Sector analysis: Industrial

Terms like “industry 4.0”, the “fourth industrial revolution” or the “industrial internet of things” are virtually a must when innovation in the industrial sector is the topic of conversation. These buzzwords are used describe a major shift in the sector, which aims to marry the agility of digital information technology with the power of manufacturing. This blend purports to create more efficiencies, leveraging emerging technologies like artificial intelligence (AI), big data analytics, blockchain and 3D printing. A major shift in industrial activities, driven by digitisation, is imminent, which has opened up opportunities for tech startups and scaleups to disrupt it and collaborate with it. Consulting firm KPMG’s Global Manufacturing Outlook report from 2020 reported that executives from industrial manufacturing companies reiterated not only the need to manage supply chains better and make them more flexible but also stressed how the pandemic has fast-tracked the speed of digitisation: “The crisis is accelerating the digitisation of business and operating models and businesses need the infrastructure to serve customers, enable employee productivity on-line and protect against new cybersecurity risks,” the report said. From the standpoint of corporate venturers from the industrial sector, this implies there is still a lot of work to be done in terms of looking for innovation. Additive manufacturing (AM), more commonly known as 3D printing, is among the most promising disruptive technologies for industrials. While not every home has been turned into a factory, as it was often suggested when the technology emerged, 3D printing is an indelible part of industry 4.0. The most widely used process for production in higher volumes is the powder-bed fusion, which creates a 3D part one layer at a time. Most 3D printers are capable of working primarily with polymers but there is a clear drive to employ metals, alloys and other materials. Consulting firm Wohlers Associates publishes a report on the state of 3D manufacturing every year and, according to the latest, from February 2021, there are more than 250 use cases of AM in production or development. The report also notes 77 early-stage investments valued at $1.1bn and documented a record-high annual expenditure on AM. The challenges for additive manufacturing, however, remain in the costs associated with machines and materials. The disruption of supply chains during the pandemic is likely to have affected the ecosystem which is, according to many experts, somewhat underdeveloped. However, these disruptions may speed up the adoption of the technology in the future. Much like other industrial…

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