Deliverable D6.1: Market analysis and PERKS positioning for Exploitation
Creators: name: Pourabdollahian, Golboo
Publisher: name: Zenodo
Year: 2024

description: This document presents the results of the activities performed during the first phase of T6.1 of PERKS project in terms of market analysis and preliminary exploitation. A summary of findings and insights are provided in the following paragraphs.

Artificial Intelligence (AI) and Machine Learning technologies are transforming businesses across industries, offering numerous opportunities for organizations to innovate, compete and grow. However, there are significant differences in the adoption of AI between industries. While some industries, such as finance and healthcare, have embraced AI, despite a seemingly unfavorable regulatory environment, and are already reaping the benefits, others are still struggling to adopt the technology. IDC data shows that the manufacturing sector is the the third-largest sector for AI adoption, with a market size of 5.1 billion USD in 2023. 

In the manufacturing sector, AI solutions are becoming increasingly widespread, driven by operational efficiency and IT optimization needs, as well as to provide improved customer experiences. This is particular prominent when it comes to the industrial operations space, where AI is seen as a strategic topic by the vast majority investing in this technology.

IDC data shows that the total estimated spending for AI technologies across hardware, software, and services in this industry will be over the figure of 14.6 billion USD in 2027. This constitutes an estimated 30.8% CAGR (Compound Annual Growth Rate) over 2023 (5.019 billion).

AI-optimized operations, AI-augmented quality management investigation and recommendation systems, AI-augmented supply and logistics, Automated preventative maintenance, and Digital twin/advanced digital simulation are all use cases that are finding practical applications in the manufacturing space.

The main identified drivers towards AI implementation pertain to areas such as raising internal process efficiency, augmenting organization’s competitiveness, improving data risk management. The main inhibitors to AI deployment reside on the lack of workforce to drive, support and work with AI in the industrial setting, followed by several technology application challenges from governance to data trust. The lack of adequate business cases is also a type of challenge inhibiting AI deployments.

When it comes to AI solutions deployment, at the moment, the vast majority of European manufacturing companies can be defined as “buyers”, i.e. buying from external 3rd party providers, such as AI specialty software and service providers, large IT SIs and service providers, operations-focused SIs and service providers, Industrial automation providers, enterprise software providers, and engineering firms.

AI and AI-powered technology has the potential to help manufacturers remain competitive by enhancing the efficiency of operations and engineering. In the future, accelerating the use of AI-powered technology in a manufacturing environment can also support the European continent in achieving its sustainability and climate goals.

The results of the market analysis depicts that the solutions that will be developed within PERKS project are aligned with the spotlight use-cases for the upcoming years. This highlights the opportunity for PERKS for future exploitation of its assets and it requires a solid exploitation model which will be developed and delivered in D6.4 in M33.