The Global Industry 4.0 Market Size Was Valued At USD 114.55 Billion In 2021. The Market Is Projected To Grow From USD 130.90 Billion In 2022 To USD 377.30 Billion By 2030, Exhibiting A CAGR Of 16.3% During The Forecast Period.

Industry 4.0 Market Overview:

According to our research, the global market grew on average by 13.9% in 2020 compared to 2019.

Players offering solutions in the area under consideration include ABB Ltd., Siemens AG, and Cognex Corporation, among others. Robotics, PLC automation, control room solutions, motors and generators are among the industry 4.0 products that ABB Ltd. offers. Similar to that, Siemens AG offers transportation, industrial automation, and building technology.

The market's growth potential are being driven by rising trends of digitization and internet penetration brought on by various sectors' increased focus on effectiveness and profitable productivity. The potential for disrupting the industrial value chain has started to grow as a result of recent developments in digital technologies and industrial computerization. Companies are benefiting from higher output, individualised services, decreased costs, improved efficiencies, and increased production as a result of the fourth industrial revolution (i4.0). But most crucially, new revenue and business models are being created.

For instance, Robert Bosch Engineering and Business Solutions Private Limited introduced Phantom Edge in May 2021 to give users a real-time view of electrical characteristics, appliance level data, electrical energy consumption, and operating usage. Artificial intelligence (AI) and the Internet of things (IoT) are combined in the Phantom Edge, which has applications in a number of industries, including retail, industrial manufacturing, healthcare, agriculture, and mobility.

Artificial intelligence, the Internet of Things (IoT), augmented and virtual reality, 3D printing, and blockchain are just a few examples of the digital technologies that are disrupting every step of the value chain, including product design, supply chains, manufacturing techniques, and customer experiences. Strategic government attempts to digitise production processes across multiple industries were also supporting global manufacturing industry giants like Germany, the U.S., France, and Japan.

Market Dynamics:

Latest Trends:

Using a digital twin solution for predictive maintenance will be a major market trend.

Digital twins have received a lot of attention recently as the Internet of Things (IoT) has gained popularity. A virtual representation that replicates the lifecycle of a real object or device is called a digital twin. By enabling close to real-time insights between the physical and digital worlds, this technology has enabled OEM producers and automakers to remotely track and manage machinery and systems. Digital twin technology offers unmatched insight into assets and production, making it possible to identify bottlenecks, improve operations, and develop product growth.

To get a complete picture of the equipment's performance, businesses are implementing digital twin technology that can spot anomalies and inconsistencies in operations right away. To decrease time-to-service and avoid expensive asset failures, spare component maintenance and replenishment can be planned in advance. OEMs could increase product reliability and new service-based revenue through predictive maintenance using digital twins. Additionally, businesses in the sector are introducing sophisticated digital twin solutions that help to improve equipment visibility and provide higher operational efficiency. For example,

Digital site twins, a system that provides an exact digital counterpart of a physical site and facilitates smoother digital operations, were introduced in February 2020 by China-based Huawei Technologies Co., Ltd.

Siemens AG introduced Teamcenter X Software in June 2020, allowing businesses to swiftly scale and apply PLM technologies across functional disciplines. With a bill of materials integration and multi-domain design, this launch would aid in the development of a digital twin.

Such activities by important market players are anticipated to aid in the expansion of the industry 4.0 market during the anticipated time frame.

Driving Factors:

Industrial robot adoption is rising, and demand for industrial automation is surging.

Robots have evolved over the past few decades from being prohibitively expensive devices with limited functionality to being affordable devices capable of carrying out a variety of jobs. Particularly industrial robots are extensively employed by people everywhere. Industrial robots are being utilised more frequently in production centres, which is driving quick breakthroughs, development, and evolution, according to the most recent trends in the robotics business.

