Industry 4.0 Market

Market Overview

The global industry 4.0 market size was valued at USD 113.86 billion in 2022. It is projected to reach USD 516.69 billion by 2031, growing at a CAGR of 18.38% during the forecast period (2023-2031). The market growth for Industry 4.0 is expected to be driven by the advancement of technology in robotics and artificial intelligence, namely in the realm of the Internet of Things.

Industry 4.0 is ushering in a disruptive era for businesses, profoundly altering the landscape of product manufacture, development, and distribution. Manufacturers are effortlessly integrating cutting-edge technologies like the Internet of Things (IoT), cloud computing, analytics, artificial intelligence, and machine learning into their manufacturing facilities and operating structures. Smart factories are outfitted with sophisticated sensors, embedded software, and robots that collect and analyze data, allowing for more informed decision-making. Converging production data with operational information from business systems like ERP, supply chain, and customer service offers new visibility and insights, shattering prior data silos.

These digital technologies are guiding the sector toward more automation, predictive maintenance, self-optimization of operations, and, most importantly, unmatched efficiency and customer responsiveness, which were previously unreachable. The use of modern IoT devices in smart factories leads to increased productivity and quality. Substituting AI-driven visual insights for human inspection methods reduces production mistakes, resulting in cost and time savings. Principles and technologies of Industry 4.0 are universally applicable across numerous industrial sectors, including discrete and process manufacturing, as well as industries such as oil and gas, mining, and various other industrial segments.

Market Dynamics

Global Industry 4.0 Market Drivers

Advancing Technological Advancements in Robotics and Artificial Internet of Things

Industries are shifting from outdated manufacturing to digital methods, using technologies like AIoT (Artificial Intelligence of Things) for automation and Robotics. The World Economic Forum report notes that over 1000 factories embracing AIoT have recorded a boost in production, allowing customizing products on a large scale and ensuring profitable operations. The factories incorporate sensors, automated robotics, and smart meters to collect data. AIoT helps analyze this data, spot issues in the production process, and fix them without relying on external help. This approach leads to faster product delivery, efficient production, increased automation, better agility, and improved customer experiences.

Further analysis of this data helps businesses to learn about customer needs and fine-tune their strategies to enhance production efficiency. Unlike traditional methods, AIoT and robotics provide production staff with the information they need for smarter decision-making. According to the International Federation of Robotics, approximately 3.5 million robots were manufactured in 2022, registering a growth rate of 31% compared to 2021. This is justifiable to showcase the increasing adoption of robotics in industries and allied arenas, driving market growth.

Global Industry 4.0 Market Restraint

Vulnerability of Robotics and Systems to Espionage and Cyber Threats

Industry 4.0 links industrial processes, like joint robots, to the outside world. Rising hacking risks can affect processes that are connected. Robotics and automated systems linked to the internet are vulnerable to cyber threats, corporate spying, the installation of malware, or automated attacks if the network is not managed properly. The new ANSI standards for Industrial Mobile Robot Safety Requirements for mobile robots are becoming more uniform and provide a versatile space and norms for the safety of automated equipment in industries.

Furthermore, the demand for well-skilled workers to work collaboratively with robotics has grown by a factor of ten due to the high upfront costs involved in installing these sophisticated machines and their vulnerability to threats. Some companies have turned to third-party providers like Universal Robots to offer "turnkey" training to upskill and keep workers in more technical jobs and provide the workforce with the necessary skills to work collaboratively with these machines.

Global Industry 4.0 Market Opportunities

Incorporation of Emerging Technologies to Shape Prospects of Industry 4.0

Industry 4.0 illustrates the fourth industrial revolution and a vision for future production systems encompassing an array of innovative technologies that can be implemented, including cyber-physical systems, RFID, IoT, cloud computing, big data analytics, advanced robotics, and smart factories. The technologies have the potential to reshape various industries like automotive, logistics, aerospace, and energy, catalyzing the integration of information and communication technologies into business operations. In addition, the components of Industry 4.0 bestow significant advantages on organizations, including product customization, real-time data analysis, heightened visibility, autonomous monitoring and control, dynamic product design, enhanced productivity, and competitiveness. Implementation of these technologies can result in cost reduction, productivity improvement, enhanced efficiency, flexibility, and customized product development.

Additionally, the significance of innovation and technological progress cannot be overstated in the context of manufacturing industries and organizations. The advent of Industry 4.0, characterized by digital transformation and heightened interconnectedness, will inevitably give rise to novel societal concerns. This transformation will significantly reshape product design, processes, operations, and services across industries. The inclusion of these technologies has the potential to impact spans production and engineering enhancements, improved product and service quality, optimized customer relationships, novel business opportunities, economic benefits, altered educational requirements, and transformed work environments. Such factors create opportunities for market growth over the forecast period.

