From experimentation to transformation

BASED ON feedback from more than 1500 manufacturing leaders globally, Rockwell's 11th annual State of Smart Manufacturing Report highlights a clear shift in how UK manufacturers are approaching digital transformation. With 87% of organisations now recognising it as essential and allocating an average of 27% of operating budgets to industrial technology, the UK has moved beyond early-stage adoption and into a phase where digital investment must translate into operational performance.

“UK manufacturers are moving beyond experimentation into a phase where digital technologies must deliver consistent operational outcomes,” said Phil Hadfield, UK managing director, Rockwell Automation. “The challenge is no longer access to technology, but the ability to embed it into production environments in a way that improves performance, resilience and competitiveness.”

Broadly, the research shows UK manufacturing entering a more mature phase of digital transformation, with technologies once seen as experimental becoming part of everyday industrial operations. Eighty-seven percent of UK manufacturers say digital transformation is necessary for their organisation, slightly above the European average of 84% and close to the global figure of 90%. 

AI adoption surges

Nearly half of UK manufacturers (49%) report that they have already invested in artificial intelligence or machine learning technologies, slightly ahead of the European average of 47%. A further 38% plan to invest within the next twelve months. Although this is down from 53% reported in the previous survey, the figures indicate that UK manufacturers remain among the most active adopters of AI across Europe.

Generative AI adoption is also accelerating. Fifty-three percent of UK manufacturers have already invested in generative or causal AI technologies and another 33% plan to adopt them in the coming year.

AI is increasingly deployed in areas where operational impact can be realised quickly. Cybersecurity leads as the most planned application at 48%, followed by quality control at 42%. Process optimisation and product design are also important use cases.

Cybersecurity has also consistently ranked as the leading AI application for UK manufacturers, with 50% of companies identified cybersecurity as the primary focus for AI deployment last year.

Cybersecurity is critical 

Sixty-two percent of UK manufacturers report that they have already invested in cybersecurity technologies, slightly ahead of the European average of 59%. Despite these investments, cyber incidents remain common. Half of UK manufacturers report experiencing at least one cyberattack within the past year, second only to Germany in Europe (60%). 

Confidence in cybersecurity capabilities remains relatively strong. Forty-seven percent of manufacturers say they are extremely confident in their organisation’s ability to prevent or contain a cyber incident.

Manufacturers increasingly recognise that the greatest risks lie at the intersection of IT and operational technology systems. Enterprise IT networks are identified as the most exposed area by 39% of respondents, followed by integration points between IT and operational technology systems at 29%.

From pilot to deployment

Twenty-seven percent of UK manufacturers report that they have already invested in digital twin, simulation or emulation technologies, while a further 47% plan to invest within the next twelve months. In total, 88% of UK manufacturers have either already invested in digital twins or plan to do so, making the UK the second-highest market in Europe after Germany (89%).

These technologies allow manufacturers to simulate production environments, test operational scenarios and optimise manufacturing performance before implementing changes on the factory floor. However, unlocking value from industrial data remains a challenge. UK manufacturers report effectively using only 45% of the operational data they collect, although this is slightly higher than the European average of 41%.

Smart manufacturing adoption accelerates 

Forty-three percent of UK manufacturers report that they are already using elements of smart manufacturing technologies, higher than the European and global averages of 37%. A further 21% say they are already deploying these technologies at scale, while 15% are currently piloting them. 

Adoption is expected to accelerate rapidly. Thirty-seven percent of manufacturers plan to deploy smart manufacturing technologies within the next six months, and 74% expect to do so within the next eleven months.

Artificial intelligence and machine learning are expected to deliver the greatest business impact. Nearly half of manufacturers (48%) identify AI as the capability most likely to improve operational performance. Many organisations also report strong returns from technologies such as cybersecurity platforms, cloud-based systems and advanced automation tools, reinforcing the growing link between digital investment and measurable business outcomes.

The next phase 

Investments in artificial intelligence, automation, cybersecurity and digital twins are enabling organisations to improve productivity, strengthen resilience and manage increasingly complex production environments.

The transition is not without challenges. Workforce skills, data integration and cybersecurity risks remain significant barriers. However, the direction of travel is clear, with the report findings suggesting that UK manufacturing is moving beyond experimentation and entering a new phase where intelligent technologies are becoming a permanent foundation of industrial competitiveness.

www.rockwellautomation.com