|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
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The industry 4.0 market was valued at USD 86.03 billion in 2020 and expected to reach USD 267.01 billion by 2026 and grow at a CAGR of 20.71% over the forecast period (2021 - 2026). The global coronavirus outbreak is expected to further drive the adoption of Industry 4.0 and improve resilience to future pandemics. This is because in a pandemic technologies, like automation and robotics, help decrease human dependence and allow the human workforce to safeguard against these threats. It also enhances productivity, hence, preventing the shutdown of plants in a crisis.
- With the advent of Industry 4.0 in the manufacturing industry, various industrial plants are embracing digital technologies to enhance, automate, and modernize the whole process, hence, improving the performance metrics of the plants.
- The gradual increase in the number of connected devices, combined with the humongous growth in the volume of data from field devices and the changing technology landscape, has made it essential for companies to quickly adapt their products and services to the digital world.
- For instance, According to Cisco, India would have around 2.1 billion internet-connected devices by 2023. The country is expected to cross the 900 million mark of internet users in the country, according to the recently published Cisco Annual Internet Report (2018–2023), owing to the increased penetration of affordable smartphones and cheaper internet plans.
- Moreover, Industry 4.0 has persuaded OEMs to adopt IoT across their operations. Owing to the gradual increase in the adoption of IoT and digital transformation across several industries, the European Commission estimated that the value of IoT in Europe itself is expected to exceed EUR 1 trillion in 2020. Also, the Maryville University estimates that by 2025 over 180 trillion gigabytes of data will be created worldwide every year. IIoT-enabled industries will generate a large portion of this.
Scope of the Report
Digital transformation in the manufacturing industry marks the advent of Industry 4.0, which addresses several global issues within the industry. It modernizes and automates the supply chains of the manufacturing companies, which not only helps in data-driven planning but also provides a competitive advantage over counterparts and helps the companies stay ahead in the market. Technologies, like Industrial Robotics, IIoT, 3D printing, artificial intelligence, and machine learning, are some of the technologies used across different manufacturing organizations.
|AI and ML|
|Other Technology Types|
|End User Industry|
|Oil and Gas|
|Energy and Utilities|
|Electronics and Foundry|
|Food and Beverage|
|Aerospace and Defense|
|Other End User Industries|
|Middle East and Africa|
Key Market Trends
Manufacturing is Expected to hold a Significant Market Share
- The stock of industrial robots operating in factories is at the highest level in history, which is driven by the success story of smart production, and automation has experienced an increase of about 85% within the last five years. The slowdown in sales by 12% reflects the difficult times of the two major customer industries, automotive and electrical/electronics.
- Manufacturing robots automate repetitive tasks, reduce margins of error to negligible rates, and enable human workers to focus on more productive areas of the operation. Robotic process automation in manufacturing allows companies to remain competitive globally, offering an efficient, viable alternative to offshoring and fulfilling the skills gap.
- Many vendors in the market are expanding their flexible manufacturing portfolio through acquisition or collaboration in order to strengthen their market positions. For instance, in January 2021, ABB announced the strategic partnership with Planar Motors Inc. to expand its machine automation offering.
- It will integrate PMI’s magnetic levitation technology into its Machine Automation Division’s (B&R) portfolio that will accelerate industry’s transition from strictly linear production to an open, adaptive manufacturing space.
- Due to the rising demand for industrial robots in the manufacturing sector, many vendors are investing in developing advanced robots that have a superior perception, adaptability, integrability, and mobility. For instance, in 2019, Mobile Industrial Robots (MiR) launched its MiR1000 autonomous mobile robot, with the ability to automatically pick up, transfer, and deliver pallets and other heavy loads up to 1,000 kg (2,200 lbs).
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India is Expected to Hold a Dominant Position
- India's manufacturing sector lags compared to the United States, Japan, China, and Germany. All of these countries, except China, have a much lower population base compared to India. Given India's population and its future goals, the country needs to reform and upskill its manufacturing sector and workforce urgently. Hence, the market presents that opportunity, and it is expected to grow in the country over the forecast period.
- Manufacturing emerged as one of the high-growth sectors in India. The 'Make in India' program places India on the world map as a manufacturing hub and gives global recognition to the Indian economy. India is poised to become the fifth-largest manufacturing country in the world by the end of 2020. Moreover, manufacturing giants, such as GE, Siemens, HTC, Toshiba, and Boeing, have either set up or are in the process of setting up manufacturing plants in India.
