Global tech report 2026: Industrial manufacturing

Interoperability, AI, and the new rules of manufacturing excellence

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 operationalising advanced technology, including how organisations 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 (PDF 635KB) report 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 organisations are deploying AI at scale, strengthening data foundations, modernising operations, and managing rising cyber and geopolitical risks.

Key findings from our research

What industrial manufacturing executives are saying:

AI is moving to scale

49% of executives 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 organisations rethink KPIs, operating models, and talent strategies to support human–AI collaboration.

Industrial manufacturers in markets across the world are prioritising 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

Download report

Industrial manufacturers that succeed will be those that align technology, data, people, and security around clear business outcomes. To understand how advanced technology is reshaping the future of industry – and what it takes to stay ahead, download Global tech report 2026: Industrial manufacturing, and gain a better perspective on how to:

Benchmark your technology maturity against global industrial manufacturing peers
Understand where AI, data, and cybersecurity investments are delivering real ROI
Identify the capabilities required to safely scale advanced technologies
Gain practical actions for turning technology ambition into enterprise value