market encompasses key approaches such as On-Premise, Cloud, and Hybrid solutions, each playing a crucial role in shaping the market landscape. In India, manufacturers increasingly adopt On-Premise deployments due to stringent data security requirements and the desire for full control over their systems. Cloud deployment, on the other hand, is gaining traction because of its scalability, cost-effectiveness, and ease of access, catering to companies looking for flexible options to implement AI technologies without the need for extensive infrastructure.

The Hybrid approach is significant as it combines the advantages of both On-Premise and Cloud solutions, providing businesses the ability to customize their deployment strategy according to specific operational needs. Furthermore, as industries in India embrace automation and smart manufacturing practices, the demand for AI solutions within these deployment types is expected to grow, driven by the need for improved efficiency and productivity. The focus on leveraging AI to optimize manufacturing processes, enhance decision-making, and implement predictive maintenance strategies underscores the importance of these deployment types in realizing operational excellence.

Artificial Intelligence AI in Manufacturing Market End Use Industry Insights

The India Artificial Intelligence AI in Manufacturing Market, particularly within the End Use Industry segment, showcases diverse applications across several key sectors, including Automotive, Electronics, Aerospace, Food and Beverage, and Pharmaceuticals. The automotive industry is leveraging AI to enhance production efficiency and streamline supply chains, making it a significant player in adoption rates. Similarly, the electronics sector integrates AI for quality control and predictive maintenance, ensuring improved manufacturing processes and reduced downtime.

In aerospace, AI applications can optimize design and manufacturing processes, which are critical for enhancing safety and reducing operational costs. The Food and Beverage industry benefits from AI in quality assurance and inventory management, helping to improve compliance with health regulations. Lastly, the Pharmaceuticals sector utilizes AI to accelerate drug development and optimize production processes, responding to increasing demand for efficient manufacturing capabilities. Collectively, these sectors illustrate the crucial role of AI in enhancing operational efficiencies, which positions them as dominant forces in the India Artificial Intelligence AI in Manufacturing Market.

India Artificial Intelligence AI in Manufacturing Market Key Players and Competitive Insights

The competitive landscape of the India Artificial Intelligence AI in Manufacturing Market reveals a dynamic and rapidly evolving environment where various players are vying for dominance. With the increasing push towards automation and data-driven decision-making, AI technologies are becoming integral to the manufacturing sector's transformation. Companies are leveraging advanced AI algorithms, machine learning, and predictive analytics to enhance operational efficiency, streamline production processes, and reduce costs. The market is characterized by a diverse array of players, ranging from established technology giants to innovative startups, each bringing unique capabilities and solutions to the table. 

As manufacturers seek to embrace digital transformation, the competition in the AI space intensifies, leading to strategic partnerships, investments, and innovation fueled by the promise of improved productivity and competitive advantage. Microsoft has established a substantial presence in the India Artificial Intelligence AI in Manufacturing Market, capitalizing on its robust cloud platform and comprehensive suite of AI tools. Its offerings, including Azure Machine Learning and the Power Platform, are tailored to address the specific needs of manufacturers looking to optimize processes and enhance decision-making capabilities through data insights. Microsoft enables manufacturers to leverage AI for predictive maintenance, production optimization, and supply chain efficiency, showcasing its strength in providing scalable and flexible solutions that integrate seamlessly into existing manufacturing ecosystems. 

Additionally, Microsoft’s extensive ecosystem of partners and developers amplifies its reach and capabilities, allowing companies to implement customized AI solutions more effectively. As a trusted technology leader, Microsoft’s focus on innovation and collaboration places it in a strong position to influence the growth trajectory of AI in the manufacturing sector in India.HCL Technologies is another significant player in the India Artificial Intelligence AI in Manufacturing Market, showcasing its expertise in delivering end-to-end solutions that integrate AI with industry-specific needs. The company offers a range of AI-driven services, including advanced analytics, smart manufacturing solutions, and robotics process automation tailored for the manufacturing landscape. 

HCL Technologies leverages its strong industry knowledge and technological prowess to drive digital transformation initiatives for manufacturers across various sectors. The company has also been actively involved in strategic partnerships and collaborations to enhance its AI capabilities and expand its service offerings. Notably, HCL has engaged in key acquisitions to bolster its technological advancements, reinforcing its commitment to becoming a leader in the AI space. The combination of robust product offerings, deep industry insights, and a strategic approach positions HCL Technologies favorably within the competitive landscape of AI in manufacturing in India, allowing it to cater effectively to the evolving demands of the market.

Key Companies in the India Artificial Intelligence AI in Manufacturing Market Include:

• Microsoft


• HCL Technologies


• Infosys


• IBM


• Accenture


• Wipro


• Tata Consultancy Services


• Amazon Web Services


• SAP


• GE Digital


• NVIDIA


• Siemens


• Google Cloud


• Cognizant


• Tech Mahindra

India Artificial Intelligence AI in Manufacturing Market Industry Developments

Recent developments in the India Artificial Intelligence AI in Manufacturing Market have seen significant advancements and investments. In August 2023, Tata Consultancy Services announced a partnership with a leading automotive manufacturer to integrate AI-driven solutions for enhanced production efficiency. 

Similarly, in September 2023, Microsoft launched an initiative aimed at providing AI tools and resources to Indian manufacturing SMEs, bolstering their digital transformation efforts. In terms of market growth, Infosys reported a 15% increase in AI-related revenue streams in the last fiscal year, positively impacting the overall market valuation in India. On the mergers and acquisitions front, Accenture acquired a local AI firm in July 2023, further solidifying its presence in the Indian market. 

Notably, in January 2022, IBM revealed collaborations with various Indian startups focused on AI in manufacturing, reflecting a growing trend towards innovative partnerships. The National Association of Software and Service Companies (NASSCOM) also indicated that the AI in manufacturing sector in India could see a market valuation exceeding USD 16 billion by 2025, showcasing the potential of AI technologies to transform traditional manufacturing processes in the country.

India Artificial Intelligence AI in Manufacturing Market Segmentation Insights

Artificial Intelligence AI in Manufacturing Market Application Outlook

• Predictive Maintenance


• Quality Control


• Supply Chain Management


• Robotics


• Production Planning

Artificial Intelligence AI in Manufacturing Market Technology Outlook

• Machine Learning


• Natural Language Processing


• Computer Vision


• Robotic Process Automation


• Deep Learning

Artificial Intelligence AI in Manufacturing Market Deployment Type Outlook

• On-Premise


• Cloud


• Hybrid

Artificial Intelligence AI in Manufacturing Market End Use Industry Outlook

• Automotive


• Electronics


• Aerospace


• Food and Beverage


• Pharmaceuticals

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	258.12(USD Million)
MARKET SIZE 2024	400.0(USD Million)
MARKET SIZE 2035	2500.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	18.128% (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	Microsoft, HCL Technologies, Infosys, IBM, Accenture, Wipro, Tata Consultancy Services, Amazon Web Services, SAP, GE Digital, NVIDIA, Siemens, Google Cloud, Cognizant, Tech Mahindra
SEGMENTS COVERED	Application, Technology, Deployment Type, End Use Industry
KEY MARKET OPPORTUNITIES	Predictive maintenance solutions, Quality control automation, Supply chain optimization, Workforce augmentation tools, AI-driven process innovation
KEY MARKET DYNAMICS	Cost reduction initiatives, Enhanced operational efficiency, Skilled labor shortage, Growing demand for automation, Rising investment in AI technology
COUNTRIES COVERED	India