Industry 4.0 Gaining Momentum in Europe

Under increasing pressure to reduce costs and a gain competitive edge, manufacturers are looking to providers to help them adopt intelligent systems, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- The digital revolution continues to transform Europe’s manufacturing landscape, with Industry 4.0 initiatives gaining momentum, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe finds manufacturers, in their push to achieve Industry 4.0 goals, are looking to adopt AI/ML, IoT and robotics to streamline operations, enhance efficiency and improve decision-making.

The report says manufacturers are seeking AI-powered systems that enable predictive maintenance on equipment to reduce downtime and optimizing resource allocation. They are also turning to IoT-enabled sensors to generate real-time data on production processes to support predictive analytics, and digital twins to simulate and optimize production scenarios, accelerate innovation and reduce risks.

“Europe’s manufacturing sector continues to undergo a profound transformation driven by technological advancements, sustainability imperatives and shifting consumer preferences,” said Andreas Fahr, managing director of ISG DACH and manufacturing industry lead for EMEA. “They are turning to service providers to help them leverage intelligent digital technologies to transform manufacturing and industrial processes.”

Europe’s manufacturers, pressed for new ways to reduce costs and gain competitive advantage, are looking to sustainability principles to help them minimize waste, address consumer concerns, meet increasingly stringent regulations and achieve energy independence, the report notes. This includes embracing circular economy practices, such as recycling, reuse and remanufacturing, and leveraging renewable energy to reduce carbon footprints.

“Sustainability has become a primary focus of European manufacturing, and as a result, green manufacturing practices are gaining traction,” said Fahr. “We see manufacturers collaborating with their suppliers to build sustainable supply chains, ensuring raw materials are sourced responsibly and ethically.”

Manufacturers are also increasingly prioritizing supply chain resilience in the wake of the COVID-19 pandemic. They are moving to reshore manufacturing operations to reduce risk and are investing in digital technologies to enhance supply chain visibility, traceability and responsiveness.

“The future of manufacturing in Europe is promising, driven by innovation, sustainability and a focus on human capital,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers can help manufacturers gain a competitive edge by prioritizing circular economy principles and investing in smart manufacturing.”

The report also explores other trends, including workforce upskilling, human-centric manufacturing and the continued rise of 3D printing. According to the report, 39 percent of manufacturing activities in Europe are attributable to advanced manufacturing techniques made feasible, in whole or in part, by 3D printing.

For more insights into how improvements in manufacturing technologies are transforming Europe’s economy, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe evaluates the capabilities of 38 providers across five quadrants: Product Design and Development Services, Smart/Digital Factory Solutions, Manufacturing Supply Chain and Procurement Services, Aftermarket Services and Industry Transformation Services.

The report names Accenture, Capgemini, Cognizant, HCLTech, IBM Consulting, Infosys, TCS and Wipro as Leaders in all five quadrants. Eviden (Atos Group) and NTT DATA are Leaders in three quadrants each. Akkodis, Hitachi Digital Services, LTTS and Tech Mahindra are Leaders in two quadrants each. Deloitte, EY, HARMAN and Kyndryl are Leaders in one quadrant each.

In addition, Cyient, Genpact, Hexaware, Kyndryl and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Capgemini is named the global ISG CX Star Performer for 2024 among manufacturing industry solutions and services providers. Capgemini earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

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Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.