Automotive manufacturing insight - Adoption of ...€¦ · The aim of this survey was to better understand the transformative technologies deployed in automotive manufacturing. The

Confidential. © 2018 IHS MarkitTM. All Rights Reserved.

Transformative Tech - Automotive Manufacturing - 2019Adoption of transformative technologies in industrial automation

January 2019

Wilmer Zhou, Analyst, +86 (21) 2422 9035, [email protected]

Survey

Manufacturing Technology


Contents

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Adoption of Transformative Technologies in Automotive Manufacturing

2


Executive summary


3


Executive summary

The aim of this survey was to better understand the transformative technologies deployed in automotive manufacturing.

The survey was completed by 120 participants. After removing incomplete and disqualified answers, a total of 111 high-quality usable responses were used to generate results.

The results of the survey highlighted the following:

• Nearly 52% of respondents claimed that their companies have adopted transformative technologies, with over 30% indicating that transformative technologies have alreadytpoda ot rewols eb lliw seinapmoc’stnednopserehtfo%32dnuorA.noitpodadetimilevahydaerlayehttahtgnitacidni%22rehtonadnaylediwdesuneeb transformative technologies and have no current adoption or no planned strategy. The positive response is probably related to physical automation, while cloud and XaaS, connectivity, and edge technologies are still very much in their infancy with lower results than obtained from the semiconductor, electronics, and display survey.

• Higher quality is the most important benefit from the adoption of transformative technologies in automotive, the same result as we obtained from the semiconductor, electronics, and display survey.

• Lower overall cost, shorter lead time/time-to-market, reduced downtime/increased OEE, increased production line flexibility were the answers with the next most responses, respectively.

• Employee skills/knowledge is the major bottleneck to deploying transformative technologies, the same result obtained from the semiconductor, electronics, and display survey.

• The manufacturers still worry about the ROI uncertainty and investment/cost for transformative technologies, the same result obtained from the semiconductor, electronics, and display survey.

• Nearly 45% of the companies have already started investing in transformative technologies even though the amount of investment is not high.

• The big companies with turnover above USD1 billion and the small companies with turnover less than USD50 million are investing in transformative technologies.

• It is still widely disputed how artificial intelligence will affect the manufacturing industry. There still needs to be more successful user cases to prove its value to automotive manufacturing.



Introduction, scope, and method


5


Introduction

IHS Markit is conducting new research to understand the adoption of transformational technologies in key vertical markets. The results will help us to better understand

the impact that transformative technologies are having on automotive manufacturing, and how their adoption will change manufacturing over the next three years. The

survey results will provide critical insights and the responses collected will serve as the foundation for the upcoming automotive report, which is a component of the

new Manufacturing Technology Vertical Intelligence Service.

Automotive manufacturing is a typical discrete manufacturing industry, in which equipment and machines play an important role. Machine builders are caught between

assessing end user demand and new products and technologies being promoted by component suppliers. Automation component suppl iers have been considering

developing new component functionalities and partnerships that might speed up their understanding of the available technologies, as well as their position in the

changing and competitive transformational technology environment.

This document provides results from a recent collaborative IHS Markit survey on the topic of transformative technologies in automotive manufacturing today. The

results are complemented with analysis and insights.

To help set the scene for the questions in the survey, the following is a brief description of what IHS Markit considers to be transformative technologies:

• Artificial intelligence (algorithms, AI hardware, AI services)

• Cloud & XaaS (cloud computing, storage, cloud platforms, BI, cloud services)

• Edge technologies (edge computing, sensing, pervasive computing, embedded smart devices)

• Connectivity (NB-IOT, LoRa, 5G, wireless, short distance communications like NFC)

• Physical automation (robots & drones, smart AGVs, automatic warehouse)

• Virtualization (simulation, visualization, AR, VR, blockchain)



Method

IHS Markit used internal customer contacts with other sourced contacts and sent an incentivized survey to around 2,800 engineers, managers, and operations staff on

the topic of the adoption of transformative technologies in automotive manufacturing. The expected response rate was 4% of the total audience. The survey was active

for about four weeks during October 2018.

The survey was made up of 16 questions. It took approximately eight minutes to complete, but there was some routing, so it took less time for some participants. This

was an incentivized survey, with five participants chosen at random to receive a $100 Amazon voucher.

Respondents

The survey was completed by 120 participants. However, after removing incomplete and disqualified answers for the reasons given below, a total of 111 high-quality

responses were used to generate the results. The final dataset was analyzed using Excel.

Data

Some participants were excluded because:

• The respondent was not a member of the target audience (e.g., they were students or academics, or from different industry sectors).

• The respondent provided a nonsensical response.

• The respondent provided the same response for each numerical/multiple-choice question.

• The respondent skipped all the questions and entered only contact information.

IHS Markit included some of the partially filled surveys if they provided relevant answers to the questions attempted.



Sample and respondents

A total of 120 responses were received for this survey. These responses were grouped into different categories called sample frames.

Sample frame

The respondents that answered a particular question.

Some sample frames used for this survey are defined below:

• Valid respondents: Valid respondents refer to the group of 111 of the total 120 respondents after the disqualified, incomplete, and student/academic responses were eliminated.

• Respondents not manufacturing: This sample frame is a subgroup of the valid respondents; and refers to those who are not currently in manufacturing.

Sample size

The actual number of responses received for a particular question.



