Strengthening cybersecurity has surged to the top of the investment agenda for global manufacturers, with 63.5% ranking it as the most critical move to improve productivity—up sharply from just 21.9% in 2024, according to new data from ABI Research.
The findings come from the firm’s semiannual Manufacturers’ Technology Adoption & Attitudes Survey, which gathered insights from 458 manufacturing decision-makers across the United States, Germany, and Malaysia. Analysts said recent high-profile IT disruptions and geopolitical instability are driving the shift.
“The recent CrowdStrike update, which caused a massive IT outage that crashed millions of Windows systems, brought security vulnerabilities to the fore,” said Michael Larner, a distinguished analyst at ABI Research. “Increasing geopolitical tensions certainly play a part as well.”
Cloud, 5G, and AI adoption gains ground
The survey, presented in ABI’s The State of Technology in the Manufacturing Industry report, shows that cybersecurity isn’t the only area gaining momentum. Manufacturers are steadily adopting cloud, 5G, and generative AI technologies to enhance efficiency and decision-making.
Nearly eight in 10 manufacturers said cloud solutions support better decision-making, remote monitoring, and supply chain coordination. Private 5G networks are also gaining traction, with 44% of companies either planning or deploying them.
Generative AI is viewed as a promising tool, with 66% believing it can optimize production lines and 74% saying it could accelerate the creation of worker instructions.
Gaps and regional disparities remain
Despite growing investment in advanced technologies, manufacturers continue to face roadblocks. Nearly half of respondents (48%) cited a lack of expertise as a key barrier to digital transformation.
Regional differences are also stark. While 84% of Germany’s Greenfield sites have reached modern factory maturity, only 31% of Malaysia’s Brownfield facilities have achieved the same. Malaysian manufacturers have prioritized newer technologies, while investment in legacy infrastructure has lagged.
U.S. manufacturers, meanwhile, are seeing tangible benefits from tech upgrades. Seventy-eight percent reported gains in operational efficiency and productivity, largely through labor savings and reduced input costs.
Quality and connectivity also on the radar
Quality management systems (QMS) are emerging as another area of focus, with 53.9% of respondents identifying them as a priority investment. In Malaysia, 76% of manufacturers said private cellular technology enhances connectivity and secures communications.
While belief in the industrial metaverse’s onboarding capabilities appears to be softening, 78% still see it as a potential driver of R&D when paired with broader strategic planning.
Larner said the report offers valuable, real-time insights into how manufacturers are navigating rapid technological shifts.
“Innovation is the cornerstone of success in the manufacturing industry,” he said. “A robust technology strategy is essential.”