Regional Analysis

Based on regions, the global Industry 4.0 market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global Industry 4.0 market shareholder and is expected to grow significantly over the forecast period. The region had a prominent market share in the year 2022 and is projected to see favorable growth within the time frame of 2023-2031. The emergence of Industry 4.0 may be attributed to several significant factors, including the quick progression of technology advancements, substantial financial backing from governmental entities within the region, and concerted endeavors to establish real-time quality control and enhanced visibility throughout the manufacturing sector. The advancement of Industry 4.0 in North America is primarily driven by the presence of a robust industrial sector and the implementation of advanced technology breakthroughs.

Asia-Pacific is expected to grow at a staggering rate during the forecast period. The Asia-Pacific area, led by China, has dominated global manufacturing for forty years. As a result, nations like South Korea, Japan, and China are making significant investments in the fourth industrial revolution to stay competitive with their Western rivals. This is where Industry 4.0 is making its mark. China's "Made in China" plan, inspired by Germany's Industry 4.0 model but more hands-on, involves numerous state-guided funds with substantial investments, particularly in Chinese industries. This comprehensive program, encompassing various initiatives and subsidies, will make China dominant in the Asia-Pacific Industry 4.0 market by 2023.

In addition, Japan, a highly robotized nation and a major industrial robot manufacturer with a 52% market share, has launched the "Society 5.0" program to address its 21st-century economic and social challenges, including Industry 4.0 initiatives.

Segmental Analysis

The global industry 4.0 market is segmented into technology type and end-user.

Based on the technology type, the global industry 4.0 market is bifurcated into Industrial Robots, Blockchain, Industrial Sensors, Industrial 3D Printing, Machine Vision, HMI, AI in Manufacturing, Digital Twin, AGVs, and machine condition monitoring.

Artificial intelligence in the manufacturing segment is the highest contributor to the market and is expected to expand substantially over the forecast period. The segment held a revenue share of approximately 53% in 2022. In the context of Industry 4.0, the implementation of artificial intelligence (AI) in manufacturing leads to comprehensive automation of production processes as it enables real-time refinement of various stages of manufacturing based on product specifications, thereby facilitating the seamless integration of the entire production chain, extending the capabilities of data processing across multiple divisions. With the incorporation of AI in manufacturing, data collection systems and feedback mechanisms become integral components of the manufacturing process, allowing for the coexistence of assembly lines with production processes, resulting in enhanced overall efficiency.

Furthermore, advanced AI algorithms are employed for predictive maintenance and formulating predictions regarding asset failures in the manufacturing processes. The fusion of AI in manufacturing yields numerous industrial advancements, improving the management of output processes and fostering creative solutions in manufacturing. The physical representation of the production environment is fully realized through data collection tools like sensors and cameras, which are then processed through cloud connectivity, paving the way for the seamless functioning of Industry 4.0 in the future.

Based on end-user, the global industry 4.0 is bifurcated into aerospace and defense, automotive, energy and utilities, food and beverages, manufacturing, and oil and gas.

The manufacturing segment dominates the global market and is expected to expand significantly over the forecast period. The segment emerged as the dominant segment, with a revenue share of approximately 31% compared to others. The manufacturing sector is expected to dominate the worldwide market, whereas automotive, energy and utilities, and oil and gas will emerge as the most potential verticals for 4.0 implementation. In recent years, smart robots and machines have been used within the manufacturing sector. Investments in research and development are being made to create an integrated system in which robots and humans may collaborate on complicated tasks via sensor-connected human-machine interfaces.

Additionally, manufacturing plants outfitted with technology can track manufacturing equipment and processes to detect potential problems before creating production interruptions. Automobile manufacturers who are 4.0-ready may also design specific automobiles, reducing delivery time. Unlike traditional vehicle manufacture, the IIoT-enabled item, such as the dashboard and steering wheel, enables customization. The concept of autonomous vehicles has been actualized due to the advent of Industry 4.0. Companies operating within the automobile industry are investing significantly in product and manufacturing process enhancements to sustain competitiveness amidst rapid technological advancements.

Recent Developments

• June 2023- GE HealthCare introduced Sonic DL, a deep learning technology that acquires high-quality magnetic resonance (MR) images up to 12 times faster than conventional methods, enabling cardiac imaging within a single heartbeat. The technology results in up to 83% reduction in scan time, setting a new industry standard for rapid, high-quality MRI. The technology has enabled access to cardiac patients with arrhythmias and breath-holding challenges, helping to ensure swift, consistent, and more comfortable exams.
• January 2023- Singapore-based 3D printing service company Creatz3D, in collaboration with partners Qosmosys and NuSpace, unveiled a groundbreaking lightweight satellite launch container. This specialized structure, designed using 3D printing technology, serves as a satellite test container and is integrated into the Zeus-1 satellite holder, playing a crucial role in securing 50 anodized artworks while the satellite orbits in space. The project, aptly named Godspeed, commemorates the 50th anniversary of the Pioneer-10 probe, signifying a remarkable fusion of cutting-edge technology and a tribute to a historic space exploration milestone.
• February 2022- IBM acquired Sentaca, one of the leading telco consulting services and Solutions providers. This acquisition will accelerate IBM's hybrid cloud consulting business, adding critical skills to help Communication Service Providers (CSPs) and media giants modernize on multiple cloud platforms, innovate, and transform their businesses.