IDC FutureScape: Worldwide Manufacturing Product and Service Innovation 2025 Predictions
This IDC study provides IDC's 2025 top 10 predictions for manufacturing product and service innovation."Manufacturers are continuing to adapt to geopolitical and supply chain uncertainties and are striving to become agile in pursuing opportunities and resilient in responding to disruptions. Discrete and process manufacturers need to deliver comprehensive value propositions that benefit both customers and stakeholders. Fast access to accurate data is the key to success in the digital-first world, providing manufacturers with real-time decision support that represents the foundation for growth and profits. AI (generative, interpretive, and predictive) plays an expanding role for improving development by accelerating product design, validation, and modification and for service/support by delivering predictive maintenance and interactive fault isolation. Over the next five years, manufacturers will face unforeseen challenges and opportunities, but only digitally driven businesses leveraging AI will be prepared to navigate these waters and continue to deliver better products, faster service, and higher customer satisfaction." — John Snow, research director, Product Innovation Strategies at IDC Manufacturing Insights
IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2028, 60% of G1000 Manufacturers Will Use GenAI Copilots to Upskill Engineers On Demand, Drawing on Industry Standards, Engineering Practices, Corporate Processes
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2026, AI-Driven Digital Environments for Engineering/R&D Will Enable G2000s to Change Their Innovation Practices and Redeploy up to 40% of the Workforce
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IT Impact
Guidance
Prediction 3: By 2027, 40% of G1000 Manufacturers Will Use Model-Based Persistent Simulation to Ensure Every Design Change Is Validated Against Product Requirements
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IT Impact
Guidance
Prediction 4: By 2027, 60% of Manufacturers Will Share R&D Data on Innovation, Quality, and Best Practices to Global Data Spaces, Leading to Five Times Faster Time to Market and Overall Lower Cost of Quality
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IT Impact
Guidance
Prediction 5: By 2027, 50% of Global Engineering-Driven Organizations Will Connect Their Supply Chains via Digital Threads to Improve Secure Data Exchange and Speed up Information Sharing
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IT Impact
Guidance
Prediction 6: In an Attempt to Contain Costs, by 2029, 65% of G2000 OEMs and Service Firms Will Leverage AI and Advanced Analytics to Detect Potential Fraudulent Claims and Suggest Next Actions Autonomously
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IT Impact
Guidance
Prediction 7: By the End of 2028, 55% of Global OEMs and Service Companies Will Consider End of Life of Assets and Products to Optimize Spares Pricing, Maximizing Profits Without a Negative Impact on Service
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IT Impact
Guidance
Prediction 8: Reacting to Service Worker Attrition, by 2026, 75% of OEMs and Service Firms Will Leverage Advanced Scheduling Tools to Optimize a More Diverse Field Team Incorporating Gig Workers and Contractors
Associated Drivers
IT Impact
Guidance
Prediction 9: Embracing the Drive for Increased Sustainable Service Operations, by 2029, 55% of G2000 Manufacturers and Service Firms Will Utilize Electric Vehicles to Execute Field Service and Issue Resolution
Associated Drivers
IT Impact
Guidance
Prediction 10: In a Race to Enhance Customer Value, by 2027, 70% of G2000 Manufacturers and Service Firms Will Offer Training and Consulting Services to Customers Based on IoT-Connected Product Usage Insights
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
AI-Driven Business Models — Moving from AI Experimentation to Monetization
The Drive to Automate — Toward a Data-Driven Future
Future Proofing Against Environmental Risks — ESG Operationalization and Risk Management
AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today
Geoeconomic Reordering — Rethinking Globalization, Supply Chains, and Macroeconomic Challenges
Battling Against Technical Debt — Overcoming Hurdles to IT Modernization
Customer Experience Squared — Consumer and Citizen Expectations for Digital Services
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