Industry 4.0 Market Research Report - Forecast 2027

Industry 4.0 Market, By Technology (Cloud computing, IoT platforms, Big data Analytics, Smart sensors), By Application (Industrial Automation, Smart Factory, Industrial IoT)), By End-User (Industrial manufacturing, Oil & gas, Construction, Electronics, Automotive, Chemical) - Forecast 2027

ID: MRFR/SEM/1752-HCR | February 2021 | Region: Global | 100 pages

Industry 4.0 Market Overview:


The CAGR for the industry 4.0 market is projected to be 20.71% until next year. The industry 4.0 market is expected to be worth USD 12.3 billion in 2022. Industry 4.0 is another term for the fourth industrial revolution which started during the late 1990s. It’s especially characterized by the increasing integration of digital technologies in automotive (and other) products.


The Internet of Things (IoT) encapsulates the industry 4.0 market. This includes but is not limited to the Internet of Things devices, cloud computing, data analysis, robotics, data capturing, SaaS, digital fabrication. A variety of devices including smartphones, smart handheld devices, smart laptops, other smart mobile devices, smart laptops, and regular computers.


These devices function as the hardware that items that use industry 4.0 technology operate off of.


COVID-19 Analysis


COVID-19 is changing the destiny of the world in the same way that the Black Death did in the 14th century. The COVID-19 virus is dangerous. Governments realized this early on. That’s why they enacted lockdowns and quarantines. These were temporary since they were not very effective.


The industry 4.0 market was not affected at all by COVID-19. In fact, if anything, this dangerous virus helped the market by allowing it to grow by leaps and bounds. The reasoning is simple. People were suddenly cooped up inside and needed some sort of entertainment. They turned to devices that used industry 4.0 technologies for this.


Market dynamics


Drivers


Technology has advanced rapidly and dramatically in the past two decades. This is largely what has allowed the industry 4.0 market to grow as fast as it did, especially during the pandemic. The infrastructure that is needed to support these technologies are also converging to allow smartphones, and other digital devices and technologies to be used in such a way that will allow the industry 4.0 market to grow faster.


Opportunities


Artificial Intelligence and the Internet of Things technologies have been entering the medical field at a breakneck pace and speed over the past few years. For example, artificial intelligence and the Internet of Things have started to be integrated into wearable devices. The Fitbit is one type of industry 4.0 technology. This has allowed doctors to make diagnoses and treat people faster. It has also resulted in a more integrated environment in health care centers of all types all around the world.


Medical personal emergency response systems have skyrocketed in demand thanks to the pandemic. This is because they allow health care professionals to monitor patients better and thus allow them to save more lives faster.


Restraints


What's holding growth in the industry 4.0 market back is the lack of a workforce that is trained and educated enough to use the technologies that the industry 4.0 market has developed and introduced to the general public. There is an acute shortage of engineers who can develop these devices correctly. Western nations are experiencing this.


Many developing nations find that they lack the infrastructure and industrial resources to make enough industry 4.0 markets correctly and have them work the way that they are supposed to.


Challenges


Industry 4.0 technologies have caused dangerous safety breaches in the past. Manufacturers of these technologies are going to have to figure out how to make these technologies without causing security breaches.


Technology Analysis


General Electric is a major American player in the industry 4.0 market. It has managed to become an industry leader by investing heavily in research and development. This allowed it to come up with the next generation of devices, technologies, and infrastructure that has allowed the industry 4.0 market to grow and advance in the ways that it has so far.


Segment overview


By Technology


The industry 4.0 market can be grouped into the following sub-categories:



  • Internet of Things

  • Platforms

  • Cloud computing

  • Augmented reality

  • Location detection technology

  • Advanced human interactive machine interface

  • Big data

  • Data analytics

  • Smart sensors

  • Data fabrication

  • 3D printing robots


These types of technologies operate off of such devices as smartphones, smart handheld devices, other mobile devices, smart laptops, and computers.


