Industry 4.0 is based on the division made at different stages of industrial development. Industry 4.0 is the age of using information technology to promote industrial transformation that is the era of intelligence. The concept of Industry 4.0 includes the transformation from centralized control to decentralized enhanced control. The goal is to establish a highly flexible production model of personalized and digital products and services. In this model, traditional industry boundaries will disappear, and various new fields of activity and forms of cooperation will emerge. The process of creating new value is changing, and the division of labor in the industrial chain will be reorganized.
Global Industry 4.0 market size was valued at USD 74.8 billion in 2019 and is anticipated to which expected to reach USD 213.84 billion by 2027, growing at a CAGR of 12.77 % from 2020–2027. The growth of the market is based on rising adoption of smart devices across multiple industrial processes in the manufacturing sector. Further, the growing application of industry 4.0 in gathering the data and further integrate it with the digital services will spur the growth of the market. Additionally, the growth in demand for industrial automation, upsurge in the use of robot technology, and the increase in government expenditure is expected to witness remarkable growth of the Industry 4.0 market. Also, the growth technologies such as 3D printing, industrial robots, blockchain, AR &VR, AI, and 5G are estimated to propel the growth in future periods.
Moreover, the surge in the trend of processing the sensors using machine learning and artificial intelligence and real-time data streams generated by the IoT networks is positively impacting the demand of the Industry 4.0. The digitization of product and service offerings, digital business models, and customer access will boost the Industry 4.0. in the forecast periods. Furthermore, the growing popularity of intelligent manufacturing techniques to enhance productivity across various industry verticals is projected to drive the growth of Industry 4.0 in the coming years. The development of 3D printing to improve the supply chain management and manufacturing industry is anticipated to trigger the growth of the global Industry 4.0 market share in the analysis period.
An industrial robot is a multi-joint manipulator or multi-degree-of-freedom machine device for the industrial field. It automatically perform work and is a machine that realizes various functions by its power and control capabilities. Typical applications of industrial robots include painting, welding, assembly, collection, and placement (such as packaging, palletizing, and SMT), product inspection and testing, etc. The work is completed with high efficiency, durability, speed, and accuracy. Industrial robots are widely used in various industrial fields such as electronics, logistics, and the chemical industry.
The introduction of industrial things brings time-critical synchronization, high network reliability, and efficiency suitable for motion control and safety applications. Unlike in an office environment, industrial Ethernet requires connectors and cable routing to have a higher level of ruggedness. Still, more importantly, it requires a higher level of decision-making mechanism, which is specifically from industrial specific protocols. The Internet of Things and Industry 4.0 can correctly assume the vital task and will continue to be the platform of choice on the factory floor. Typical application examples include motion and machine control, where speed and system performance are critical.
The COVID-19 pandemic will fundamentally change the direction of global economic development and accelerate the changes that have already begun. The digital infrastructure implementation increasingly fuels the digital transformation initiatives within an organization. But due to the pandemic, the transition will see significant changes in industries, especially in technology, food delivery services, customer service, and virtual events. These include smart manufacturing, smart factory, dark factories, and industrial IoT technology. All four of these reflect a more significant trend: Automation. Much of Industry 4.0 involves using improved data collection to streamline workflow and manufacturing processes.
Based on the component, the global Industry 4.0 market classified into hardware, software, and services. The software segment held maximum Industry 4.0 market share in 2019. It is attributable to the software that create new business models, enables the integration of systems and sensors and ensure better operational efficiency.
The Services will be the fastest-growing segment in the forecast period. It is owing to services provide consulting in the field of Industry 4.0 to various industries, including collaborative projects to test new business models and help in discovering new potentials.
Based on technology, the global Industry 4.0 market segregated into 3D Printing, Industrial Robotics, Blockchain, Internet of Things (IoT), Artificial Intelligence (AI), Industrial Metrology, Digital Twin, Augmented Reality & Virtual Reality and Others (5G, Machine Learning, Cybersecurity, Cloud Computing, and Others. The Internet of Things (IoT), the segment accounted for a higher revenue share in 2019 and projected to dominate the Industry 4.0 market by 2027. It is primarily attributed to the growing usage of IoT by manufacturing industries for the current state of machines, optimizing their performance, identifying potential failures, planning maintenance schedules accordingly, and being able to monitor enterprise assets remotely and perform predictive maintenance.
The Industrial Robotics will grow with a lucrative growth rate in the forecast period. It is utilized in modern factories to eliminate the requirement of humans for several basic & complex tasks and increase operational efficiency & productivity.
Based on the application, the global Industry 4.0 market classified into Industrial Automation, Smart Factory, and Industrial Internet of things (IIoT). The Industrial Internet of things (IIoT) segment will hold higher market potential by 2027. It is owing to it play a decisive role in the implementation of digital manufacturing and the growing demand for IIoT for connected supply chain, which enables operational efficacy, flexibility, and conformance to regulations.
The smart factory held a significant market share in 2019. It is due to the growing demand for automation in SMEs and government initiatives for supporting innovation in the manufacturing industry.
Based on the end-user industry, the global Industry 4.0 market segmented into Automotive, Electronics, Oil & Gas, Energy & Power, Chemicals, Pharmaceuticals, Food & Beverages, Manufacturing, and Others. The manufacturing segment is projected to witness the fastest growth over the forecast period by 2027. It is on account of industry 4.0 enhanced efficiency of machinery and systems and reduced production cost.
Food & Beverages will showcase a lucrative CAGR during the forecast period. It is due to the Industry 4.0 help in productivity and cost-saving benefits associated with the industry offering. Additionally, it provides the determining ideal operational parameters and managing employee allocation for various tasks.
Based on geography, the global Industry 4.0 market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific is slated to account for a significant share by 2027 in the Industry 4.0 market. The growth in the region can be attributed to the low cost of production, enabling various manufacturers to set up manufacturing facilities along with technological advancements and financial support from the governments.
North America is projected to provide significant growth opportunities due to the presence of the key players in this region and the growing demand for decentralized and autonomous real-time production, smart automation, and data exchange in manufacturing technologies.
Companies such as ABB, Mitsubishi, Yaskawa, KUKA, FANUC, General Electric, IBM, Cisco, Microsoft, Stratasys, Google, Intel, HP, Siemens, Ansys, AIBrain, SAP, Amazon Web Services, Texas Instruments, and General Vision, are the key players in the global Industry 4.0 Market.
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