Survey results


9


Introduction

This chapter presents and analysis of the results from the survey questions that were asked of machine builders, end product manufacturers, automation component

suppliers, component suppliers, material suppliers, software providers, system integrators, and distributors that serve the automotive manufacturing industries.

The results are based answers to a number of questions including:

• Does your company or business line currently adopt transformative technology in production or products today?

• What manufacturing benefits are your organization targeting through investment and adoption of transformative technology?

• What are the manufacturing related challenges of adopting transformative technology?

• Please estimate how much your company invested in transformative technology in production or products in 2017.

• What type of transformative technology did your company invest most heavily in 2017?

• Please estimate how much your company is likely to invest in transformative technology in production or products in 2020.

• In what type of transformative technology will your company invest most heavily in 2020?

• Does your company need to invest in the following to support adoption of transformative technology?

• How?levelhcaetaygolonhcetevitamrofsnartfonoitpodatnerrucs’ynapmocruoyebircseduoydluow

• What?ygolonhcetevitamrofsnarttnemelpmidnasseccaothcaorppaderreferps’ynapmocruoysi

• What manufacturing applications do you plan to implement using transformative technology?

Each section presents questions from the survey with possible answers and the results collected from the survey. These results are supplemented by in-depth

interviews with some of the participants.



Background


11


Question 1

Which of these industries does your organization primarily serve? (All that apply)

• Automotive

• Others (see appendix for open responses)

Results

Responses from respondents at companies that supply to, manufacture for, or

distribute to automotive manufacturing represented the dominant portion of the

total (117 responses).


117

3

0

20

40

60

80

100

120

140

Automotive Other (please specify)

Which of these industries does your organization primarily serve?

Notes: Sample Size 120, Sample Frame 111

Source: IHS Markit © 2018 IHS Markit

Nu

mb

er

of

resp

on

ses

Industry sector


Question 2

• What is your company type?

• Automation component supplier (PLCs, motor drives, motion controls, HMIs, etc.)

• Software provider

• Raw materials supplier (i.e., steel, aluminum, chemical)

• Machine builder for automotive manufacturing

• System integrator for automotive

• Other (please specify)

• Tier 2 & sub-tier supplier (i.e., component supplier)

• Automotive OEM

• Tier 1 supplier (i.e., module/sub assembly and components supplier)

• Results

• Of the 110 responses, tier 1 supplier (i.e., module/sub assembly and components supplier),

automotive OEM, and tier 2 & sub-tier supplier (i.e., component supplier) represented the

largest portion with 34, 29, and 20 responses respectively. Machine builder for automotive

manufacturing and system integrator for automotive were the next largest with similar

numbers.

• The representation of all categories in the survey responses means that the results

presented later in this report reflect a spectrum of companies from different parts of the

supply chain. The influence of tier 1 suppliers and OEMs will likely be most profound in the

following analysis. For the purpose of the analysis, this is a positive because the adoption

preferences of tier 1 suppliers and OEMs will likely drive the development of machinery and

industrial automation, as well as the penetration of transformative technologies.

• There is some overlap because some companies play multiple roles in the supply chain.

2

3

4

5

5

8

20

29

34

0 5 10 15 20 25 30 35 40

Automation component supplier (PLCs, Motordrives, Motion controls, HMIs etc.)

Software provider

Raw materials suppliers (i.e. steel, aluminum,chemical)

Machine builders for Automotive manufacturing

System integrator for Automotive

Other (please specify)

Tier 2 & sub-tier suppliers (i.e. component supplier)

Automotive OEM

Tier 1 suppliers (i.e. module/sub assembly andcomponents supplier)

What is your company type?



Co

mp

an

y t

yp

e

Number of responses



Question 3

• Where are you located?

• Western Europe

• Eastern Europe & Russia

• North America

• South America

• East Asia

• South East Asia

• South Asia

• Middle East

• Africa

• Oceania

• In the third question, participants were asked to choose their location from a list of 10

regions.

• Results

• Each major region is well represented by the survey responses. North America accounted

for the largest portion with 55 responses, followed by Asia with 38 and Europe with 10.

• The high proportion of respondents from North America, Asia, and Europe will sway the

analysis and results of later questions in the survey. North America, Asia, and Europe are

the leading innovators and adopters of transformative technologies, with companies that

are significantly ahead of others, particularly in the automotive industries. The analysis and

insights provided later in this document are likely to reflect the opinions and preferences of

respondents based in the regions that are pushing transformative technologies as a

technology differentiator.

1

5

5

5

6

7

9

10

19

55

0 10 20 30 40 50 60

Oceania

Western Europe

Eastern Europe & Russia

Middle East

Africa

South America

East Asia

South East Asia

South Asia

North America

Where are you located?



Reg

ion

s

Number of responses



Question 4

• What was the annual turnover of your company in 2017? (One response only)

• Less than USD50 million

• USD50 million to 100 million

• USD100 million to 500 million

• USD500 million to 1 billion

• Over USD1 billion

• Results

• Each category of company annual turnover is well represented from the survey

responses. Respondents working at a company of less than USD50 million with 47

responses were 43% of the total.

• Respondents working at a company of more than USD1 billion with 19 responses

were 18% of the total.

• Respondents working at a company of between USD50 million and 1 billion

accounted for 39% of the total.

• The relatively even spread of responses from companies of different sizes means

that the results presented later in this document reflect the opinion of small/niche

suppliers as well as international players with broad portfolios.

