Analysis of the Impact of Industrial Digitization on the Domestic Economic Cycle

Abstract

In recent years, under the influence of the background of globalization, the digitalization of manufacturing industry has become an engine to promote the domestic economic cycle. With the rapid development of information technology, digitalization technology is profoundly changing the production mode, management mode and market pattern of the manufacturing industry. According to the International Data Corporation (IDC) report, by 2027, the global investment in manufacturing digitization is expected to be close to four trillion U.S. dollars, and digitization will become an important driver for the transformation and upgrading of the manufacturing industry. In China, the manufacturing industry, as a pillar industry of the national economy, its digital transformation is of great significance to enhance competitiveness and promote high-quality economic development. On the one hand, digital technology improves the production efficiency of the manufacturing industry and also reduces production costs, enabling enterprises to better meet market demand and enhance market competitiveness. On the other hand, digital technology also accelerates product innovation and market response speed, enabling enterprises to launch new products faster and seize market opportunities. In addition, digital technology also helps to promote industrial chain synergy and integration, driving the development of related industries. This paper firstly explains the background and significance of the digitalization of the manufacturing industry, then discusses the direct and indirect impact of the digitalization of the manufacturing industry on the domestic economic cycle, and then analyzes the challenges and countermeasures faced by the digitalization of the manufacturing industry, so as to provide policymakers and business decision-makers with a scientific and reliable basis for decision-making. It is hoped that it can contribute to promoting the development of the digitalization of China's manufacturing industry and the benign operation of the domestic general cycle.