The Future of Manufacturing: 5 Trends Defining 2025

In recent years, the manufacturing industry has weathered significant challenges, from geopolitical and economic uncertainty to growing regulatory pressures and evolving customer expectations. Increased digitization has enabled the industry to respond with new, innovative and integrated ways of driving operations, manufacturing products and delivering value.

In doing so, forward-thinking manufacturers are meeting their top business priorities, including improving customer experience and loyalty, becoming more insights-driven, and accelerating responses to business and market changes. However, as 2025 will show, the industry has only scratched the surface of technology’s transformative potential.

In the year ahead, emerging technologies like quantum and edge computing will supercharge existing capabilities and deliver all-new levels of agility, revolutionizing the factory floor. Armed with advanced robotics, Artificial Intelligence (AI) and real-time insights, manufacturers will build and broker new business models that meet demands for personalization, performance and purpose, re-imagining what the industry is capable of.

Here, we explore five trends defining how the global manufacturing industry will function in 2025.

1. Autonomous Dark Factories

Expect 2025 to mark the rise of dark factories – fully automated facilities that operate independently, even in complete darkness. Powered by advanced robotics, AI and Internet of Things (IoT) devices, these cutting-edge production environments run seamlessly 24/7, re-defining efficiency and scalability in manufacturing.

Xiaomi is one organization at the forefront of dark factory development. In its 80,000-square-meter facility near Beijing, 100 percent of the key processes are automated across 11 production lines, allowing more than 10 million phones to be produced annually.¹ However, more impressively, the factory’s AI capabilities mean it can autonomously develop and optimize processes over time, with the facility self-improving.

Dark factories can increase efficiency, reduce costs and boost productivity – fundamentally re-shaping the labor dynamics of the manufacturing industry. This potential is fueling investment in enabling technologies, with automated systems anticipated to account for 25 percent of capital spending through 2027 and industrial automation demand expected to grow nearly 10 percent annually through 2030.^2,3

Programs like Amazon’s Industrial Innovation Fund are also helping support warehouse automation, with USD 1 Billion earmarked to help emerging tech companies through direct investments.⁴

2. The Quantum Leap

As dark factories enable always-on manufacturing, another technological milestone is primed to unearth all-new possibilities for the manufacturing industry: The rise of quantum computing. Quantum computing, with its ability to tackle highly complex computational challenges at unprecedented speeds, is set to revolutionize manufacturing in 2025.

Quantum’s mid-decade emergence as a transformative technology is no surprise. 2024 saw integral developments like the creation of Google’s Willow quantum chip,⁵ while planned investments from 29 percent of organizations are now beginning to materialize.⁶

The benefits of quantum computing for manufacturers are vast and far-reaching. In the near-term, it enhances existing processes by enabling faster, more complex and highly accurate data analysis, optimizing supply chains and improving control algorithms for automated systems.

Beyond enhancing existing processes, quantum computing will unlock entirely new possibilities. One key area is material development, where quantum simulations of molecular interactions can lead to the discovery of advanced materials, enabling greater precision in manufacturing. Additionally, quantum-powered AI training can drive significant cost and energy efficiencies, allowing deep learning and natural language processing to evolve sustainably without excessive energy consumption.

BMW has already leveraged quantum computing in its car design process,⁷ accelerating the development of lighter, more efficient vehicle components. Similarly, Japan’s Rohm, an electronic parts manufacturer, has integrated quantum optimization into its semiconductor production line.⁸

3. On the Edge

While quantum supercharges the power of AI and automation, 2025 will see edge computing boost the speed at which manufacturers can respond to real-time processing and immediate decision-making. How exactly? Manufacturing generates massive data from machines, sensors and other connected devices. However, by processing data locally, edge computing reduces the need for extensive data transmission, bringing manufacturing into the here and now.

In the fast-paced world of manufacturing, enabling fast, in-depth and near-instant data processing will transform organizations with intelligent capabilities that enhance reliability and speed of decision-making. Take predictive maintenance. Instead of waiting for issues to escalate to act, edge computing can help companies respond at speed and avoid costly breakdowns. The technology can also enable warehouses or factories to adapt processes quickly and respond to shifting situations.

By 2025, an estimated 75 percent of organizational data will be processed at the edge, with global spending on edge computing projected to rise from USD 228 Billion in 2024 to USD 378 Billion by 2028.^9,10 This investment is paving the way for real-time insights to evolve from something conceptual to a realizable goal.

Solutions that enable manufacturers to harness edge computing are proliferating. PHINXT Robotics, for instance, has created a decentralized edge technology platform that allows organizations to deploy robots on edge networks, transforming operations.¹¹

4. Hyperpersonalized Production

Another evolution in the manufacturing landscape for 2025 is the shift away from mass production models to an era where hyperpersonalization is the norm. Driven by consumer demand, manufacturers are responding with new models that provide the flexibility and customization capabilities people are after.