47

20

16

7

19

0

5

10

15

20

25

30

35

40

45

50

Less than 50 millionUSD

50 million to 100million USD

100 million to 500million USD

500 million to 1billion USD

Over 1 billion USD

What was the annual turnover of your company in 2017?



Nu

mb

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of

resp

on

ses

Annual turnover in 2017



Question 5

• Which of the following best describes your role? (One response only)

• Operations/project management

• Maintenance

• Equipment operator

• Engineering (control, mechanical, electrical)

• R&D engineer

• Corporate management

• IT management

• Purchasing

• Sales or marketing

• Other

• Results

• Responses from R&D/product planning (36 responses) and

manufacturing/operations (34 responses) accounted for the largest proportion of

the total, followed by quality control, purchasing, and corporate management with

similar portions.

• The high portion of R&D/product planning (36 responses) and

manufacturing/operations that responded to the survey had some influence over

the insights provided in this report because they are heavily interested in emerging

transformative technologies and selecting partner companies.


1

2

2

3

6

7

7

13

34

36

0 5 10 15 20 25 30 35 40

Sales

IT management

Marketing

Logistics

Quality controls

Purchasing

Corporate management


Manufacturing/Operations

R&D/Product planning

What job title best describes your role?



Jo

b t

itle

Number of responses


Technology


17


Question 6

• Does your company or business line currently adopt transformative technology

in production or products today?

• Yes, we have widely adopted

• Yes, we have limited adoption

• Transformative technology in proof of concept projects

• Strategy developed to test transformative technology

• Strategy to adopt a work in progress

• No current adoption or planned strategy

• Results

• 31% of respondents indicated that transformative technologies have already been

used widely, and 22% indicated that they already have limited adoption. These

results are very positive for transformative technology adoption in automotive

manufacturing. The positive response is probably more related to transformative

technologies like physical automation, while AI and VR/AR in manufacturing are

still very much in their infancy.

• Theygetartsaevahseinapmoc’stnednopser%11tahtlaeveroslastluseryevrus

to adopt transformative technologies in progress, 6% companies have proof of

concept projects, and 7% are developing strategies to test transformative

technologies.

• Aroundevitamrofsnarttpodaotrewolseblliwseinapmoc’stnednopserehtfo%32

technologies and have no current adoption or planned strategy.

31%

23%

22%

11%

7%

6%

Yes, we have widely adopted

No current adoption or planned strategy

Yes, we have limited adoption

Strategy to adopt a work in progress

Strategy developed to test transformative technology

Transformative technology in proof of concept projects

Does your company or business line currently adopt transformative technology in

production or products today?





Question 7

• What manufacturing benefits are your organization targeting through investment and

adoption of transformative technology?

• Shorter lead time/time to market

• Higher quality

• Lower overall cost (material, labor and energy)

• Customized products

• Increased production line flexibility

• Higher throughput

• Reduced downtime/increased OEE (Overall Equipment Effectiveness)

• Increased innovation

• Lower inventory


• Results

• Respondents to this question highlighted that increasing higher quality is the most

important benefit from adopting transformative technologies in automotive manufacturing.

• This industry is competitive and close to consumers. Lower overall cost, shorter lead

time/time to market, and reduced downtime/increased OEE (Overall Equipment

Effectiveness) were the answers with the next most responses respectively.

• Customized products and increased production line flexibility, each with a similar number of

responses, are not widely seen by respondents as the leading benefits of transformative

technologies.

• It is interesting to note that lower inventory received the fewest responses (6).

16

18

19

30

32

41

51

55

61

0 10 20 30 40 50 60 70

Lower inventory

Higher throughput

Customized products

Increased innovation

Increased production line flexibility

Reduced downtime/increased OEE (OverallEquipment Effectiveness)

Shorter lead time/time to market

Lower overall cost (material, labor and energy)

Higher quality

What manufacturing benefits are your organization targeting through investment and

adoption of transformative technology?



Ben

efi

ts

Number of responses



Question 8


• Business model

• Unproven technology

• Immature products (SW, HW)

• Investment/cost too high

• ROI uncertainty

• Leadership unsupportive

• Employee skills/knowledge

• Sufficient existing technology

• Risk to data security

• Organizational culture adverse to change

• Difficulty of business process integration / change management

• Interoperability Issues


• Results

• Theslliksehtssessoptondidseeyolpmes’ynapmocriehttahttlefstnednopser94tahtdnuofyevrusnecessary for a successful adoption of transformative technology. Employee skills/knowledge is the major bottleneck to digital transformation. Investment in the education and enablement of employees has never been more important.

• ROI uncertainty, unproven technology, and business model are the next largest with similar responses. This indicates that manufacturers still worry about the uncertainty of investing in transformative technologies. Manufacturers are still trying to find the right business model that increases the ROI. How to maximize the value from transformative technology investments is critical for commercial companies.

• The following challenges to adopting transformative technology come from some operational or technical level: difficulty of business process integration, organizational culture adverse to change, risk to data security, sufficient existing technology, and immature products (SW, HW).

• The smallest number of responses was for interoperability Issues, which is accomplished by using a cloud or a platform as an interoperability layer to combine data from multiple sources.

2

4

14

15

17

18

20

23

27

28

29

49

0 10 20 30 40 50 60


Interoperability Issues

Leadership unsupportive

Immature products (SW, HW)

Sufficient existing technology

Risk to data security

Organizational culture adverse to change

Difficulty of business process integration / changemanagement

Business model

Unproven technology

ROI uncertainty

Employee skills/knowledge

What are the manufacturing related challenges of adopting transformative technology?



