European companies believe in the great potential of automation technology. According to a recent survey conducted by Reichelt Elektronik, 60% of the companies surveyed believe that their production will be fully automated in the next five years. Over two thirds (68%) consider automation solutions to be essential in order to remain competitive.

Germany in the lead - cloud computing dominates

© Reichelt Electronics

Germany and the Netherlands are among the pioneers when it comes to automation. German companies have already automated 43% of their manufacturing processes, closely followed by the Netherlands with 41% and Italy with 40%. Although France lags behind with 37%, it has ambitious plans to significantly increase the level of automation in the coming years.

Cloud computing (47%) and industrial IoT (46%) are the leading technologies in Germany. The Netherlands leads with 48% of companies using these technologies. Italy and France are lagging behind, with France in particular having the greatest need to catch up, with 32% for IoT and 30% for cloud integration. French companies in particular are aware of the need to catch up here, as 58% hope to automate their production in the next five years. Although data-driven decisions are very important for many companies in order to optimize processes and guarantee their own future viability and innovative strength, all nations tend to perform less well when it comes to the use of big data analytics and artificial intelligence/machine learning (AI/ML). The use of big data analytics is 35% in Germany, 41% in the Netherlands, 33% in Italy and 32% in France. The ranking for artificial intelligence/machine learning (AI/ML) is similar: Germany is in first place (28%), followed by the Netherlands (19%), Italy (19%) and France (26%).

Obstacles to more automation

The obstacles are manifold: high investment costs, a shortage of skilled workers, regulatory uncertainties and insufficient digital maturity on the part of companies. In addition, the insufficient digital maturity of companies and the local infrastructure is hindering successful implementation. Furthermore, doubts among employees and management about the economic benefits are blocking successful adaptation. Technological complexity and integration problems further exacerbate the challenge, preventing many companies from implementing these technologies across the board. Nevertheless, around 50% of companies plan to implement big data and AI/ML by 2026. More than half of those surveyed even believe that AI and automation can alleviate the skills shortage in Europe.

Robots at the heart of European automation

Robots play a key role in automation. According to the IFR World Robotics Report 2023, Germany leads the way in Europe with 415 industrial robots per 10,000 employees in the manufacturing sector. According to the Reichelt survey, 63% of German companies already use robots, followed by France with 58%, the Netherlands with 51% and Italy with 48%. The differences in the use of robots are interesting: while Italy (61%) and France (44%) use robots primarily for repetitive tasks, the focus in Germany and the Netherlands is on physically demanding activities (both 54%).

Automation as the key to market development and sustainability

Automation opens up a wide range of opportunities for European industry. France, Italy and Germany see automation primarily as an opportunity to open up new markets through innovative products (35% in France, 36% in Italy, 39% in Germany). The Netherlands, on the other hand, relies on automation to ensure sustainable production (45%).

The results of the Reichelt survey show that the acceptance and success of automation technologies depend heavily on individual company conditions. While small companies often struggle to find suitable and cost-effective tools, larger companies face the challenge of making the best use of their budgets. Targeted strategies and measures could help to further drive automation across Europe.

The survey was conducted in April/May 2024 by OnePoll among 1250 tech decision-makers from the manufacturing industry in Germany, France, Italy and the Netherlands. The participants come from industries such as aerospace, chemicals, automotive, textiles, mechanical engineering and many more.