AI, Sustainability Key to India’s Smart Manufacturing Push: Rockwell Report

Rockwell Automation’s 10th annual State of Smart Manufacturing Report highlights how manufacturers globally are adopting AI, data-driven solutions, and sustainable practices to navigate economic uncertainties and boost performance.

The 2025 survey, conducted across 17 leading manufacturing countries including India, shows a strong focus on long-term digital transformation. In India, 99% of manufacturers have either invested in or plan to invest in AI/ML over the next five years. For 81%, the primary driver is long-term business impact.

The report also underscores India’s growing commitment to sustainability, with 94% of Indian manufacturers implementing formal sustainability programs. Companies are particularly prioritising energy management and eco-friendly practices throughout the product lifecycle.

Dilip Sawhney, Managing Director, Rockwell Automation India, said: “This year’s report underscores growing influence of advanced technologies on Indian manufacturing. Indian organizations are adapting to fast evolving global manufacturing, economic shifts, and supply chain dynamics. AI and machine learning technologies, once seen as emerging trends, have now evolved into strategic priorities, with nearly every Indian manufacturer seeing value in investing in these technologies.”

India outperforms the global average in data utilization, effectively using 53% of the data collected (compared to the global average of 44%), indicating its potential to harness analytics for innovation and efficiency. In terms of workforce development, employers in India are prioritizing analytical thinking and communication/teamwork—skills that align with the demands of a modern, tech-enabled manufacturing environment.

“While technology infrastructure and data readiness remain key barriers, it’s encouraging to see Indian manufacturers leading in sustainability policies and outpacing global peers in effective data use. At Rockwell Automation, we are committed to accelerating this transformation by equipping Indian manufacturers with smart, sustainable, safe, and scalable solutions that address these gaps and enhance competitiveness,” added Dilip Sawhney.

Key global findings include:

• 81% of manufacturers say external and internal pressures are accelerating digital transformation, with cloud/SaaS, AI, cybersecurity, and quality management ranking as the top areas of smart manufacturing technology investments.
• 95% of manufacturers have invested in, or plan to invest in, AI/ML over the next five years.
• Organizations investing in generative and causal AI increased 12% year-over-year, signaling a maturing approach to advanced technologies beyond experimentation.
• Cybersecurity ranks as the second biggest external risk, with 49% of manufacturers planning to use AI for cybersecurity in 2025 – up from 40% in 2024.
• 48% of manufacturers plan to repurpose or hire additional workers due to smart manufacturing investments. Additionally, 41% are using AI and automation to help close the skills gap and address labor shortages.
• Quality control remains the top AI use case for the second year in a row, with 50% planning to apply AI/ML to support product quality in 2025.

Beyond these data points, the report reflects broader movement towards more efficient and adaptive operations. Manufacturers are using smart technologies to strengthen supply chains, accelerate sustainability initiatives and make faster, more informed decisions. There has also been a 5% rise in the importance of analytical and AI skills for leaders, showing that talent development and technical innovation must go hand in hand.

Still, many manufacturers face challenges when implementing AI. Nearly half of respondents say the ability to apply AI is now an extremely important skill – up from just 10% last year.

This report analyzed feedback from 1,560 respondents from 17 of the top manufacturing countries with roles from management up to the C-suite and was conducted in association with Rockwell Automation and Sapio Research.  The survey sampled from a range of industries including Consumer Packaged Goods, Food & Beverage, Automotive, Semiconductor, Energy, Life Sciences, and more. With a balanced distribution of company sizes with revenues spanning $100 million to over $30 billion, it offers a wide breadth of manufacturing business perspectives.