ByteSnap Design, a leading UK electronics design consultancy, today announced the release of “Futureproofing Manufacturing: Tackling Obsolescence & Electronics Challenges in Industrial Manufacturing.” Based on extensive research with nearly 600 industry professionals, the report offers strategic insights and practical frameworks for addressing technological obsolescence in embedded electronics and software systems.

Conducted between February and March 2025, this research is released to coincide with World IoT Day on 9 April, since Industrial IoT (IIoT) technologies are intricately linked with the broader challenges of technological obsolescence in industrial manufacturing. The research identifies a critical disconnect within the UK manufacturing ecosystem: despite 88% of manufacturers recognising the need for specialised expertise to tackle obsolescence challenges, 81% face considerable difficulties in finding reliable partners with the appropriate capabilities.

“Our research uncovered that technological obsolescence has evolved from an occasional operational hiccup into a persistent strategic challenge for UK manufacturers,” said Dunstan Power, Director at ByteSnap Design and author of the whitepaper. “What’s particularly striking is the expertise gap we identified. Despite high demand for specialised knowledge in component lifecycle management, many manufacturers find themselves without adequate support. This bottleneck in addressing obsolescence effectively, could potentially stall technical advances and impact overall competitiveness in the manufacturing sector.”

“Those who develop robust obsolescence management capabilities now will be best positioned to use emerging technologies like AI – often deployed alongside Industrial IoT systems — for greater efficiency, insight, and long-term resilience for competitive advantage.”

Key findings from the report include:

  • 88% of manufacturers encounter technological obsolescence at least annually, with 27% facing these challenges quarterly. The report highlights that the financial implications of not managing obsolescence effectively are significant, with potential redesign costs following component discontinuation exceeding £250,000 in complex systems​.
  • Proactive management reduces costs by up to 80% compared to crisis responses. The report highlights the economic benefit of managing obsolescence proactively enabling companies to maintain production continuity and control costs more effectively than reactive approaches, which often lead to rushed, costly decisions under pressure​.
  • 89% of respondents consider AI integration important for future competitiveness. This reflects the growing recognition of AI’s role in optimising manufacturing processes, where AI can be used for predictive maintenance, quality control, and even in managing the obsolescence itself by predicting the lifecycle of components and systems more accurately​.
  • 61% cite cost constraints as their primary barrier to adopting new technologies. The report discusses how financial limitations hinder the adoption of new technologies and necessitate finding a balance between investment in new technologies, like IoT and automation, and managing operational budgets. It also highlights that many manufacturers struggle with the upfront costs associated with upgrading legacy systems or investing in new technologies
  • ​72% of respondents express a desire for training and upskilling programmes. According the analysis, this is driven by a significant in-house expertise gap, particularly in specialised areas like AI and advanced electronics. The findings note that when engineers retire or leave, they often take crucial system knowledge with them, which compounds the challenge of managing obsolescence as technology continues to advance​

The report also highlights the wider ripple effect of obsolescence on connected systems. When a key component or module becomes unavailable, it can render entire product lines unsupportable — disrupting production schedules, affecting time-to-market, weakening supply chain reliability, and even compromising regulatory compliance in sectors like medical and energy.

The report provides manufacturing leaders with a structured approach to obsolescence management, including a readiness assessment framework, implementation roadmap, and strategies for building long-term resilience. These frameworks are designed to help manufacturers at all levels of maturity transform obsolescence from a reactive crisis into a manageable aspect of product lifecycle planning.

The full report is available for download at https://www.bytesnap.com/futureproof-product-development-report/