Europe Artificial Intelligence in Manufacturing Market Size, Share, Trends, Industry Analysis Report By Component (Hardware, Software), By Technology, By Application, By End Use, By Country – Market Forecast, 2025–2034
Description
The europe artificial intelligence (AI) in manufacturing market size is expected to reach USD 56.40 billion by 2034, according to a new study by Polaris Market Research. The report “Europe Artificial Intelligence in Manufacturing Market Size, Share, Trends, Industry Analysis Report By Component (Hardware, Software), By Technology, By Application, By End Use, By Country– Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.
Artificial intelligence (AI) in manufacturing refers to the use of artificial intelligence technologies such as machine learning, computer vision, and robotics to optimize production processes, improve quality control, and reduce downtime. It enables predictive maintenance, real-time monitoring, and automated decision-making across supply chains and factory operations.
Europe’s strict environmental regulations and sustainability goals are pushing manufacturers to adopt AI as a tool for greener production. Under the European Green Deal and Fit for 55 package, industries are expected to cut emissions, reduce energy use, and minimize waste. AI helps achieve these targets by optimizing energy consumption, predicting equipment inefficiencies, and improving resource management. Manufacturers are using AI for productivity and for sustainability compliance. This alignment of AI with environmental goals is a unique driver in Europe, where green manufacturing is seen as both a responsibility and a competitive advantage.
European consumers increasingly expect high-quality, personalized products, which is encouraging manufacturers to adopt AI for precision and flexibility. AI supports mass customization by enabling smart manufacturing planning, quality control, and adaptive machinery that quickly shift between product designs. In industries like automotive, fashion, and consumer electronics, this demand for tailored products is pushing companies to adopt AI for competitive differentiation. European manufacturers further face pressure to maintain strict quality and safety standards, making AI-powered inspection and monitoring essential. The push for product excellence and personalization is driving the Europe artificial intelligence (A) in manufacturing market growth.
Europe Artificial Intelligence in Manufacturing Market Report Highlights
The hardware segment dominated the European market in 2024, driven by robust investments in modernizing manufacturing infrastructure, particularly in countries such as Germany, France, and Italy.
The production planning segment is expected to witness specific growth, as manufacturers increasingly adopt AI solutions to improve adaptability amid ongoing supply chain disruptions, rising energy prices, and shifting market demands.
Germany held the largest market share in 2024, supported by its early leadership in Industry 4.0 initiatives and its globally competitive automotive and industrial manufacturing sectors.
The UK is poised for strong growth throughout the forecast period, supported by active government funding, a favorable regulatory environment, and a vibrant startup landscape advancing AI applications in the manufacturing sector.
A few global key players in the Europe AI in manufacturing market are Microsoft Corporation, Mitsubishi Electric Corporation, NVIDIA Corporation, Oracle Corporation, Rethink Robotics, Rockwell Automation Inc., SAP SE, Siemens AG, Sight Machine, and Spark Cognition Inc.
Polaris Market Research has segmented the Europe artificial intelligence in manufacturing market report based on component, technology, application, end use, and Country:
By Component (Revenue - USD Billion, 2020–2034)
Hardware
Software
Services
By Technology (Revenue - USD Billion, 2020–2034)
Machine Learning (ML)
Computer Vision
Context Awareness
Natural Language Processing
By Application (Revenue - USD Billion, 2020–2034)
Material Movement
Predictive Maintenance & Machinery Inspection
Production Planning
Field Services
Quality Control & Reclamation
Others
By End Use (Revenue - USD Billion, 2020–2034)
Semiconductor & Electronics
Energy & Power
Medical devices
Automobile
Heavy Metal & Machine Manufacturing
Others
By Regional Outlook (Revenue - USD Billion, 2020–2034)
Germany
UK
France
Italy
Spain
Russia
Netherlands
Rest of Europe
Artificial intelligence (AI) in manufacturing refers to the use of artificial intelligence technologies such as machine learning, computer vision, and robotics to optimize production processes, improve quality control, and reduce downtime. It enables predictive maintenance, real-time monitoring, and automated decision-making across supply chains and factory operations.
