Press releases
June 17, 2024 2024-12-23 8:13Press releases
Asian Automotive Industry Outpaces Europe in Digitalization
In the automotive industry, the past decade has witnessed the dynamic expansion of Industry 4.0 technologies, as highlighted by a European Union-supported research project conducted by the Faculty of Economics and Business Administration at Babeș-Bolyai University in Cluj-Napoca. Researchers from institutions such as Corvinus University of Budapest are also contributing to this study. At the same time, the largest automotive companies have not abandoned more traditional (digital) technologies. The fact that Asian companies are overtaking European ones in terms of digitalization is largely attributable to Asian automotive supplier firms.
The automotive industry plays a significant economic and employment role in every region, whether in Europe or East Asia (China, Japan). In Central Europe, it is also evident that the industry is undergoing profound transformations. The shift to electromobility and the challenges surrounding it are further intensifying the already fierce competition among automakers. Remaining competitive requires increased efficiency, which involves renewing manufacturing technologies and processes based on digital production.
The 10-year analysis highlights a steady increase in both traditional and cutting-edge Industry 4.0 technologies in the automotive sector. Traditional technologies, such as robotics, radio-frequency identification (RFID), and algorithms, have grown by 15%, reaching a score of 54 on the researchers’ 0-100 digitalization scale. Meanwhile, advanced Industry 4.0 solutions, including IoT, smart machinery, AI, and simulations, have surged by 24%, reaching a score of 26.
“While Industry 4.0 solutions are advancing dynamically, traditional technologies remain widely used,” explains Krisztina Demeter, Professor at Corvinus University and a member of the research team. “Their prevalence reminds us that Industry 4.0 innovations are built on the established technologies.
The study focused on the largest 30 automakers and the top 100 automotive suppliers by revenue, examining companies with at least five years of reports available from 2012-2022. Among the analyzed firms, 50% were Asian, 41% European, 7% North American, and 2% South American. The largest company in the sample, both in revenue and number of employees, was the Volkswagen Group.
“As the automotive industry copes with challenges like electrification, enhancing efficiency remains critical. Understanding the digital readiness of market players is key in this highly competitive sector”, said Krisztina Demeter.
