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Smart Factories Set To Boost Global Economy By 2023
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Logistics Press Release

Smart Factories Set To Boost Global Economy By 2023

A new study from Capgemini has found that smart factories could add at least $1.5 trillion to the global economy by 2023 through productivity gains, improvements in quality and market share, along with customer services.

However, two-thirds of this overall value is still to be realized: efficiency by design and operational excellence through closed- loop operations will make equal contributions. According to the new Capgemini research, China, Germany and Japan are the top three countries in smart factory adoption, closely followed by South Korea, United States and France.

The Capgemini report entitled, “Smart Factories @ Scale”, identified the two main challenges to scaling up: the IT-OT convergence and the range of skills and capabilities required to drive the transformation including cross-functional capabilities and soft skills in addition to digital talent. The Capgemini report also highlights how the technology led-disruption, towards an ‘Intelligent Industry’, is an opportunity for manufacturers striving to find new ways to create business value, optimize their operations and innovate for a sustainable future.

Key findings of the Capgemini study

  • Organizations are showing an increasing appetite and aptitude for smart factories. Compared to two years ago, more organizations are progressing with their smart initiatives today and one-third of factories have already been transformed into smart facilities. According to Capgemini, manufacturers now plan to create 40 percent more smart factories in the next five years and increase their annual investments by 1.7x compared to the last three years.
  • The potential value add from smart factories is bigger than ever. Based on this potential for growth, Capgemini estimates that smart factories can add anywhere between $1.5 trillion to $2.2 trillion to the global economy over the next five years. In 2017, Capgemini found that 43 percent of organizations had ongoing smart factory projects; which has shown a promising increase to 68 percent in two years. 5G is set to become a key enabler as its features would provide manufacturers the opportunity to introduce or enhance a variety of real-time and highly reliable applications.
  • Scaling up is the next challenge for Industry 4.0. Despite this positive outlook, manufacturers say success is hard to come by, with just 14 percent characterizing their existing initiatives as ‘successful’ and nearly 60 percent of organizations saying that they are struggling to scale.

According to the Capgemini report, organizations need to learn from high performers (10 percent of the total sample) that make significant investments in the foundations – digital platforms, data readiness, cybersecurity, talent, governance – and well-balanced “efficiency by design” and “effectiveness in operations” approach, leveraging the power of data and collaboration.

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Source:
Capgemini

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E-3 Magazine

Articles published through E-3 Magazine International. This includes press releases by our partners as well as articles and reports from the E-3 team of journalists.

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