Networking across borders in the Digital Age
as machine learning, cloud computing and big data analysis, one area in particular is currently the focus of the fourth industrial revolution: operational technology (OT), and in particular the Internet of Things (IoT). The Internet of Things uses IT and communication technology to network physical and virtual objects. In private households, this is implemented as a smart home, for example, to switch lamps on and off or regulate the heating via your smartphone. In industrial context with the smart factory, the possibilities are many times greater. Automated processes from ordering to delivery can not only increase efficiency and productivity, but also significantly reduce mistakes by collecting data for error analysis along the entire value chain. It is no coincidence that the global industry has invested upwards of 128.9 billion USD in IoT for 2020. 4 The largest share of this spend is accounted for by IoT services and the corresponding hardware and software. Forecasts for the next few years predict a further increase in IoT investments. By 2025, these are expected to amount to 411.9 billion USD, more than three times the amount spent in 2020.
From the first craftsman to the invention of the assembly line and ultra-modern mega- factories, the manufacturing industry has always been shaped by new ways of producing using innovative technologies and solutions. And to a certain extent, it is even dependent on these developments. Manufacturing is constantly confronted with having to respond to greater demands, changing requirements and complex challenges. For your company, the willingness to innovate is therefore not just a nice-to- have, but a requirement to ensuring long-term competitiveness.
Entire business models are being rethought or newly developed. This is because networking not only takes place within a company, but also across industries. This is seen in many companies in the manufacturing industry that are connected with suppliers, logistics companies and technical service providers. In Europe, around 66% of manufacturing companies use at least one digital technology like IoT, AI, Big Data, etc. 1 As you dig into this further, the contrast in the size of the company is stark. Only 30% of companies with fewer than ten employees have already introduced digital technologies, while this figure rises to 79% for companies with more than 250 employees. However, most view Industry 4.0 technologies becoming more widespread in the near future. For instance, 33% of companies plan to implement solutions around virtual or augmented reality in the coming years. 2 And 64% also want to use networking sensors, while 22% plan to use robotics. Interestingly, there are already an average of 225 robots per 10,000 employees in Western Europe and 204 robots per 10,000 employees in Northern Europe - the highest robot density in the world of manufacturing. 3
Transformation towards Industry 4.0
The digital age is also influencing and reshaping the entire business world. Industry 4.0 is driving digitisation and networking by integrating production with information and communication technology. This uncovers extensive optimisation potential such as minimising production costs, reducing manufacturing times, and increasing the transparency of your supply chains.
411.9 Billion USD to be spent on IoT by 2025
The term Industry 4.0 relates to the three previous industrial revolutions. Each of these time periods accelerated the development of business and industry with major technological advancements.
Internet of Things driving greater change
Comparion of Europe to Asia for IoT
In addition to transaction technologies such as e-commerce platforms and blockchain, as well as information technologies such
Germany, the UK, France, Italy, Spain and the Netherlands are leading in Europe with regard to the use of IoT technologies. 5 Eastern
3 - https://ifr.org/ifr-press-releases/news/robot-race-the-worlds-top-10-automated-countries
1 - https://www.eib.org/attachments/efs/eibis_2019_report_on_digitalisation_en.pdf
4 - https://iot-analytics.com/2021-global-iot-spending-grow-24-percent/
2 - https://www.pwc.de/de/digitale-transformation/digital-factories-2020-shaping-the-future-of- manufacturing.pdf
5- https://www.cbi.eu/market-information/outsourcing-itobpo/industrial-internet-things/market- potential
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