Connected Products may add $685 Billion to Global Manufacturing Revenue by 2020
PARIS—The global manufacturing industry could see between $519 billion and $685 billion in value-added revenue by 2020 through smart, connected devices, per a new report by Capgemini’s Digital Transformation Institute. The report, Digital Engineering: The New Growth Engine for Discrete Manufacturers, says that while the potential returns are significant, manufacturers need to invest in digital continuity and digital capabilities to benefit.
Manufacturers estimate that close to 50 percent of their products will be smart and connected by 2020, a 32 percentage point increase from 2014. Further, 18 percent say that they plan to stop manufacturing products altogether and move to a pure service-based business model. A move in this direction will make the shift to a service-based model a business imperative and will require enhanced capabilities.