Artificial Intelligence in Manufacturing Market Outlook:
Artificial Intelligence in Manufacturing Market size was over USD 13.02 billion in 2025 and is poised to exceed USD 319.12 billion by 2035, witnessing over 37.7% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of artificial intelligence in manufacturing is estimated at USD 17.44 billion.
The integration of artificial intelligence (AI) into the manufacturing supply chain is reshaping global trade patterns. The U.S. and China lead the AI manufacturing supply chain, importing substantial quantities of electronic components, specialized hardware, and essential raw materials, including rare earth metals, predominantly obtained from areas including Southeast Asia, Africa, and Latin America. According to the U.S. Census Bureau, U.S. imports of electronic components exceeded USD 330 billion in 2023, highlighting the importance of global trade within the AI industry. Additionally, the U.S. International Trade Commission (USITC) noticed a consistent rise in the trade of industrial machinery and automation equipment, critical for AI system production, with U.S. exports touching USD 64.7 billion in 2022. This substantial trade volume reflects the growing dependence of nations on each other within the AI manufacturing sector and underscores the necessity for efficient supply chain operations to sustain production cycles.
The adoption of AI in manufacturing is influencing key economic indicators, including the Producer Price Index (PPI) and Consumer Price Index (CPI). Regarding economic indicators, both the PPI and CPI provide valuable insights into the pricing trends within the manufacturing sector. According to the U.S. Bureau of Labor Statistics, the PPI for industrial machinery recorded a year-over-year rise of 6.5% in 2023, indicating increased expenses for raw materials and component inputs in AI-driven manufacturing systems. Additionally, the U.S. Bureau of Economic Analysis (BEA) report states a 3.1% rise in the CPI for durable goods in 2023, suggesting increasing costs for final products in the AI domain, including robotics and automation tools. Moreover, the rising investment in technological innovation is evident in the significant increase in federal funding for AI research. In 2023, the National Science Foundation (NSF) allocated over USD 1.5 billion towards AI-related initiatives, emphasizing the strategic significance of AI in contemporary manufacturing practices. These economic indicators illustrate a complex and changing environment where both the manufacturing costs of AI systems and the global trade of materials are crucial in influencing market dynamics
