A new report from Capgemini’s Digital Transformation Institute has revealed that the automotive industry could grow by as much as $160bn over the course of the next five years as a result of smart factory adoption.
The report, Automotive smart factories: How auto manufacturers can benefit from digital transformation, reveals that 46% of all automotive companies are already pursuing a smart factory initiative, with nearly half (49%) of those surveyed having invested more than $250mn in smart factories.
“By using smart factory technology in our business, we have seen great benefits with regard to our employees’ productivity,” said Grégoire Ferré, Chief Digital Officer at Faurecia, the world’s sixth largest international parts manufacturer. “They use sophisticated tools such as smart robots to create a safer environment, which in turn provide them with more time to focus on other important tasks.”
Further, Capgemini states that a top 10 global automotive manufacturer can expect to see a 50% growth in operational profits within five years of successfully implementing smart factories, financially breaking even within a year of exercising the full potential of smart manufacturing plants.
OEMs in particular are set to lead the way, with 46% having been successful in their smart factory initiatives, compared to just 32% of automotive suppliers.
“This study clearly demonstrates the enthusiasm among automotive organizations to invest in smart factories and the awareness of the long-term benefits” said Nick Gill, Chair of Automotive Council at Capgemini. “The next few years will be critical as OEMs step up their digital maturity, accelerating outcomes to maximize business benefits.”
Manufacturers themselves expect 24% of factories to be smart factories by 2023.