This report identifies key demand-side trends in the manufacturing industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in this space based on Avasant’s assessment.
Why read this Market Insights?
Manufacturing enterprises are accelerating digital transformation by embedding agentic and predictive AI across production lines for quality control, maintenance, and R&D optimization. To enhance resilience and operational planning, they are adopting digital twins, immersive simulations, and AR/VR-enabled digital threads across design and service stages. Platform-led modernization is gaining traction through low-code industrial IoT (IIoT) platforms, AI-powered edge, and cloud-based manufacturing execution systems (MES) for real-time visibility and centralized decision-making. Human-machine collaboration is also expanding, with investments in Industry 5.0 technologies such as wearables, voice AI, and collaborative robotics to improve safety and productivity. In parallel, enterprises are strengthening supply chain resilience and sustainability using blockchain, AI, micro factories, and circular manufacturing practices to meet traceability and ESG goals. Manufacturing companies collaborate with service providers for this digital transformation, which requires strong technological expertise and delivery capabilities.
The Manufacturing Digital Services 2025 Market Insights™ helps enterprises in this sector identify important market trends and challenges for any digital project they participate in.
Methodology
The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.
Table of contents
About the report (Page 3)
Executive summary (Pages 4–7)
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- Scope of coverage
- Executive summary
- Avasant recognizes 26 top-tier service providers supporting the manufacturing industry in digital transformation
Demand-side trends (Pages 8–13)
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- Manufacturers are rapidly embedding autonomous and predictive AI to modernize shop floor operations and product innovation
- Real-time visibility and digital twin simulations are redefining manufacturing resilience and cross-functional integration
- Manufacturing enterprises accelerate IT/OT convergence by leveraging low-code IIoT platforms and unified cloud solutions
- Manufacturers enhance workforce capabilities and safety through collaborative robots, smart wearables, and AR-driven remote diagnostics
- Manufacturers are transforming supply chains through localization, blockchain-enabled traceability, and circular economy models
Key contacts (Page 14)
Read the Research Byte based on this report. Please refer to Avasant’s Manufacturing Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.