Rapid technical advancements in robotics have led to a rising acceptance of robotics engineering and technology in the manufacturing sector's production operations. Industrial robots are programmable, versatile manipulators that operate automatically. A few common industrial robot uses include welding, heavy lifting, ironing, assembling, picking and positioning, palletizing, product inspection, and testing. All of these tasks involve a lot of human endurance, speed, and accuracy. The International Federation of Robotics (IFR) estimates that in 2021, 486,800 units were transported globally. Industrial robots carry out repetitive activities and substitute for human labour as necessary. They can also work in dangerous and risky environments where humans cannot. Robotics technology will thus be a major development in the sector.

For instance, in February 2021, ABB Ltd. introduced the SWIFTI cobot, a family of collaborative robots that offers improved safety measures, the accuracy of an industrial robot, resilience, and ease of use with speed to a variety of industries, including manufacturing and logistics, among others.

Restraining Factors:

Integration of Advanced Technologies and Data Risks to Limit Growth

Industry solutions integration and implementation have a number of advantages, but they also carry a number of hazards that could impede future corporate growth. The introduction of new technologies will likely present data and security concerns that will impede business expansion. Cybercrime cost the global economy USD 6.0 trillion in 2021, and it is expected to reach USD 10.5 trillion by 2025, according to a study released by Cybercrime Magazine in 2021. Due to their vulnerability to attacks, Industry 4.0 systems are unable to stop hackers from accessing the manufacturer's data and gathering all important information. Therefore, there is a need to increase awareness of these vulnerabilities and to understand the value of cybersecurity solutions across all organisational network levels.

Segmentation Analysis:

By Application Analysis:

The market is divided into three categories based on application: industrial automation, smart factories, and industrial IoT. Industrial IoT (Industrial IoT) incorporates developments from two fundamental revolutions. Several producers of industrial equipment have decided to use IoT due to the potential benefits of the technology. Manufacturers are able to determine the current state of machines, improve their performance, and identify possible breakdowns while planning maintenance programs by connecting industrial equipment utilizing wireless connectivity and collecting sensor data from the same. A variety of technologies are available for industrial automation that aid in lowering the need for human interaction. Additionally, it improves the quality and flexibility of industrial processes.

Each customer's needs can be profitably met by smart factories. The dynamic business and technical processes used in i4.0 enable production end-process adjustments and transmit the ability to react nimbly to problems and failures in lieu of suppliers.

By Vertical Analysis:

The market is further divided into manufacturing, energy & utilities, automotive, oil & gas, aerospace & defense, electronics & consumer goods, and others based on vertical. During the projected period, the manufacturing sector is anticipated to dominate the global market. The most potential verticals for implementing i4.0 are predicted to be those in the automotive, transportation, and chemical industries. Over the past few years, there has been an increase in the use of intelligent robots and machinery in the industrial industry. Research and development funds are being used to create an integrated system that will enable humans and robots to collaborate on challenging tasks via sensor-connected human-machine interfaces.

During the forecast period, the automotive industry will see significant adoption of cutting-edge technology. Technology-equipped plants can monitor the manufacturing processes and machinery to identify potential issues before they disrupt output. Automobile producers who are i4.0 ready can also customize specific models and speed up delivery. Vehicle configurations must be adjusted by manufacturers to accommodate shifting consumer preferences. The IIoT-enabled device enables for customization of the dashboard and steering wheel, in contrast to conventional auto production. Furthermore, i4.0 has made the idea of autonomous vehicles a reality. To maintain their competitiveness in the face of accelerating technological development, businesses in the automotive ecosystem are making significant investments in new products and manufacturing techniques.

Regional Insights:

Companies in North America are adopting the idea of smart manufacturing more and more, and it is anticipated that they will control the market. The majority of factories currently in use are outfitted with modern equipment and smart factory technologies, enabling other companies to switch from traditional production techniques to smart manufacturing. North America is a dynamic region for the market's growth possibility due to the major players operating in the region, government initiatives, and rising funding for R&D activities.

