IFS Report Finds Manufacturing Shifting Toward Service-Led Growth

November 06, 2025
IFS and Accenture released the State of Service 2025 report, revealing that manufacturers are increasingly adopting Industrial AI and servitization models as core drivers of profitability and competitiveness.

IFS has released its State of Service 2025: Manufacturing Transformation Report, produced with Accenture, highlighting a global shift in manufacturing toward service-driven growth, announced in a press release. The study, based on insights from 800 senior manufacturing leaders, shows that 39% of manufacturers now view servitization as central to their long-term strategy.

The report finds that Industrial AI, servitization, and sustainability are reshaping how manufacturers operate and deliver value. While 96% of respondents use AI in service delivery, only 28% have fully scaled it across operations, with barriers such as data governance and legacy system integration cited as key challenges.

According to the findings, 98% of manufacturers report labor shortages, prompting investment in workforce reskilling through internal academies, e-learning platforms, and partnerships with academic institutions. Sustainability has also become a strategic priority for 97% of respondents, with 79% tracking emissions from service activities and 37% doing so in real time.

The report concludes that manufacturers able to scale AI, embed new service models, and address workforce and sustainability challenges are positioned to define the next phase of industrial competitiveness.

We hope you enjoyed this article.

Consider subscribing to one of our newsletters like Industrial AI Weekly or Daily AI Brief.

Also, consider following us on social media:

AI Brief AI Brief (X)

Subscribe to Industrial AI Weekly

The latest advancements in smart manufacturing, predictive maintenance, AI-driven quality control, supply chain & more.

AI Token Webinar

Whitepaper

Tensordyne Napier: What If One Rack Could Do the Work of Nine?

Tensordyne

This Tensordyne whitepaper presents Napier, an inference-focused AI processor and rack-scale system based on the company’s TDN Math logarithmic number system. It examines infrastructure requirements for large mixture-of-experts and agentic models, compares major inference architecture approaches, and details the TDN AIP processor, TDN72 pod, TDN Link fabric, and Napier Ultra configuration. The paper reports simulation-based performance, cost, and accuracy-validation results, including Tensordyne’s projected comparison of one Napier rack with a nine-rack Nvidia Rubin plus Groq deployment; the chip is reported as taped out and in fabrication.

Read more

You May Also Like