Why this is important to Wisconsin businesses: Wisconsin companies are strong in automation and Industry 4.0 technologies and could find market opportunities in India.
India’s industrial automation is growing but needs to expand quickly in the next two years, according to a new report.
With the power, oil and gas, and automotive industries at the forefront of adopting automated technology, India’s industrial automation market was valued at $10.7 billion in 2021 and is expected to more than double, topping $23 billion, by 2027.
A report on Industry 4.0 in India from the National Association of Software and Services Companies (NASSCOM) and Capgemini shows manufacturers spent between $5.5 billion and $6.5 billion on the next-generation technologies in the 2020-21 fiscal year, amounting to half of all tech spending by manufacturers in India during that period. Three-fourths of the investment came from the automotive, electronics, chemicals and pharmaceuticals fields, the March 2022 report said.
Meanwhile, micro, small and midsize companies—which account for one-third of India’s manufacturing and half of its exports—are struggling to scale up to Industry 4.0 solutions because of financial and leadership constraints, according to the report.
“Industry 4.0 has reached a tipping point in Indian manufacturing, with strong demand for increased investment in the next two years likely to create exceptional customer experiences and long-term business models,” said NASSCOM President Debjani Ghosh.
The report recommends that companies in India should advance from pilot projects to extensive investments in technology in order to provide more connectivity, big data analysis, remote-controlled monitoring and process automation.
That will help create globally connected smart factories and will raise India’s manufacturing sector to its national target of $1.1 trillion in value by the 2026 fiscal year.
“It is evident that by 2025, more than two-thirds of the Indian manufacturing sector will embrace Industry 4.0,” said Ananth Chandramouli, managing director and head of the India business unit of Capgemini.
Wisconsin companies developing innovative automation technologies may have numerous opportunities to participate in India as it moves to expand Industry 4.0 in its factories.