How AI Digital Twins and Cobots Are Shaping the Future of Manufacturing by 2030
Delray Beach, FL, Aug. 03, 2025 (GLOBE NEWSWIRE) -- The future of manufacturing market will be led by AI, digital twins, and collaborative robots. The AI in manufacturing market is projected to reach ~USD 46 billion by 2030, growing at a CAGR of 47%, while the digital twin market is expected to hit ~USD 150 billion, at a CAGR of ~60%. The collaborative robot market is predicted to reach ~USD 12 billion at a CAGR of ~35% during 2025–2030.
The future of manufacturing market is rapidly evolving with a focus on a human-centric approach, integrating AI, robotics, and automation to boost productivity while prioritizing workers’ well-being. Sustainability is crucial, with factories adopting renewable energy, zero-waste practices, and eco-friendly materials. Customization is transforming production by utilizing flexible systems that enable mass personalization.
Looking beyond 2030, manufacturing will become more adaptive with AI-driven communications between machines and workers, deep sustainability practices, and decentralized manufacturing hubs for quicker responses. Continuous workforce reskilling will be essential to managing advanced technologies. Business owners will develop a micro factory and a gigafactory to meet diverse manufacturing demands over the next 5–10 years while redefining job roles and collaborating with educational institutions for tailored training.
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Market Overview 2030
Collaborative Robots Reshape the Future of Manufacturing, Enhancing Safety and Productivity.
Cobots are becoming popular in the future of manufacturing since they are compact, easy to use, and programmable with little formal programming. As per the analysis, working with robots cuts human idle time by 85% compared to teams that consist only of humans; cobots enhance efficiency in productivity and increase cost-effective automation within some sectors like automotive, electronics, and pharmaceutical. Performing well in jobs like welding, assembling, and quality control, they are solving the labor shortage problems for firms including Nissan and Betacom. Expectations raised by such massive acquisitions, such as ABB’s USD 280 million robotics campus, point to cobot innovation as the key to flexibility, smart manufacturing, and manufacturing adaptability to the changes by 2030 and beyond.
AI Transforming Manufacturing into Smart and Dynamic Hubs
Artificial Intelligence is a relatively new phenomenon that is gradually transforming the manufacturing industry in terms of efficiency, innovation and intelligent operation that requires limited human interface. The National Associations of Manufacturers Survey reports that 39% of manufacturers are currently using AI, this technology is revolutionalizing industries in machinery, and aircraft components, among others. AI investments are expected to grow to USD 16.7 billion for every year this year and the coming five years increasing the efficiency of operations and modifying the tasks within industries. Some of these major strategies include the Cisco innovative USD 1 billion global fund, Microsoft’s USD 3.3 billion investment in AI, NVIDIA-Foxconn and other formations influence and even revolutionize processes in the making and set standards of what is to come in the next future of manufacturing.
India's Strategic Investments Will Boost Smart Manufacturing Practices by 2030
India is making significant investments in various fields, such as semiconductors, renewable energy, defense, and data centers, making the country a world leader by 2030. For instance, in the semiconductor industry, Tata Electronics (India) and Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) (Taiwan) are planning to invest USD 11 billion to set up fabrication plants in the country. In addition, the defense sector is also witnessing growth due to initiatives such as Aatmanirbhar Bharat which aims for greater self-reliance.
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Future of Manufacturing Market in North America
North America is undergoing significant transformation to maintain its status as a leading manufacturing hub. The US, Canada, and Mexico are at the forefront of innovative technologies, including artificial intelligence and digital twin, and sustainability initiatives. The US government will invest up to USD 100 million to accelerate AI-driven research and development for sustainable semiconductor materials and would invest USD 285 million to advance digital twin technology in semiconductor manufacturing, enhancing efficiency and supply chain resilience. Canada will invest USD 427 million to support a project aimed at enhancing innovation and generating 50,000 jobs by 2028
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