Industrial Automation, Rapid Change and the Automotive Industry

A 6th 2023 report by McKinsey, “Is industrial automation headed for a tipping point?” describes the tipping point of industrial automation is appraoching where the players, technology and societal forces are all reaching a crashendo that will set the stage for massive and rapid change.

Highlights:

• Industrial automation, once a slow and steady evolution, is now accelerating due to technological disruptions and global trends such as reshoring, labor shortages, and ESG efforts.
• Advanced manufacturing technologies are becoming commonplace, leading to a “software-defined” paradigm for industrial automation.
• Four vendor archetypes — hyperscalers, automation players, software players, and specialized players — are evolving their strategies, with hyperscalers disrupting the most.
• A majority of automation users believe digital solutions will be crucial to their future automation efforts, leading to a shift towards partnerships with OEMs.
• Two potential scenarios for the future of industrial automation are identified, differing by the speed of technology adoption.
• Different players in industrial automation can take steps today to prepare for the future, with hyperscalers expanding their…