Ch

allen

ges

Number of responses



Question 9

• Please estimate how much your company invested in transformative

technology in production or products in 2017


• Between USD1–5 million





• More than USD100 million

• None

• Results

• Less than USD1 million accounted for the largest portion with nearly 45.5 of the

total. This indicates that large portion of the companies have already started

investing in transformative technologies, even though the amount of investment is

not high.

• Between USD1–5 million, more than 100 million, and none were the next largest

share of responses, each with around 15%, which means that some companies

have already realized the importance of transformative technologies and have

invested heavily to seek a lead position, while many companies still have doubts

about transformative technologies.

15.5%

45.5%

14.6%

5.5%

3.6%

1.8%

3.6%

10.0%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

None

Less than 1M USD

Between 1M – 5M USD

Between 5M - 10M USD




More than 100M USD

Please estimate how much your company invested in transformative technology in

production or products in 2017



Inv

estm

en

t

percentages



Question 9 & Question 11: Company investment by turnover

0

5

10

15

20

25

30

35

Less than 50 million USD 50 million to 100 million USD 100 million to 500 million USD 500 million to 1 billion USD Over 1 billion USD

Less than 1M USD Between 1M – 5M USD Between 5M - 10M USD Between 10M – 20M USD Between 20M – 50M USD Between 50M – 100M USD More than 100M USD None

Amount of investment in transformative technology by company turnover in 2017


Nu

mb

er

of

resp

on

ses

Company turnover range

0

5

10

15

20

25

30

Less than 50 million USD 50 million to 100 million USD 100 million to 500 million USD 500 million to 1 billion USD Over 1 billion USD

Less than 1M USD Between 1M – 5M USD Between 5M - 10M USD Between 10M – 20M USD Between 20M – 50M USD Between 50M – 100M USD More than 100M USD None

Amount of investment in transformative technology by company turnover in 2020


Nu

mb

er

of

resp

on

ses

Company turnover range


22


Question 10

• What type of transformative technology did your company invest most heavily

in 2017?

• Artificial intelligence (algorithm, AI hardware, AI services)

• Cloud & XaaS (cloud computing, storage, cloud platform, BI, cloud services)

• Edge technologies (edge computing, sensing, embedded smart devices)

• Connectivity (NB-IOT, 5G, wireless, short distance communications)


• Virtualization (SW, simulation, visualization, AR, VR, blockchain)

• Results

• The responses reveal quite opposite opinions regarding the importance of artificial

intelligence, with around 20% strong supporters and 25% active opponents. It is

still widely disputed how artificial intelligence will affect the manufacturing industry.

There still needs to be more successful user cases to prove its value to

manufacturing.

• Many more respondents believe that physical automation is important because

industrial robots, smart AGVs, automatic warehouse have already played an

important role in automotive manufacturing.

• Virtualization technologies ( AR, VR, and blockchain), connectivity, and cloud have

the least supporters.

0% 20% 40% 60% 80% 100%

Connectivity (NB-IOT, 5G, Wireless, Short distancecommunications)

Cloud & XaaS(Cloud computing, Storage, cloud platform,BI, Cloud Services)

Edge technologies (Edge computing, Sensing, Embeddedsmart devices)

Virtualization (SW, Simulation, Visualization, AR, VR,Blockchain)

Artificial intelligence (Algorithm, AI Hardware, AI services )

Physical Automation （Robots & drones, smart AGVs,

Automatic warehouse）

Very Important Important Moderately Important Slightly Important Not important Not at all important

What type of transformative technology did your company invest most heavily in 2017?



Ty

pe o

f tr

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sfo

rmati

ve t

ech

no

log

y

Levels of Importance



Question 11

• Please estimate how much your company invested in transformative technology in production or products in 2020








• None

• Results

• In comparison to question 9, less than USD1 million still accounted for the largest portion, but the percentage decreases from nearly 45.5% to 38%. No investment decreases

from 15.5% to 7.5%. At the same time, between USD1–5 million is still the second largest share, with the percentage increasing from 14.6% to 24.3%.

• This indicates that a large share of the companies plan to invest more in transformative technologies over the next three years.



Question 11

15.5%

45.5%

14.6%

5.5%

3.6%

1.8%

3.6%

10.0%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

None

Less than 1M USD






More than 100M USD


production or products in 2017



Inv

estm

en

t

Percentage

7.5%

38.3%

24.3%

6.5%

2.8%

7.5%

2.8%

10.3%

15.5%

45.5%

14.6%

5.5%

3.6%

1.8%

3.6%

10.0%

0% 10% 20% 30% 40% 50%

None

Less than 1M USD






More than 100M USD

2017 2020


Inv

estm

en

t

Percentage


production or products in 2017 and 2020


25


Question 12

• What type of transformative technology did your company invest most heavily in 2017, and will invest most heavily in 2020?

• Artificial intelligence (algorithm, AI hardware, AI services )






• Results

• The results are not very different between question 12 and 10. Respondents still have quite opposite opinions regarding the importance of physical automation. This indicates

that manufacturers already have experience with the deployment of physical automation in manufacturing.

• The number of those that support artificial intelligence increases a little from 2017 to 2020, while doubts concerning AI wil l remain for the next three years.



