The automotive industry can expect to achieve upwards of $160bn in annual productivity gains through the adoption of smart factory technology from 2023 onwards.
Almost half of all automotive business have invested more than $250m in smart factories, according to new research, more than any other sector.
The world’s top 10 automotive manufactures can expect to realise an additional $4.6bn – or a 50% growth in operational profits – annually within five years of a full smart factory implementation.
The report, published by Capgemini’s Digital Transformation Institute, predicts that the average productivity growth of smart factories within the automotive sector will be 7% as of 2023, while an automotive manufacturer can expect to break-even within 12 months of executing the full potential of its smart factories.
By the end of 2022, automotive manufacturers expect that 24% of their plants will be classed as smart factories. Nearly half of automotive companies (46%) already have a smart factory initiative, behind only industrial manufacturing (67%) and aerospace (63%).
Initiatives around the creation of smart factories are currently being formalised by 43% of automotive companies. According to the report, the automotive sector has the highest share (49%) of organisations who have invested more than $250m in smart factories.
However, 42% of automotive manufacturers accept they are not on track to realize the full potential of smart factories and are struggling with the technology move. This is the highest across all the manufacturing sectors studied.
The report identified that those making the best progress are investing three-times more than the companies who are struggling. The more advanced manufacturers are also investing in software such as advanced analytics and AI-based components, whereas those struggling focus too heavily on hardware-based components putting them on the back foot.
While a large proportion (46%) of OEMs have reportedly been successful in their smart factory initiatives, less than a third of automotive suppliers (32%) claim to have been successful.
The report highlights that OEMs are leading the way, but could do more to help suppliers adopt smart factories. For example, it highlights that OEMs can contribute through financial support and working closely with suppliers on innovation via start-ups and academies.
Smart Factory Expo is back – and it’s bigger and better than ever!
New features for 2018:
- Visitor Zones
Six dedicated Visitor Zones group together exhibitors thematically, and help visitors meet with the companies most relevant to them: Industrial Automation, Internet of Things, Digital Transformation, Smart Factory, Manufacturing Innovation, and Industrial Data.
- Partner Districts
Partner Districts help to showcase some of the world’s biggest tech companies’ partner ecosystems, allowing you to see which solutions are most integrated.
- Case Study Cafe
Grab a comfy seat and a good coffee in our Case Study Cafe – and be inspired by a display of UK manufacturing success stories that take you on a digital manufacturing journey, while you rest your feet.
- The Business Show
The Manufacturer magazine has been covering UK manufacturing for more than 20 years, and we have some of the brightest minds in UK media in our Editorial team. Come along and watch as we interview the great and the good of UK manufacturing about their successes and failures, quiz exhibitors about the digital manufacturing opportunity, and rope in passing show visitors to tell their story.
Smart Factory Expo is launching an opt-in web networking platform, allowing visitors to set-up meetings with exhibitors and one another at the various meeting points on the show floor. If you are looking to be a part of the digital manufacturing community, and want to win a year’s subscription to The Manufacturer, make sure you sign-up!
- Manufacturing Tours
Sign up for Smart Factory Expo, and apply for one of dozens of Manufacturing Tours to facilities in and around Liverpool. If you’re from out of town, take a look for yourself at the fabulous infrastructure the region has to offer – and some of the world-beating manufacturers taking advantage of it.