KPMG 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 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 insights at a glance

AI is moving to scale

Nearly half of industrial manufacturing executives (49 per cent) report active AI use cases already delivering business value – significantly above the cross sector average. Looking ahead, 68 per cent expect to be deploying AI at scale within the next 12 months
Technology investment is paying off

80 per cent 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 per cent believe they are building strong AI data foundations, 76 per cent still cite unreliable data as a top AI risk – underscoring the gap between confidence and capability
Cybersecurity is a board level priority

48 per cent 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 per cent 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

KPMG Global Tech Report 2026 – Industrial Manufacturing

Explore the insights shaping industrial manufacturing technology strategies

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Industrial manufacturing organisations are increasingly wanting to leverage technology as a force multiplier aligned with business strategy to unlock significant value. In India, government incentives on digital infrastructure, coupled with rising adoption of AI, are creating a strong foundation for transformation. Organisations that invest in robust data foundations, scalable platforms, and workforce upskilling, while strengthening cybersecurity and ecosystem partnerships, will be best positioned to drive sustainable growth and resilience in a rapidly evolving global landscape.

S Sathish

Partner and National Sector Leader, Industrial Manufacturing

KPMG in India

Why download this report?

By downloading the Global tech report 2026: Industrial manufacturing , you will 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