Despite global progress in Industry 4.0 adoption, a new study reveals that the DACH region (Germany, Austria, and Switzerland) is at risk of falling behind, with countries like China and the USA leading the charge. The study highlights significant hurdles faced by German-speaking countries, such as outdated legacy systems and a shortage of skilled workers, which are slowing their digital transformation efforts.
Key Findings from the Industry 4.0 Barometer 2025 Study
The Industry 4.0 Barometer 2025 study, conducted by MHP and Ludwig-Maximilians University Munich (LMU), provides an in-depth look at the progress of Industry 4.0 technologies worldwide. The study reveals that while industrial companies globally are making strides in digitalisation, the pace of adoption has slowed in many regions, with the DACH region falling behind in several key metrics.
DACH Region Struggles to Keep Up
The study, which surveyed 823 industrial companies across China, the USA, Germany, Austria, Switzerland, and the UK, found that the DACH region is lagging in several critical areas of Industry 4.0:
- Digital Twins: While 67% of companies in China use digital twins (virtual replicas of physical production systems), only 41% of DACH companies have implemented them. Alarmingly, 30% of DACH companies do not use digital twins at all.
- Driverless Transport Systems (DTS): Autonomous logistics systems, which are gaining traction in China (used by 59% of companies), are used by only 35% of companies in the DACH region.
- Data-Driven Production: The USA and China are far ahead when it comes to using data for production. In the US, 91% of companies view data as a strategic asset, compared to just 64% in the DACH region.
Challenges Hindering Industry 4.0 Adoption in DACH
The study highlights several factors that are holding back the DACH region from fully embracing Industry 4.0:
- Outdated Legacy Systems: Many companies in the region still rely on old IT infrastructure, making it difficult to adopt new technologies.
- Skills Shortage: There is a lack of skilled professionals in areas like data analytics and automation, which are critical for Industry 4.0 adoption.
- Limited Strategic Focus: Many DACH companies are not prioritising digitalisation, and insufficient resources are being allocated to these crucial efforts.
Data-Driven Production: A Missed Opportunity
One of the major findings of the report is the DACH region’s underperformance in data-driven production. Data is considered a key factor in improving operational efficiency and driving innovation. However, DACH companies are struggling to leverage data effectively:
- Only 61% of DACH firms rate their data analytics skills as superior to their competitors, compared to 78% of US firms.
- 80% of global companies believe that having detailed process insights provides a competitive advantage. However, DACH companies are not making the most of their data for informed decision-making.
What Can DACH Companies Do?
To remain competitive, DACH companies must urgently address the challenges holding them back. Key actions should include:
- Upgrading Legacy Systems: Outdated systems need to be replaced to enable integration with newer technologies.
- Investing in Skilled Workers: Companies must focus on hiring and training employees with the necessary skills in data analytics, automation, and Industry 4.0 technologies.
- Prioritising Digital Transformation: Companies must allocate more resources to digitalisation initiatives and create a culture of innovation within their organisations.
The Path Forward for the DACH Region
The study’s findings serve as a wake-up call for the DACH region. As China and the USA continue to lead the way in Industry 4.0 adoption, the DACH region risks falling behind unless significant changes are made. By addressing challenges like legacy systems, skills shortages, and strategic focus, companies in Germany, Austria, and Switzerland can secure their future competitiveness in the rapidly evolving global manufacturing landscape.
