In-depth: Industry 4.0 2019

Statista Digital Market Outlook

In-depth: Industry 4.0 2019 Industry 4.0 or the fourth industrial revolution is quite simply the use of digital technologies in the manufacturing process to produce higher-quality goods at reduced costs. A part of it is thus also the smart factory.

Digital technologies are disrupting all elements of the value chain including product design, supply chain, manufacturing and customer experience, while creating new business models.


What's included?
  • Industry 4.0: Definition and evolution
  • Technology
  • Trends
  • Industry analysis
  • Start-ups: Funding and M&A
  • Competitive landscape: Adidas, Airbus, Anaplan, Audi, BASF, BMW, Carbon, Lockheed Martin, Pivotal
DescriptionContentTables

Industry 4.0 or the fourth industrial revolution is quite simply the use of digital technologies in the manufacturing process to produce higher-quality goods at reduced costs. Even though developments in electronics and information technology have resulted in the automation of manufacturing processes since the early 1970s, it is only the recent advances in digital technologies that are beginning to extend the scope of disruption. Companies are now experiencing major benefits in terms of lower costs, improved efficiencies, increased yield, mass customization and most importantly new revenue and business models.

Digital technologies are disrupting all elements of the value chain, including product design, supply chain, manufacturing and customer experience, while creating new business models. Global manufacturing giants such as Germany, France, the US, Japan and China have all launched government backed strategic initiatives to digitalize production across various industries. Even though there are many technologies currently playing a role in Industry 4.0 and the smart factory, for the purpose of this report, we have focused on five key ones: additive manufacturing, artificial intelligence (AI), robotics, internet of things (IoT) and augmented and virtual reality (AR/VR).

The digitalization of manufacturing across industries has resulted in the emergence of service-based revenue models to complement the already existing product-based models. Digital technologies have also begun to usher in an era of customization at a much lower cost in both the B2C and B2B segments. Over the last few years, global manufacturers such as Adidas and Nike have started moving their production centers away from low-cost countries and closer to the consumer. Furthermore, emphasis is now being placed on creating an agile and flexible production process through the use of modularized systems that can be reconfigured in quick time.

Digital technologies are increasingly being customized to serve needs across multiple industries with their application being witnessed most often in the automotive, healthcare, aerospace and defense, chemical, and consumer goods sectors. The automotive industry is witnessing rapid digital adoption with benefits including a faster time-to-market and lower costs. The A&D industry has one of the highest rates of digital adoption owing to the sheer complexity of its value chain. Digitalization in healthcare is centered around medical devices and pharmaceuticals. Even though the chemical and consumer goods industries are late bloomers, they are now not only transforming production but also creating smart supply chains and new business models.

Most of the leading start-ups are from the U.S., with a majority of them based out of California. Pivotal has received the highest funding at US$1.7 billion. The company, which is primarily a provider of cloud computing services, is backed by key investors such as EMC, Ford Motor Company, GE, Microsoft and Vmware. The company got listed on the New York Stock Exchange (NYSE) in April 2018. Ubtech Robotics is another key automation start-up that managed to get nearly US$1bn in funding. Large manufacturing companies such as ABB, OMRON Corporation, Schneider Electric, Siemens, ST Engineering, Teradyne and Tesla are acquiring smaller companies in order to leverage their technological expertise and decrease their learning curve.

Companies from various fields including information technology, automobile, heavy engineering, defense, chemical, sports and personal goods are using advanced digital automation technologies to further their business goals. Companies like Pivotal provide software applications related to Big Data, Internet of Things (IoT), robotics and connected cars, whereas California based Anaplan provides cloud planning platforms to run planning and prediction iterations over the cloud. Automobile companies Audi and BMW are using digital manufacturing technologies such as 3D printing, assistant drones, Automated Guided Vehicles (AGVs) and autonomous tugger trains to reduce time taken for design, prototyping and manufacturing. Other leading companies include Adidas, Airbus, BASF, Carbon and Lockheed Martin.

  • Language: English
  • Released: September 2019
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