- Moreover, India's government aims for a USD 5 trillion economy by 2025, of which manufacturing would be worth USD 1 trillion. The convergence of flagship programs, such as Make in India with Skill India and Digital India, would be key to achieving this goal, thereby driving the country's market growth.
- Though India is far behind the rest of the world, it is observed to be developing its automation quotient in automation. IFR estimates that by 2020, the country will have a total of 6,000 industrial robots. The automotive industry is expected to remain the main driver of the increasing robot installations in India. It is likely to be among the primary sources of demand in the market.
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The competitive landscape of the Industry 4.0 Market is fragmented due to the presence of several players in the market, such as ABB, Siemens, Schneider Electric, Rockwell, Honeywell, and Robert Bosch. The market players are striving to make product innovations and developments in the market to utilize the growth opportunities presented optimally. This is expected to boost the market presence of these market players. Some of the recent developments in the market are:
- Oct 2020 - Intel Federal LLC announced a three-year agreement with Sandia National Laboratories (Sandia) to explore the value of neuromorphic computing for scaled-up computational problems. Sandia plans to kick off its research using a 50-million neuron Loihi-based system that was delivered to its facility in Albuquerque, New Mexico. The application of Loihi is expected to be limitless, which could be used in smart automotive and sensing mechanisms.
- February 2020 - The design and technology services firm Tata Elxsi partnered with group firm Tata Motors for developing a unified, connected vehicle platform. The partnership will aid Tata Motors, developing a connected vehicle as a key differentiator to most of its BS-VI range of passenger and commercial vehicles.
- March 2021- The Port of Kiel, in partnership with Siemens, commissioned Siemens Smart Infrastructure to implement a cloud-based power monitoring solution for its shore power system. The shore power system, also from Siemens, will cover the electricity demand of all ships at the Ostseekai and Schwedenkai with green power while they are berthed at the Port of Kiel saving more than 8,000 tons of CO2 per year. The new power monitoring solution makes it possible to measure the energy consumption in the shore power operations building and at the Ostseekai and Schwedenkai connecting points, and store the data in MindSphere, the cloud-based IoT system from Siemens.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 Favorable Governmental Initiatives and Collaborations Between Stakeholders
4.3.2 Growth in Demand for Industrial Robotics
4.3.3 Digital Transformation Initiatives Undertaken by SME’s
4.4 Market Restraints
4.4.1 Relative Lack of Awareness on the ROI Related to Adoption of Industry 4.0
4.4.2 Workforce and Standardization Related Challenges
4.5 Impact of COVID-19 on the Market
4.6 Technology Snapshot
5. MARKET SEGMENTATION
5.1 Technology Type
5.1.1 Industrial Robotics
5.1.3 AI and ML
5.1.5 Extended Reality
5.1.6 Digital Twin
5.1.7 3D Printing
5.1.8 Other Technology Types
5.2 End User Industry
5.2.3 Oil and Gas
5.2.4 Energy and Utilities
5.2.5 Electronics and Foundry
5.2.6 Food and Beverage
5.2.7 Aerospace and Defense
5.2.8 Other End User Industries
5.3.1 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
5.3.3 Asia Pacific
18.104.22.168 Rest of Asia Pacific
5.3.4 Latin America
5.3.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Cognex Corporation
6.1.3 Siemens AG
6.1.4 Schneider Electric
6.1.5 Swisslog Holding AG (Kuka AG)
6.1.6 Rockwell Automation Inc.
6.1.7 Honeywell International Inc.
6.1.8 Robert Bosch GmbH
6.1.9 Johnson Controls International PLC
6.1.10 Emerson Electric Company
6.1.11 General Electric Company
6.1.12 Cisco Systems Inc.
6.1.13 Intel Corporation
6.1.14 Fanuc Corporation
6.1.15 Denso Corporation
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Industry 4.0 Market market is studied from 2018 - 2026.
What is the growth rate of Industry 4.0 Market?
The Industry 4.0 Market is growing at a CAGR of 20.71% over the next 5 years.
Which region has highest growth rate in Industry 4.0 Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Industry 4.0 Market?
Europe holds highest share in 2020.
Who are the key players in Industry 4.0 Market?
ABB Ltd., Siemens AG, Schneider Electric, Swisslog Holding AG (Kuka AG), Rockwell Automation Inc. are the major companies operating in Industry 4.0 Market.