This digital transformation integrates disruptive technologies like automation, cloud computing, and data collection into traditional manufacturing processes. The resulting new range of products and services creates a win-win situation, spawning monetization opportunities for manufacturers while improving the customer experience.
The success of Industry 4.0 thus far has clearly sparked a trend, with IoT growing 22% in 2018, surpassing the growth of traditional subscription-based businesses like media and software, according to the latest Subscription Economy Index (SEI). And usage of the core technologies fueling Industry 4.0 are expected to grow from 20%-80% by 2023.
o Expected growth in IoT by 20-30 % to $2900 billion by 2024
o Expected growth in AI by 50-60% to $200 billion by 2025
o Expected growth in cloudification and API by 20-30% to $200 billion by 2020
o Expected growth in blockchain technologies by 70-80% to $20 billion by 2023
While the trend toward Industry 4.0 is clear, only 14% of manufacturers say they have created go-to-market IoT strategies. The challenge that many manufacturers face is that, in order to successfully implement digital transformation, new business models are required. Companies that embrace these new models and expand their range of products and services are poised to seize a competitive advantage.