India Industrial AI Market Research Report By Offering (hardware, software, AI platform, AI solution), By Technology (computer vision, deep learning, natural language processing (NLP), context awareness), By Application (predictive maintenance and machinery inspection, material movement, production planning, field services, quality control, others) and By Industry (automobile, energy and power, pharmaceuticals, heavy metals and machine manufacturing, semiconductor electronics, food beverages, manufacturing, others)- Forecast to 2035

India Industrial AI Market Overview

As per MRFR analysis, the India Industrial AI Market Size was estimated at 207.8 (USD Million) in 2023.The India Industrial AI Market is expected to grow from 303.8(USD Million) in 2024 to 2,500 (USD Million) by 2035. The India Industrial AI Market CAGR (growth rate) is expected to be around 21.119% during the forecast period (2025 - 2035)

Key India Industrial AI Market Trends Highlighted

Numerous factors are driving notable trends in the Indian industrial AI market. The government's push for digital transformation across industries in an effort to increase efficiency and production is a major factor driving this industry.A favorable climate for implementing AI technology is being created by programs like "Make in India" and "Digital India," which allow producers to incorporate AI into their production lines for better operational efficiency and decision-making.

Additionally, businesses are encouraged to use AI solutions to cut waste and maximize resource usage as a result of the increased emphasis on sustainability and efficiency in industrial processes. To obtain a competitive edge, Indian businesses have recently made significant investments in AI talent and technology.

There is a discernible trend toward AI-powered predictive maintenance, which enables companies to reduce downtime and increase equipment lifespan. Furthermore, AI is being used more and more in sectors like manufacturing, medicines, and automobiles for supply chain optimization and quality control, which raises total productivity.

The Indian industrial AI market is booming as businesses seek to use AI-powered solutions to address issues like worker training and data management. AI startups are also growing, offering creative solutions suited to regional needs and fostering a thriving environment for cooperation and expansion.

AI use in industrial sectors is anticipated to increase as India builds its digital infrastructure and improves talent development, securing its place as a key element of the nation's economy.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

India Industrial AI Market Drivers

Rapid Digital Transformation in Indian Industries

The push towards digital transformation in various sectors within India is one of the key drivers for the growth of the India Industrial AI Market. The Indian government has been actively promoting Digital India initiatives, aiming to transform India into a digitally empowered society and knowledge economy.

According to the Ministry of Electronics and Information Technology, India's digital economy is expected to reach USD 1 trillion by 2025, representing a significant push for the automation and digitization of industries.

Companies like Tata Consultancy Services and Infosys are leading the charge by incorporating artificial intelligence into their operations, which further endorses the need for advanced technology solutions. This digital transformation is crucial for industries such as manufacturing, healthcare, and logistics, all of which are increasingly adopting AI technologies to optimize processes and enhance productivity.

The 2021 report by the National Association of Software and Service Companies indicates that sectors investing in AI technologies are likely to see productivity increases of 15 to 20%, thereby fueling further investment in the India Industrial AI Market.

Increasing Demand for Enhanced Operational Efficiency

The quest for enhanced operational efficiency across Indian industries is another significant driver of the India Industrial AI Market. According to a report by the Confederation of Indian Industry, approximately 45% of Indian manufacturers are focusing on adopting AI technologies to streamline operations and reduce costs.

Organizations like Mahindra Mahindra are leveraging AI tools to automate supply chain management and improve logistics.

This shift is essential as operational costs can account for up to 60% of an organization's total expenditures, illustrating the urgent need for cost-effective solutions. As such, the increased investment in AI technologies is not just a trend but a critical necessity for survival in competitive markets.

Government Initiatives and Policy Support for AI Adoption

Government initiatives aimed at fostering AI innovation are crucial drivers for the growth of the India Industrial AI Market. The Indian government has launched the National AI Strategy, which aims to position the country as a global hub for AI by implementing policies that encourage research and innovation.The policy emphasizes collaboration between public and private sectors, promoting investment in AI Research and Development.

Notably, the Union Budget of 2022 allocated substantial funds towards AI-related projects, reinforcing the government's commitment to this sector. This initiative helps industries, particularly small and medium-sized enterprises, access the technology they need to thrive, leading to a projected rise in AI adoption among Indian businesses.

India Industrial AI Market Segment Insights

Industrial AI Market Offering Insights

The Offering segment of the India Industrial AI Market encompasses a diverse range of critical components that drive innovation and efficiency across various sectors. With the overall market projected to reach a significant valuation by 2024 and later, it is crucial to analyze the dynamics shaping this sector.

Within this segment, hardware plays a vital role, serving as the backbone for AI-driven applications by providing the necessary computational power and processing capabilities. As industries in India continue to digitize, the demand for robust hardware solutions is expected to grow, allowing organizations to enhance their AI functionalities.

On the software front, solutions tailored to the unique needs of the Indian industrial landscape are becoming increasingly necessary. These software applications facilitate data analysis, machine learning, and predictive analytics, enabling companies to optimize their operations and reduce costs significantly.

