Capgemini Research Institute recently reported that the smart factory adoption rate is highest in the automotive industry and automotive is set to increase investment by over 60% in the next three years, which could result in productivity gains up to $167 billion.
The report said that the auto industry plans to make 44% of its factories smart in next five years. It also pointed out that 3 out of 10 automotive factories have been made smart in the past 1.5 to 2 years. However, it warned that companies must also invest in skills and systems to take full advantage. Its finding showed that the cloud computing, 5G, advanced automation is considered as the enablers of digital transformation for auto manufacturers. Other technologies used in the factory include virtual assembly technology, autonomous ground vehicle, driverless floor conveyor, remote maintenance portal, metal 3D Printing centre, collaborative robots and drones, etc. It further provided an example of Mercedes-Benz Cars, that has achieved a fourfold reduction in rejection rate on some key components through its use of advanced data analytics to create self-learning and self-optimising production systems.
For the report, Capgemini surveyed 100 automotive executives from large automotive OEMs and suppliers, 98 of which have existing smart factory operations, across 11 countries, with revenues of more than $1 billion.