Integrating Industry 4.0 for Sustainable Localized Manufacturing to Support Saudi Vision 2030: An Assessment of the Saudi Arabian Automotive Industry Model

Abstract

Saudi Arabia aims to build a sustainable and diversified economy by 2030. The automotive industry presents a key opportunity to achieve these goals through localization and the adoption of Industry 4.0 technologies. This research analyzes the impact of a developed localized production model for the automotive industry. The model promotes economic sustainability through domestic manufacturing, job creation and reduced oil dependence; environmental sustainability via the Industry 4.0 approach, which enhances customization, and social sustainability by developing human capital, transferring advanced technologies and stimulating job creation, thereby balancing the three spheres of sustainability. To attain the aim of the research, data were collected from 106 Saudi automobile companies. For the data collection, a questionnaire was designed, and authentication was performed according to the average level of use of Industry 4.0 and analysis of the level of implementation of the developed localized production model for the automotive industry of the Kingdom of Saudi Arabia. The results shows that large automobile companies in the Kingdom of Saudi Arabia are employing the developed localized production model more than medium and smaller automobile companies, and as a result of this model employment, automobile companies’ customer satisfaction through customization and revenue has improved in an agile and lean manner.