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    South Korea Artificial Intelligence in Manufacturing Market

    ID: MRFR/ICT/56591-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    South Korea 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

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    South Korea Artificial Intelligence (AI) in Manufacturing Market Research Report- Forecast to 2035 Infographic
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    South Korea Artificial Intelligence in Manufacturing Market Summary

    The South Korea Artificial Intelligence in Manufacturing market is projected to grow significantly from 3.5 USD Billion in 2024 to 12.5 USD Billion by 2035.

    Key Market Trends & Highlights

    South Korea Artificial Intelligence AI in Manufacturing Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 12.27% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 12.5 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 3.5 USD Billion, reflecting the current investment landscape in AI technologies.
    • Growing adoption of AI technologies due to increased efficiency and productivity demands is a major market driver.

    Market Size & Forecast

    2024 Market Size 3.5 (USD Billion)
    2035 Market Size 12.5 (USD Billion)
    CAGR (2025 - 2035) 12.27%

    Major Players

    Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

    South Korea Artificial Intelligence in Manufacturing Market Trends

    The adoption of artificial intelligence AI in manufacturing is progressively motivated in South Korea by the need for improved efficiency and innovation. Strongly technologically and automated, the nation's industrial industry is using artificial intelligence solutions to simplify processes and raise product quality. Government projects that give digital transformation first priority—like the "Manufacturing Innovation 3.0" strategy meant to improve the industrial scene with sophisticated technologies—are driving this change. Predictive maintenance enabled by artificial intelligence is becoming more popular and allows manufacturers to decrease downtime and forecast equipment problems.

    Alongside this, companies are looking at artificial intelligence for supply chain optimization, using data analysis to improve decision-making and responsiveness to market needs. Companies have chances to maximize modern robots and machine learning, thereby supporting South Korea's leadership in tech-driven manufacturing. Furthermore, cooperation between academia and business in South Korea is encouraging creativity in artificial intelligence systems meant for industrial use. 

    These alliances will result in the creation of fresh artificial intelligence solutions tackling certain industry problems. The flood of artificial intelligence technology is projected to improve productivity and support sustainable practices as South Korean industries want to stay competitive globally, therefore enabling a more resilient manufacturing environment.This will constantly change the AI scene in the sector and provide the industrial sector of South Korea with a strong future.

    The integration of artificial intelligence in manufacturing processes is poised to enhance productivity and innovation, reflecting South Korea's commitment to becoming a leader in advanced manufacturing technologies.

    Ministry of Trade, Industry and Energy, South Korea

    South Korea Artificial Intelligence in Manufacturing Market Drivers

    Rising Labor Costs

    Rising labor costs are compelling manufacturers to explore AI solutions, thereby driving the Global South Korea Artificial Intelligence AI in Manufacturing Market Industry. As wages continue to increase, companies are incentivized to invest in AI technologies that can automate repetitive tasks and enhance operational efficiency. For instance, AI systems can optimize supply chain management and inventory control, leading to reduced operational costs. This shift towards AI adoption is likely to accelerate market growth, as manufacturers seek to maintain competitiveness in an evolving economic landscape.

    Government Initiatives

    Government initiatives play a crucial role in fostering the Global South Korea Artificial Intelligence AI in Manufacturing Market Industry. The South Korean government has launched various programs aimed at promoting AI adoption in manufacturing sectors. These initiatives include funding for research and development, tax incentives for companies investing in AI technologies, and the establishment of innovation hubs. Such support is likely to stimulate market growth, with projections indicating a market size of 12.5 USD Billion by 2035. This proactive approach underscores the government's commitment to positioning South Korea as a leader in AI-driven manufacturing.

    Market Growth Projections

    The Global South Korea Artificial Intelligence AI in Manufacturing Market Industry is characterized by robust growth projections. With an anticipated market size of 3.5 USD Billion in 2024, the industry is set to expand significantly over the next decade. The forecasted CAGR of 12.27 percent from 2025 to 2035 indicates a strong upward trajectory, reflecting the increasing adoption of AI technologies across various manufacturing sectors. This growth is likely to be driven by factors such as technological advancements, government support, and rising demand for automation.

