Molex Releases Global Survey Results on "The State of Industry 4.0"

Molex, a leading global provider of connectivity and electronic solutions, today announced the results of a global survey of Industry 4.0 manufacturing stakeholders driving advancements in robotics, complex machines and equipment, or control systems. The survey results reflect the steady progress of the industrial automation ecosystem in developing Industry 4.0 initiatives, including intelligent automation, connectivity and analytics that increase efficiency and intelligence throughout the manufacturing lifecycle. 

“It’s exciting to see widespread progress on Industry 4.0, as the fourth industrial revolution is critical to realizing the promise of digital manufacturing,” said John Newkirk, vice president and general manager, Industrial Solutions, Molex. “Ensuring success requires a pragmatic approach, organizational alignment and secure connectivity solutions that drive operational efficiencies while increasing manufacturing flexibility and reducing costs.”

Molex commissioned Dimensional Research, a third-party research firm, to conduct an Industry 4.0 Status Survey in June 2021, with 216 qualified participants in roles including R&D, engineering, manufacturing, strategy, innovation, and supply chain management. The primary research goal was to obtain data on actual experiences and opinions about Industry 4.0. Overall, the respondents validated the continued growth, potential customer benefits, and expected business outcomes brought about by the Industrial Internet of Things (IIoT) and smart manufacturing.

Key findings include:

• 51% of respondents report having clear Industry 4.0 corporate priorities with executive support; 49% have achieved success, while 21% are still in the investment phase

• More than half of respondents expect to achieve Industry 4.0 goals within two years, while a third believe it will take three to five years to reach this milestone.

• 58% said digital transformation investments have accelerated Industry 4.0 progress

• 44% of respondents believe that organizational and cultural barriers are the most difficult to overcome

Driving impactful results and benefits 

According to the survey, the most impactful business outcomes include making better products (69%); reducing overall manufacturing costs (58%); increasing revenue (53%); offering products at a lower price (35%); and reducing time to market for new solutions (35%). For machine builders, robot manufacturers, and system integrators, opportunities for expanding automation and intelligence on the factory floor are expected to drive significant benefits for customers.

The most anticipated customer benefits include improving the efficiency of robots, machines and other manufacturing assets (58%); increasing production line flexibility (50%); using advanced analytics or digital twins to self-optimize operations (50%); virtually designing and simulating new production facilities before making capital expenditures (42%); improving labor productivity (41%); and unlocking real-time data access throughout a facility (26%). Overall, the vast majority of respondents (87%) are excited about the transformative power of Industry 4.0 over the next decade.

When asked about the capabilities that would be most beneficial to their organization’s Industry 4.0 efforts, respondents cited machines embedded with sufficient intelligence to control their own processes while interacting with the outside world (53%); remote access to all production lines and machines (47%); and versatile connectivity solutions, including the Internet (40%).

Overcoming ongoing challenges 

Despite great optimism about the Fourth Industrial Revolution, ongoing challenges in culture, business models, and technology are holding back progress. Nearly half of respondents believe leadership is not championing change, making it more difficult to gain full value from investments. Other cultural issues that impede success include finding employees with data and analytics skills (35%); organizational structures that limit information and system sharing (32%); inadequate funding and staffing for pilot projects (30%); and a lack of expertise in connected technologies (28%).

Most respondents also face significant business model challenges caused by a host of complex and expensive requirements, such as difficult funding decisions (45%); upfront investments that complicate ROI (42%); and unclear which use cases will deliver the greatest return (40%). They also face a litany of technical barriers, including separate IT and OT network infrastructures (43%); restrictive communications protocols (39%); limited remote access (36%); cloud infrastructure and data solutions that don’t align with manufacturing needs (34%), and inadequate security capabilities (32%). Ultimately, 85% of survey participants strongly agreed that a change in leadership mindset is critical to enabling Industry 4.0 initiatives to thrive.