Automotive

Smart Factories

Putting automotive manufacturers in the digital industrial

revolution driving seat

The size of the smart factory prize:

$160 billion annually by 2023

$160 billion
Added productivity
gains for
the industry
7%
Industry’s productivity
24% growth by 2023
Automotive factories
becoming smart
by 2023

Source: Capgemini Research Institute Smart Factory Survey 2017-18, Capgemini Research Institute analysis.

Smart factories can help a top-ten global automotive OEM earn an

additional $4.6 billion operational profit

$14.10 billion
Increase of $4.6 billion in annual operational profit
after attaining full potential of smart factories

$9.5 billion

Current Operational Profit Projected Operational Profit

by 2023

Source: Capgemini Research Institute Smart Factory Survey 2017-18, Capgemini Digital Transformation Institute analysis.

Automotive—the industry most bullish on

smart factories
The automotive industry leads all other industries in its share of firms in the
highest investment category
49%
45%

19% 19% 18%

17% 17% 15%

Less than $50M Between $50–$100M Between $100–$250M Above $250M

Auto industry All other manufacturing industries

Source: Capgemini Research Institute Smart Factory Survey 2017–18.

Auto manufacturers across the world are pursuing smart factory initiatives
Adoption of smart factories in the automotive industry by country

63% 34% 59% 27% 56% 36% 47% 41%

France Germany United Kingdom United States

43% 38% 35% 30% 28% 70% 27% 67%

India Sweden China Italy

Yes – we have an ongoing smart factory initiative

Our smart factory initiative is currently being formulated

Source: Capgemini Research Institute Smart Factory Survey 2017–18.

Few auto manufacturers have translated

their enthusiasm into real progress
Only 4% of automotive manufacturers are digital masters
Automotive industry—digital maturity of manufacturing
High

Fashionistas 6% Digital Masters 4%

Digital Intensity
Low

Beginners 85% Conservatives 5%

Low Transformation Management Intensity High

Source: Capgemini Research Institute Smart Factory Survey 2017–18, Capgemini Research Institute analysis.
Digital Maturity Framework adapted from: Andrew McAfee, Didier Bonnet, and George Westerman, “Leading Digital: Turning
Technology into Business Transformation,” 2014.

The automotive industry has the highest share of struggling smart factory
initiatives
Share of smart factory initiatives that are struggling—by industry

45%
42%
40% 40%
39% 38%
36%

28%
26%

Automo- Automo- Automo- Life Consumer Energy Aerospace Industrial Global

tive tive tive sciences, goods and and manufacturing
suppliers OEMs biotech, utilities defense
pharma
Source: Capgemini Research Institute Smart Factory Survey 2017–18.

Companies that are making progress invest

2.5X more than those that are struggling
Total investment made on smart factory initiative (in million $)

Organizations making
good progress 926

Struggling
organizations 380

Source: Capgemini Research Institute Smart Factory Survey 2017–18.

Digital maturity holds the key to unlock the

full potential of smart factories
Follow digital masters'
example by leveraging
digital at scale and
monitoring progress
Focus on governance
and talent

Focus on vision and Organizations

increase investments making good
progress

“Early-stage”
organizations

ery
a s t
Struggling talm
organizations digi
s
w ard
To

Source: Capgemini Research Institute Analysis.

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