    Technological Advancements

    The Global South Korea Artificial Intelligence AI in Manufacturing Market Industry is propelled by rapid technological advancements. Innovations in machine learning, computer vision, and robotics are transforming traditional manufacturing processes. For instance, companies are increasingly adopting AI-driven predictive maintenance systems, which can reduce downtime by up to 30 percent. This shift not only enhances operational efficiency but also leads to significant cost savings. As a result, the market is projected to reach 3.5 USD Billion in 2024, reflecting the growing integration of AI technologies in manufacturing operations.

    Global Competitive Pressure

    The Global South Korea Artificial Intelligence AI in Manufacturing Market Industry is influenced by competitive pressures from global markets. South Korean manufacturers are increasingly facing competition from countries that are rapidly adopting AI technologies. To maintain their competitive edge, companies are investing in AI-driven innovations that enhance product quality and reduce time-to-market. This competitive landscape is expected to drive significant investments in AI solutions, further propelling the market towards its projected growth of 12.5 USD Billion by 2035.

    Increased Demand for Automation

    The demand for automation in manufacturing is a significant driver of the Global South Korea Artificial Intelligence AI in Manufacturing Market Industry. As industries seek to enhance productivity and reduce labor costs, AI technologies are increasingly being integrated into manufacturing processes. For example, AI-powered robots are being utilized for assembly lines, resulting in higher precision and efficiency. This trend is expected to contribute to a compound annual growth rate (CAGR) of 12.27 percent from 2025 to 2035, indicating a robust growth trajectory for the market as automation becomes a standard practice.

    Market Segment Insights

    South Korea Artificial Intelligence AI in Manufacturing Market Segment Insights

    South Korea Artificial Intelligence AI in Manufacturing Market Segment Insights

    Artificial Intelligence AI in Manufacturing Market Application Insights

    Artificial Intelligence AI in Manufacturing Market Application Insights

    The South Korea Artificial Intelligence AI in Manufacturing Market shows a promising trajectory in its Application segment, which encompasses various critical areas vital for enhancing operational efficiency. Within this segment, Predictive Maintenance emerges as a key area, enabling manufacturers to anticipate equipment failures before they occur, thus minimizing downtime and reducing costs. Quality Control is gaining traction as organizations implement AI solutions to improve product quality through real-time monitoring and data analysis, significantly reducing the incidence of defects.

    Supply Chain Management benefits greatly from AI applications by optimizing inventory levels and enhancing logistics operations, making supply chains more responsive and efficient in today’s fast-paced market. Robotics is transforming the manufacturing landscape, with AI-driven automation solutions streamlining production processes, increasing productivity, and allowing human workers to focus on more complex tasks. Furthermore, Production Planning is notably enriched by AI capabilities, as they empower manufacturers to better forecast demand and allocate resources more effectively, therefore balancing production schedules with market needs.

    The adoption of AI technologies in these areas reflects a broader trend in South Korea, where the government has prioritized smart manufacturing initiatives, aiming to leverage Industry 4.0 technologies to maintain competitive advantages globally. Overall, the Application segment in the South Korea Artificial Intelligence AI in Manufacturing Market illustrates a dynamic interplay of innovative solutions that are critical for businesses to sustain growth and advance in a highly competitive industrial environment.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Artificial Intelligence AI in Manufacturing Market Technology Insights

    Artificial Intelligence AI in Manufacturing Market Technology Insights

    The South Korea Artificial Intelligence AI in Manufacturing Market is experiencing significant transformation driven by advancements in technology. The key technology components, such as Machine Learning, Natural Language Processing, Computer Vision, Robotic Process Automation, and Deep Learning, play crucial roles in optimizing production processes and enhancing operational efficiency. Machine Learning stands out as a vital enabler for predictive maintenance, while Natural Language Processing facilitates better communication between machines and operators, reporting issues in real-time.

    Computer Vision is widely adopted for quality assurance and defect detection, ensuring that manufacturing standards are consistently met. Robotic Process Automation is streamlining repetitive tasks, allowing human workers to focus on higher-value activities, thus improving overall productivity. Deep Learning is gaining traction in optimizing supply chain management and logistics through data analysis.

    As companies in South Korea recognize the need for digital transformation, the integration of these technologies is essential for maintaining a competitive edge in the manufacturing sector.The government's push towards a smart factory initiative further accelerates the adoption of these technologies, providing an environment conducive to growth and innovation in the industry.

