The Global Lighthouse Network (GLN) has expanded to 189 advanced manufacturing sites across 33 countries, reflecting the rapid adoption of Industry 4.0 technologies in global supply chains. Launched in 2018 by the World Economic Forum (WEF) in collaboration with McKinsey & Company, the initiative recognizes factories that successfully implement cutting-edge artificial intelligence (AI), automation, digital twins, and sustainability practices at scale.
With 36 new Lighthouses added in 2025, the latest WEF report highlights how manufacturers are leveraging AI-powered analytics, machine learning-driven production systems, and real-time digital monitoring to improve efficiency, reduce costs, and enhance sustainability. The program, which started with just 16 Lighthouses, has now grown into a comprehensive global network that serves as a benchmark for next-generation industrial operations.
AI and Digital Twins at the Core of Transformation
One of the most striking findings of the latest report is the increasing role of AI and digital twin technologies in manufacturing. According to the report, 77% of leading Lighthouse use cases involve analytical AI, optimizing production, predicting maintenance needs, and improving product quality. Meanwhile, 9% of Lighthouses have begun deploying generative AI (GenAI) to enhance real-time decision-making in factories.
At Siemens’ Erlangen facility, for example, the deployment of over 100 AI models and digital twin technology has led to a 69% increase in labor productivity, a 40% reduction in time-to-market, and a 42% drop in energy consumption. Similarly, Coca-Cola’s Singapore site has leveraged AI-powered demand forecasting and robotic automation, leading to a 28% boost in throughput and a 70% improvement in labor productivity.
The integration of predictive maintenance AI models has also significantly reduced unplanned downtime by up to 90%, enabling factories to enhance operational resilience.
Addressing Supply Chain Disruptions with AI-Driven Forecasting
The COVID-19 pandemic, geopolitical tensions, and raw material shortages have exposed vulnerabilities in global supply chains. The latest Lighthouses have responded by integrating AI-powered forecasting models and digital control towers, improving on-time-in-full (OTIF) deliveries by 31 percentage points (p.p.) and reducing transportation risks by 50%.
For instance, Schneider Electric’s risk monitoring system uses AI to track billions of dollars in transported goods, detecting theft risks, route disruptions, and weather hazards. This system has cut response times by 91%, ensuring smoother supply chain operations.
Workforce Transformation: The Human-AI Collaboration
Despite the increasing use of AI and automation, the human workforce remains central to the transformation process. The report highlights that 75% of the latest Lighthouses have invested in AI-powered workforce enablement tools, such as augmented reality (AR) and mixed reality (MR), to train employees and optimize task execution.
The use of virtual reality (VR)-based operator training at CEAT India, for instance, has helped improve overall equipment effectiveness by 16 percentage points (p.p.) while significantly reducing errors. These AI-driven training programs are designed to reduce onboarding time by 50%, ensuring that workers can quickly adapt to new digital tools and processes.
Sustainability Lighthouses: Achieving Net-Zero Operations
Environmental sustainability has emerged as a top priority for the Global Lighthouse Network, with many factories setting ambitious targets to reduce carbon emissions, minimize waste, and optimize resource usage.
The report indicates that companies deploying AI-driven carbon footprint tracking have successfully cut Scope 1 and Scope 2 emissions by 30-50%. Additionally, factories implementing closed-loop recycling systems have increased recycled material usage by over 50%, reducing dependence on virgin raw materials.
A standout example is Foxconn Industrial Internet’s aluminum recycling system, which has lowered Scope 3 emissions by 39% by replacing over 50% of raw material inputs with recycled content. Such initiatives showcase how digital transformation and sustainability can go hand in hand.
Scaling Digital Transformation Globally
While the 189 Lighthouses serve as global pioneers, the report underscores that millions of production sites worldwide have yet to scale digital transformation efforts. Many factories remain stuck in “pilot purgatory”, where digital innovations are tested but never fully implemented across operations.
However, the Global Lighthouse Network provides a scalable framework for manufacturers looking to break through this stagnation. By leveraging AI, automation, and sustainability strategies already proven successful in Lighthouse factories, companies worldwide can accelerate their transformation journeys.
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Conclusion: The Future of Smart Manufacturing
As AI-driven automation, predictive analytics, and digital twins become industry standards, the manufacturing sector is entering a new era of intelligent, data-driven operations.
With the Global Lighthouse Network setting benchmarks for success, industries must move beyond experimentation and embrace full-scale digital adoption. Companies that fail to keep up with this transformation risk falling behind in an increasingly competitive landscape.
