KPMG Global Tech Report 2026 – Industrial Manufacturing highlights Accelerated AI Adoption, Data Driven Transformation and Technology Led Resilience

NEW DELHI: Amid evolving geopolitical dynamics, supply chain disruptions and rapid technological advancement, the KPMG Global Tech Report 2026 – Industrial Manufacturing reveals a sector undergoing significant transformation, driven by scaled adoption of artificial intelligence (AI), growing investment in advanced technologies and an increased focus on resilience, agility and long term value creation.

The industrial manufacturing perspective of the KPMG Global Tech Report 2026 draws on insights from 258 technology leaders across 22 countries and territories, covering metals and advanced materials, engineering and industrial products, space, and aerospace and defence, offering a comprehensive snapshot of technology transformation across the sector.

For India, these global themes resonate strongly. Industrial manufacturing organisations are accelerating their digital transformation journeys, supported by government led incentives, growing ecosystem partnerships and increasing digitisation across operations, supply chains and production systems. At the same time, challenges around data integration, cybersecurity, talent and legacy infrastructure are prompting organisations to modernise operating models and strengthen technology foundations.

Industrial manufacturers are rapidly moving from experimentation to scaled deployment of AI, with a strong focus on operational efficiency, predictive maintenance, quality control and supply chain optimisation. This shift is accompanied by increasing collaboration across IT, business and risk functions, as organisations embed responsible AI practices and strengthen cybersecurity frameworks to support enterprise wide adoption.

S Sathish, Partner and National Sector Leader, Industrial Manufacturing, KPMG in India said “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.”

Key findings from the KPMG Global Tech Report 2026 – Industrial Manufacturing include:

• 87 per cent of industrial manufacturing executives believe advanced technology will drive future competitive advantage
• 80 per cent say technology frequently improves the value generated from investments
• 70 per cent are adopting a centralised model for AI implementation, led by IT, with 87 per cent emphasising cross functional collaboration
• 76 per cent highlight unreliable data as a key risk to AI implementation, underscoring the importance of strong data foundations
• 68 per cent expect to deploy AI at scale within the next 12 months  
• 48 per cent are planning significant increases in cybersecurity investment over the next year
• 49 per cent report active deployment of AI use cases delivering tangible business value, significantly higher than the cross sector average
• 89 per cent expect managing AI agents to become a critical workforce skill in the next five years

Together, these insights point to an industrial manufacturing sector at a pivotal inflection point. Organisations that successfully scale AI, strengthen data and technology foundations, and embed resilience through cybersecurity, workforce transformation and ecosystem collaboration will be best positioned to lead the next phase of industrial growth.