Rockwell Automation releases 2026 State of Smart Manufacturing Report

The 2026 State of Smart Manufacturing Report released by Rockwell Automation, Inc, shows manufacturers scaling AI, strengthening operations and focusing on measurable outcomes.

The annual global report, which analysed more than 1500 manufacturers across 17 countries, showed a shift in industry focus. The report reflected an inflection point for the industry, as many manufacturers move beyond experimentation and towards broader deployment of digital capabilities. Fewer organisations are operating in pilot mode, while more report active use of smart manufacturing technologies to support day-to-day operations.

The global report included 85 businesses from Australia and New Zealand. The key findings from these local businesses were:

• 95% of businesses think they need digital transformation in the face of recent changes and challenges in industrial technology.
• On average, 29% of operating budgets goes towards technology investment.
• Artificial intelligence and machine learning (53%) is the main smart manufacturing feature driving the biggest business outcomes.
• On average, 34% of operations are currently augmented by artificial intelligence or machine learning.
• 83% of businesses are confident they could prevent or contain a cyber incident that disrupts operations.
• On average, 41% of workforces have participated in reskilling programs in the past year.

When asked about the biggest leadership obstacles in the next 12 months, local companies responded with:

• Access to useful data to make effective decisions in real time (36%)
• Identifying and implementing new technologies (33%)
• Understanding how to manage the next generation of workers (29%)
• Leading or guiding meaningful/enduring change (29%)

“Across the industry, manufacturers are facing more complexity and pressure than at any point in the last decade,” said Blake Moret, chairman & CEO, Rockwell Automation. “What stands out in this year’s research is not just the challenges, but how leaders are responding — by making digital transformation a core operating priority. The organisations that are seeing results are those that connect technology, people and processes to turn insight into better decisions, stronger performance and greater resilience.”

Key findings from the global report include:

• Manufacturers are moving from pilots to scale: 6 in 10 manufacturers (59%) report actively using smart manufacturing technologies to support operations, while only 18% remain in pilot mode, marking the decline of the pilot-heavy phase that dominated previous years.
• AI is becoming the engine of industrial advantage: One-third of operations (34%) are AI-augmented today, supporting functions such as quality, cybersecurity, and process optimisation. Manufacturers expect more than half of operations to be AI-supported by 2030, reinforcing AI’s role as a core operational capability.
• Operational intelligence is now a competitive divider: While organisations continue to collect growing volumes of data, only 43% is being used effectively, highlighting execution — not data availability — as a constraint on performance.
• Cybersecurity is an operational reality: Nearly half of manufacturers (46%) experienced at least one cyber incident in the past year, reflecting rising exposure as operations become more connected and autonomous. Secure, integrated IT/OT architectures are now foundational to scaling AI and advanced automation.

The 2026 ‘State of Smart Manufacturing’ report is available for download here.

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