Digitising Automotive Could Generate Billions
According to a report the UK economy could gain up to £74bn by 2035 if it embraces the digitisation of the automotive industry.
The report titled 'The digitalisation of the UK automotive industry' was commissioned by the Society of Motor Manufacturers and Traders (SMMT). It highlights the benefits of new technologies such as robotics, artificial intelligence and 3D printing.
The report said: “By fully embracing digitisation, the automotive sector stands to gain £6.9bn every year by 2035.
“The cumulative total benefit to the economy could be £74bn by 2035.
“Our forecast is that if the UK automotive industry were to make a step change towards embracing digital technologies leading to fully digital vehicle manufacturing factories within the next 20 years, then by 2035 the gross value added in the UK would be higher by £8.6bn (at today’s prices), which represents 0.3% of GDP.”
The report added that it would not be easy however, and there were challenges to address for the automotive sector and government in order for the benefits to come to fruition.
The report said that the sector deserved more attention from the government.
It said: “The UK’s digital infrastructure needs to be improved, clear policies on cyber security must be developed, the skills gap must be addressed and investment in digitisation must be accelerated.
“We recommend that the government places digitisation at the heart of its new industrial strategy, focusing in particular on skills, digital infrastructure, cyber security, access to finance and technology demonstrators,”
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