Digital transformation a driving force in four key sectors – Technology Magazine
The automotive sector is the biggest spender on digital transformation, according to new research. But challenges including cybersecurity and environmental concerns mean a significant increase in digital spending is also expected in the Electronics and High Technology, Oil and Gas and Fast-Moving Consumer Goods sectors.
In its latest whitepaper , 4 Key Industries Embracing Industry 4. 0, global technology intelligence firm ABI Research forecasts that the particular automotive sector’s spend on Industry 4. 0 technologies will approach US$100 billion inside 2022 plus grow to over US$238 billion in 2030.
A driving force behind this growth is the fact that OEMs and their suppliers need to adjust for the move away from the particular internal combustion engine in order to electric powertrains. OEMs also need software to design new types of vehicles plus work with suppliers to ensure components used will certainly meet not only performance requirements but also sustainability considerations. A further challenge will be transitioning production lines to new forms of vehicles without harming production volumes.
“The automotive industry is not alone in its electronic transformation acceleration, ” says Ryan Martin , Industrial and Manufacturing Markets Research Director at ABI Study. “Industry four. 0 – also referred to as smart manufacturing, connected production, the Commercial Internet of Things, and other monikers – has revolutionised the way companies manufacture, enhance, plus distribute products using brand new technologies. ”
Michael Larner , Industrial and Manufacturing Markets Research Director at ABI Research says: “This transformation is not really just limited to the manufacturing sector; it has begun shaping other industries and markets throughout the globe. ”
Semiconductor manufacturers take humans out of the process
ABI’s new whitepaper explores the state associated with Industry 4. 0 within four industries: Automotive, Electronics & High Technology, Oil & Gasoline and Fast-Moving Consumer Products (FMCG).
In the area of Consumer electronics and Higher technology, ABI says semiconductor manufacturers have largely removed humans from the production procedure. The location of lights-out manufacturing facilities will be hotly contested, because many firms seek in order to diversify their production far from the Asia-Pacific region, states ABI, plus spending on digital technologies within the field is forecast to surpass US$130 billion in 2030, up from US$95 billion dollars this year.
The particular Oil & Gas sector remains volatile with prices fluctuating due to economic conditions around the world, says ABI. Producers use digital systems to monitor operations to ensure they get the particular maximum yield from each location. However, the industry is something of the pariah, states ABI, so it must invest in technologies in order to monitor emissions and conditions in the local region. These and other challenges may compel providers to increase their spending on digital technology
Manufacturers of FMCG products are under pressure from many different perspectives, says ABI. The cost of raw materials and ingredients continues to rise, but retailers often refuse to accept price increases. In addition , firms are under pressure through an Environmental, Social, and Governance (ESG) perspective to adjust packaging plus use less water in their operations. Manufacturers are particularly concerned that will details of their production processes do not fall into the wrong hands and, like oil & gas firms, continue to prioritise spending upon cybersecurity. With this within mind, total spending on digitalisation in the FMCG space is forecast to reach US$23. 8 billion inside 2030.