Asian Automotive Industry Outpaces Europe in Digitalization

The study, supported by the EU, analyzed 54 major automotive corporations worldwide and was conducted by researchers from Babeș-Bolyai University in Cluj-Napoca, and included colleagues from Corvinus University of Budapest, and Aalborg University in Denmark.  

The findings reveal that suppliers are generally more advanced in digitalization compared to car manufacturers, with Asian companies leading their European counterparts. Globally, the top position is held by Hankook, a tire manufacturer. In Europe, Grupo Antolin, a supplier of interior components, ranks first, but none of the top five European suppliers come close to the top 5-ranked Asian suppliers. Among automakers, Isuzu leads globally, while Volvo heads the European ranking, roughly on par with Subaru, Asia’s fifth-best. 

The 10-year analysis highlights a steady increase in both traditional and cutting-edge Industry 4.0 technologies in the automotive sector. Traditional technologies, such as robotics, radio-frequency identification (RFID), and algorithms, have grown by 15%, reaching a score of 54 on the researchers’ 0-100 digitalization scale. Meanwhile, advanced Industry 4.0 solutions, including IoT, smart machinery, AI, and simulations, have surged by 24%, reaching a score of 26. 

While Industry 4.0 solutions are advancing dynamically, traditional technologies remain widely used,” explains Krisztina Demeter, Professor at Corvinus University and a member of the research team. “Their prevalence reminds us that Industry 4.0 innovations are built on the established technologies.

The study focused on the largest 30 automakers and the top 100 automotive suppliers by revenue, examining companies with at least five years of reports available from 2012-2022. Among the analyzed firms, 50% were Asian, 41% European, 7% North American, and 2% South American. The largest company in the sample, both in revenue and number of employees, was the Volkswagen Group. 

As the automotive industry copes with challenges like electrification, enhancing efficiency remains critical. Understanding the digital readiness of market players is key in this highly competitive sector

,said Krisztina Demeter.