Industry 4.0 Market Size USD 240.55 Billion by 2027 | By Technology, Industry Vertical and Region (2024)

Industry 4.0 Industry Overview

The global industry 4.0 market size was USD 71.63 Billion in 2019 and is projected to reach USD 240.55 Billion by 2027, at a CAGR of 16.3% during the forecast period. Smooth functioning of worldwide supply chains is essential for global economic growth, but face certain efficiency problems owing to time zones and distances. Industry 4.0 provides interconnection of businesses from various regions to resolve communication issues between business organizations and improve the customer-supplier relationship. Rising deployment of technology, including Radio Frequency Identification (RFID) and remote database access (RDA) for collation and distribution of information, is fueling increasing adoption of the Internet of Things (IoT), which is a key technology in implementing Industry 4.0.

Industrial robots offer the benefit of repeatability and accuracy without any breakdown or halt, thus improving productivity and providing fast return on investment. The accuracy of industrial robots leads to fewer production process errors, translating to reduced wastage, production costs, and better workplace safety. The use of robotics in industries aims for zero downtime and improved efficiency as robots are susceptible to disruptions.Industry 4.0 is transforming how companies create, improve, and distribute their products. Manufacturers are implementing new technologies, such as the Internet of Things (IoT), cloud computing and analytics, and AI and machine learning, into their production facilities and processes.

These smart factories collect and analyze data using advanced sensors, embedded software, and robotics, allowing for better decision-making.When manufacturing data is combined with operational data from ERP, supply chain, customer service, and other corporate systems, previously isolated data gains new levels of visibility and insight.Increased automation, self-optimization of process improvements, predictive maintenance, and, most importantly, a new level of efficiency and responsiveness to consumers are all benefits of digital technologies.The concepts and technologies of Industry 4.0 can be used in a variety of industries, including discrete and process manufacturing, as well as oil and gas, mining, and other sectors.

Industry 4.0 Market Drivers

The adoption of AI and IoT technologies in the manufacturing industry has accelerated since the start of Industry 4.0. Integrated AI and IoT systems allow for the optimization of production processes, the sending of early alarms, quality control, and the prediction of equipment failure in machines. Manufacturers may differentiate themselves from their competitors by acquiring precise data and developing unique AI applications.The breakout of the COVID-19 pandemic in 2020 will put the manufacturing sector to the test. Manufacturers were compelled to innovate their manufacturing processes due to movement limitations, forced lockdowns, and a lack of manpower. As a result, the usage of AI and IoT in manufacturing processes has accelerated even more. In the lack of a regular crew in manufacturing plants, activities such as condition monitoring and equipment maintenance were carried out with the help of AI and Machine Learning (ML) algorithms.

Industry 4.0 Market Restraints

Existing workforces must be trained to operate the most up-to-date equipment and software systems that incorporate IoT and AI technology. Though enterprises are quick to adopt new technologies, there is a scarcity of highly educated engineers and a workforce that is up to date on AI and IoT advances.For example, the non-durable manufacturing business in the United States and Europe is challenging to locate experienced engineers who can comprehend the software incorporated in next-generation AI and IoT integrated systems, causing the manufacturing process to be hampered. Due to a lack of educated workers, emerging economies also struggle to apply industrial automation and carry out next-level industrialization. As a result, the absence of a competent labour acts as a stumbling block to the industry's expansion. Market 4.0

Industry 4.0 Market Segment Insights

Industry 4.0 Technology Insights

By technology, the industry 4.0 market has been segmented into artificial intelligence, Internet of Things, 3D printing, augmented reality, virtual reality, blockchain, industrial robotics, digital twin, industrial metrology, and others. The Industrial Internet of Things (IIoT) uses smart sensors and actuators for improvement of industrial and manufacturing processes. The key advantage of IIoT is that it allows automation of production processes and thus optimizes operating efficiency. According to a study, the automation resulting from IIoT results in about a 30.0% increase in productivity.

Industry 4.0 Industry Vertical Insights

By industry vertical, the industry 4.0 market has been segmented into manufacturing, energy & utilities, chemical, transportation, pharmaceutical, metals, consumer electronics, and others. Industry 4.0 in the manufacturing sector uses automation to enhance product quality, process efficiency, and safety. Furthermore, smart factories deploy interconnected mobile and collaborative devices, cloud computing, Artificial Intelligence, and data analytics that allow preventive maintenance and upgrades, leading to lower downtime and reduced operational costs.

Industry 4.0 Regional Insights

Industry 4.0 Asia Pacific Market

The industry 4.0 market in Asia Pacific dominated other regional markets in terms of market share contribution to the global market in 2019, owing to robust presence of leading manufacturing companies in countries such as Japan, China, and South Korea. Also, increasing use of IoT, robotics, AI, and additive manufacturing in industries in the region is further expected to drive market growth.

Industry 4.0 Top Companies and Competitive Landscape

Major players in the industry 4.0 market are focusing on various strategies to expand production capacity, entering into strategic agreements and partnerships, and mergers and acquisitions.

Major companies in industry 4.0 market include:

• General Electric Company
• Mitsubishi Electric Corporation
• Cisco Systems Inc.
• ABB
• KUKA
• Stratasys Ltd.
• IBM Corporation
• FANUC
• Yaskawa Electric Corporation
• Siemens AG

Industry 4.0 Latest Industry News

In September 2019, the Factory Automation EMEA division of Mitsubishi Electric entered into a partnership with CONTACT, which is a software developer, to provide customizedsmart manufacturing solutions using digital twin technology.

Industry 4.0 Report Summary

Industry 4.0 Market Segment Analysis

This report forecasts revenue growth at a global, regional & country level, and provides analysis of the market trends, drivers, opportunities, and current and future scenarios from 2018 to 2027. The scope of the report can be defined as:

Emergen Research has segmented the global industry 4.0 market in terms of technology, industry vertical, and region:

• Technology Outlook (Revenue, USD Million; 2017–2027)

  • Artificial Intelligence
  • Internet of Things
  • 3D Printing
  • Augmented Reality
  • Virtual Reality
  • Blockchain
  • Industrial Robotics
  • Digital Twin
  • Industrial Metrology
  • Others

• Industry Vertical Outlook (Revenue, USD Million; 2017–2027)

  • Manufacturing
  • Energy & Utilities
  • Chemical
  • Transportation
  • Pharmaceutical
  • Metals
  • Consumer Electronics
  • Others

• Regional Outlook (Revenue, USD Million; 2017–2027)

  • North America
    1. U.S.
    2. Canada
    3. Mexico
  • Europe
    1. Germany
    2. U.K
    3. France
    4. BENELUX
    5. Rest of Europe
  • Asia Pacific
    1. China
    2. Japan
    3. South Korea
    4. Rest of APAC
  • Latin America
    1. Brazil
    2. Rest of LATAM
  • Middle East & Africa
    1. Saudi Arabia
    2. UAE
    3. Rest of Middle East & Africa