The automotive sector could reach new records in the next five years. This was stated by Capgemini in the report of the Digital Transformation Institute published on May 3rd.
According to data, the automotive industry could in fact record an increase in annual productivity of 160 billion dollars by 2023 by investing in so-called "smart factories".
In the study, entitled "Automotive Smart Factories: How Auto Manufacturers can Benefit from the Digital Industrial Revolution” it is claimed that within the next five years of implementing a fully intelligent factory, the top 10 automakers individually could make an additional $4,6 billion worldwide or a 50% growth in annual operating profits. “By 2023, the average productivity growth of smart factories in the automotive sector will be 7% and manufacturers will be able to break even within a year of executing their full potential,” reads the note from Capgemini.
Going into detail, automakers estimate that by the end of 2022, 24% of their factories will become "smart". In fact, half of the companies in the automotive industry (46%) have already launched smart factory initiatives, a percentage surpassed only by the manufacturing sector (67%) and the aerospace sector (63%). Not only that, according to the DTI report, the automotive sector boasts the highest percentage (49%) of companies that have invested over $250 million in smart factories.
In this context, however, it should be emphasized that 42% of car manufacturers believe they are not on the right track in realizing the full potential of smart factories and are having technological difficulties. “This is the highest percentage among all the sectors considered,” the company points out.
Moving forward, while nearly half (46%) of original equipment manufacturers (OEMs) have built successful smart factory initiatives, less than a third of automotive suppliers (32%) report to have obtained good results. The study highlights how OEMs “are at the forefront, but can do more to support suppliers on their journey to smart factories, for example financially or by working closely with suppliers on the innovation front through startups and academia ”.
“Digital maturity is the key to unlocking the full potential of smart factory initiatives,” said Domenico Cipollone, Executive Vice President Automotive at Capgemini Italy. «Our study clearly demonstrates that companies in the automotive sector are inclined to invest in smart factories aware of the long-term benefits. However, more can be done for automotive suppliers by adopting a collaborative approach with OEMs to optimize these initiatives. The next few years will be key as OEMs improve their digital maturity, increasing business benefits."
