New study: industrial companies increasingly using Industry 4.0 technologies internationally, with China and the U.S. extending their lead
The United Kingdom shows low investment willingness and ranks second to last in the adoption of digital twins — which 84 per cent of Chinese companies use in logistics
Software-Defined Manufacturing (SDM) is becoming a key competitive factor: production excellence as a result of software, data, and IT/OT architecture
Mexico and India included in the analysis for the first time: 61 per cent of Indian companies surveyed already using AI in the production environment
Ludwigsburg / Munich / Reading — China is designing the factory of the future, while Europe, and the DACH region (Germany, Austria, Switzerland) in particular, are struggling with the past. Established IT and OT landscapes as well as fragmented data structures are hampering progress. Meanwhile, China is taking the lead in terms of supply chain transparency, digital twin technology, automation, and AI.
India, Mexico, and the U.S. are also modernising and implementing things faster than companies in the United Kingdom. In fact, according to companies' own assessments, the level of digitalisation in the UK's industrial sector has even declined. These are the key findings from the Industry 4.0 Barometer 2026, which the management and IT consultancy MHP has published in collaboration with Prof Dr Johann Kranz from the Ludwig Maximilians University (LMU) Munich.
Our analysis makes one thing clear: China and the U.S. are driving the transformation of their manufacturing sectors with a strong focus on software and data, while the United Kingdom and the German-speaking markets of Germany, Austria, and Switzerland have yet to build similar momentum. Only six and three per cent of companies respectively are very familiar with Software-Defined Manufacturing, compared to 30 per cent in China and India. Without the strategic integration of production control, data, and software, it will become increasingly difficult to remain competitive internationally.
More than 1,200 people from industrial companies were surveyed for the Industry 4.0 Barometer 2026. Specifically, they were asked to assess the status quo with regard to Industry 4.0 in their own companies in the DACH region, the United Kingdom, the U.S., China and, for the first time, India and Mexico. The study highlights successes, but also reveals gaps in supply chain transparency, digital twin technology, Artificial Intelligence (AI), and Software-Defined Manufacturing (SDM).
Degree of Digitalisation Worldwide Rises to 66 Per Cent, While the UK Declines
Internationally, the degree of digitalisation ascertained in industry continues to rise, with the overall barometer figure increasing from 48 per cent (2022) to 66 per cent today in all subject areas. However, two regions have fallen significantly behind: The United Kingdom declines to 62 per cent, a drop of 2 percentage points compared to the previous year.
