Germany’s MHP and LMU Munich has published the 2026 Industry 4.0 Barometer, showing that the United States and China are digitising their industrial sectors significantly faster than Europe. The study found that both countries are expanding their lead in the adoption of artificial intelligence, digital twins, and software-defined manufacturing.

The report, based on a survey of 1,200 industrial professionals, shows that the overall degree of digitisation in industry has risen to 68% globally. China leads with 72%, followed by the US at 69%, while the German-speaking DACH (Germany, Austria, Switzerland) region remains stagnant at 57%.

The study also includes India and Mexico for the first time, with both countries outperforming the DACH region in several digitisation metrics.

The use of digital twins is growing faster than other technologies, particularly in logistics. In China, 84% of surveyed companies use digital twins in logistics, compared to 61% in the US and 42% in the DACH region. Similarly, AI adoption in production stands at 71% in China and 57% in the US, while only 37% of companies in the DACH region have implemented the technology.

“The US is driving the transformation of its production with a strong focus on software and data,” said Tobias Hoffmeister, President and CEO of MHP Americas. He warned that companies failing to integrate production control and software will face increasing pressure in the global competitive landscape.

The study identified heterogeneous legacy systems and fragmented data landscapes as the primary barriers to transformation. However, it noted that US and Chinese firms are overcoming these obstacles more rapidly. The report also highlighted software-defined manufacturing as a critical emerging skill, with 30% of respondents in India and China reporting high familiarity with the concept, compared to just 3% in the DACH region.