How Europe is becoming a leader in Industry 4.0: Embedding Advanced Technology in Industry

Industry 4.0 encompasses the increasing digitalisation of industrial processes using technologies such as artificial intelligence, robotics and 3D printing. This more connected, more automated industry promises huge benefits in terms of agility, productivity and competitiveness. And Europe already seems to be one step ahead. Here is an overview.

Digitalisation is opening up new horizons for traditional industries, allowing for better control over production processes and improved product quality. The application of Industry 4.0 technologies is leading to the creation of smart factories, where automation and data integration play a key role in optimising all stages of production. Europe is actively adopting these technologies to strengthen its position in the global market and ensure sustainable industrial development in the future.

Investment: some emerging trends

Traditional industry, which accounts for around 30% of global GDP, is undergoing significant change and continues to accelerate towards digitalisation. According to dealroom.co research, revenues from industrial technology in Europe could reach €300 billion a year in the near future. Although European venture capital (VC) investment in the tech industry represents only 3% of total VC investment, the growth in this area is clear: it has increased 8.8 times since 2014. German and French startups stand out among the investment leaders, accounting for 45% of the total European volume, with investments of €1.9 billion since 2014.

The distribution of investment by technology shows which areas are becoming key to industrial growth. At the top of the list are logistics, including warehouse robotics, industrial robotics and autonomous vehicles. There is also a particular focus on communications and Internet of Things (IoT) technologies, which are becoming increasingly important for improving manufacturing efficiency. These technologies are likely to attract even more attention from investors in the coming years, accelerating the adoption of Industry 4.0 across Europe.

IoT, artificial intelligence, 3D printing at the centre of transformation

The digitalisation of industry involves transforming traditional processes using the latest software solutions and innovative technologies. Leading technologies such as the Internet of Things (IoT), artificial intelligence (AI), robotics and 3D printing play a key role in this transformation. These technologies not only improve manufacturing processes, but also significantly increase the flexibility and adaptability of businesses to changes in the marketplace. According to Deloitte, these innovations create the foundation for more efficient and competitive business models.

One of the main benefits of adopting these technologies is the convergence of operational and IT technologies (OT/IT convergence), which makes manufacturing processes more manageable and transparent. This, in turn, allows companies to better adapt to the individual needs of end customers and optimise the use of resources. Importantly, as these technologies evolve, production becomes not only more efficient, but also more sustainable. Reducing carbon footprints and lowering production costs are also important outcomes of digital transformation in industry.

In addition, the use of drones and 3D printing opens up new opportunities to create products with more complex geometries and customised features. This is particularly relevant for industries such as automotive, aerospace and medical, where precision and quality are crucial. European companies are actively investing in the development of these technologies, recognising their strategic importance to remain competitive in the global market. Thus, the digitalisation of industry is not only changing the approach to production, but also creating new standards and opportunities for future development.

European Union: diversified industries and strong human capital

Industry remains the main activity in the European Union, despite its declining share in European economies over the last few decades. In countries with a universal industrial profile, such as France, the UK and Italy, or a high-tech-orientated one, as in Germany, Denmark and Hungary, this industry continues to play a key role. All of these countries focus on high value-added industries where automation and digitalisation are driving productivity gains.

These sectors also have a high proportion of skilled labour capable of working with the latest technological tools. The growing awareness among professionals and consumers of the benefits of digital transformation favours the adoption of new technologies at all levels of society. With its strong industrial base and human capital, the European Union is well positioned to become a global leader in Industry 4.0.

Conclusions

Europe is well on its way to becoming a leader in Industry 4.0 by actively adopting advanced technologies in industry. Investments in digitalisation and automation are becoming key drivers of this process. In the coming years, this transformation will shape the future of the European economy.