Industry 4.0 and The Future of Manufacturing in India - State of the Nation Report, by Plugin Alliance; authored by Frost & Sullivan
Plugin Alliance, an advocate for digital transformation in manufacturing, proudly announces the launch of its comprehensive report titled "Industry 4.0 and The Future of Manufacturing in India," authored by Frost & Sullivan.
This landmark report delves into the current state of the manufacturing sector in India, providing in-depth analysis and insights into the transformative potential of Industry 4.0 technologies. It highlights key trends, opportunities, and challenges facing Indian manufacturers as they navigate the shift towards smarter, more efficient, and connected production processes.
Executive Summary -
Industry 4.0 refers to a new phase of the industrial revolution focused heavily on interconnectivity, automation, machine learning (ML), and real-time data. Each industrial revolution preceding Industry 4.0 is characterized by a new disruptive technology—the steam engine, the assembly line, and computing technology. Industry 4.0 is powered by the Industrial Internet of Things (IIoT) and cyber-physical systems. Manufacturers can now integrate new technologies, including cloud computing, analytics, artificial intelligence (AI), augmented reality (AR), and ML into their production facilities and operations to change the way they manufacture, improve, and distribute products. However, digital transformation is a complex multidimensional and multistage process that requires a substantial ecosystem to drive change seamlessly. While business leaders across all sectors grapple with the strategic implications of these transformations, their profound impact on efficiency, productivity, and profitability have been well documented globally.
Indian manufacturing is at a critical juncture. Although Industry 4.0 is still in its infancy, there are countless untapped opportunities and numerous hurdles for mass adoption. This report aims to track India’s progress on its Industry 4.0 and digital transformation journey. It will highlight key technology innovations, business transformation trends, and ecosystem dynamics that are reshaping the country’s manufacturing sector.
Key Findings and Insights -
Innovation ecosystems focused on value co-creation, a key enabler for Industry 4.0 adoption in India
- Macroeconomic trends, geopolitical dynamics, and supply chain disruptions have increased global investments in digital manufacturing to improve business and operational efficiencies.
- The global Industry 4.0 market reached an estimated $546.5 billion in 2022. The United States is currently the largest market with $99.5 billion, but APAC leads in terms of growth and technology adoption.
- Industry 4.0 adoption in India is still in its infancy, with pockets of innovation and technology application. Low awareness, cost consciousness, legacy infrastructure, and a pilot purgatory mindset limit widescale adoption. Collaborative ecosystems are essential to accelerate Industry 4.0 adoption.
- In India, discrete industries, led by automotive, significantly ramped up IIoT spending at approximately $5 billion in 2021. In comparison, process industries spent approximately $2 billion on IIoT technologies.
- Industry 4.0 will drive India’s ambitious goals of becoming a $1 trillion digital economy and having its manufacturing sector contribute 25% of GDP. Powerful incentives and reforms, cross-country collaboration (India–Israel, India–Germany), and strong ecosystem support will drive digital transformation.
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