Industrial manufacturing companies worldwide are rapidly scaling artificial intelligence (AI) adoption and increasing investments in advanced technologies to improve resilience, efficiency and long-term competitiveness, according to the KPMG Global Tech Report 2026 – Industrial Manufacturing.
The report, which surveyed 258 technology leaders across 22 countries and territories spanning metals, advanced materials, engineering, industrial products, space, aerospace and defence, highlights a sector transitioning from technology experimentation to enterprise-wide deployment.
The findings are particularly relevant for India, where industrial manufacturers are accelerating digital transformation initiatives amid growing government support, expanding technology ecosystems and increasing digitisation of operations and supply chains. However, organisations continue to face challenges related to data integration, cybersecurity, talent availability and legacy infrastructure.
According to the report, AI adoption is increasingly focused on operational efficiency, predictive maintenance, quality control and supply chain optimisation. Manufacturers are also strengthening collaboration between IT, business and risk functions to ensure responsible AI deployment and robust cybersecurity practices.
“Industrial manufacturing organisations are increasingly wanting to leverage technology as a force multiplier aligned with business strategy to unlock significant value,” said S Sathish, Partner and National Sector Leader, Industrial Manufacturing, KPMG in India. He noted that government incentives for digital infrastructure and rising AI adoption are creating a strong foundation for transformation in India.
Key findings from the report show that 87 per cent of industrial manufacturing executives believe advanced technologies will drive future competitive advantage, while 80 per cent say technology is frequently improving investment returns. Nearly 68 per cent expect to deploy AI at scale within the next 12 months, and 49 per cent have already implemented AI use cases delivering measurable business value—well above the cross-sector average.
The report also underscores the importance of data quality, with 76 per cent of respondents identifying unreliable data as a major risk to AI implementation. Meanwhile, 48 per cent plan significant increases in cybersecurity spending over the next year, reflecting growing concerns around digital risks.
Looking ahead, workforce transformation is expected to play a critical role, with 89 per cent of executives believing that managing AI agents will become an essential skill over the next five years.
The report concludes that industrial manufacturers that successfully scale AI, strengthen data foundations and invest in cybersecurity, workforce capabilities and ecosystem partnerships will be best positioned to lead the next phase of industrial growth.