A new survey by reichelt elektronik sheds light on the current status and potential of technologies such as AI, ML, big data, robotics and IoT and their use in European industrial companies.
Automation as a universal solution for the industry in Europe? Yes! Many European companies in the industrial sector (60%) believe that production will be fully automated in five years’ time. In addition, more than two thirds of the European industry (68%) consider automation to be essential in order to remain competitive. This is according to a new independent survey by reichelt elektronik, which analysed the status quo of various automation technologies and investment plans in European industrial companies of different sizes and sectors. It also identified potential opportunities for future automation projects and highlights the hurdles that the industrial sector must overcome when implementing these plans.
Status quo – is potential being wasted?
On average, 41 per cent of manufacturing processes in Europe are currently automated. Looking at this more closely, almost half (43%) of those surveyed use cloud computing, 41 per cent use industrial IoT and networked machines, but only 35 per cent use big data analytics. Ideally, the insights gained from big data analytics could be used for decision-making and to automate processes. However, European industrial companies currently seem to be wasting potential here. A possible obstacle could be the lack of resources, expertise or education in the field of big data analytics. 46 per cent of respondents want to implement big data analytics within the next year or two, showcasing their desire to prepare for the future.
Furthermore, automated storage and logistics systems (38%) and automated manufacturing systems (40%) are also frequently used in industrial companies. The situation is different when it comes to artificial intelligence (AI) and machine learning (ML) – only 24 per cent currently use these technologies. However, they are considered promising for the future: as 49 per cent of companies show through their investment plans. In addition, 53 per cent of respondents believe that artificial intelligence (AI) and automation can solve the shortage of skilled workers in Europe.
Other technologies in which companies are also looking to invest in the future:
- Process automation through software or bots (48%)
- Predictive maintenance (46%)
- Cobots (45%)
- Robotics (40%)
The size of a company influences the degree of automation
Smaller companies in particular are not yet as advanced in automating their production. For example, 21 per cent of companies with fewer than 10 employees use little or no automation processes in production. The larger the company, the more likely it is that automation processes are used to support production. In contrast, all companies surveyed with 50 to 250 employees (SMEs) stated that they at least partially automated their processes. On average, the degree of automation in SMEs is just above 40%. Companies with over 1,000 employees even automated 50 per cent of their processes on average.
Robots as the driving force behind automation
Robots are arguably the symbol and most important tool of automation, as they combine many key technologies in an efficient machine that is designed to relieve the burden on humans and supplement their skills. This is also reflected in the survey, as many EU companies use robots, in total 56 percent. Of these, more than half (51%) have their robots perform physically difficult or challenging tasks, while a further 45 per cent have outsourced repetitive tasks or hazardous work (35%) to the machines. Specifically, they carry out welding work (38%), perform assembly and placement tasks (37%), help with cutting – milling, sawing, lasering and similar tasks (37%) – and offer support with packing (34%).
Recognising opportunities and …
Automation technologies offer a wide range of benefits: According to the tech decision-makers surveyed, these include time savings (51%), higher productivity (49%) and cost savings (45%). These figures are hardly surprising. Productivity, time and cost saving lead directly to improved business results and are among the main reasons why companies opt for automation solutions in the first place.
In addition, respondents appreciate the more precise and reliable execution of tasks, which ultimately also translate to higher product quality – according to the survey, 41 per cent stated that they had noticed an increase in quality since the introduction of automation technologies. Particularly in the production and manufacturing and chemical/plastics processing sectors, individual employees also benefit from automation, as they have had to carry out less dangerous or physical labour. As a major benefit, a total of 43 per cent of the industrial companies surveyed identified an improved level of efficiency in their operations.
…overcoming hurdles
From a management perspective, there are many decisive arguments in favour of automating a business. This not only enables them to produce in a more resource-efficient manner in the long term, but also to open up new markets (ideally in Europe) and react more flexibly to market requirements. Additionally, they are able to strengthen their future viability and competitiveness but can also increase turnover. For example, 71 per cent of those surveyed assume that the next planned investment in automation will have paid for itself within the first two years.
However, there are some obstacles to consider and overcome beforehand: Almost a third of participants (27%) said that making the right investment decisions is difficult. In addition, 27 per cent reported a lack of skilled workers with the required knowledge. Financial constraints are also a hurdle, with a lack of budget or excessive costs for solutions posing a challenge for 31 per cent. Another 24 per cent of respondents reported that their desire for specific solutions remains unfulfilled.
Smaller companies in particular often encounter difficulties when it comes to finding automation tools that both meet their requirements and suit their business and are affordable.
Needs-based automation strategy for European industry
The study revealed the following predictions for the future: 60 per cent of industrial companies in Europe believe that production will be fully automated in five years’ time, allowing people to focus on other areas of work. AI and automation will also prove to be the solution to the shortage of skilled labour in industry (53%). In light of this, the question of what impact fully automated production will have on the labour market remains unanswered, as 68% of the industrial companies surveyed are already saving on personnel costs through automation.
The reichelt elektronik survey also shows that the acceptance of automation in the European industry is not uniform but depends heavily on the size and structure of a company. Despite the obvious advantages, automated processes also bring their own challenges. Differentiated strategies and measures help overcoming the challenges and promote the implementation of automation technologies in companies of all sizes. Ideally, these should always include the human factor.
The survey was conducted by the independent polling institute OnePoll among 1.250 participants from the Netherlands, Germany, Italy and France. The survey period was April/May 2024 and the respondents were tech decision-makers from the manufacturing industry, including the aerospace, chemicals/plastics processing, automotive, textiles, hardware components, production and manufacturing, electronic components, as well as transport and shipping, and suppliers to the energy sector and mechanical engineering sectors.
Image: Adobe Stock, ©Infographic: reichelt elektronik
