Industry 4.0 Technologies Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2022 |
| CAGR | 20.67 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Industry 4.0 Technologies Market Analysis
The Industry 4.0 Market size is expected to grow from USD 94.42 billion in 2023 to USD 241.58 billion by 2028, at a CAGR of 20.67% during the forecast period (2023-2028).
With the introduction of Industry 4.0 in the production sector, numerous industrial facilities are adopting digital technology to improve, automate, and modernize the whole operation, enhancing the plants' productivity parameters.
- Moreover, Industry 4.0 persuaded OEMs to adopt IoT across their operations, owing to the gradual increase in the adoption of IoT and digital transformation across several industries. For instance, according to the International Data Corporation's (IDC) Worldwide Semiannual Internet of Things Expenditure Guide, expenditure on the Internet of Things (IoT) in Europe exceeded USD 202 billion in 2021. It will likely increase at a double-digit rate through 2025. 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.
- Furthermore, increasing collaborations among global companies to adopt innovative technologies and digital solutions are expected to contribute to market growth over the forecast period. For instance, in March 2021, NOKIA Firm partnered with WEG Industries, a Brazilian energy and automation company, to accelerate the evolution of the Nokia Digital Automation Cloud (DAC) technology and present an industrial 4.0 solution.
- Incorporating and adopting industry technologies offer various advantages but also represent several hazards that might hinder future corporate progress. Security and privacy issues related to advanced technology deployment are projected to hamper industry expansion. According to a study released in 2021 by Cybercrime Journal, the worldwide expense of cybercrime was USD 6.0 trillion in 2021. It is expected to hit USD 10.5 trillion by 2025.
- The worldwide COVID-19 outbreak accelerated Industry 4.0 adoption and boosted resilience to potential pandemics. This is because, in the event of a pandemic, technology such as automation and robots serve to reduce human dependency while also allowing the human workforce to protect itself against these risks. It also increases production, preventing plant shutdowns during a crisis.
Industry 4.0 Technologies Market Trends
IIoT Technology Type Segment is Expected to Hold Significant Market Share
- Positive market expansion is being fueled by the expanding use of IoT technology across end-user industries, including manufacturing, automotive, and healthcare. The Internet of Things (IoT) is driving the next industrial revolution of intelligent connectivity as the traditional manufacturing sector undergoes a digital transformation. This is altering how businesses handle the increasingly sophisticated systems and machinery they use to increase productivity and decrease downtime.
- Industry 4.0 and IoT are at the center of new technological approaches for the development, production, and management of the entire logistics chain, otherwise known as smart factory automation. Massive shifts in manufacturing due to Industry 4.0 and the acceptance of IoT require enterprises to adopt agile, smarter, and innovative ways to advance production with technologies that complement and augment human labor with robotics and reduce industrial accidents caused by process failure.
- With the high rate of adoption of connected devices and sensors and the enabling of M2M communication, there has been a surge in data points that are generated in the manufacturing industry. These data points can be of various kinds, ranging from a metric describing the time taken for the material to pass through one process cycle or a more advanced one, such as the calculation of the material stress capability in the automotive industry.
- Furthermore, the increasing use of IoT devices in companies is predicted to accelerate digital transformation in a variety of industries. According to Cisco's Annual Internet Report, there will be about 30 billion network-connected gadgets and services by 2023. Machine-To-Machine (M2M) connection will account for 50% (14.7 billion M2M connections) of the globally connected devices and connections by 2023.
- The upcoming 5G era is likely to reshape current wireless communication methods used for Industrial IoT-based applications. IoT cannot thrive without affordable and effective wireless connectivity, interoperability, and common standards. Thus, 5G has the potential to make a ground-breaking impact on the way in which future IoT ecosystems are designed, especially in the areas of scalability, latency, reliability, security, and the level of individual control of connectivity parameters.
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Asia Pacific is Expected to Hold Significant Market Share
- Asia Pacific is constantly creating pertinent plans and laws to support local industry upgrading and reorganization for Industry 4.0. As its middle-class population increases and incomes continue to climb, Asia Pacific is automating more quickly than any other nation in the world in an effort to update its processes and maintain its cost advantage in international trade.
- Manufacturers in the Asia Pacific region are currently focusing on the potential for revenue growth and risk management. Global manufacturers are thus anticipated to play increasingly significant roles as Asia-Pacific shifts to higher-value manufacturing as manufacturers look for alternative production sites close to the region's developing consumer markets.
- The industrial development in India is supported by its growing economy and its significant youth population. For employment generation, the Government of India is focusing on increasing the manufacturing facilities in the country, which is likely to fuel the adoption of Industry 4.0 in India because by implementing advanced systems and technology under Industry 4.0, the manufacturing sector of the country can increase its efficiency and productivity.
- China is economically developed and has a significant industrial sector, increasing the demand for advanced technologies, such as IIOTs and digital twins, thereby supporting market growth. The country is also expanding its SMBs sector to fuel its economic growth, which is expected to enhance the requirement of Industry 4.0 in the country due to the application of advanced technologies in SMBs.
- Japan has been significantly transforming into an automated industrial economy in Asia-Pacific through its Industrial version 4.0 strategies, and the country has emerged as a manufacturing hub for factory automation products and supplies to other regional markets in the Asia-Pacific region.
- The Rest of Asia-Pacific comprises South Korea, Singapore, Indonesia, Australia, Thailand, and Malaysia. The adoption of advanced Industry 4.0 technologies in South Korea and Singapore, supported by the countries’ huge manufacturing sector, is fueling the market in the Rest of the APAC region.