In 2021, Europe had the second-largest market share for industry 4.0 globally. In order to maintain its place in the international market, the European industry has made significant investments in technology and capabilities. The fourth industrial revolution has been sparked by the use of linked things and automation technologies in German industry. Industry paradigms are changing as a result of connection, networked objects, real-time data processing, and omnipresent information. Tech behemoths like General Electric, Siemens, and Honeywell were among the i4.0's early adopters and are far ahead of the curve with its deployment.

Due to their thorough efforts to integrate industrial automation and implement disruptive technologies in their manufacturing system value chain, Japan, China, and South Korea are leading the Asia Pacific market growth. The plan covers the top 10 industries, including artificial intelligence, advanced robotics, electric vehicles, and semiconductors. This state-driven industrial program, which was inspired by the German government's i4.0 development plan, intends to make China the world leader in high-tech manufacturing. Japan announced its Society 5.0 program, which aims to address the difficulties in the industrial, social, and economic spheres.

Siemens AG, for instance, opened an Advanced Manufacturing Transformation Center (AMTC) in Southeast Asia in September 2020 to support i4.0. Southeast Asian businesses will benefit from the training, assistance, and direction provided by this.

The fourth industrial revolution is being aided across Latin America, the Middle East, and Africa by government initiatives and an understanding of how important it is to incorporate digital technology in order to sustain the global economy. For instance, the Middle East government planned to join with the World Economic Forum in October 2020 to further the industry 4.0 transformation. By resolving the major issues raised by digital transformation and technological breakthroughs, the UAE's economy has once again proven its ability to lead the globe. The plan aims to expand its assistance to the national economy while solidifying its status as a major global hub. Leading players have also joined forces in Brazil to encourage the use of technology tools and hasten the adoption of cutting-edge technologies.

Scope Analysis

Recent Development:

• March 2021 – NOKIA Corporation collaborated with Brazil-based power and automation company WEG Industries to accelerate the development of the Nokia Digital Automation Cloud (DAC) platform and launch an Industry 4.0 solution.
• April 2021 – Cyient, a digital technology and engineering solutions company, launches the IntelliCyient family of products enabling digital transformation for the manufacturing industry. These solutions deliver significant value to assets such as manufacturing, industrial, aerospace, automotive and utilities.
• February 2021 – Schneider Electric has partnered with Nexans on a digital transformation program that introduces Industry 4.0 to enhance sustainability and operations. Digitization helps factories improve predictive maintenance, reduce their carbon footprint and improve the efficiency of their production lines.
• October 2020 - Siemens announced an expansion of its Industry 4.0 offerings with the launch of four Mind Sphere application centers in India. The centers are spread over several cities in India including Noida, Pune and Gurgaon. Siemens has around 20 i4.0 centers for digital customer applications in 17 countries around the world.
• March 2019 - Telefonaktiebolaget LM Ericsson, a leading telecommunications and technology company headquartered in Sweden, has launched Ericsson Industry Connect. It is an efficient cellular connectivity solution that helps manufacturers and automakers accelerate Industry 43.0 adoption by giving 4G and 5G technologies access to new global markets.

Market Segmentation

By Application:

• Industrial Automation
• Smart Factory
• Industrial IoT
• Others

By Vertical:

• Manufacturing
• Energy & Utilities
• Automotive
• Oil and Gas
• Aerospace and Defense
• Electronics and Consumer Goods
• Others

By Companies:

• ABB Ltd (Switzerland)
• Siemens AG (Germany)
• Cognex Corporation (U.S.)
• Schneider Electric SE (France)
• Honeywell International Inc. (U.S.)
• Emerson Electric Co. (U.S.)
• Rockwell Automation, Inc. (U.S.)
• General Electric Company (U.S.)
• Robert Bosch GmbH (Germany)
• Cisco Systems Inc. (U.S.)
• Others