**London**: A report from Information Services Group reveals that Europe’s manufacturing sector is increasingly adopting AI, IoT, and sustainable practices to enhance efficiency and meet consumer demands. Leaders like Accenture and Capgemini are highlighted for their roles in this transformation amidst growing regulatory pressures.
A recent report from Information Services Group (ISG) has highlighted significant trends in Europe’s manufacturing sector, underscoring the ongoing impact of digital transformation and Industry 4.0 initiatives. The 2024 ISG Provider Lens™ Manufacturing Industry Services and Solutions report reveals that manufacturers are increasingly turning to advanced technologies such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), and robotics to enhance operational efficiency and decision-making processes.
Andreas Fahr, managing director of ISG DACH and manufacturing industry lead for EMEA, commented on the sector’s transformation, stating, “Europe’s manufacturing sector continues to undergo a profound transformation driven by technological advancements, sustainability imperatives and shifting consumer preferences.” He noted that manufacturers are actively collaborating with service providers to leverage these intelligent digital technologies to improve their operations.
The report also indicates that sustainability is becoming a central theme for manufacturers, who are seeking to implement greener practices that minimise waste and reduce carbon emissions. This shift is partly in response to consumer expectations, increasing regulatory pressures, and a broader need for energy independence. “Sustainability has become a primary focus of European manufacturing, and as a result, green manufacturing practices are gaining traction,” Fahr said, highlighting the industry’s pivot toward responsible sourcing and sustainable supply chains.
The COVID-19 pandemic has further intensified the need for supply chain resilience, leading manufacturers to consider reshoring operations as a means to mitigate risks. The investment in digital technologies is also aimed at improving supply chain visibility and responsiveness, thus enhancing overall operational robustness.
Jan Erik Aase, partner and global leader at ISG, remarked, “The future of manufacturing in Europe is promising, driven by innovation, sustainability and a focus on human capital,” suggesting that adopting circular economy principles could help manufacturers secure a competitive advantage.
Additionally, the report notes that manufacturing activities attributed to advanced techniques, such as 3D printing, account for 39 percent of the sector’s output in Europe. The ISG Provider Lens assessment also evaluates the capabilities of 38 service providers across various categories in the manufacturing sector, identifying leaders in Product Design, Smart Factory Solutions, Supply Chain Services, Aftermarket Services, and Industry Transformation Services.
Among the leaders identified in all five quadrants are major players such as Accenture, Capgemini, and IBM Consulting. Moreover, Capgemini has been recognised as the global ISG CX Star Performer for its customer experience in manufacturing solutions, earning top satisfaction scores in ISG’s Voice of the Customer survey.
The findings of the ISG report underscore the transformative changes occurring within Europe’s manufacturing landscape, propelled by digital advancements and an increasing commitment to sustainability.
Source: Noah Wire Services
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