China is taking the lead in almost all aspects of Industry 4.0, particularly in the use of industrial AI and digital twins, according to a new report.
The Industry 4.0 Barometer 2024, published by MHP in conjunction with LMU Munich, found that digitalisation of industry is continuing to advance worldwide, but there is a clear gap between China and other regions.
For example, 94% of the Chinese companies surveyed already use AI-based solutions in manufacturing processes; more than double the figure for the US at 46%. In the DACH region of Germany, Austria and Switzerland, this figure is just 20%.
In China, 72% of companies surveyed partially or fully use a digital twin of their entire logistics operations to map process and status data. The figure is 43% in the US, 29% in the UK and 25% in the DACH region.
While 41% of respondents in the DACH regions and 28% in the US said they do not use autonomous machines or robots, the figure in China was just 2%.
Labour shortages biggest obstacle for Industry 4.0
The report said a key reason for the clear gap between China and the rest of the world is a shortage of qualified employees, with a lack of skilled labour seen as the biggest obstacle to the introduction of Industry 4.0 technologies.
Professor Christina Reich of FOM University and a manager at MHP said: “Essentially, this is the picture for all Industry 4.0 aspects: China leads by a considerable margin – meanwhile, even the US is lagging a good way behind almost everywhere. The UK then generally follows in third place. It is mostly the DACH region that has the biggest need to catch up.”
The Industry 4.0 Barometer 2024 surveyed 856 representatives from companies in China (248), the USA (204), the DACH region (203) and the UK (201).
