Industry 4.0 adoption in India can help manufacturing sector to contribute 25% to GDP by FY26
By MYBRANDBOOK
The National Association of Software and Services Companies (NASSCOM), in collaboration with Capgemini, today announced the findings of a research study on the adoption of Industry 4.0 in India’s manufacturing sector. Titled, ‘India Industry 4.0 Adoption: A Case to Mature Manufacturing Digitalization by 2025’, the report sheds light on the maturity of digitalized manufacturing in India, and recommends a focus on increasing investments, scaling up foundational technology readiness, and enhancing capabilities. These recommendations, cites the report, will help facilitate globally connected smart factories that will enable India’s manufacturing sector to become an intelligent industry and achieve the national growth target of $1.1tn by FY26.
Global Industry 4.0 evolution drivers
From comprising 5% of manufacturing IT spend in 2011, to 20% by 2021, Industry 4.0 has witnessed over a decade of transition since 2011. It has also grown by 9.6 times during the same period, from $10.5 billion in 2011 to $103 billion in 2021, driven by business growth, resilience and sustainability needs.
According to the report, investments in Industry 4.0 have grown by approximately 10X in the last decade and are expected to grow to $200+ bn by 2025. Countries such as US, UK, China, India and Brazil are expected to supplement this with new investments, amounting to a total of $100+ bn. This investment will predominantly be in digital technologies like IoT, AI/ML, IT-OT integration, robotics, and human-machine interfaces. These will account for almost 40% of all manufacturing technology spend. Servitization, integrated customer and employee experience, and an urgent need for flexible operations and business agility are set to be the biggest drivers of Industry 4.0 in the next decade.
Sharing her thoughts, Debjani Ghosh, President, NASSOM, said, “Industry 4.0 has reached a tipping point in Indian manufacturing, with a strong desire to boost investments in the next two years to create exceptional customer experiences and long-term business models. Moving forward, it will be fascinating to watch how ready the Indian manufacturing industry is to adopt and scale Industry 4.0, which is largely determined by the use cases selected, the capacity to scale Proofs of Concept, and the alignment of IT and OT capabilities.”
Commenting on the potential of Industry 4.0 to build interconnected factories of the future, Ananth Chandramouli, Managing Director and Head of the India Business Unit, Capgemini, added: “It is evident that by 2025, more than two-thirds of the Indian manufacturing sector will embrace Intelligent Industry 4.0 and will become an Intelligent Industry. . This research shows that this decade is going to experience an amalgamation of Digital Insider (sensors and embedded software in products), Digital Continuity (creating and managing virtual worlds) and Digital Convergence (digitalization of core processes in an extended ecosystem). Enterprises will begin to concentrate on new business models, and on understanding the needs of end customers so that they can innovate new products and become truly intelligent. In India, we have seen that manufacturers today are talking about holistic digital transformation.”
India Industry 4.0 spend in discrete and process manufacturing segments
With accelerated investment in foundational tech like Cloud and IoT, the Indian manufacturing sector has started pivoting to digitalization, cites the report, with $5.5 - $6.5 billion spent on Industry 4.0 in FY21. This accounts for nearly 50% of the annual technology spend by Indian manufacturers. 75% of this is led by discrete manufacturers in Auto, Electricals, and Electronics, while Chemicals and Pharma are leading the process manufacturing segment.
MSMEs (Micro, Small and Medium Enterprises) in India account for 33% of the manufacturing output and 45-50% of exports, across textile, food processing, chemical, and electrical or equipment. The research shows that while the sector is facing challenges around scaling up Industry 4.0 solutions, financing, and leadership constraints are presenting opportunities to mitigate these challenges. The report highlights digital solutions to aide growth could include cloud and SaaS-based solutions to outsource non-core activities and minimize upfront or fixed costs; a reduction in the cost of quality inspection and rework/defects with AI-based computer vision; and big data analytics to minimize risk impact.
Investment focus for the next two years is key
The report concludes that Industry 4.0 is at an inflection point in Indian manufacturing. There’s an urgent need to increase investments in the next 2 years and drive a rapid shift from proof-of-concept to a more ROI driven, outcome-based deployment. Over the next 18-24 months, enterprises in the sector need to prioritize investments across emerging connectivity tech, big data analytics, central and remote-controlled monitoring, and process automation. These new investments will consist of a combination of scaling-up existing IoT and Cloud deployments for rapid PoC-to-production of new use cases and industrial automation.
Singapore to remove One-Time Passwords from Bank Accounts
According to the Monetary Authority of Singapore, clients who utilise secur...
Is 375 million Airtel subscribers database breached?
When a hacker claims to have accessed and put up for sale a customer databa...
The government of India intends to construct a single portal f
A single portal will be launched by the Indian government to list all of it...
OpenAI offers GPT-4o, a faster model available to all users at
GPT-4o, a faster and more sophisticated AI model, is made available to all...
ICONS OF INDIA : RISHAD PREMJI
Rishad Premji is Executive Chairman of Wipro Limited, a $11.3 billion ...
Icons Of India : Harsh Jain
Harsh Jain, the co-founder of Dream 11, the largest fantasy sports web...
Icons Of India : Dr. Sanjay Bahl
Dr. Sanjay Bahl has around four decades of experience in the ICT indus...
ITI - ITI Limited
ITI Limited is a leading provider of telecommunications equipment, sol...
PFC - Power Finance Corporation Ltd
PFC is a leading financial institution in India specializing in power ...
GSTN - Goods and Services Tax Network
GSTN provides shared IT infrastructure and service to both central and...
Indian Tech Talent Excelling The Tech World - ARVIND KRISHNA, CEO – IBM
Arvind Krishna, an Indian-American business executive, serves as the C...
Indian Tech Talent Excelling The Tech World - George Kurian, CEO, Netapp
George Kurian, the CEO of global data storage and management services ...
Indian Tech Talent Excelling The Tech World - Satya Nadella, Chairman & CEO- Microsoft
Satya Nadella, the Chairman and CEO of Microsoft, recently emphasized ...