Europe’s strict environmental regulations and sustainability goals are pushing manufacturers to adopt AI as a tool for greener production. Under the European Green Deal and Fit for 55 package, industries are expected to cut emissions, reduce energy use, and minimize waste. AI helps achieve these targets by optimizing energy consumption, predicting equipment inefficiencies, and improving resource management. Manufacturers are using AI for productivity and for sustainability compliance. This alignment of AI with environmental goals is a unique driver in Europe, where green manufacturing is seen as both a responsibility and a competitive advantage.
European consumers increasingly expect high-quality, personalized products, which is encouraging manufacturers to adopt AI for precision and flexibility. AI supports mass customization by enabling smart manufacturing planning, quality control, and adaptive machinery that quickly shift between product designs. In industries like automotive, fashion, and consumer electronics, this demand for tailored products is pushing companies to adopt AI for competitive differentiation. European manufacturers further face pressure to maintain strict quality and safety standards, making AI-powered inspection and monitoring essential. The push for product excellence and personalization is driving the Europe artificial intelligence (A) in manufacturing market growth.
Europe Artificial Intelligence in Manufacturing Market Report Highlights
The hardware segment dominated the European market in 2024, driven by robust investments in modernizing manufacturing infrastructure, particularly in countries such as Germany, France, and Italy.
The production planning segment is expected to witness specific growth, as manufacturers increasingly adopt AI solutions to improve adaptability amid ongoing supply chain disruptions, rising energy prices, and shifting market demands.
Germany held the largest market share in 2024, supported by its early leadership in Industry 4.0 initiatives and its globally competitive automotive and industrial manufacturing sectors.
The UK is poised for strong growth throughout the forecast period, supported by active government funding, a favorable regulatory environment, and a vibrant startup landscape advancing AI applications in the manufacturing sector.
A few global key players in the Europe AI in manufacturing market are Microsoft Corporation, Mitsubishi Electric Corporation, NVIDIA Corporation, Oracle Corporation, Rethink Robotics, Rockwell Automation Inc., SAP SE, Siemens AG, Sight Machine, and Spark Cognition Inc.
Polaris Market Research has segmented the Europe artificial intelligence in manufacturing market report based on component, technology, application, end use, and Country:
By Component (Revenue - USD Billion, 2020–2034)
Hardware
Software
Services
By Technology (Revenue - USD Billion, 2020–2034)
Machine Learning (ML)
Computer Vision
Context Awareness
Natural Language Processing
By Application (Revenue - USD Billion, 2020–2034)
Material Movement
Predictive Maintenance & Machinery Inspection
Production Planning
Field Services
Quality Control & Reclamation
Others
By End Use (Revenue - USD Billion, 2020–2034)
Semiconductor & Electronics
Energy & Power
Medical devices
Automobile
Heavy Metal & Machine Manufacturing
Others
By Regional Outlook (Revenue - USD Billion, 2020–2034)
Germany
UK
France
Italy
Spain
Russia
Netherlands
Rest of Europe
Table of Contents
125 Pages
- 1. Introduction
- 1.1. Report Description
- 1.1.1. Objectives of the Study
- 1.1.2. Market Scope
