The major invention during the Industrial Revolution that transformed manufacturing was the steam engine. Invented by James Watt in the late 18th century, it revolutionized production processes by allowing machines to operate more efficiently and independently from water sources. The steam engine facilitated the mechanization of many industries, including textiles, mining, and transportation. Its development significantly increased productivity and laid the groundwork for the rise of factories, helping to shift economies from agrarian to industrial models and contributing to urbanization as workers moved to cities for jobs in these new manufacturing facilities.