The software aspect of the Offering segment is notable for its ability to integrate seamlessly with existing systems, further advocating for adoption among various industries in India. AI platforms serve as another crucial component of the Offering segment, providing the infrastructure upon which AI models can be developed and deployed.

These platforms are significant in supporting industries to innovate and enhance efficiencies while enabling easier collaborations and integrations with third-party services. As industries seek to harness the power of data, the importance of versatile and reliable AI platforms becomes clearer.

AI solutions represent yet another integral facet of the Offering segment, providing tailored responses to specific industry challenges. They often address complex operational scenarios by applying machine learning and data analytics, which helps in both improving productivity and enabling better decision-making.

With the Indian government encouraging digital transformation through various initiatives, the relevance of AI solutions is amplified as industries aim to leverage technology to solve pressing challenges and enhance competitiveness.

Overall, each part of the Offering segment contributes to a cohesive ecosystem that supports the growth of the India Industrial AI Market. As sectors embrace AI technologies, the intersection of hardware, software, AI platforms, and AI solutions becomes a critical point of focus for businesses aiming to elevate their operational capabilities.

The growing interest in these offerings is driven, in part, by the opportunities presented by Industry 4.0 and the push towards digitalization across various verticals, which further accelerates the adoption and integration of AI technologies in the Indian industrial sector.

With trends showing an increasing reliance on advanced data analytics and machine learning, the Offering segment is poised to play a significant role in the evolving landscape of the India Industrial AI Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Industrial AI Market Technology Insights

The Technology segment of the India Industrial AI Market is rapidly evolving and plays a crucial role in driving innovation across various industries. With advancements in artificial intelligence, the integration of computer vision is reshaping manufacturing processes by enabling real-time defect detection and improved quality assurance.

Deep learning has emerged as a game-changer, furnishing systems with the ability to learn from extensive datasets, which is vital for predictive maintenance and operational efficiency. Natural language processing (NLP) is transforming the way industries engage with customers by automating queries and streamlining communication.

Furthermore, context awareness enhances decision-making processes by providing relevant information based on the operational context, which significantly impacts logistics and supply chain management.

Given the growing investment in Research and Development initiatives and the support from government policies aimed at boosting the AI ecosystem, these technological advancements collectively enhance India's competitive edge in the global market.

As companies continue to explore and implement these technologies, the India Industrial AI Market is expected to witness sustained growth driven by innovation and strategic adoption across sectors.

Industrial AI Market Application Insights

The India Industrial AI Market, focusing on the Application segment, is demonstrating significant potential across various industries. Key areas such as predictive maintenance and machinery inspection are gaining traction as companies strive to minimize downtime and enhance operational efficiency, which is crucial for maintaining a competitive edge in today's fast-paced environment.

Material movement plays a vital role in optimizing supply chains, eventually improving delivery times and reducing costs. Additionally, production planning is transforming how manufacturers allocate resources, leading to better inventory management and operational flow.

Field services are becoming increasingly important, allowing for real-time data analysis and remote assistance that improve service quality and customer satisfaction. Quality control complements these applications by employing AI to ensure products meet stringent standards, thus reducing defects and enhancing overall production quality.

The overall market growth in these applications indicates strong investment in AI technologies by Indian industries, driving innovation and increasing productivity. As technology matures, opportunities are anticipated to expand, promoting further integration of AI solutions across different sectors of the Indian economy.

The diverse applications underline the strategic importance of the India Industrial AI Market, reflecting its potential to reshape operational frameworks significantly in the coming years.

Industrial AI Market Insights

The India Industrial AI Market is experiencing significant growth, driven by the adoption of advanced technologies across various industries. The automobile sector stands out as a key area where artificial intelligence enhances manufacturing processes, leading to improved efficiency and innovation.

In the energy and power segment, AI optimizes resource management, contributing to sustainable practices that align with India's increasing focus on renewable energy sources. The pharmaceutical industry greatly benefits from AI-driven analytics in drug discovery and patient outcomes, showcasing its potential to revolutionize healthcare.

Similarly, heavy metals and machine manufacturing leverage AI to enhance predictive maintenance and quality control, resulting in reduced downtime and increased productivity. The semiconductor and electronics sector is witnessing AI integration for better design and production methodologies, which is crucial for meeting the growing demand for technology.

Within food and beverages, AI applications are streamlining operations and quality assurance, ensuring safety and efficiency. Overall, the manufacturing landscape in India is becoming increasingly sophisticated with AI adoption playing a crucial role in driving market growth and innovation.

As the country continues to invest in technology, the potential for revolutionizing various sectors through artificial intelligence appears boundless.

India Industrial AI Market Key Players and Competitive Insights

The India Industrial AI Market is witnessing significant growth, driven by a surge in demand for automation, data analysis, and optimization across various sectors. With the rapid advancements in artificial intelligence technologies, companies are increasingly adopting AI solutions to enhance productivity, reduce operational costs, and improve decision-making processes.

