The digital transformation of manufacturing is accelerating globally, driven by advancements in technologies such and evolving industry practices. These innovations are reshaping production processes, enhancing efficiency, and fostering new business models. The global digital transformation market in manufacturing is projected to grow from $0.44 trillion in 2025 to $1.07 trillion by 2030 with a CAGR of 19.4%.1
Emerging technologies are rapidly reshaping the digital manufacturing landscape, requiring manufacturers to actively embrace these developments to remain competitive and effectively navigate the ongoing digital transformation.
Manuel Schuler, Partner and Global Leader Automotive and Industrial Manufacturing
Artificial Intelligence (including Generative AI) is transforming manufacturing by enabling predictive maintenance, real-time quality control, and data-driven decision-making. Companies are making significant investments in AI technologies and forming strategic partnerships to integrate AI into their manufacturing operations. AI has already proven its value in industrial operations, with early adopters achieving up to 14% savings through AI.2 AI agents elevate this impact further, building on the capabilities of generative AI by interacting with their environment and autonomously executing tasks.
For example, Siemens is leading AI adoption in manufacturing, using it for predictive maintenance, intelligent scheduling, and real-time quality control. A standout success is in its SMT electronics production, where AI-powered X-Ray and AOI systems cut inspection effort by 50%, boosted First Pass Yield by 15%, and reduced false positives by 60%. This showcases how AI is redefining quality assurance and efficiency in industrial operations.3
Advanced robots in manufacturing perform complex, repetitive tasks with precision, boosting efficiency and consistency. Collaborative robots (cobots) work safely alongside humans, handling repetitive or ergonomically challenging tasks. Global industrial robot density reached 162 robots per 10,000 workers in 2023, doubling over the past 7 years.4 South Korea leads globally with a robot density of 1,012 units per 10,000 employees.
For instance, Mercedes-Benz is integrating Apptronik's Apollo humanoid robots into its manufacturing operations to enhance efficiency and address labor shortages. These robots are deployed for tasks such as transporting components to the production line and performing initial quality inspections.5
Digital twin technology in manufacturing is rapidly growing as companies use virtual replicas of physical assets to optimize performance, enable predictive maintenance, and streamline production in real time. Accoring to the World Economic Forum, digital twins could unlock up to $1.3 trillion in economic value by 2030.6 Gartner expects the digital twin market to surge to $183 billion by 2031.7
For example, Schaeffler 3D scanned 48 of its factories to create detailed digital twins, enabling real-time visualization and virtual planning. This transformation boosted operational efficiency by up to 80%.8
3D Printing (Additive manufacturing), builds components layer by layer, enabling the creation of complex and lightweight designs with minimal material waste. It allows rapid prototyping, customization, and on-demand production.
BMW uses 3D printing to produce customized components and prototypes across its manufacturing network, significantly reducing development time and material waste. In 2023 alone, BMW produced over 300,000 parts using additive manufacturing, enhancing flexibility and innovation in vehicle design.9
The Industrial Internet of Things (IIoT) is pivotal in the context of Industry 4.0, connecting machines, sensors, and systems to facilitate real-time monitoring, predictive maintenance, and data-driven decision-making in manufacturing. This integration supports automation and enhances workplace safety through intelligent monitoring. By combining AI with IIoT, manufacturers can develop more adaptable and efficient production systems, driving innovation and operational excellence.
Consider the case of Bosch’s use of AI in combination with IIoT sensors has revolutionized predictive maintenance. AI analyzes the data from connected machines to predict maintenance needs.10
Digital Manufacturing is set to transform industries by enhancing efficiency, flexibility and innovation. Companies adopting advanced technologies early can gain significant competitive advantages.
Wahid Khan, Partner, Leader Digital Manufacturing, BearingPoint
Digital manufacturing is poised to redefine global industrial production by 2035. Strategic investments in AI, robotics, digital twins, and workforce development, coupled with strong policies for sustainability and cybersecurity, will shape the future.
1 Mordor Intelligence. Digital Transformation Market in Manufacturing. (2025). https://www.mordorintelligence.com/industry-reports/digital-transformation-market-in-manufacturing
2 World Economic Forum. (January 2025). Why manufacturers should embrace the next frontier: AI agents. https://www.weforum.org/stories/2025/01/why-manufacturers-should-embrace-next-frontier-ai-agents/
3 Siemens. Revolutionizing Manufacturing: Navigating the Artificial Intelligence Landscape for Efficiency, Ethics, and Growth (May 2024). https://blog.siemens.com/2024/05/revolutionizing-manufacturing-navigating-the-artificial-intelligence-landscape-for-efficiency-ethics-and-growth/
4 International Federation of Robotics. Global Robot Density in Factories Doubled in Seven Years (January 2024). https://ifr.org/ifr-press-releases/news/global-robot-density-in-factories-doubled-in-seven-years
5 Mercedes-Benz. Mercedes-Benz Accelerates the Transformation of Its Production Network by Integrating AI and Humanoid Robots at Its Digital Factory Campus in Berlin (February 2024). https://media.mbusa.com/releases/release-cf381cd2fcff624ae37d3911631103dc-mercedes-benz-accelerates-the-transformation-of-its-production-network-by-integrating-ai-and-humanoid-robots-at-its-digital-factory-campus-in-berlin
6 World Economic Forum. How Digital Twins Could Unlock $1.3 Trillion of Value by 2030 (June 2022). https://www.weforum.org/agenda/2022/06/how-digital-twins-could-unlock-1-3-trillion-of-value-by-2030/
7 Gartner. Market Guide for Technologies Supporting a Digital Twin of an Organization (2022). https://www.gartner.com/en/documents/4011590
8 Forbes. Schaeffler 3D-Scanned 48% Of Its Factories—Efficiency Surged 80% (December 2024). https://www.forbes.com/sites/carolynschwaar/2024/12/09/schaeffler-3d-scanned-48-of-its-factories-efficiency-surged-80/
9 BMW Group. Production with 3D Printing: How Additive Manufacturing is Shaping the Future of Automotive Production (2024). https://www.bmwgroup.com/en/news/general/2024/production-with-3d-printing.html
10 Bosch Digital. Industry 4.0: Predictive Maintenance. https://blog.bosch-digital.com/industry-4-0-predictive-maintenance-use-cases-in-detail/