Around 74% of UK firms expect to drive high levels of digitisation and integration by 2021, according to a new global report by PwC entitled Industry 4.0: Building the Digital Enterprise.

As manufacturing firms increasingly focus on Industry 4.0, the PwC survey of more than 2,000 global companies across nine industry sectors reveals that 33% of global firms already rate their level of digitisation as ‘high’, with this value rising to 72% when asked for a five year prediction.

The PwC report outlines how companies are enhancing their product portfolio with digital functionalities and introducing innovative, data-based services.

According to the survey, companies worldwide are set to invest approximately 5% of their digital revenues annually on digitisation – and based on the industry sectors surveyed, this would equate to a total global investment of $US 907 billion per year. In contrast, UK firms expect to invest approximately 2.5% of their turnover.

A major focus of these investments will be on digital technologies like sensors or connectivity devices, and on software and applications like manufacturing execution systems. In addition, industrial companies are investing in training employees, in-house technologies and driving required organisational change. However, for UK firms, the biggest challenge remains a lack of digital culture, talent and clear digital operations vision.

In the course of this anticipated transition, managers surveyed around the world expect to achieve cost reductions of on average 3.6% per year and an additional revenue of around 2.9% annually.

Reinhard Geissbauer, strategy & partner and head of industry 4.0, said: “Companies expect digitisation to deliver huge benefits and are investing correspondingly large amounts. Our study shows that this transition is taking place in all our countries surveyed in equal measure, not only in industrialised nations.”