Schneider Electric Report Forecasts Global Manufacturing Losses To Hit 29 Percent By 2030

Industrial AI adoption will surge by 2030 as manufacturers face a 29 percent revenue loss from inefficiencies, according to Schneider Electric.

By: AXL Media

Published: Apr 22, 2026, 5:24 AM EDT

Source: Information for this report was sourced from LEADERSHIP

The Growing Crisis Of Industrial Inefficiency And Revenue Erosion

The consumer-packaged goods sector is currently grappling with a significant financial drain, as manufacturers lose approximately 15.2 percent of their revenue to avoidable production hurdles. According to the 2026 Industrial AI in CPG Survey released by Schneider Electric, these inefficiencies encompass equipment failures, production downtime, and suboptimal asset utilization. Without immediate intervention, the financial impact is expected to worsen rapidly, with projected revenue losses climbing to 21.37 percent next year and reaching a staggering 29.14 percent by 2030. Currently, these operational flaws account for about 20.3 percent of the total cost of manufactured goods, creating an urgent need for a shift in industrial strategy.

Structural Barriers To Digital Transformation And Systems Integration

While the move toward automation is viewed as a necessity, the industry faces deep-rooted obstacles that hinder the seamless integration of new technologies. Neil Smith, the president of CPG at Schneider Electric, noted that many organizations remain constrained by legacy infrastructure and fragmented data systems. These outdated frameworks prevent companies from extracting the full value of digital deployments, as they lack the cohesive data environment required for advanced computing. According to Smith, closing this readiness gap is now a critical factor for maintaining sector competitiveness, as the divide between modern autonomous factories and traditional plants continues to widen.

Strategic Pivot To Artificial Intelligence As A Survival Mechanism

In an effort to stabilize operations and reduce waste, a growing number of manufacturers are turning toward industrial intelligence, which combines AI, data analytics, and automation. The survey indicates that while only 13 percent of manufacturers have fully embedded AI into their decision-making systems today, this figure is expected to reach 37 percent by 2030. This projected tripling of adoption reflects a desperate push to achieve the performance levels currently seen only in the most advanced lighthouse factories. According to Neil Smith, manufacturers are anticipating a step change in returns that will fundamentally transform the industry’s operational standards over the coming four years.