The Impact of the Fourth Industrial Revolution on the Transitory Stage of the Automotive Industry

Abstract

Manufacturing sectors act as the backbone for industrial evolutions and the economic growth of countries. With more than 2000 parts in just one vehicle sourced from thousands of different suppliers worldwide, the automotive industry has become one of the most complex ones, going under ever-present changes since its invention. To maintain their competitiveness in the global market and the era of Industry 4.0, automotive companies need to adopt innovative technologies internally and cooperate with their suppliers through cyber-physical systems. The fourth industrial revolution, Industry 4.0, and its components, such as the Internet of Things (IoT), allow real-time communication and collaboration among machines, operators, customers, suppliers, and manufacturing sectors leading to personalized, sustainable, cost-efficient, and environmentally friendly products. It introduced a new level of organization and digitalization, focusing on controlling and monitoring products’ life cycles. Digitalization plays a crucial role in almost every aspect, from automotive manufacturing to automotive marketing sectors. It equips businesses with the essential technologies and helps them remain flexible and relevant in this modern era. On the other hand, with increasing concerns about climate change and environmental degradation, sustainability has become a strategic superiority for automotive corporations. To guarantee the automotive industry’s digital transformation and sustainable development, new production and communication systems, industrial and environmental policies, and legislation adopted by automotive industries and suppliers prevent them from falling behind their competitors. These are the reasons why this chapter will focus on how Industry 4.0 paves the path toward digitalization, smart manufacturing, and sustainability for the automotive industry and auto-guided vehicles. Industry 4.0 and its branches are leading to innovative technologies such as autonomous vehicles, multimodality, cars’ connectivity, electrification, tangible sustainability progress, and intelligent automotive manufacturing processes like 3D printing/Additive Manufacturing and autonomous robots.