- 1.1.3. Assumptions
- 1.2. Stakeholders
- 2. Executive Summary
- 2.1. Market Highlights
- 3. Research Methodology
- 3.1. Overview
- 3.1.1. Data Mining
- 3.2. Data Source
- 3.2.1. Primary Source
- 3.2.2. Secondary Source
- 4. U.S. Artificial Intelligence in Manufacturing Market Insights
- 4.1. Artificial Intelligence in Manufacturing Market – Market Snapshot
- 4.2. Artificial Intelligence in Manufacturing Market Dynamics
- 4.2.1. Drivers and Opportunities
- 4.2.1.1. Proliferation of Industrial Internet of Things (IIoT) and Smart Factory Infrastructure
- 4.2.1.2. Government Policies and Strategic Industry Incentives
- 4.2.2. Restraints and Challenges
- 4.2.2.1. High cost
- 4.3. Porter’s Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers (Moderate)
- 4.3.2. Threats of New Entrants: (Low)
- 4.3.3. Bargaining Power of Buyers (Moderate)
- 4.3.4. Threat of Substitute (Moderate)
- 4.3.5. Rivalry among existing firms (High)
- 4.4. PESTEL Analysis
- 4.5. Artificial Intelligence in Manufacturing Market Trends
- 4.6. Value Chain Analysis
- 5. U.S. Artificial Intelligence in Manufacturing Market, by Component
- 5.1. Key Findings
- 5.2. Introduction
- 5.2.1. U.S. Artificial Intelligence in Manufacturing Market, by Component, 2020-2034 (USD Billion)
- 5.3. Hardware
- 5.3.1. U.S. Artificial Intelligence in Manufacturing Market, by Hardware, by Region, 2020-2034 (USD Billion)
- 5.4. Software
- 5.4.1. U.S. Artificial Intelligence in Manufacturing Market, by Software, by Region, 2020-2034 (USD Billion)
- 5.5. Services
- 5.5.1. U.S. Artificial Intelligence in Manufacturing Market, by Services, by Region, 2020-2034 (USD Billion)
- 6. U.S. Artificial Intelligence in Manufacturing Market, by Technology
- 6.1. Key Findings
- 6.2. Introduction
- 6.2.1. U.S. Artificial Intelligence in Manufacturing Market, by Technology, 2020-2034 (USD Billion)
- 6.3. Machine Learning (ML)
- 6.3.1. U.S. Artificial Intelligence in Manufacturing Market, by Machine Learning (ML), by Region, 2020-2034 (USD Billion)
- 6.4. Computer Vision
- 6.4.1. U.S. Artificial Intelligence in Manufacturing Market, by Computer Vision, by Region, 2020-2034 (USD Billion)
- 6.5. Context Awareness
- 6.5.1. U.S. Artificial Intelligence in Manufacturing Market, by Context Awareness, by Region, 2020-2034 (USD Billion)
- 6.6. Natural Language Processing
- 6.6.1. U.S. Artificial Intelligence in Manufacturing Market, by Natural Language Processing, by Region, 2020-2034 (USD Billion)
- 7. U.S. Artificial Intelligence in Manufacturing Market, by Application
- 7.1. Key Findings
- 7.2. Introduction
- 7.2.1. U.S. Artificial Intelligence in Manufacturing Market, by Application, 2020-2034 (USD Billion)
- 7.3. Material Movement
- 7.3.1. U.S. Artificial Intelligence in Manufacturing Market, by Material Movement, by Region, 2020-2034 (USD Billion)
- 7.4. Predictive Maintenance & Machinery Inspection
- 7.4.1. U.S. Artificial Intelligence in Manufacturing Market, by Predictive Maintenance & Machinery Inspection, by Region, 2020-2034 (USD Billion)
- 7.5. Production Planning
- 7.5.1. U.S. Artificial Intelligence in Manufacturing Market, by Production Planning, by Region, 2020-2034 (USD Billion)
- 7.6. Field Services
- 7.6.1. U.S. Artificial Intelligence in Manufacturing Market, by Field Services, by Region, 2020-2034 (USD Billion)
- 7.7. Quality Control & Reclamation
- 7.7.1. U.S. Artificial Intelligence in Manufacturing Market, by Quality Control & Reclamation, by Region, 2020-2034 (USD Billion)
- 7.8. Others
- 7.8.1. U.S. Artificial Intelligence in Manufacturing Market, by Others, by Region, 2020-2034 (USD Billion)
