While AI competition is driving manufacturing innovation, it is ultimately analyzed that convergent manufacturing innovation, in which AI and machine technology develop complementarily, will become the core of national competitiveness.

According to the Machinery Technology Policy No. 120 report, “Beyond Manufacturing AI Competition, We Must Prepare with Machinery Technology,” recently published by the Korea Institute of Machinery and Materials (KERI, President Ryu Seok-hyun) under the National Research Council of Science and Technology, amid the global trend of AI transformation in the manufacturing industry, the essential performance of mechanical equipment is expected to become a key factor in determining future manufacturing competitiveness.

According to market research firm Markets and Markets, the manufacturing AI market is expected to grow from $34.2 billion in 2025 to $155 billion in 2030, with an average annual growth rate of 35.3%.

Major countries are actively supporting the transition to AI to strengthen manufacturing competitiveness.

In the US, companies like GE, NVIDIA, and Palantir are promoting the establishment of an autonomous manufacturing ecosystem that integrates AI, cloud, and robotics, while in Europe, companies like Siemens, ABB, and Bosch are focusing on the "AI Factory" strategy and human-robot collaboration.

Japan has Fanuc, Omron, Hitachi, etc.This robot-centric intelligent production line innovation is being promoted, and in China, companies such as Huawei, Siamun, and Foxconn are strengthening large-scale factory automation and technology internalization in line with the government's "AI+ Manufacturing" strategy.

The Korean government is also accelerating the automation and intelligence of manufacturing processes through its "AI Factory" policy.

Major companies such as Samsung Electronics, Doosan Robotics, and Hanwha Robotics are building smart factories that integrate AI, robots, and digital twins.

As a national research institute, the Korea Institute of Machinery and Materials (KIMM) is also preparing for the AX transformation of the machinery industry by establishing an AI/DX three-axis system, including a digital twin, a machine data platform, and a virtual engineering platform.

The report stated, “It is difficult to secure manufacturing competitiveness with AI alone,” and “The performance of AI is ultimately realized through hardware such as machines and equipment, and the essential performance of machines and the optimized performance of AI form a multiplicative relationship to determine the ultimate competitiveness.”

While South Korea's manufacturing industry maintains global leadership in the semiconductor, automobile, and secondary battery sectors, its reliance on overseas markets for key equipment and components is high, leading to significant supply chain risks.

The report emphasized that “AI technology alone is not enough to secure sustainable competitiveness, and self-reliance in machine technology is essential.”

As AI competition matures, competition in machine performance will become more prominent, and to prepare for this, it was suggested that an R&D policy based on convergence technologies that allow machines and AI to evolve together is needed.

“Currently, competition in the manufacturing industry is fiercely focused on AI, but in the future, machine technology will emerge as the core of the competitive landscape,” said Lee Woon-kyu, a senior researcher at the Korea Institute of Machinery and Materials’ Machinery Policy Center.“It is time to prepare policies to internalize machine technology along with the advancement of AI,” he said.