Rajesh Nath, Managing Director – India Operations, VDMA – India (German Engineering Federation).

What are the new technologies in automation that will be game changers for factories in 2025?

By 2025, several emerging technologies in automation are set to revolutionise factories, making them more efficient, flexible, and adaptive. One of the key game-changers will be AI-powered automation. AI combined with ML will allow factories to predict failures, optimise production schedules, and ensure quality control with minimal human intervention.

Another significant advancement is the rise of 5G connectivity, which will enable real-time data transmission between machines, robots, and control systems with virtually no latency. This will be essential for edge computing, where data is processed locally, improving speed and reliability in critical operations.

The integration of collaborative robots (cobots) into factory workflows will also be transformative. Unlike traditional robots, cobots work alongside human workers, enhancing productivity while reducing the risk of injury.

Additionally, additive manufacturing (3D printing) is expected to expand in industrial applications, enabling rapid prototyping and customised, on-demand production.

Finally, the adoption of digital twins—virtual replicas of physical assets—will allow manufacturers to simulate, monitor, and optimise operations in real-time, improving efficiency and reducing downtime. These technologies will significantly drive India's manufacturing sector into a more automated, smart, and sustainable future.

With the growth of Industrial IoT, how do you foresee trends like connected workspaces, AI/ML, robotics and the industrial metaverse influencing factory operations?

The growth of Industrial IoT (IIoT) is set to transform factory operations by fostering greater connectivity, intelligence, and efficiency. As more devices become interconnected, connected workspaces will enable seamless communication between machines, workers, and systems. This real-time exchange of data will help optimise workflows, ensure better coordination, and enhance decision-making across factory floors.

The integration of AI/ML will be pivotal in transforming factory operations. By analysing massive datasets generated by IIoT devices, AI can predict equipment failures, optimise supply chains, and improve production quality. Machine learning algorithms will enable continuous process improvements, adapting to changing conditions and evolving production needs without manual intervention. This will lead to reduced downtime and increased productivity.

Robotics will further enhance operational efficiency. Advanced robots, including cobots, will collaborate with human workers, automating repetitive tasks while enhancing precision and safety. This integration will result in a more flexible and agile manufacturing environment capable of adjusting to rapidly changing demands.

The industrial metaverse will offer a new dimension to factory operations by creating virtual environments for simulation, training, and real-time monitoring. Factory managers and engineers will be able to interact with digital twins of machines and entire production lines, testing scenarios and troubleshooting remotely, improving overall operational efficiency, and reducing costs.

Together, these trends will create a more connected, intelligent, and responsive manufacturing ecosystem, transforming how factories operate in India and globally.

How are edge computing and real-time analytics expected to shape factory processes in the near future?

Edge computing and real-time analytics are set to revolutionise factory processes by enhancing efficiency, reducing downtime, and improving product quality. By processing data locally at the edge of the network, factories can minimise latency, enabling faster decision-making and immediate responses to operational issues. Real-time analytics provide actionable insights by continuously monitoring equipment health and production performance, allowing for predictive maintenance and early detection of potential failures. This proactive approach reduces unplanned downtime and ensures smoother operations. Additionally, edge computing enables real-time quality control, where sensor data and image recognition can detect defects as products are being made, ensuring higher standards. In supply chain management, both technologies optimise inventory and production schedules by enabling dynamic adjustments based on real-time data, leading to reduced waste and better alignment with demand. As a result, factories can become more agile, adaptable, and data-driven, fostering a smarter, more sustainable manufacturing environment.

What challenges do factories face in integrating legacy systems with new automation technologies?

Integrating legacy systems with new automation technologies presents several challenges for factories. First, compatibility issues arise because older systems often use outdated hardware or software that cannot easily interface with modern digital technologies, such as IoT devices or cloud-based platforms. This requires significant effort to either retrofit or replace legacy equipment, which can be expensive and time-consuming.

Second, data silos are a common challenge. Legacy systems often store data in proprietary formats or isolated databases, making it difficult to consolidate and analyse information across the entire factory. Bridging these data gaps requires sophisticated middleware or custom software solutions, which can further complicate the integration process.

