“Industrial manufacturers in markets across the world are prioritizing investment in technology, as they also recalibrate their business models to take account of shifting global dynamics. In markets where financial strategies and industrial strategies are aligning, we see some significant strides — as for example in the US where a whole new industry has effectively been erected around semiconductor production.” Jonathon Gill, Head of Industrial Markets & Aerospace, KPMG International.
Industrial manufacturing is entering into a decisive phase of technological transformation. What began as isolated digital pilots is rapidly evolving into enterprise wide platforms powered by AI, advanced analytics, and next generation infrastructure. Leaders are no longer asking if advanced technology will shape their future — but how fast they can scale it to deliver measurable value, resilience, and competitive advantage. This report goes beyond trends to examine how industrial manufacturers are operationalizing advanced technology, including how organizations are scaling AI from pilots to shared platforms across plants and functions as well as building resilient data environments to support AI, digital twins, and edge computing.
The KPMG Global Tech Report 2026: Industrial Manufacturing explores how manufacturers are moving from ambition to execution — and where the biggest gaps, risks, and opportunities now lie. Drawing on insights from 258 industrial manufacturing technology leaders across 22 countries and territories, the report reveals how organizations are deploying AI at scale, strengthening data foundations, modernizing operations, and managing rising cyber and geopolitical risks.
Key insights at a glance
AI is moving to scale: Nearly half of industrial manufacturing executives (49%) report active AI use cases already delivering business value — significantly above the cross-sector average. Looking ahead, 68% expect to be deploying AI at scale within the next 12 months.
Technology investment is paying off: 80% say technology frequently improves the value generated from investments, with AI and intelligent technologies among the strongest contributors to financial gains.
Data is the critical bottleneck: While 83% believe they are building strong AI data foundations, 76% still cite unreliable data as a top AI risk — underscoring the gap between confidence and capability.
Cybersecurity is a board level priority: 48% of executives plan significant increases in cybersecurity investment in the next year, reflecting heightened exposure from connected factories, AI adoption, and geopolitical instability.
The workforce must evolve with technology: 89% agree that managing AI agents will become a critical workplace skill within five years, while many organizations rethink KPIs, operating models, and talent strategies to support human–AI collaboration.
“Industrial manufacturers in markets across the world are prioritizing investment in technology, as they also recalibrate their business models to take account of shifting global dynamics. In markets where financial strategies and industrial strategies are aligning, we see some significant strides — as for example in the US where a whole new industry has effectively been erected around semiconductor production,” said Jonathon Gill, Head of Industrial Markets & Aerospace, KPMG International.