- 8. U.S. Artificial Intelligence in Manufacturing Market, by End Use
- 8.1. Key Findings
- 8.2. Introduction
- 8.2.1. U.S. Artificial Intelligence in Manufacturing Market, by End Use, 2020-2034 (USD Billion)
- 8.3. Semiconductor & Electronics
- 8.3.1. U.S. Artificial Intelligence in Manufacturing Market, by Semiconductor & Electronics, by Region, 2020-2034 (USD Billion)
- 8.4. Energy & Power
- 8.4.1. U.S. Artificial Intelligence in Manufacturing Market, by Energy & Power, by Region, 2020-2034 (USD Billion)
- 8.5. Medical devices
- 8.5.1. U.S. Artificial Intelligence in Manufacturing Market, by Medical devices, by Region, 2020-2034 (USD Billion)
- 8.6. Automobile
- 8.6.1. U.S. Artificial Intelligence in Manufacturing Market, by Automobile, by Region, 2020-2034 (USD Billion)
- 8.7. Heavy Metal & Machine Manufacturing
- 8.7.1. U.S. Artificial Intelligence in Manufacturing Market, by Heavy Metal & Machine Manufacturing, by Region, 2020-2034 (USD Billion)
- 8.8. Others
- 8.8.1. U.S. Artificial Intelligence in Manufacturing Market, by Others, by Region, 2020-2034 (USD Billion)
- 9. Competitive Landscape
- 9.1. Expansion and Acquisition Analysis
- 9.1.1. Expansion
- 9.1.2. Acquisitions
- 9.2. Partnerships/Collaborations/Agreements/Exhibitions
- 10. Company Profiles
- 10.1. AIBrain Inc.
- 10.1.1. Company Overview
- 10.1.2. Financial Performance
- 10.1.3. Product Benchmarking
- 10.1.4. Recent Development
- 10.2. Amazon Web Services
- 10.2.1. Company Overview
- 10.2.2. Financial Performance
- 10.2.3. Product Benchmarking
- 10.2.4. Recent Development
- 10.3. Aquant Inc.
- 10.3.1. Company Overview
- 10.3.2. Financial Performance
- 10.3.3. Product Benchmarking
- 10.3.4. Recent Development
- 10.4. Cisco Systems Inc.
- 10.4.1. Company Overview
- 10.4.2. Financial Performance
- 10.4.3. Product Benchmarking
- 10.4.4. Recent Development
- 10.5. IBM
- 10.5.1. Company Overview
- 10.5.2. Financial Performance
- 10.5.3. Product Benchmarking
- 10.5.4. Recent Development
- 10.6. Intel Corporation
- 10.6.1. Company Overview
- 10.6.2. Financial Performance
- 10.6.3. Product Benchmarking
- 10.6.4. Recent Development
- 10.7. Microsoft
- 10.7.1. Company Overview
- 10.7.2. Financial Performance
- 10.7.3. Product Benchmarking
- 10.7.4. Recent Development
- 10.8. Micron Technology Inc.
- 10.8.1. Company Overview
- 10.8.2. Financial Performance
- 10.8.3. Product Benchmarking
- 10.8.4. Recent Development
- 10.9. Mitsubishi Electric Corporation
- 10.9.1. Company Overview
- 10.9.2. Financial Performance
- 10.9.3. Product Benchmarking
- 10.9.4. Recent Development
- 10.10. NVIDIA Corporation
- 10.10.1. Company Overview
- 10.10.2. Financial Performance
- 10.10.3. Product Benchmarking
- 10.10.4. Recent Development
- 10.11. Oracle Corporation
- 10.11.1. Company Overview
- 10.11.2. Financial Performance
- 10.11.3. Product Benchmarking
- 10.11.4. Recent Development
- 10.12. Rethink Robotics
- 10.12.1. Company Overview
- 10.12.2. Financial Performance
- 10.12.3. Product Benchmarking
- 10.12.4. Recent Development
- 10.13. Rockwell Automation Inc
- 10.13.1. Company Overview
- 10.13.2. Financial Performance
- 10.13.3. Product Benchmarking
- 10.13.4. Recent Development
- 10.14. Siemens AG
- 10.14.1. Company Overview
- 10.14.2. Financial Performance
- 10.14.3. Product Benchmarking
- 10.14.4. Recent Development
- 10.15. Sight Machine
- 10.15.1. Company Overview
- 10.15.2. Financial Performance
- 10.15.3. Product Benchmarking
- 10.15.4. Recent Development
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