DIGITAL INDUSTRIES SOFTWARE

Virtual Manufacturing
Development
for the Automotive Industry

Unprecedented change in the automotive industry...

Companies in the automotive industry are pushing to develop the next generation of autonomous,
electric, connected, and shared vehicles, which are becoming more and more “software-defined”,
they are facing new design challenges. How will they accelerate their product design and get it right
the first time?

Up to 15% of all
new vehicles sold
in 2030 could be
fully autonomous

2020 2040

Source: McKinsey

Market growth
Global passenger vehicle sales outlook by drivetrain

Due to falling battery

prices, EV sales will
outpace traditional vehicle
sales in the next decade.

Million
100

90

80

70

60

50

40

30

20

10

2015 2020 2025 2030 2035 2040

Internal combustion Fuel cell Battery electric

Hybrid Plug-in hybrid

Rapid pace of innovation

INTERNET OF THINGS
ERA
SMART EMBEDDED
ERA
Accelerated pace of disruptive
AUTOMOTIVE
innovations are driving the need ELECTRONICS
ERA
for new engineering and technology MOBILE
COMMUNICATION
development initiatives faster NETBOOK PC
ERA
ERA
COMPUTE CONNECTED
NETWORK PC
ERA
STANDLONE PC
ERA

MAINFRAME
ERA

1974 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

Connectivity
OEMs must develop flexible, scalable and reliable E/E architectures to manage increasing complexity.

Complex Rapid Future Brand Cost

features innovation upgrades Personalized switching pressures

Connectivity and personalization will top future consumer demands.

of cars will be of cars will be connected

25% connected by 2023. 94% to 5G by 2028.

Explosion of complexity
Intensified competition, changing consumer
demands and increased regulatory requirements
have caused an increased complexity.

Increasing day-to-day challenges

• Unpredictable supply chain disruptions affecting materials, parts,
and components availability, leading to unexpected downtime
• Ongoing labor shortages
• Increasing complexity across their organizations

Market research* indicates that for 47% of the

respondents, it has taken up to five days to detect and
recover operations from a production line shutdown,
and 18% said it has taken a full week.

*Source: IndustryWeek

Possible implications
Loss of
reputation,
competitive
position and
Production Lack of flexibility Greater pressure Noncompliance Risk of business
line disruptions and resilience on speed to regulatory cyber attacks
and delivery mandate and
sustainability targets

They realize they must gain agility and efficiencies in order

to meet customer demand and overcome day-to-day challenges.

Innovation

The The
automated intelligent
plant plant

The
standard
plant
70% of companies are already
benefiting from Smart
Manufacturing solutions.

Time

The manufacturing landscape is quickly evolving to adopt and implement more intelligent
factory capabilities to meet the needs of today and address the challenges of tomorrow.
Reducing time to launch, improving quality, decreasing warranty, eliminating recalls,
increasing throughput and maximizing efficiency.

18%

Only 18% of auto manufacturers have

an intelligent, connected loop of
technologies that helps them to
predict and proactively maintain and
manage the entire production line.

Source: IndustryWeek

The rest rely on either employees pulling together the data manually,
or some mix of manual processes plus software.

Siemens can help

Modernize your manufacturing process by
connecting the data of all engineering
disciplines to the knowledge of your shop
floor. Monitoring performance and
predicting operational issues in real-time,
by using sensors, smart devices, and IIoT
technology you will have a complete loop
of manufacturing communication.
Leverage a virtual replication of your
entire production plan to eliminate the
iterative element of physical
commissioning.

Proccess Proccess Production Production Production

planning validation planning execution validation

Virtual development
Intelligent production excellence
of manufacturing

Rapid factory evolution

Virtual development of manufacturing

The interconnection of all engineering disciplines

in virtual commissioning will lead you to a
flawless launch on time.

Rapid factory evolution

Updating legacy equipment with intelligent

technologies will allow you to receive actionable
insights before physical commissioning so you
can rapidly modernize your plant.

Intelligent production excellence

A self-organizing plant will monitor machine

performance and predict operational issues to
drive continuous improvement of products and
processes, enabling you to achieve line speed and
throughput targets.

Embrace Smart Manufacturing to win the race

Meet sustainability goals Embrace globalization

Reduction of water usage and CO, footprint. Ensure fair trade supplier practices.
Production facilities use 100% green electricity. Transparent and secure supply chain.
Sustainable and traceable sourcing.

Adapt to changing consumer preference

New Business Models – Product personalisation.
Highly sustainable vehicle, minimum footprint.
Electrified, connected vehicles, ADAS and AV.

Everything to enable a flawless launch

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