Question 12

0% 20% 40% 60% 80% 100%









What type of transformative technology did your company invest most heavily in 2017?



Ty

pe o

f tr

an

sfo

rmati

ve t

ech

no

log

y


0% 20% 40% 60% 80% 100%

Edge technologies (edge computing, sensing, embeddedsmart devices)

Connectivity (NB-IOT, 5G, wireless, short distancecommunications)

Virtualization (SW, simulation, visualization, AR, VR,blockchain)

Cloud & XaaS (cloud computing, storage, cloud platform,BI, cloud services)

Artificial intelligence (algorithm, AI hardware, AI services )

Physical Automation (robots & drones, smart AGVs,

automatic warehouse）


What type of transformative technology will your company invest most heavily in 2020?



Ty

pe o

f tr

an

sfo

rmati

ve t

ech

no

log

y



27


Question 13

• Does your company need to invest in the following to support adoption of transformative technology?

• Building and premises

• New OT system (automation, devices, sensors, machines etc.)

• New plant level IT system (PLM, MES etc.)

• New enterprise level IT system (ERP, CRM etc.)

• Cyber security systems

• Development and retraining of factory floor staff

• Development and retraining of management

• New staff with additional skill sets


• Results

• MoreehT.85htiw,srehtoehtnahtnoitpo”metsysTOweN“ehtesohcstnednopsertrend of convergence of IT and OT systems requires that an OT system be connected, much smarter, and more visible. Traditional legacy systems need to be upgraded with additional custom work, while new OT systems are born with connected smart machines with sensors and processors, as well as enhanced analytics capabilities that can provide big data on-site.

• Thedna”,metsysTIleveltnalpweN“”,stesllikslanoitiddahtiwffatsweN““Developmentralimishtiwwollofsnoitpo”ffatsroolfyrotcaffogniniarterdnaresponse numbers.

• Theotderedisnocoslaerew”smetsysytirucesrebyC“dna”sesimerpdnagnidliuB“be challenges to adopting transformative technologies, but with lower response numbers.

4

25

25

30

32

35

37

38

58

0 10 20 30 40 50 60 70


Building and premises

Cyber security systems

Development and retraining of factory floor staff

New enterprise level IT system (ERP, CRM etc.)

New plant level IT system (PLM, MES etc.)

New staff with additional skill sets

Development and retraining of management

New OT system (automation, devices, sensors,machines etc.)

Does your company need to invest in the following to support adoption of

transformative technology?



Ty

pe o

f su

pp

ort

s

Number of responses



Question 14

• How?levelhcaetaygolonhcetevitamrofsnartfonoitpodatnerrucs’ynapmocruoyebircseduoydluow

• Results

• The structure of industrial automation at a factory includes the field level (sensors, machines, motors, pumps, fans, etc.), control level (PLC, IPC, SCADA, and process controls),

and enterprise level (ERP, PLM, SCM, etc.).

• Complete adoption and replacement of all legacy systems is higher at the enterprise level than at the control level and field level, which indicates that transformative

technologies are more mature at the enterprise level.

• At the enterprise level, the number respondents that chose none or very limited adoption was similar to the number that chose widespread adoption and system integration. This

indicates that the deployment of transformative technology at the enterprise level is currently differentiated.

• For control level and field level, the number that chose none or very limited adoption is higher than the number that chose wide spread adoption and system integration, which

means that the field level and control level still lack the deployment of various transformative technologies, with the exception of physical automation.


None or very limited

adoption

Some adoption and increasing use Wide spread adoption and

system integration

Complete adoption and

replacement of all

legacy systems

Field level

Control level

Enterprise Level


Question 14

0

10

20

30

40

50

60

Field level Control level Enterprise Level

None or very limited adoption Some adoption and increasing use Wide spread adoption and system integration Complete adoption and replacement of all legacy systems

How would you describe your company’s current adoption of transformative technology at each level?



Nu

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Levels in factory architecture


30


Question 15

• Currently,?ygolonhcetevitamrofsnarttnemelpmidnasseccaothcaorppaderreferps’ynapmocruoysitahw

• Results

• Most of the respondents believe that the preferredmorfecivresdnastcudorpgnitsixeesahcruP“eraseigolonhcetevitamrofsnartgnitnemelpmidnagnisseccaotsehcaorppa

outside”.srentrap/sreilppus/sremotsuchtiwpoleved-oC“dna”ylno

• For edge (computing, sensing, embedded), physical automation, and connectivity (NB-IOT, 5G, Wireless) technologies, more respondentsstcudorpgnitsixeesahcruP“referp

and.seludomrostnenopmocerutamnideyolpedneebydaerlaevahseigolonhcetesehttahtebyamnosaerehT”.ylnoedistuomorfecivres

• Forrofnaht”ylnoyllanretnipoleveD“esohcstnednopserfoegatnecrepregralhcuma,noitazilautrivdnaecnegilletnilaicifitra other technologies. This indicates that artificial

intelligence and virtualization requires more custom solutions combined with internal vertical manufacturing domain experience.


