Over 70% of Asia Pacific manufacturers plan AI uptake in next 12 months, study finds

The Rockwell survey showed a stronger focus on automation, security and reskilling.

About 95% of manufacturers in Asia Pacific now see digital transformation as essential to staying competitive, according to the 2026 State of Smart Manufacturing Report by Rockwell Automation.

The study surveyed 1,560 industrial decision-makers across 17 countries, with Asia Pacific making up 28% of respondents, including China, Japan, India, South Korea, Australia, and New Zealand.

Around 71% of respondents in the region said they plan to increase the use of artificial intelligence (AI) and machine learning over the next 12 months.

Scott Wooldridge, regional president for Asia Pacific at Rockwell Automation, said manufacturers are focusing on AI adoption, cybersecurity, and workforce development.

Manufacturers expect AI use across operations to rise from 34% today to 54% by 2030. Around 40% of respondents linked generative AI to workforce challenges, whilst 39% linked it to long-term competitiveness.

The report also highlighted operational challenges. Only 42% of industrial data collected is being used effectively, whilst 26% said data security is the biggest barrier to getting more value from AI.

Cybersecurity remains a key concern, with half of respondents reporting at least one cyberattack in the past year. Around 42% identified IT systems and enterprise networks as the most vulnerable areas.

Workforce pressures also remain high. Around 40% of respondents cited change management, labour costs, and skills shortages as major challenges, whilst 41% said their organisations had carried out workforce reskilling programmes over the past year.

Budget constraints and inefficient data use were the top internal barriers to progress, both cited by 41% of respondents. Rising energy costs, cybersecurity risks, workforce shortages, and raw material pricing were identified as the main external pressures.

Globally, 83% of manufacturers said they have deployed or plan to deploy AI and machine learning systems within the next year, whilst 74% are investing in robotics. Around 59% said they are already using smart manufacturing technologies at scale.

Manufacturers identified quality improvement at 46%, cost reduction at 40%, and risk mitigation at 38% as the main priorities driving smart manufacturing investments.