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Digital Transformation of the Australian Manufacturing Industry, Forecast to 2024

  • Report

  • 108 Pages
  • January 2018
  • Region: Australia
  • Frost & Sullivan
  • ID: 4457640

Industrial Internet of Things and Data Analytics to Transform the Factory Floor

Australia is able to stay competitive in global manufacturing due to its capabilities in manufacturing high value-added products. However, the comparative disadvantage in large-volume production is currently a restraint limiting the global competitiveness of the industry.

The transition to smart manufacturing is being driven by structural changes in the global market, with Australia aiming to move from low-cost, high-volume production to high-margin, low-volume models. This study looks at the digital technologies transforming the Australian manufacturing sector. It provides insights into both global and domestic technology trends, throws light on market innovations, highlights the mainstream applications of these new technologies, and predicts the potential applications in Australia. It also analyses the competitive structure of the market, makes comparisons with traditional manufacturing, and discusses the overall trends and development plans that are shaping the market.

Advanced technologies, such as robotics, Additive Manufacturing (AM), and digital manufacturing are revolutionising manufacturing, with new abilities to design and manufacture complex, customised products with short lead times, minimal tooling and wastage, and low labour demand. However, data analytics and technologies such as Industrial Internet of Things (IIoT) will have the most impact on the Australian manufacturing sector. Being data-driven allows manufacturers to gain a competitive advantage by analysing information to improve various processes in production, logistics, and supply-chain management.

 The adoption of digitally-enabled manufacturing solutions is most prevalent in the manufacturing verticals that require higher standards of quality assurance and higher production volume such as healthcare, aerospace, and Food and Beverage (F&B). For example, the adoption of digital manufacturing solutions allows more manufacturers to transcend from scheduled repairs and maintenance to being able to predict and prescribe maintenance, repairs, and possibly training to move from reactive to preventive performance capabilities.

As such, digital manufacturing solutions have a natural environment in high-volume production lines, where the need to minimise production downtime from equipment maintenance is a major consideration. More manufacturers are recognising the benefits of digital transformation in the industry; however, there is some hesitance, as a large number of SMEs in Australia are unable to find the appropriate funding to support the investments required.

Cybersecurity is an essential component in digital transformation. However, the expansion of a manufacturer’s communication network and digital integration of more production processes to be accessed and controlled via the Internet, cloud, and other network servers, could intensify the vulnerability of the organisation to security threats. To secure the company’s competitive advantage and ensure complete process control, a rigid set of protocols and protection systems should be set in place for end users of ICT solutions to trust the transformation process.

Key Questions this will answer

  • Where is digital transformation occurring in the Australian manufacturing industry?
  • What is driving the digital transformation in the industry?
  • How are technology solutions and service providers responding to the opportunity and the challenge of digital transformation?

Table of Contents

1. Executive Summary
  • Key Findings
  • Key Focus Technologies

2. Market Overview
  • Scope
  • Definitions

3. The Australian Manufacturing Industry-A Snapshot
  • Manufacturing in Australia
  • Innovation
  • Comparative Advantages
  • Comparative Advantages of the Industry
  • Challenges in Australian Manufacturing

4. Australian Manufacturing Industry-Market Drivers and Restraints to Digital Transformation
  • Drivers of Digital Transformation in Manufacturing
  • Drivers Explained
  • Technology Underpinning Australia’s Growing Prominence in GVC
  • Data Analytics, IIoT, and Cloud at the Forefront of Digital Transformation
  • Real-time Analytics Improving Decision-Making and Time to Market
  • Digital Solutions Offering Greater Visibility and Ensuring Worker Safety
  • Restraints to Digital Transformation in Manufacturing
  • Restraints Explained
  • Lack of Standardisation Limiting Global Collaboration Efforts
  • Steep Technology Costs Hindering Growth of Innovative Manufacturing
  • Is Australia Ready to Embrace Digital Transformation?
  • IT Specialists Shortage Placing Australia’s Manufacturing at Risk

5. Digital Transformation Solutions-Impact on the Manufacturing Industry
  • ICT Expenditure in Manufacturing
  • IIoT-Creating Next-generation Operational Intelligence
  • IIoT-Adoption in Australian Industries
  • IIoT-Key Enablers
  • IIoT-Market Drivers Influencing Adoption
  • Drivers Explained
  • IIoT-Market Restraints Influencing Adoption
  • Restraints Explained
  • IIoT-Case Study
  • Cloud-Location and Services Defining Manufacturing Models
  • Cloud-Enhancing Production Operations and Efficiency
  • Cloud-Adoption in Australian Industries
  • Cloud-Market Drivers Influencing Adoption
  • Drivers Explained
  • Cloud-Market Restraints Influencing Adoption
  • Restraints Explained
  • Cloud Computing-Case Study
  • Automation and Robotics-Improving Safety and Efficiency in Manufacturing
  • Automation and Robotics-Adoption in Australian Industries
  • Automation and Robotics-Impact of Advanced Robotics in Manufacturing
  • Automation and Robotics-Market Drivers Influencing Adoption
  • Drivers Explained
  • Automation and Robotics-Market Restraints Influencing Adoption
  • Restraints Explained
  • Automation and Collaborative Robots-Case Study
  • Automation and Collaborative Robots-Case Study (continued)
  • Digital Manufacturing-Integrating Smart Production and PLM Tools
  • Digital Manufacturing-Optimising Operational Efficiency
  • Digital Manufacturing-Adoption in Australian Industries
  • Digital Manufacturing-Market Drivers Influencing Adoption
  • Drivers Explained
  • Digital Manufacturing-Market Restraints Influencing Adoption
  • Restraints Explained
  • Digital Manufacturing-Case Study
  • Data Analytics-Unlocking the Power of Manufacturing Intelligence
  • Data Analytics-Adoption in Australian Industries
  • Data Analytics-Importance of Analysis to Operations
  • Data Analytics-Market Drivers Influencing Adoption
  • Drivers Explained
  • Data Analytics-Market Restraints Influencing Adoption
  • Restraints Explained
  • Data Analytics-Case Study
  • Additive Manufacturing-Empowering Customisation in Manufacturing
  • Additive Manufacturing-Adoption in Australian Industries
  • Additive Manufacturing-Business Model Comparison
  • Additive Manufacturing-Growth Areas and Market Potential
  • Additive Manufacturing-Market Drivers Influencing Adoption
  • Drivers Explained
  • Additive Manufacturing-Market Restraints Influencing Adoption
  • Restraints Explained
  • Additive Manufacturing-Case Study

6. Growth Opportunities
  • Growth Opportunities-IIoT
  • Growth Opportunities-Solution-as-a-Service Business Model
  • Growth Opportunities-Additive Manufacturing
  • Strategic Imperatives for ICT Solutions Providers
  • Cybersecurity-An Imperative for Trusting Transformation
  • Legal Disclaimer

7. Appendix
  • Appendix
  • List of Exhibits