Advanced AI and data analytics sit at the heart of this new horizon, providing organizations with the insights and deep customer understanding required to flex their personalization muscles – by recommending or receiving customizations and adapting the whole supply chain to fulfill this. These insights, combined with other groundbreaking advancements, are driving the emergence of new business models tailored for greater customization. One example is microfactories – highly automated, small-scale production facilities designed for on-demand manufacturing. Danish startup Rodinia Generation exemplifies this shift with its automated microfactories, which produce garments precisely when needed, closer to customers, based on direct orders.¹² This approach minimizes overproduction while maximizing efficiency.

3D printing is facilitating this transition and accelerating the hyperpersonalization cycle for manufacturers. It enables rapid prototyping, innovation and custom testing – ranging from 3D-printed garments to 3D-printed medicines and healthcare solutions.

5. Circular Manufacturing

Could 2025 be the year that manufacturing goes circular? A global circular economy can meet human needs using just 70 percent of the materials currently extracted and consumed, bringing economic activity within the planet’s sustainable limits.¹³

While the manufacturing industry has long faced challenges due to raw material sourcing, labor costs and global complexities, advanced analytics and data-driven decision-making now promise to power up the journey toward circular operations, from responsible sourcing to waste minimization and adopting eco-friendly technologies. Such impacts will prove integral and necessary.

Data represents one of the key enablers, providing manufacturers with a single source of truth from which they can plan more circular operations. For example, access to comprehensive lifecycle data can help manufacturers design products with greater disassembly and reusability potential, reducing waste. Enhanced insights can also help improve risk management, engagement with vendors and suppliers, traceability of materials and compliance with growing regulatory pressures, among other benefits.

Scania is one company leading the way. The company has begun integrating reused components on its main assembly line in Sweden – and the world’s first for heavy vehicle manufacturers. The gearbox “re-manufacturing” project consumed approximately 50 percent less material and generated about 45 percent less carbon emissions compared to producing a new one.¹⁴ Flooring company Interface champions circular manufacturing with a closed-loop process, using recycled materials for carpet tiles. End-of-life tiles are collected and re-purposed into new products, minimizing waste and advancing sustainability.¹⁵

Meanwhile, others continue to invest in innovative new ways to help manufacturers close the loop and embrace circularity. H&M, for instance, recently announced the launch of Syre, a new company aimed at mass-producing textile-to-textile recycled materials for a closed-loop solution for the clothing industry,¹⁶ while Karman Industries is working to decarbonize manufacturing by addressing emissions from industrial heat.¹⁷

The Future is Now

As cutting-edge technologies re-define the industry, manufacturers stand at the brink of unprecedented transformation. From AI and quantum computing to hyperpersonalization and circularity, the trends shaping 2025 will determine the sector’s long-term success. However, realizing this potential demands more than just awareness – it demands decisive action.

Despite 98 percent of manufacturers across four major global economic regions initiating digital transformation journeys, technology investments account for only 30 percent of operating budgets.¹⁸ While this represents growth from 23 percent in 2023, it underscores the need for sustained investment to fully realize the benefits of digital transformation.

To fully harness the power of data, analytics and emerging technologies, manufacturers must go beyond intent and commit to strategic investments. By forging the right partnerships and embracing these innovations, manufacturers can turn today’s possibilities into tomorrow’s competitive advantage.

Connect with our experts to explore how your manufacturing organization can accelerate digital transformation, optimize operations and stay ahead in an evolving landscape.

References

1. Xiaomi’s Self-Optimizing Autonomous Factory Will Make 10M+ Phones a Year | New Atlas

2. Unlocking the Industrial Potential of Robotics and Automation | McKinsey

3. Global Industrial Automation Market Expected to Reach $307.7B in 2030 | engineering.com

4. Learn about Amazon’s $1 Billion Industrial Innovation Fund and How It’s Expanding in 2024 | Amazon

5. Meet Willow, Our State-of-the-Art Quantum Chip | Google

6. 2023 Emerging Technology Survey | PwC

7. BMW Group and Airbus Reveal Winners of Quantum Computing Challenge | BMW Group

8. Chip Fabrication Optimized with Quantum | IoT World Today

9. 2025 IT Infrastructure Trends: The Edge Computing, HCI and AI Boom | Forbes

10. Worldwide Spending on Edge Computing Forecast to Reach $378 Billion in 2028 | IDC

11. Phinxt Robotics Gains £2 Million Funding to Scale Innovative Edge AI Platform | Edge Computing News

12. Rodinia Generation Raises €3M to Fight Garment Waste with On-Demand Factories | tech.eu

13. The Circularity Gap Report | Circle Economy

14. Going Full Circle: Scania Proves You Can Use Remanufactured Gearboxes in Production | Scania

15. Top 10: Embracing the Circular Economy | Sustainability Magazine

16. H&M Group and Vargas Holding Launch Syre | H&M Group

17. Karman Industries Raises $7.5 Million | Capital for Climate

18. 2025 Manufacturing Industry Outlook | Deloitte

Disclaimer: WNS has sourced the data from various publicly available websites. WNS is not responsible for the content or accuracy of any linked sites.