Industry 4.0 Leaves Emerging Markets Lagging

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • Poor technology infrastructure is a common roadblock
  • Priority technologies: communications, grid reliability

Emerging market (EM) countries generally have high levels of industrial activity and show strong interest in Industry 4.0. However, EM countries in aggregate scored low in BNEF’s national digitalization ranking, released this week.

Often this is due to poor technology infrastructure. For countries such as India, Nigeria and Colombia, this means improving internet and communications technology (ICT) to enable Industry 4.0 infrastructure. In places like South Africa where blackouts hit economic output, this means digitizing power systems to improve grid reliability.

Digitalization in many EM countries will focus largely on ICT technology and grid reliability first. These markets often lack technology providers so they are looking to foreign companies for partnership. The outlook for emerging markets will improve with its infrastructure.

Clients can access the ‘Industrial Digitalization: National Strategies and Ranking’ on The Terminal or on web

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