IoT: European industry plans 140 billion euros in investments per year by 2020 (PwC)

by bold-lichterman

The digital transformation of manufacturers should accelerate, according to a study * by PwC and Strategy & carried out among 235 German companies in the industrial sector. A phase which should be accompanied by strong investments: those in “industry 4.0” solutions (the Internet of Things in this study) should represent 3.3% of their annual turnover. An amount that will represent 140 billion euros by 2020.

Source: PwC and Strategy &.

“With the development of Industry 4.0, business traditional models will give way to new business models digital, more data-driven and focused on customer satisfaction. Services based exclusively on the cloud have already asserted themselves as examples. Likewise, traditional manufacturing industries could soon offer more user solutions than pure physical products, ”believes Pierre Péladeau, partner at Strategy &.

Among the main benefits expected from these investments in the Internet of Things are increased productivity and reduced costs. “The digitization of the value chain brings undeniable advantages. Companies that digitize their processes are able to control their production and logistics more efficiently, ”explains Matthieu Aubusson, partner at PwC.

But the Internet of Things faces many brakes, including uncertainty about the expected benefits and the substantial investments required. Also involved: the lack of standards or certifications, the lack of employee qualifications, or the low level of maturity of technologies.

Source: PwC and Strategy &.

* “PwC and Stratégy & jointly conducted this study with the support of Siemens, the association of engineers VDMA and the media Produktion. 235 German companies were interviewed, from 5 industrial sectors: information and communication technologies, telecommunications, mechanics, automobile, electronics and manufacturing industries (chemicals, petrochemicals, pharmaceuticals, food, sugar, paper, glass, steel and cement) ”.