Industry 4.0: Companies worldwide are investing heavily in digitisation

Companies are getting down to business with Industry 4.0 – all over the world. PwC’s global study “Industry 4.0: Building the Digital Enterprise” demonstrates how far digital technologies will advance by 2020.

Managers from more than 2,000 companies in 26 countries answered questions for the study. The figures and forecasts they provided tell their own story: the average level of digitisation is expected to increase from 33% to 72% within five years. Companies are budgeting annually approximately 5% of their turnover for investing in digitisation. This amounts to a total of over $US 900 billion per year – based only on the companies surveyed.

This transition is not only taking place in industrialised countries, but all over the world. The study outlines the benefits companies expect from Industry 4.0 and where they currently see the biggest barriers to its implementation. Companies expect higher levels of digitisation to result in cost reduction of 3.6% and an additional revenue of on average 2.9% per year. Above all, finding sufficient numbers of specialists required for the transition will present difficulties, and companies still have progress to make as far as using data analytics consistently is concerned.

Alongside analysis of the current status of the technological transition, in a second part the study outlines which steps are necessary to incorporate Industry 4.0 successfully into a business, and what the necessary strategy must take into account.

For further information and the whole study, please go to: www.pwc.com/industry40

In the UK:

  • Around 74% of UK firms expect to drive high levels of digitisation and integration by 2021
  • UK firms are set to invest c2.5% of annual digital revenues in digitisation compared to c5% globally
  • Lack of digital culture, talent and clear digital operations vision are the biggest UK challenges
  • More UK headlines