The “Artificial Intelligence in Manufacturing Industry in India, 2024” report reveals that the Indian manufacturing sector is set to experience significant growth, with AI projected to reach a market size of INR 12.59 billion by 2028, expanding at a compound annual rate of 58.96% from 2023 to 2028.
Various factors such as evolving customer preferences, changes in distribution models, geopolitical shifts, supply chain disruptions, and ESG regulations are driving opportunities for innovation within the manufacturing industry. This evolution is largely attributed to the fourth industrial revolution, Industry 4.0, which incorporates technologies like AI, big data analytics, IIoT, cloud computing, and 3D printing.
AI adoption in manufacturing encompasses a range of applications including factory automation, quality monitoring, equipment failure prediction, order and delivery management, and demand forecasting.
Government initiatives such as Make in India, Start-up India, and Industry 4.0 have spurred the integration of AI into manufacturing operations, fostering accuracy, flexibility, productivity, and efficiency. The Indian startup ecosystem is witnessing a transformation with increasing investments in intelligent automation, artificial intelligence, machine learning, and Big Data.
However, transitioning traditional factories into AI-driven manufacturing units requires substantial capital investment for procuring and installing connected sensors, intelligent cameras, data analytics software, and other components. Despite the emergence of Indian startups in the AI market, investor hesitation, both domestically and internationally, persists due to concerns about failure and a limited understanding of AI systems.