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Industry 4.0 Technologies Industry Overview
The Industry 4.0 Market is fragmented, with the presence of major players like ABB Ltd, Siemens AG, Robert Bosch GmbH, and Rockwell Automation Inc., among others. Players in the market are adopting strategies such as partnerships, investments, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In June 2023, Siemens unveiled its investment strategy to foster future growth, drive innovation, and enhance resilience. The strategy entails allocating EUR 2 billion (USD 2.18 billion) primarily to establish new manufacturing facilities, innovation labs, education centers, and other company-owned sites. As part of this initiative, Siemens also announced the construction of a factory in Singapore strategically positioned to cater to the rapidly expanding markets in Southeast Asia.
In February 2023, Johnson Controls International and Willow, a provider of digital twin solutions for critical infrastructure and real estate, announced a global collaboration to transform buildings and facilities digitally. Johnson Controls and Willow have jointly committed to bringing next-generation solutions to their customers. Digital twins are becoming more critical in designing, constructing, and maintaining healthy buildings and facilities. They can be accommodating when analyzing large datasets and predicting patterns and trends.
Industry 4.0 Technologies Market Leaders
ABB Ltd.
Siemens AG
Schneider Electric
Swisslog Holding AG (Kuka AG)
Rockwell Automation Inc.
*Disclaimer: Major Players sorted in no particular order
Industry 4.0 Technologies Market News
- June 2023: GE HealthCare Introduces Sonic DL, an advanced, FDA-Cleared AI Deep Learning Technology for Faster MRI. Sonic DL is a deep learning (DL) technology that primarily acquires high-quality magnetic resonance (MR) images up to around 12 times faster than conventional methods, allowing cardiac imaging within a single heartbeat.
- January 2023: A new, incredibly lightweight satellite launch container was launched by Singapore-based 3D printing service company Creatz3D. The special structure was created in collaboration with partners Qosmosysand NuSpace to contain 50 gold-anodized works of art that were later launched into orbit by SpaceX to commemorate the launch of the Pioneer 10 spacecraft fifty years ago. The companies discovered that by using 3D printing, they could significantly cut the satellite holder's cost and lead time as well as its bulk by more than 50%.
Industry 4.0 Technologies Market Report - Table of Contents
1. INTRODUCTION
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
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 SMEs
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 By Technology Type
5.1.1 Industrial Robotics
5.1.2 IIoT
5.1.3 AI and ML
5.1.4 Blockchain
5.1.5 Extended Reality
5.1.6 Digital Twin
5.1.7 3D Printing
5.1.8 Other Technology Types
5.2 By End-user Industry
5.2.1 Manufacturing
5.2.2 Automotive
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 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Spain
5.3.2.5 Rest of Europe
5.3.3 Asia Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 Japan
5.3.3.4 Rest of Asia Pacific
5.3.4 Latin America
5.3.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Siemens AG
6.1.3 Schneider Electric
6.1.4 Swisslog Holding AG (Kuka AG)
6.1.5 Rockwell Automation Inc.
6.1.6 Cognex Corporation
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
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
Industry 4.0 Technologies Industry Segmentation
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 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. Industry 4.0 market for the study defines the revenues generated from the type such as industrial robotics, IIoT, AI and ML, blockchain, extended reality, digital twin, 3D Printing, and other technology types that are being used in various end-user industries across the globe. The study also analyses the overall impact of the COVID-19 pandemic on the ecosystem. The study includes qualitative coverage of the most adopted strategies and an analysis of the key base indicators in emerging markets.
The Industry 4.0 Market is segmented by Technology Type (Industrial Robotics, IIoT, AI & ML, Blockchain, Extended Reality, Digital Twin, 3D Printing), End-user Industry (Manufacturing, Automotive, Oil & Gas, Energy & Utilities, Electronics & Foundry, Food & Beverage, Aerospace & Defense), Geography (North America (United States, Canada), Europe (Germany, United Kingdom, France, Spain, Rest of Europe), Asia-Pacific (India, China, Japan, Rest of Asia Pacific), Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Technology Type | |
| Industrial Robotics | |
| IIoT | |
| AI and ML | |
| Blockchain | |
| Extended Reality | |
| Digital Twin | |
| 3D Printing | |
| Other Technology Types |
| By End-user Industry | |
| Manufacturing | |
| Automotive | |
| Oil and Gas | |
| Energy and Utilities | |
| Electronics and Foundry | |
| Food and Beverage | |
| Aerospace and Defense | |
| Other End-user Industries |
| By Geography | |||||||
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| Latin America | |||||||
| Middle East and Africa |
Industry 4.0 Technologies Market Research FAQs
What is the study period of this market?
The Industry 4.0 Market is studied from 2018 - 2028.
What is the growth rate of Industry 4.0 Market?
The Industry 4.0 Market is growing at a CAGR of 20.67% over the next 5 years.
What is Industry 4.0 Market size in 2018?
The Industry 4.0 Market is valued at 168 Billion USD in 2018.
What is Industry 4.0 Market size in 2028?
The Industry 4.0 Market is valued at 459 Billion USD in 2028.
Which region has highest growth rate in Industry 4.0 Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Industry 4.0 Market?
Europe holds highest share in 2022.
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.
4.0 Market Industry Report
Statistics for the 2023 Industry 4.0 market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industry 4.0 analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Industry 4.0 Market Report Snapshots
