Among the key industries in Germany, mechanical and plant engineering is the most open to digitalization. According to the Bitkom survey, 93% of mechanical and plant engineering companies are open to digital technologies and innovations, compared to an industry average of 85%. And not a single company rejects digitalization.

The effects of the coronavirus crisis on the industry are clearly noticeable: eight out of ten mechanical and plant engineering companies (80%) have increased their investments in digital devices, technologies and applications in recent months as a result of their experiences - also more than in the other industries surveyed.

Santu Mandal, Head - Manufacturing Business Unit at TCS in Germany.

© TCS

"The pandemic has rapidly accelerated digitalization," says Santu Mandal, Head - Manufacturing Business Unit at TCS in Germany. "Corona has also made it clear that digitalization is essential for companies to remain flexible and resilient. Companies need to introduce digital technologies and digital business models today in order to cope better with difficult conditions in the future. After all, the more digital a company is, the better it will get through times of crisis."

Unsurprisingly, the mechanical and plant engineering sector uses two technologies more than twice as often as other sectors: Every second company uses 3D printing (54%, overall: 26%) or robotics (47%, overall: 20%). Blockchain, on the other hand, remains a niche topic, with only 3% of companies using it (overall: 7%). One key technology - cloud computing - is already being used frequently: 84% of machinery and plant manufacturers in Germany use IT services via the internet.

"Public, private or hybrid clouds were already being used in most companies before the pandemic - but not yet on a broad scale," explains Mandal. "In recent months, cloud deployments have tripled to quintupled and the cloud is at the heart of companies' digital transformation."

Another key technology is already on the rise: artificial intelligence (AI) could soon shape everyday life in companies. More than one in two machine and plant manufacturers (53%) are convinced that AI is a key technology for their own competitiveness. Among companies that have already engaged with AI and are using, planning or discussing corresponding applications, the proportion is even higher at 80%.

However, the use of AI is still lagging behind in practice: just 14% of companies are already using AI-based applications. A further 16% are planning to use them and 17% are currently discussing this within the company. By using AI, companies primarily want to save costs (59%) and achieve efficiency gains (47%).