Digital transformation is shifting to mainstream acceptance by manufacturing leaders, as they start to benefit from its promise of resilience, risk management, and scalable results, according to Rockwell Automation’s 2025 10th annual State of Smart Manufacturing Report.  

Based on feedback from more than 1,500 manufacturers in 17 countries, the research shows AI, cloud, and cybersecurity moving from test projects to the heart of manufacturing operations. The survey reveals how companies are moving from isolated pilot programs to the wider use of smart technologies, especially AI and machine learning, to manage risk and boost performance. 

Blake Moret, Chairman and Chief Executive Officer of Rockwell Automation, views the shift as a current reality for manufacturers, not just a future trend. He shares, “Today’s technology advancements are unlocking new opportunities where the combined potential of people and technology will shape our collective future.” Blake’s perspective highlights how people and machines are working together in the 2025 manufacturing landscape. 

The report points out that 95% of manufacturers have already invested in or plan to invest in AI and machine learning within the next five years. The number includes both current investments and future plans, showing broad interest that goes far beyond one-off experiments. Blake observes that manufacturers are adopting smart approaches to address disruption, adding, “These efforts create new opportunities for speed and agility.” 

Manufacturers cite a cluster of pressures, including economic uncertainty, workforce constraints, and technology integration challenges, that are prompting investment in intelligent systems. Across regions and industry sectors, the pressures are cited as drivers of digital transformation. The report notes that 81% of manufacturers say external and internal pressures are accelerating their digital transformation strategy. 

While companies have many investment goals, most put AI and machine learning at the center of their strategies. The fact that most are planning or already investing in advanced analytics shows growing confidence that smart systems can make a real difference in operations. 

Companies are testing out generative and causal AI. Year-over-year growth in these areas shows that adoption now goes past the trial stage and into real, results-focused applications. Manufacturers expect AI to support essential functions across the production chain, including quality control, process optimisation, and cybersecurity. 

Industry data points to quality control as the top use case. Half of manufacturers expect to use AI and machine learning to improve product quality in 2025. The focus reflects what customers want and what companies need to perform well. 

One industry trend is that cybersecurity is no longer just an IT concern. It is now a core business priority. The Rockwell Automation Report positions cybersecurity as a rising external risk for manufacturers. The survey highlights that cybersecurity now ranks as the second-biggest external risk, just after macroeconomic pressures. More manufacturers plan to bring AI tools into their security strategies. The percentage of companies planning to use AI for cybersecurity continues to rise, indicating that leaders recognise the evolving threat landscape and the need for rapid, data-driven responses. 

These investments show a major industry trend: as connected systems make operations more efficient, they also need stronger protection. Linking operational technology with information technology raises new risks. Manufacturers are responding with updated security strategies that work alongside their digital initiatives. 

The shift shows that digital transformation is about protecting operations as much as improving them. 

Manufacturers recognize that smart technologies go hand in hand with workforce strategy. Digital transformation doesn’t mean fewer jobs. It changes the skills companies need. Nearly half of respondents plan to retrain current staff or hire new team members as they expand smart manufacturing. 

The report highlights a shift in how companies handle workforce development. Training and upskilling are now part of the plan to bring AI and automation into daily work, not to replace people. 

As manufacturers look to address labour shortages with technology, they are also committed to strengthening human capabilities by adjusting their hiring and training practices. Blake highlights that at Rockwell, combining the right people with the right technology can simplify even the most complex operations. He points out that workforce strategies and technology plans now go hand in hand during leadership conversations in the manufacturing industry. 

The report highlights that manufacturers aren’t just adopting technology. They’re preparing for bigger integration. Companies are moving from test projects to full-scale rollouts. While many still test new systems, a growing number are expanding smart manufacturing capabilities across their entire operations.  Cloud, AI, and cybersecurity lead the way in smart manufacturing investments, illustrating where leaders find the most value right now. These choices mark a shift in business priorities, as data access, secure connections, and real-time analytics transform how companies make decisions on the shop floor and beyond. Many manufacturers link their smart initiatives to broader goals, such as resilience and long-term competitiveness. Rather than just cutting costs, these investments reflect a real desire for systems that help companies make fast decisions, plan production flexibly, and respond to sudden market changes. 

Source:

Rockwell Automation