Develop internally only Purchase existing products and

service from outside only

Co- develop with

customers/suppliers/partners

Artificial intelligence (Algorithm, Hardware)

Cloud & XaaS(Computing, Storage, platform, BI, Service)

Edge (Computing, Sensing, Embedded)

Connectivity (NB-IOT, 5G, Wireless) technologies

Physical Automation （Robots & drones）

Virtualization (SW, Simulation, Visualization, AR, VR, Blockchain)


Question 15

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Artificial intelligence (Algorithm, Hardware)

Cloud & XaaS(Computing, Storage, platform, BI, Service)

Edge (Computing, Sensing, Embedded)

Connectivity (NB-IOT, 5G, Wireless) technologies

Physical Automation （Robots & drones）

Virtualization (SW, Simulation, Visualization, AR, VR, Blockchain)

Develop internally only Purchase existing products and service from outside only Co- develop with customers/suppliers/partners

Currently, what is your company’s preferred approach to access and implement transformative technology?



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Percentage of responses


32


Question 16

• What manufacturing applications do you plan to implement using transformative technology?

• Results

• ThessecorP/tcudorP“”,tnemeganamdnagninnalpecruoseR“”,ytiruceSdnaytefaSrekroW“fosnoitacilppaehtniregralsi”sraey2-1 txen ni tnemelpmi lliW“esohctahtstnednopserforebmunSafety”.ecnanetniamevitciderP“dna”,noitalumisdnagnipytotorp,ngiseD“”,ecnailpmoCdna

• TheelpoeP/tnemeganaM robaL“”,gniniart/gnicivresetomeR“”,tnemeganamygrenetramS“fosnoitacilppaehtniregralsi”sraey2-1 txen ni tnemelpmi ton lliW“esohctahtstnednopserforebmun Tracking,””.noitcafsitaSdnatnemegagnEremotsuC“dna


Will not implement in next 1-2 years Unsure of the benefit Will implement in next 1-2 years

Predictive maintenance

Asset management & Uptime Optimization

Condition monitoring

Demand monitoring

Design, prototyping and simulation

Smart energy management

Operations Visibility and Optimization

Supply Chain and Logistics Optimization

Remote servicing / training

Customer Engagement and Satisfaction

Resource planning and management

Product/Process Safety and Compliance

Labor Management / People Tracking

Business intelligence and analytics platforms

Management of Environmental Conditions

Worker Safety and Security


Question 16

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Predictive maintenance

Asset management & Uptime Optimization

Condition monitoring

Demand monitoring

Design, prototyping and simulation

Smart energy management

Operations Visibility and Optimization

Supply Chain and Logistics Optimization

Remote servicing / training

Customer Engagement and Satisfaction

Resource planning and management

Product/Process Safety and Compliance

Labor Management / People Tracking

Business intelligence and analytics platforms

Management of Environmental Conditions

Worker Safety and Security

Will not implement in next 1-2 years Unsure of the benefit Will implement in next 1-2 years

What manufacturing applications do you plan to implement using transformative technology?



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Percentage of responses


34


Regional differences


35


Regional differences – Q7: What manufacturing benefits are your

organization targeting through investment and adoption of transformative

technology? • What manufacturing benefits are your organization targeting through investment and adoption of transformative technology?

• Shorter lead time/time to market

• Higher quality

• Lower overall cost (material, labor and energy)

• Customized products

• Increased production line flexibility

• Higher throughput

• Reduced downtime/increased OEE (Overall Equipment Effectiveness)

• Increased innovation

• Lower inventory


• Results

• For the top three benefits:

• “Highertaht setacidni sihT .snoiger ruof eht fo lla ni ygolonhcetevitamrofsnartgnitpodafostifenebeerhtpotehtfoowtera”tekramotemit/emitdaelretrohS“dna”ytilauq every region is similarly pursuing high quality and time to market through transformative technology.

• “Lowergereerhtniseigolonhcetevitamrofsnartgnitpodaottifenebeerhtpotasi”(ygrenednarobal,lairetam)tsocllarevo ions.

• “Increased.eporuEniseigolonhcetevitamrofsnartgnitpodaottifenebeerhtpotasi”ytilibixelfenilnoitcudorp

• Regarding the benefits ranked in the bottom three:

• “Lower.snoigerruofllanitsewolehtfoowterew”stcudorpdezimotsuC“dna”yrotnevni

• “Higher.snoigereerhtnitnatropmisselsmees”tuphguorht



Regional differences – Q7: What manufacturing benefits are your

organization targeting through investment and adoption of transformative

technology? (Please select the top 3)

Top three benefits by region

North America Europe Asia Others

Lower overall cost Higher quality Shorter lead time/time to market Higher quality

Higher quality Shorter lead time/time to market Higher quality Shorter lead time/time to market

Shorter lead time/time to market Increased production line flexibility Lower overall cost Lower overall cost



37

Bottom three benefits by region


Increased innovation Lower inventory Higher throughput Customized products

Customized products Customized products Customized products Lower inventory

Lower inventory Higher throughput Lower inventory Higher throughput



Regional differences – Q8: What are the manufacturing related challenges of

adopting transformative technology?


• Business model

• Unproven technology

• Immature products (SW, HW)

• Investment/cost too high

• ROI uncertainty

• Leadership unsupportive

• Employee skills/knowledge

• Sufficient existing technology

• Risk to data security

• Organizational culture adverse to change

• Difficulty of business process integration / change management

• Interoperability Issues


• Results

• The top three challenges:

• “Employeeon si ereht ereht setacidni sihT .snoiger ruof lla ni seigolonhcetevitamrofsnartgnitpodaotsegnellahceerhtpotehtfoowterew”hgihoottsoc/tnemtsevnI“dna”egdelwonk/slliks difference between the regions. They are all looking for transformative technology talent.

