Rockwell Automation Report Highlights German Manufacturers Combining Record Digital Investment with Rising Cyber Exposure and Execution Pressure
New research reveals that Germany's industrial sector is entering a phase where success depends on disciplined execution as companies balance high levels of investment with increasing operational and cybersecurity challenges.
DUSSELDORF, Germany, May 19, 2026 /PRNewswire/ -- Rockwell Automation, the world's largest company dedicated to industrial automation and digital transformation, today announced the German findings of its 11th annual State of Smart Manufacturing Report. Based on global research with manufacturing leaders, including a representative cohort from Germany, the report highlights how the country's industrial base is transitioning from digital ambition to scaled execution.
The findings show that German manufacturers are combining some of the highest levels of industrial investment globally with a more disciplined approach to technology deployment. Eighty-seven percent of organizations now recognize digital transformation as essential, while manufacturers allocate an average of 29% of operating budgets to industrial technology. This positions Germany as one of the most advanced manufacturing markets in Europe in terms of both investment and execution.
"Germany's manufacturing sector is no longer defined by whether it adopts digital technologies, but by how effectively it can scale them," said Vincenzo Monaco, country director, DACH, Rockwell Automation. "The focus has shifted to execution — integrating AI, data and automation into operations while managing risk, energy pressures and workforce transformation."
Artificial intelligence is now a core pillar of industrial competitiveness in Germany. Adoption is already widespread, with half of manufacturers reporting active investment and many deploying AI directly on the factory floor. More importantly, AI is increasingly viewed as a strategic differentiator, with over a third of manufacturers identifying it as the technology most likely to impact long-term competitiveness.
The emphasis is firmly on operational use. AI is being applied to areas such as quality control, process optimization and energy management, reflecting Germany's focus on efficiency and precision in industrial production. Rather than pursuing experimental use cases, manufacturers are prioritizing applications that deliver measurable improvements in performance and reliability.
However, the shift toward highly connected and intelligent production systems is also increasing exposure to risk. Germany reports the highest level of cyber incidents among major European economies, with 60% of manufacturers experiencing at least one cyberattack in the past year. This comes despite near-universal investment in cybersecurity, highlighting a growing tension between digital capability and vulnerability.
Cybersecurity is therefore evolving from a technical safeguard into a core operational discipline. Manufacturers are increasingly focused on securing the convergence of IT and operational technology systems, where the majority of vulnerabilities now exist, while also strengthening workforce awareness and resilience.
Alongside AI and cybersecurity, simulation technologies are beginning to play a more prominent role in production environments. Germany is leading Europe in the deployment of digital twins, with adoption moving from planning into practical use. These technologies are enabling manufacturers to simulate processes, optimize performance and reduce risk before changes are implemented on the factory floor.
Yet a more fundamental constraint remains: data. Despite advanced digital infrastructure, manufacturers report using only around 40% of the data they collect effectively. This gap between data generation and data utilization is emerging as one of the most significant barriers to unlocking the full value of digital transformation.
Workforce dynamics are also becoming increasingly important. Capacity constraints and rising labor costs continue to shape operational decisions, while demand for new skills is accelerating. In particular, cybersecurity and AI capabilities are now seen as critical to future workforce development, reflecting the growing complexity of industrial environments.
Rather than replacing workers, German manufacturers are focusing on augmenting human capability through technology. Reskilling is expanding across the sector, with a significant proportion of employees already engaged in training programmes designed to support digital roles.
Taken together, the findings point to a manufacturing sector that is highly advanced but operating in a more complex and demanding environment. Germany is not only investing at scale but also confronting the realities of executing digital transformation in live production systems.
The next phase of industrial competitiveness will be defined not by access to technology, but by the ability to integrate, secure and scale it effectively across operations.
Research methodology
The State of Smart Manufacturing Report reflects insights from manufacturing leaders across multiple countries and sectors, including automotive, life sciences, consumer goods, and industrial manufacturing. The research explores adoption of advanced technologies including artificial intelligence, cybersecurity, digital twins, and workforce transformation strategies, providing a comprehensive view of how manufacturers are evolving in response to increasing complexity and competitive pressure.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.
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