Another issue is skill gaps. Many factory employees are trained to work with older systems, so introducing new automation tools requires reskilling or hiring staff with expertise in modern technologies like AI, robotics, and real-time analytics.

Lastly, there are cost and resource constraints. Upgrading legacy systems may demand significant financial investment, and many factories operate with limited budgets, especially small or mid-sized operations. This makes balancing the cost of modernisation with operational continuity a critical challenge.

Despite these hurdles, gradual, phased integration and strategic investments in technology can help factories modernise while minimising disruptions.

How are sustainability goals influencing automation strategies in manufacturing?

Sustainability goals are increasingly shaping automation strategies in manufacturing, as companies seek to reduce environmental impact while improving efficiency. Automation is playing a key role in achieving these goals by enabling energy efficiency through optimised production processes. Smart automation systems can adjust energy usage in real time, ensuring that machines operate only when needed, and minimising waste.

Another area is waste reduction. Automated systems can monitor and control production precisely, reducing material waste, scrap, and defects. Real-time data analytics, powered by automation, allow manufacturers to identify inefficiencies and make adjustments that conserve resources and minimise environmental footprints.

In addition, supply chain optimisation driven by automation helps reduce the carbon footprint. By improving inventory management, logistics, and production schedules, automation minimises excess stock, transportation emissions, and overproduction.

Furthermore, circular manufacturing is becoming more feasible with automation, as robots and AI systems help disassemble products for recycling and repurposing materials, contributing to a more sustainable product lifecycle.

Overall, sustainability goals are pushing manufacturers to adopt automation that not only enhances productivity but also drives responsible resource use, lower emissions, and supports greener manufacturing practices.

What are some critical factors for companies to consider when planning their automation investments in 2025?

When planning automation investments in 2025, companies must consider several critical factors to ensure long-term success. Scalability and flexibility are key, as automation solutions need to grow with the business and adapt to changing demands. Integration with legacy systems is also crucial to avoid costly overhauls and ensure smooth transitions. Data-driven insights from automation technologies can optimise production, improve efficiency, and reduce downtime, making real-time analytics an essential investment. Companies must also factor in the workforce impact, planning for employee retraining to handle new technologies while minimising resistance.

Sustainability goals should guide investment decisions, with a focus on energy efficiency and waste reduction to align with green manufacturing practices. Additionally, strong cybersecurity measures are vital to protect against increasing cyber threats. Finally, companies should weigh the upfront costs against the long-term return on investment, considering not only financial savings but also improvements in quality and customer satisfaction.

(The views expressed in interviews are personal, not necessarily of the organisations represented)

Rajesh Nath is Managing Director, German Engg Federation (VDMA) India Office. Mr Nath has more than 33 years of experience working in various industries in Germany and India. He has been accorded the ‘Cross of the Order of Merit’ – the highest civilian award from the German President, for promoting Indo-German Trade in the Engineering Sector. He has a degree in Bachelor of Engineering (Mechanical) with distinction. He also has a Business Management Degree (First Rank, Gold Medal). Further he did an International Business Program from the reputed Indian Institute of Management (IIM), Joka in 2004.

Mr Nath joined the Indian office of The German Engineering Federation (VDMA) as General Manager in 1999. He was appointed Director of the company in 2002. Since 2008, he has been heading the organisation as Managing Director. During this period the export of German machinery to India has increased almost 6 fold and the number of VDMA members in India now stands at around 600.

Mr Nath started his professional career in Germany with Rheinische Kalksteinwerke, Wülfrath where he worked from 1991-1993. He then joined KHD Humboldt Wedag, Koeln in the Environmental Technology Division and worked there from 1993 till 1997. Mr Nath is a Fellow Member of International Council of Consultants, Member of Institution of Engineers in India, Fellow Member of Mining, Geological and Metallurgical Institute (MGMI) and other well known bodies in India. He is also on the editorial board of several reputed industrial publications and a committee member of The Quality Council of India. He is also actively involved in social work with the NGO – KADAM which provides livelihood solutions to women and youth in the rural areas. Further he has been connected with Rotary International since many years. 

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