• “BusinesstuobadeirrowerastnednopsertahtsetacidnisihT.snoigerowtnieerhtpotehtniera”ytniatrecnuIOR“dna”ledom the required investment and which business model is the correct one.

• For three challenges ranked lowest:

• “Interoperability.snoigerruofllanieerhtmottobehtnideknarsawtI.gnignellahcderedisnocebotmeestonseod”seussI

• ".gnignellahc deredisnoc eb ot mees ton odosla"ygolonhcetgnitsixetneiciffuS"dna”,ygolonhcetnevorpnU“”,(WH,WS)stcudorperutammI“”,evitroppusnupihsredaeL



Regional differences – Q8: What are the manufacturing related challenges of

adopting transformative technology?

Top three challenges by region


Investment/cost too high Employee skills/knowledge Investment/cost too high Investment/cost too high

Employee skills/knowledge Investment/cost too high Employee skills/knowledge Employee skills/knowledge

ROI uncertainty Business model Business model ROI uncertainty



39

Bottom three challenges by region


Risk to data security Interoperability Issues Leadership unsupportive Immature products (SW, HW)

Sufficient existing technology Immature products (SW, HW) Immature products (SW, HW) Leadership unsupportive

Interoperability Issues Unproven technology Interoperability Issues Interoperability Issues



Q9 & Q11: How much your company invested in 2017, and is likely to invest

in 2020 in transformative technology? (by regions)

• How much your company invested in 2017, and is likely to invest in 2020 in transformative technology?








• None

• Results

• Theof,0202dna7102nierahstsegralehtsawsrehtodnaaisAni”noillim001DSUnahteroM“esohctahtstnednopserforebmun llowed by North America.

• The.aciremA htroNybdewollof,0202dna7102nierahstsegralehtsaweporuEni”noillim1DSUnahtsseL“esohctahtstnednopserforebmun

• The”snoigerrehtO“ybdewollof,0202dna7102nierahstsegralehtsawaciremAhtroNni”enoN“esohctahtstnednopserforebmun

• All the respondents from Europe are expected to invest in transformative technologies in the next years.



Q9 & Q11: How much your company invested in 2017, and is likely to invest

in 2020 in transformative technology? (by regions)

0% 20% 40% 60% 80% 100%

Europe

Asia

Others

North America

Less than 1M USD Between 1M – 5M USD Between 5M - 10M USD Between 10M – 20M USD

Between 20M – 50M USD Between 50M – 100M USD More than 100M USD None

How much your company invested in transformative technology in production or

products in 2017? (by regions)


Reg

ion

s

% of respondents

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Europe

Asia

Others

North America

Less than 1M USD Between 1M – 5M USD Between 5M - 10M USD Between 10M – 20M USD

Between 20M – 50M USD Between 50M – 100M USD More than 100M USD None

How much your company is likely to invest in transformative technology in production

or products in 2020? (by regions)


Reg

ion

s

% of respondents


41


Industry differences – “Automotive” and “Semi, electronics &

display”


42


Question 6

• Does your company or business line currently adopt transformative technology in production or products today?

• Yes, we have widely adopted

• Yes, we have limited adoption

• Transformative technology in proof of concept projects

• Strategy developed to test transformative technology

• Strategy to adopt a work in progress

• No current adoption or planned strategy

• Results

• Over 30% of respondents from the automotive industry indicated that they are already using transformative technologies widely, and only 24% of respondents from the

semiconductor and electronics industry responded the same. These results are very positive for transformative technology adoption in automotive manufacturing. This is

probably due to the wide penetration of industrial robots in automotive manufacturing.



Question 6

31%

23%

22%

11%

7%

6%







Automotive: Does your company or business line currently adopt transformative

technology in production or products today?



24%

24%

16%

15%

12%

9%







Electronics and Semiconductor: Does your company or business line currently adopt

transformative technology in production or products today?




44


Question 10

• What type of transformative technology did your company invest most heavily in 2017?







• Results

• Many more respondents from the automotive manufacturing sector (40%) think physical automation is important than those in the semiconductor & electronics manufacturing

sector (21%) because industrial robots, smart AGVs, automatic warehouse were already playing an important role in automotive manufacturing in 2017.

• On the contrary, many more respondents from the automotive manufacturing sector (32%) think virtualization technologies (AR, VR and Blockchain) are "Not at all Important"

than those in the semiconductor & electronics manufacturing sector (22%).

• The respondents from both industries have a similar opinion with regard to the importance of artificial intelligence. There needs to be more successful user cases to prove its

value to manufacturing.



Question 10

0% 20% 40% 60% 80% 100%









Automotive: What type of transformative technology did your company invest most heavily in 2017？



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0% 20% 40% 60% 80% 100%








Very Important Important Moderately Important

Slightly Important Not important Not at all important

Electronics and Semiconductor: What type of transformative technology did your company invest most heavily in 2017？



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46


Question 12

• What type of transformative technology did your company invest most heavily in 2017, and will invest most heavily in 2020?





• Physical Automation (robots & drones, smart AGVs, automatic warehouse)


• Results

• The respondents from both industries have a similar projection for transformative technologies in 2020 (three years later).

• Physical automation has a similar recognition rate in the automotive manufacturing and electronics & semiconductor manufacturing sectors.