The competitive landscape in this domain is characterized by a mix of established IT service providers and emerging startups, all vying for a share of the growing market. The shift towards smart manufacturing, predictive maintenance, and AI-driven analytics is fostering intense competition as businesses look to leverage these technologies to gain a competitive edge.

As organizations in India recognize the transformative potential of AI, they are investing in capabilities that will help them adapt to the evolving industrial landscape. Wipro has established a strong foothold in the India Industrial AI Market through its extensive portfolio of AI-driven solutions and services designed to meet the unique needs of various industrial sectors.

Leveraging its deep expertise in automation, analytics, and digital transformation, Wipro has positioned itself as a key player, offering innovative solutions that enhance operational efficiency and foster data-driven decision-making.

The company is known for its commitment to research and development, which enables it to stay ahead of technological advancements and offer state-of-the-art AI applications tailored to its clients' requirements. Wipro's collaborative approach and strong industry partnerships further empower it to deliver comprehensive solutions that drive value for businesses across India.

Infosys also plays a prominent role in the India Industrial AI Market, focusing on delivering cutting-edge AI solutions to enable digital transformation for its clients. With a robust suite of AI-driven products and services, Infosys provides innovative solutions like predictive analytics, robotic process automation, and machine learning to improve operational efficiency across various industries.

The company is renowned for its strong research and development capabilities, allowing it to continuously evolve its offerings to stay competitive in the market. Infosys has actively pursued mergers and acquisitions to enhance its technological competencies and expand its service portfolio in the industrial AI space.

This strategy has not only strengthened its market presence but also enabled the company to develop a comprehensive ecosystem that supports advanced AI implementation in Indian industries, positioning it as a trusted partner for organizations seeking to embrace the future of industrial automation.

Key Companies in the India Industrial AI Market Include

• Wipro


• Infosys


• Salesforce


• Siemens


• SAP


• IBM


• Honeywell


• Rockwell Automation


• Tata Consultancy Services


• C3.ai


• ABB


• Microsoft


• General Electric


• HCL Technologies


• Tech Mahindra

India Industrial AI Market Developments

The India Industrial AI Market has seen significant developments recently, with major players like Tata Consultancy Services and Wipro enhancing their AI capabilities to improve operational efficiency across sectors.

In September 2023, Honeywell announced entering a partnership with ABB to drive AI-powered automation technologies in manufacturing. Infosys has been focusing on integrating AI in supply chain optimization, as seen in its recent collaboration with a leading logistics company.The market valuation for companies such as Siemens and General Electric has shown substantial growth attributed to the adoption of AI tools in predictive maintenance and quality control processes.

Moreover, in October 2022, Tech Mahindra acquired a stake in an AI startup to bolster its technical competencies in smart manufacturing. Over the past two years, significant investments have been made by IBM and Salesforce in AI-driven solutions under the "Make in India" initiative, aimed at promoting domestic capabilities.The government of India has been supportive of these advancements, driving initiatives for digital transformation and AI deployment in various industries, further solidifying the country's position as an emerging hub for Industrial AI.

India Industrial AI Market Segmentation Insights

• Industrial AI Market Offering Outlook
  
  
  
  • hardware
  
  
  • software
  
  
  • AI platform
  
  
  • AI solution
  
  
  
  


• Industrial AI Market Technology Outlook
  
  
  
  • computer vision
  
  
  • deep learning
  
  
  • natural language processing (NLP)
  
  
  • context awareness
  
  
  
  


• Industrial AI Market Application Outlook
  
  
  
  • predictive maintenance and machinery inspection
  
  
  • material movement
  
  
  • production planning
  
  
  • field services
  
  
  • quality control
  
  
  • others
  
  
  
  


• Industrial AI Market Outlook
  
  
  
  • automobile
  
  
  • energy and power
  
  
  • pharmaceuticals
  
  
  • heavy metals and machine manufacturing
  
  
  • semiconductorelectronics
  
  
  • foodbeverages
  
  
  • manufacturing
  
  
  • others
  
  
  
  

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	207.8(USD Million)
MARKET SIZE 2024	303.8(USD Million)
MARKET SIZE 2035	2500.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	21.119% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Wipro, Infosys, Salesforce, Siemens, SAP, IBM, Honeywell, Rockwell Automation, Tata Consultancy Services, C3.ai, ABB, Microsoft, General Electric, HCL Technologies, Tech Mahindra
SEGMENTS COVERED	Offering, Technology, Application, Industry
KEY MARKET OPPORTUNITIES	Predictive maintenance solutions, Quality control automation, Supply chain optimization, Energy management systems, Enhanced data analytics capabilities
KEY MARKET DYNAMICS	Rapid technological advancements, Government initiatives and support, Growing demand for automation, Increasing focus on predictive maintenance, Rising investments in AI technologies
COUNTRIES COVERED	India