    Artificial Intelligence AI in Manufacturing Market Deployment Type Insights

    Artificial Intelligence AI in Manufacturing Market Deployment Type Insights

    The South Korea Artificial Intelligence AI in Manufacturing Market continues to evolve, with various Deployment Type strategies becoming increasingly significant. In the region, On-Premise solutions are gaining traction as they provide organizations with greater control over their data and systems, which is crucial for industries that handle sensitive information. Conversely, Cloud-based deployments are favored for their ability to offer scalability and cost-effectiveness, enabling manufacturers to access advanced AI capabilities without substantial upfront investments in infrastructure.

    Hybrid models are also emerging as a popular choice, combining the benefits of both On-Premise and Cloud solutions, allowing for flexibility and optimization of resources. This diversification reflects a growing trend among South Korean manufacturers to adopt AI technologies that align with their strategic goals and operational requirements.

    The government's push towards digital transformation in industries, alongside a robust interest in innovation, fuels this market growth and creates an environment ripe for the adoption of various Deployment Type strategies.As a result, understanding these dynamics within the South Korea Artificial Intelligence AI in Manufacturing Market segmentation is critical for stakeholders aiming to navigate this landscape effectively.

    Artificial Intelligence AI in Manufacturing Market End Use Industry Insights

    Artificial Intelligence AI in Manufacturing Market End Use Industry Insights

    The South Korea Artificial Intelligence AI in Manufacturing Market exhibits significant potential within the End Use Industry realm, particularly as industries increasingly adopt AI technologies to enhance productivity and efficiency. The automotive sector plays a crucial role, distinguished by its focus on automation and smart manufacturing solutions. In electronics, AI assists in optimizing production processes and ensuring product quality, which is vital given the rapid technological advancements. 

    The aerospace industry also benefits from AI through improved supply chain management and predictive maintenance capabilities, enabling better operational efficiencies.In the food and beverage sector, AI technologies enhance safety and quality control, while in pharmaceuticals, the integration of AI streamlines research and development, significantly accelerating the time-to-market for new drugs. With South Korea's emphasis on innovation and technology development, these industries are likely to leverage AI further, driving substantial growth in the marketplace. Overall, the interplay of AI across various sectors not only transforms manufacturing processes but also contributes to a more competitive and advanced manufacturing landscape in South Korea.

    Get more detailed insights about South Korea Artificial Intelligence (AI) in Manufacturing Market Research Report- Forecast to 2035

    Key Players and Competitive Insights

    The South Korea Artificial Intelligence (AI) in Manufacturing market is experiencing significant growth driven by advancements in technology and increasing demand for automation, efficiency, and improved productivity across various industrial sectors. Companies are increasingly leveraging AI technologies to enhance their manufacturing processes, optimize supply chains, and improve product quality. The competitive landscape is fueled by a mix of local players and global technology firms, each striving to capitalize on the opportunities that AI presents in manufacturing.

    As firms aim to remain competitive in both domestic and international markets, the integration of AI technologies becomes pivotal, emphasizing the importance of innovation and technological adoption.

    SK Telecom has firmly established itself in the South Korean Artificial Intelligence in Manufacturing market, leveraging its strong technological capabilities and extensive experience in telecommunications. The company's commitment to innovation is underscored by its investments in AI research and development, allowing SK Telecom to deliver tailored solutions that meet the specific needs of the manufacturing sector. The company has developed various AI-driven products that enhance operational efficiency, such as predictive maintenance solutions and intelligent automation systems. 

    Additionally, SK Telecom maintains a robust collaboration network with local manufacturers and research institutions, facilitating the implementation of AI technologies in real-world settings. This strong market presence and commitment to R&D position SK Telecom as a pivotal player in advancing AI in South Korea’s manufacturing landscape.KT Corporation is another key player in the South Korean Artificial Intelligence in Manufacturing market, recognized for its strategic focus on integrating AI technologies into industrial processes.

    With an extensive portfolio of solutions that includes AI-driven analytics, robotics, and IoT integration, KT Corporation offers manufacturers the tools to transform their operations and respond effectively to changing market demands. 

    The company's strengths lie in its strong partnerships and collaborations with various industries, fostering innovation through co-development initiatives. KT Corporation has also made strategic acquisitions to bolster its AI capabilities, enabling it to remain competitive in delivering advanced manufacturing solutions. Its emphasis on developing smart factories and digital transformation initiatives positions KT Corporation as a leader in driving AI adoption in South Korea’s manufacturing environment.

