Source: Manufacturing Dive
Date: 27th February 2026 

AI and Advanced Technologies Expected to Transform Production, Design and Business Models.

Automation and artificial intelligence adoption across global manufacturing operations are projected to more than double by 2030, according to a new industry outlook published by PwC. Based on a survey of 443 industrial manufacturing executives worldwide, the median estimate of advanced technology integration across operations is expected to rise from 26% today to 68% within five years.

Currently, production/operations and product design/development lead in technology adoption. However, automation is expanding rapidly into other areas of the value chain, including research and development, data analytics, and back-office functions such as finance and human resources. The report highlights a broad shift toward enterprise-wide integration of AI-supported engineering, digital twins, sensor technologies, and simulation-driven development, not just smarter factories.

The industry is also seeing a widening gap between digitally prepared companies and those struggling with fragmented systems, poor data quality, and skills shortages. As automation becomes more widespread, competitive advantage will depend less on access to tools and more on the ability to integrate and orchestrate technology across the entire organisation.

Beyond operational efficiency, manufacturers are increasingly evolving their business models. Many are positioning themselves as integrated solution providers, combining hardware with software, data services, and lifecycle support. By 2030, respondents expect a significant portion of revenue to come from digital, technology-enabled services, energy solutions, and government-related sectors rather than solely from traditional product manufacturing.

Workforce readiness remains a critical success factor. Companies that invest in upskilling, cultural alignment, and change management are more likely to successfully implement automation strategies and translate digital ambition into measurable performance gains.

The rapid expansion of automation and AI in manufacturing is likely to reshape global supply chains. As production becomes more digitised and data-driven, manufacturers may increase output efficiency and accelerate product development cycles, potentially leading to more frequent and time-sensitive shipments.

Exporters of high-tech machinery, automation equipment, and industrial components may see stronger demand as manufacturers upgrade facilities. At the same time, importers sourcing advanced manufacturing systems and digital infrastructure could experience increased shipment volumes, particularly in capital equipment and technology-related goods.

Over the longer term, more integrated and technology-enabled manufacturing models may reduce production lead times and inventory buffers, placing greater emphasis on reliable, agile logistics networks. Shippers and supply chain partners will need to adapt to faster product cycles, higher-value cargo movements, and more data-driven supply chain coordination.