VDE Trend Report
Germany's role in IoT and Industry 4.0
Where does Germany stand internationally in terms of the Internet of Things (IoT) and Industry 4.0? What are the resulting forecasts? The VDE surveyed its 1,300 member companies and universities in the field of electrical engineering and information technology.
More than half of the VDE members surveyed see the Internet of Things being implemented by 2025.
© VDE"But where there is shadow, there is also light. According to the survey, automation is the number one cutting-edge technology for our companies in Germany," said the VDE at the Hannover Messe 2016. The association is by no means gloomy. Germany, with its many "hidden champions", has the potential to play a decisive role in shaping the digitalization of the economy and society. The Internet of Things will strengthen Germany's competitiveness, particularly in the SME sector. According to the VDE, the '5G Lab Germany' at TU Dresden is right at the top of the league.
Assessment of Germany as a business location
In view of the US dominance, eight out of ten respondents are concerned that Germany is falling behind in the innovation race - especially when it comes to technical software and internet platforms. Only one in ten VDE members believes that German universities are well prepared for the topic of IoT. Half of those surveyed see a risk that German industry will cling to traditional technologies, methods, value chains and business models for too long. When asked whether their company is already involved with IoT, only three out of ten companies answered in the affirmative. Companies are correspondingly cautious in their assessment of Germany's current position in the international innovation race.Lack of IT security as the main obstacle
IT security is the biggest stumbling block for the IoT and other digital applications of the future.
© VDESo what is the problem in Germany, the land of engineers? Companies consider IT security to be by far the biggest barrier to the spread of the Internet of Things: Nine out of ten companies consider IT security to be critical to the success of IoT and other digital applications such as Industry 4.0. A lack of norms and standards and an inadequate ICT infrastructure are each criticized by 50%. Three out of ten companies see complexity and a lack of maturity or technical hurdles as obstacles. The majority of respondents are clear about how Germany can catch up with America and Asia in the innovation race: the nationwide expansion of broadband infrastructure must be driven forward. Other topics include the rapid development and use of the 5G communication standard and the strengthening of Germany / Europe as a microelectronics location.
Industries that benefit from the Internet of Things
The VDE members see mechanical and plant engineering and the service sectors as the biggest winners in the IoT.
© VDEMore than half of the companies and universities are convinced that IoT strengthens the competitiveness of the location. According to the respondents, the service sectors, mechanical and plant engineering and automotive engineering will benefit most from the connected structures of the Internet of Things. Around one in three forecast significant added value for the medical technology, electrical engineering, ICT and energy sectors.
Only a third of those surveyed by the VDE believe that the IoT and Industry 4.0 will create new jobs.
© VDEJust as many believe that IoT will create more jobs for the economy as a whole. New business models and new products and systems are the main opportunities of the IoT for those surveyed. Other plus points are increased efficiency and the close networking of processes within the company and with customers. The following are also seen as benefits: better use of resources, increased transparency and cost reduction as well as a higher quality of life.
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