‘State of Smart Manufacturing’ Report: 94% of APAC Manufacturers Investing in AI to Navigate Uncertainty, Drive Smart Manufacturing

Rockwell Automation, Inc., the world’s largest company dedicated to industrial automation and digital transformation, has announced the results of the 10th annual “State of Smart Manufacturing” report. The global study, fielded in March 2025, surveyed more than 1,500 manufacturers across 17 of the leading manufacturing countries, including China, Japan, India, South Korea, Australia and New Zealand.

As manufacturers continue to face uncertainty driven by economic shifts, the report highlights how companies are turning to smart manufacturing technologies to manage risks, improve performance, and support their workforce. It also examines adoption of emerging technology, including Artificial Intelligence (AI), Machine Learning (ML), and cloud-based systems.

“We’re seeing strong momentum across Asia Pacific in adopting AI and smart manufacturing technologies, not just as buzzwords but as mission-critical capabilities to drive quality, agility and growth,” said Scott Wooldridge, Regional President, Asia Pacific, at Rockwell Automation. “What stands out this year is the region’s tech-first mindset, with nearly half of the manufacturers already scaling AI to address workforce gaps, cybersecurity risks, and evolving sustainability targets. The focus has clearly shifted from experimentation to execution.”

“Today’s technology advancements are unlocking new opportunities where the combined potential of people and technology will shape our collective future,” noted Blake Moret, Chairman and CEO at Rockwell Automation. “As this year’s report shows, manufacturers around the world are using smart manufacturing to navigate disruption and create new opportunities for speed and agility. At Rockwell, we believe innovation and resilience go hand in hand. With the right technology and right people, we can simplify complexity and lead with confidence during times of dynamic change.”

Key Asia Pacific (APAC) Findings of the ‘State of Smart Manufacturing’ Report

Among the key findings of the “State of Smart Manufacturing” report in Asia Pacific are:

• 94% of APAC manufacturers have invested in or plan to invest in AI/ML and Generative or Causal AI over the next five years.
• 46% of APAC businesses believe AI/ML will help address workforce shortages, while 42% are adding or using technology to create more engaging jobs.
• 47% of APAC manufacturers said quality control is the top use-case for AI, followed by cybersecurity (44%) and process optimisation (43%).
• 55% of APAC manufacturers are pursuing sustainability primarily to improve operational efficiency—up from 39% last year.
• 95% of APAC manufacturers said cybersecurity practices and standards are moderately to extremely important, but 28% cited lack of leadership awareness or underestimation of cybersecurity threatsas a key challenge.

Key Global Findings of the ‘State of Smart Manufacturing’ Report

Among the key findings of the “State of Smart Manufacturing” report globally are:

• 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.
• Organisations investing in generative and causal AI increased 12% year-over-year, signalling 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.

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 all respondents say the ability to apply AI is now an extremely important skill—up from just 10% last year.

The full findings of the “State of Smart Manufacturing” report can be found here.