    Key Companies in the South Korea Artificial Intelligence in Manufacturing Market market include

    Industry Developments

    Recent developments in the South Korea Artificial Intelligence AI in Manufacturing Market showcase significant advancements and collaborations among key players. SK Telecom and KT Corporation are driving digital transformation initiatives that leverage AI technologies to optimize manufacturing processes and enhance operational efficiency. In September 2023, Hyundai Motor announced a partnership with LG Electronics to develop autonomous production systems that integrate AI and robotics, boosting productivity in manufacturing facilities. 

    Additionally, in August 2023, POSCO launched an AI-driven smart factory initiative aimed at reducing environmental impact while increasing output. The market has experienced notable growth, with Hynix reporting a 15% increase in production efficiency due to AI-powered analytics over the past year. Daewoo Engineering & Construction's implementation of AI in project management has been recognized for minimizing delays and improving resource allocation. 

    There were significant mergers, including NCSOFT's acquisition of a data analytics startup in October 2023, enhancing its capabilities in AI-driven manufacturing solutions. Overall, the South Korean government is actively supporting these initiatives to promote innovation and competitiveness in the AI landscape.

    Future Outlook

    South Korea Artificial Intelligence in Manufacturing Market Future Outlook

    The South Korea Artificial Intelligence AI in Manufacturing Market is projected to grow at a 12.27% CAGR from 2024 to 2035, driven by automation, data analytics, and enhanced productivity.

    New opportunities lie in:

    • Invest in AI-driven predictive maintenance solutions to reduce downtime and operational costs.
    • Develop customized AI applications for supply chain optimization to enhance efficiency.
    • Leverage AI for quality control processes to improve product consistency and reduce waste.

    By 2035, the market is expected to be a pivotal force in transforming manufacturing efficiency and innovation.

    Market Segmentation

    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 Application Outlook

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

    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 Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 103.25(USD Million)
    MARKET SIZE 2024 122.5(USD Million)
    MARKET SIZE 2035 787.5(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 18.431% (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 SK Telecom, KT Corporation, Daewoo Engineering & Construction, Hyundai Motor, CJ Corporation, NCSOFT, Samsung Electronics, Kakao, Naver, Doosan, Hynix, LS Group, LG Electronics, POSCO, Hanwha Group
    SEGMENTS COVERED Application, Technology, Deployment Type, End Use Industry
    KEY MARKET OPPORTUNITIES Automation of production processes, Predictive maintenance solutions, Quality control enhancements, Supply chain optimization tools, Workforce training and upskilling
    KEY MARKET DYNAMICS Rising automation demand, Advanced data analytics, Government support initiatives, Industry 4.0 integration, Skilled workforce scarcity
    COUNTRIES COVERED South Korea

    FAQs

    What is the expected market size of the South Korea Artificial Intelligence AI in Manufacturing Market in 2024?

    The market is expected to be valued at 122.5 million USD in 2024.

    What is the projected market size for the South Korea Artificial Intelligence AI in Manufacturing Market by 2035?

    By 2035, the market is projected to reach 787.5 million USD.

    What is the expected CAGR for the South Korea Artificial Intelligence AI in Manufacturing Market from 2025 to 2035?

    The expected CAGR for the market during this period is 18.431 percent.

    Which application in the South Korea Artificial Intelligence AI in Manufacturing Market has the largest market value in 2024?

    Predictive Maintenance holds the largest market value at 30.5 million USD in 2024.

    How much will the Quality Control application in the South Korea Artificial Intelligence AI in Manufacturing Market be worth by 2035?

    Quality Control is projected to be valued at 165.0 million USD by 2035.

    Who are the major key players in the South Korea Artificial Intelligence AI in Manufacturing Market?

    Key players include SK Telecom, KT Corporation, Daewoo Engineering & Construction, and Hyundai Motor among others.

    What will be the market value of Robotics in the South Korea Artificial Intelligence AI in Manufacturing Market in 2035?

    Robotics is expected to reach a market value of 194.5 million USD by 2035.

    What is the projected worth of Supply Chain Management in the South Korea Artificial Intelligence AI in Manufacturing Market in 2024?

    Supply Chain Management is valued at 22.0 million USD in 2024.

    What are the growth drivers for the South Korea Artificial Intelligence AI in Manufacturing Market?

    Key growth drivers include increased automation and the need for efficiency in manufacturing processes.

    How much is the Production Planning application projected to be worth by 2035?

    Production Planning is expected to be valued at 114.8 million USD by 2035.

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