European industrial strategy

Europe is embarking on a transition towards climate neutrality and digital leadership. European industry can lead the way as we enter this new age, as it has done in the past.

Three drivers will transform our industry, support our small and medium-sized enterprises (SMEs) and keep Europe sustainable and competitive. They are

• the Green transition, supported by the European Green Deal
• the Digital transition, supported by the EU’s digital strategy
• competitiveness on the global stage, where Europe must leverage the impact of its single market to set global standards

More about European industrial strategy

Industry 4.0 – Digitalisation for productivity and growth

Many observers believe that Europe is at the beginning of a new industrial revolution, considered to be the fourth such leap forward and hence labelled Industry 4.0. The ubiquitous use of sensors, the expansion of wireless communication and networks, the deployment of increasingly intelligent robots and machines – as well as increased computing power at lower cost and the development of ‘big data’ analytics – has the potential to transform the way goods are manufactured in Europe.

This new, digital industrial revolution holds the promise of increased flexibility in manufacturing, mass customisation, increased speed, better quality and improved productivity. However to capture these benefits, enterprises will need to invest in equipment, information and communication technologies (ICTs) and data analysis as well as the integration of data flows throughout the global value chain.

The need for investment, changing business models, data issues, legal questions of liability and intellectual property, standards, and skills mismatches are among the challenges that must be met if benefits are to be gained from new manufacturing and industrial technologies. If these obstacles can be overcome, Industry 4.0 may help to reverse the past decline in industrialisation and increase total value added from manufacturing to a targeted 20% of all value added by 2020.

Industry 4.0 depends on a number of new and innovative technological developments:

• The application of information and communication technology (ICT) to digitise information and integrate systems at all stages of product creation and use (including logistics and supply), both inside companies and across company boundaries;
• Cyber-physical systems that use ICTs to monitor and control physical processes and systems. These may involve embedded sensors, intelligent robots that can configure themselves to suit the immediate product to be created, or additive manufacturing (3D printing) devices;
• Network communications including wireless and internet technologies that serve to link machines, work products, systems and people, both within the manufacturing plant, and with suppliers and distributors;
• Simulation, modelling and virtualisation in the design of products and the establishment of manufacturing processes;
• Collection of vast quantities of data, and their analysis and exploitation, either immediately on the factory floor, or through big data analysis and cloud computing;
• Greater ICT-based support for human workers, including robots, augmented reality and intelligent tools

Links:

EU platforms database

Key lessons from national industry 4.0 policy initiatives in Europe