Industry 4.0 Gaining Momentum in Europe
The digital revolution continues to transform Europe’s manufacturing landscape, with Industry 4.0 initiatives gaining momentum, according to a new research report published by Information Services Group (ISG), a global AI-centered technology research and advisory firm.
The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe finds manufacturers, in their push to achieve Industry 4.0 goals, are looking to adopt AI/ML, IoT and robotics to streamline operations, enhance efficiency and improve decision-making.
The report says manufacturers are seeking AI-powered systems that enable predictive maintenance on equipment to reduce downtime and optimizing resource allocation. They are also turning to IoT-enabled sensors to generate real-time data on production processes to support predictive analytics, and digital twins to simulate and optimize production scenarios, accelerate innovation and reduce risks.
“Europe’s manufacturing sector continues to undergo a profound transformation driven by technological advancements, sustainability imperatives and shifting consumer preferences,” said Andreas Fahr, managing director of ISG DACH and manufacturing industry lead for EMEA. “They are turning to service providers to help them leverage intelligent digital technologies to transform manufacturing and industrial processes.”
Europe’s manufacturers, pressed for new ways to reduce costs and gain competitive advantage, are looking to sustainability principles to help them minimize waste, address consumer concerns, meet increasingly stringent regulations and achieve energy independence, the report notes. This includes embracing circular economy practices, such as recycling, reuse and remanufacturing, and leveraging renewable energy to reduce carbon footprints.
“Sustainability has become a primary focus of European manufacturing, and as a result, green manufacturing practices are gaining traction,” said Fahr. “We see manufacturers collaborating with their suppliers to build sustainable supply chains, ensuring raw materials are sourced responsibly and ethically.”
Manufacturers are also increasingly prioritizing supply chain resilience in the wake of the COVID-19 pandemic. They are moving to reshore manufacturing operations to reduce risk and are investing in digital technologies to enhance supply chain visibility, traceability and responsiveness.
“The future of manufacturing in Europe is promising, driven by innovation, sustainability and a focus on human capital,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers can help manufacturers gain a competitive edge by prioritizing circular economy principles and investing in smart manufacturing.”
The report also explores other trends, including workforce upskilling, human-centric manufacturing and the continued rise of 3D printing. According to the report, 39 percent of manufacturing activities in Europe are attributable to advanced manufacturing techniques made feasible, in whole or in part, by 3D printing.
The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe evaluates the capabilities of 38 providers across five quadrants: Product Design and Development Services, Smart/Digital Factory Solutions, Manufacturing Supply Chain and Procurement Services, Aftermarket Services and Industry Transformation Services.
For more information: www.isg-one.com