Question 12

0% 20% 40% 60% 80% 100%

Edge technologies (edge computing, sensing, embeddedsmart devices)

Connectivity (NB-IOT, 5G, wireless, short distancecommunications)

Virtualization (SW, simulation, visualization, AR, VR,blockchain)

Cloud & XaaS (cloud computing, storage, cloud platform,BI, cloud services)

Artificial intelligence (algorithm, AI hardware, AI services )

Physical Automation (robots & drones, smart AGVs,

automatic warehouse）


Automotive: What type of transformative technology will your company invest most heavily in 2020？



Ty

pe o

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an

sfo

rmati

ve t

ech

no

log

y


0% 20% 40% 60% 80% 100%









Electronics and Semiconductor: What type of transformative technology will your company invest most heavily in 2020？



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48


Conclusion


49


Conclusions about transformative technologies in automotive manufacturing

• At present, AI, VR/AR, connectivity and cloud & XaaS are still very much in their infancy in automotive manufacturing. AI is being implemented in two ways – device

and cloud based. AI on the cloud has more computing power for the analysis of data, but there are potential issues with privacy, latency, and stability, which is critical

to manufacturing. A stronger on-device AI combined with cloud AI can help offset those dangers to some degree.

• Growth for connectivity technologies will accelerate with the implementation of edge computing. From robots to machine vision to security cameras, these

geographically dispersed devices will need to interact with, and respond to, changes in the physical world in near-real time. This means that instead of sensor data

being transmitted to and processed by a centralized cloud, data will be processed locally and as closely as possible to the device.

• 5G is on its way to becoming an important standard for connectivity. 5G will help expand the scope of practical connectivity use-cases, such as mission-critical,

ultralow-latency machines in applications like closed loop factory automation.

• Obviously, physical automation (robots and drones, smart AGVs, automatic warehouse) has already been widely adopted and has mature technologies in the

automotive sector. Industrial robots and smart AGVs have been deployed mostly in automated warehouses to reduce worker load, while attempting to increase

efficiency and safety.

• Edge technology: Computer vision is a kind of embedded vision technology used to extract information from digital images and videos through image sensors.

Specific tasks that are necessary include image acquisition, processing, analysis, and understanding. There are many applications in the manufacturing sector, such

as industrial robots, drones, intelligent transportation systems, high-quality surveillance, medical applications, and automotive safety.


50


Appendix


51


List of questions

1. Which of these industries does your organization primarily serve?

2. What is your company type? (please select one)

3. Where are you located? (Please select one)

4. What was the annual turnover of your company in 2017? (Please select one)

5. What job title best describes your role? (Please select one)

6. Does your company or business line currently adopt transformative technology in production or products today? (Please select one)

7. What manufacturing benefits are your organization targeting through investment and adoption of transformative technology? (Please select the top 3)

8. What are the manufacturing related challenges of adopting transformative technology? (Please select the top 3)

9. Please estimate how much your company invested in transformative technology in production or products in 2017 (Please select one)

10. What type of transformative technology did your company invest most heavily in 2017? (Please rank them in order of importance 1 = Most important, 6 = Least important )

11. Please estimate how much your company is likely to invest in transformative technology in production or products in 2020. (Please select one)

12. In what type of transformative technology will your company invest most heavily, in 2020? (Please rank them in order of importance 1 = Most important, 6 = Least important)

13. Does your company need to invest in the following to support adoption of transformative technology? (Please select the top 3)

14. How?levelhcaetaygolonhcetevitamrofsnartfonoitpodatnerrucs’ynapmocruoyebircseduoydluow

15. Currently,?ygolonhcetevitamrofsnarttnemelpmidnasseccaothcaorppaderreferps’ynapmocruoysitahw

16. What manufacturing applications do you plan to implement using transformative technology?



Open responses – Question 1: Which of these industries does your

organization primarily serve?

• Aviation

• Bearing industry equipment and component

• Agriculture, forestry, heavy off-road, construction equipment

• Chemicals & resins

• Manufacturing machining

• Aerospace

• Medical

• Manufacturing

• Automation

• Agricultural Utility Tractor

• IT


53


Open responses – Question 2: What is your company type?

• After market

• Battery

• Sales installation

• Service Provider

• Engineering service

• Laboratory for development of efficient EV propulsion systems

• Auto Repair

• Software Developer for machinery/Prob & Machines Importer

• Fist fill and parts lubricants for automotive OEM.


54


Open responses – Question 5: What job title best describes your role?

• Design

• Technology Transfer

• Mechanic designer

• Design Engineering Manager

• Diagnosis & repair

• Design Engineer

• Owner

• Innovation Management

• Develop and implementing I4.0

• Safety

• engineering

• Engineering

• CONSTRUCTION AND MACHINERY REPAIR

• ENGINEERING ( Applications Engineer and Project Manager)


55


Open responses – Question 7: What manufacturing benefits are your organization

targeting through investment and adoption of transformative technology?

• Just a retail business

• Real Time data

• adopt to the new technology


56


Open responses – Question 8: What are the manufacturing related

challenges of adopting transformative technology?

• None

• The problem we are facing out of the company are the immaturity of the low tech culture, promote the factories transformative technology advantage is a huge

challenge

• unknown


57


Open responses – Question 13: Does your company need to invest in the

following to support adoption of transformative technology?

• None

• Not that I can see.

• None

• Data in real time


58

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Documents

Automotive manufacturing insight - Adoption of ...€¦ · The aim of this survey was to better understand the transformative technologies deployed in automotive manufacturing. The