The global automotive industry is expected to achieve upwards of $160bn in annual productivity gains through the adoption of smart factory technology according to Capgemini’s Digital Transformation Institute.
It reported that almost half of automotive businesses have invested more than $250m in smart factories – more than any other manufacturing sector. The world’s top 10 vehicle manufacturers alone are expected to realise an additional $4.6bn or a 50% growth in operational profits annually within five years of a full smart factory implementation, plus it’s expected that average productivity growth within the automotive sector will be 7% as of 2023. Nearly half (46%) already have a smart factory initiative, however 42% of those questioned accept they are not on track to realise the full potential of smart factories and are struggling with the technology move.
The report identified that those making the best progress are investing three-times more than companies who are struggling, with the more advanced manufacturers also investing in software such as advanced analytics and AI-based components, plus importantly the human talent and skill-sets required to implement and run these systems.