July 22, 2024 Manufacturers Drive On To Digital Transformation

New research reveals AI is expected to drive growth by 2029 and examines current trends, challenges and tech shaping global manufacturing.

By Enrique Herrera, Industry Principal for Manufacturing, Zebra Technologies

The manufacturing industry’s journey to digital transformation began about 20 years ago. It’s been a bumpy road filled with obstacles, particularly around enhancing visibility, augmenting labor, and optimizing quality for a connected factory.

Despite the roadblocks, manufacturers are working in new ways with technology. The market – and benefits – for digital transformation in the sector are vast. Recent research estimates digital transformation in the manufacturing market will be USD $367.6 billion in 2024 and is expected to reach USD $876.1 billion by 2029.

Manufacturers are poised to invest in technology to advance digital transformation. A new Zebra Global Manufacturing Vision Study shows 92% of surveyed manufacturing leaders agree digital transformation is a strategic priority and 89% plan to increase tech investments this year.

Zebra’s study examines current trends, challenges, and the tech plans shaping the global manufacturing industry. Manufacturers are mapping the way to the connected factories of Industry 4.0. Let’s look at how they’re getting there.

It Starts with Visibility – in Real Time

Real-time visibility is how manufacturers see, track, and monitor operations as they happen. It enables them to keep a literal eye on every aspect of the production process from worker safety to materials handling, equipment functionality, and more.

While manufacturers indicate they are prioritizing digital transformation, Zebra’s study found only 16% of manufacturers say they have real-time work-in-progress (WIP) monitoring across the entire manufacturing process. It’s a significant gap to close to boost efficiency and productivity.

Aiming to enhance visibility, nearly all manufacturers surveyed plan to implement fixed industrial scanners (99%), autonomous mobile robots (99%), machine vision (98%), and RFID (97%) by 2029. These solutions provide the eyes, tracking ability, and movement to boost visibility throughout operations.

Artificial intelligence will also play a key role in manufacturing visibility ahead. Six in 10 manufacturing leaders expect AI to drive growth by 2029, a 41% increase from 2024. Additionally, nearly six in 10 manufacturers say they expect to increase visibility across operations and throughout the supply chain by 2029. Delivering real-time insights, these advanced solutions enable manufacturers to make decisions based on annotated data, removing any guesswork.

Visibility paves the road to a connected factory. Manufacturers can see every detail of the production process from the massive to the minuscule and harness the data generated to make insightful decisions.

Next, Power the People – Worker Augmentation

The labor problem just won’t quit for manufacturers. More than 65% cite the inability to attract and retain quality employees as their top challenge in the latest NAM Manufacturers’ Outlook Survey.

The nature of work and the workforce are shifting. According to a recent McKinsey report, Gen Z brings a new perspective to the factory floor, citing meaningful work, flexibility, and a respectful environment among the top reasons they would remain in a job.

Manufacturing leaders surveyed in Zebra’s study are looking at labor beyond worker efficiency and productivity. Seven in 10 rank the most important labor initiative as improving the worker experience with technology. Another six in 10 list ongoing development, retraining/upskilling, and career path development to attract future talent as the most important.

The gap between the latest technology and workers with the right skills must narrow. Zebra’s study shows manufacturers are empowering workers with mobile devices, workforce software solutions, and AI to build a workforce as skilled as the technology it uses.

By 2029, seven in 10 manufacturing leaders expect to reskill labor to enhance data and technology usage skills and to augment workers with mobility-enabling technology. The technology tools being implemented by five in 10 manufacturers include tablets, mobile computers, and workforce management software. More than 60% plan to leverage wearables and computer vision, and 70% plan to use augmented/virtual reality.

These solutions advance digital transformation and improve workers’ experience. Optimizing labor frees them from repetitive, tedious tasks, so employees can focus on the more meaningful work they desire. The collaboration between people and automation balances technological innovation and human development and is key to reaching and sustaining a connected factory.

All Roads Lead to Quality

When visibility is enhanced and skilled workers are satisfied with their experience, quality results. However, the road to optimizing quality is not completely smooth. Zebra’s study found that visibility and timing in resolving problems, staying on pace with new standards and regulations, maintaining traceability, and integrating data were manufacturers’ top quality management issues.

To address quality quandaries, manufacturers are looking to the latest automation technologies. By 2029, more than half say they plan to use or have already implemented fixed industrial scanning (56%), deep learning (63%), machine learning (64%), augmented reality (66%), and 3D vision (70%).

Industry 4.0 Arrival

Innovation is in perpetual motion. Zebra’s study confirms manufacturers are moving with it, enhancing visibility, augmenting workers, and optimizing quality to arrive at a fully connected factory.

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Enrique Herrera is the Industry Principal of Manufacturing at Zebra Technologies. With over 15 years of experience in the manufacturing and technology space, he is experienced in business transformation solutions, specializing in industrial operations. Herrera is a thought-leading speaker on topics such as the industrial Internet of Things (IIoT), Industry 4.0, digital twins, and modern data analytics and serves as a trusted advisor for large industrial enterprises.

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