By Application


The industry 4.0 market can be grouped into the following sub-categories based on application:



  • Industrial Internet of Things

  • Smart factory

  • Industrial automation


By Vertical


The industry 4.0 market can be grouped into the following sub-categories based on vertical:



  • Food and beverage

  • Mining metals

  • Chemicals

  • Pharma

  • Oil and gas refinery

  • Industrial manufacturing

  • Construction

  • Aerospace

  • Defense

  • Automotive

  • Electronics

  • Transportation


Regional Analysis


The industry 4.0 market can be grouped into the following regions:



  • North America

  • The European Union

  • Asia-Pacific

  • The Middle East and North Africa

  • The rest of the world


As of 2021, North America and the European Union had the largest industry 4.0 market share. One of the main reasons for this is that smart manufacturing is regaining popularity in North America. America and Canada, especially, are seeing a resurgence in technologically advanced manufacturing because they have the advanced infrastructure and the better-educated workforce to support this. It’s smart manufacturing that is allowing American companies to create a sustainable competitive advantage in relation to the rest of the world in terms of manufacturing.


Manufacturing operations are seeing that adopting industry 4.0 technologies and infrastructure gives them many clear advantages. These are manufacturing more items at a much lower cost. This allows these manufacturers to lower the real price per unit of these items by allowing them to achieve economies of scope and scale. The machines are also much more productive and work much more efficiently. These factors combined are what’s attracting many manufacturing companies from all over the world to set up operations in America.


Germany and Japan have invested heavily in the industry 4.0 market. The result has been better manufacturing and more productivity. The companies in these regions have also partnered with other successful companies to produce and sell even more. They have been able to rake in more profit as a result.


China, Japan, and even India have seen a dramatic rise in the use of smart manufacturing and in the use of robots in manufacturing operations in recent years. This explains why the Asia-Pacific region has the highest industry 4.0 market growth rate. Industry 4.0 technologies are constantly improving in the Asia-Pacific region. This is also a major contributor to the breakneck growth rate in the industry 4.0 market in this region. Increased digitization and the increased adoption of cloud computing are also expected to attribute to a higher growth rate in the Asia-Pacific region in terms of growth in the industry 4.0 market.


Competitive Landscape


The industry 4.0 market is extremely competitive. There are many reasons for this. The primary two is that the market is lucrative and has a high short and long-term CAGR. The market also has few barriers to entry. This is encouraging more and more companies to enter the industry 4.0 market by the day.


The companies that are in the industry 4.0 market find that they have to invest heavily in research and development. Investing in research and development allows them to develop the new generation of industry 4.0 technologies, devices, and infrastructure that will allow them to create and retain a sustainable competitive advantage. Incidentally, these companies find that they can charge a higher price for these improved and more technologically advanced devices, infrastructure, and technology if they do marketing right.


They also find that it helps if they merge with and acquire other successful companies. This tends to give them access to knowledge, manpower, and other resources that they may not have had previously. It can give them the means to invest heavily in research and development.


They find that partnering with other successful companies also helps in terms of allowing them to develop a sustainable competitive advantage, retain and strengthen their positions in existing markets, and enter new markets with ease.


General Electric is a successful American company in the industry 4.0 market. It has managed to remain an industry leader by investing heavily in research and development. This allowed it to develop a new generation of products that has also allowed it to justify charging higher prices to those in existing and new markets.


List of Companies



  • Bosch Rexroth AG (Germany)

  • SAS (US)

  • MaschinenfabrikReinhausen GmbH (Germany)

  • Wittenstein AG (Germany)

  • Daimler AG (Germany)

  • General Electric Company (US)

  • Siemens AG (Germany)

  • Klockner & Co. SE (Germany)

  • Wittenstein AG (Germany)

  • Festo AG & Co. KG (Germany)

  • TRUMPF GmbH (Germany)


Recent Developments



  • ABB launched its new swift COBOT

  • ABB recently launched its new higher payload GoFa cobot

  • Siemens launched a new location tracking software program


Report Overview


The CAGR for the industry 4.0 market is 20.71% until 2022. The market is expected to be worth USD 12.3 billion by next year. The North American and European Union regions dominate the market because they have the largest concentrations of smart manufacturing companies. The Asia-Pacific region has the highest industry 4.0 market growth rate because China, India, and Japan are adopting smart manufacturing (which uses industry 4.0 technologies and infrastructure to operate) at a breakneck pace!



Speak to Analyst Ask for Customization

Frequently Asked Questions (FAQ) :


The various applications of industry 4.0 include industrial automation, smart factory and industrial internet of things (IIOT).

The major technologies of the market include sensors; advanced robotics and artificial intelligence; the Internet of Things; cloud computing; digital fabrication (3D printing); data capture and analytics; software-as-a-service and other new marketing models; smartphones as well as other mobile devices.

Cloud computing technology can note the highest adoption rate in the near future.

The global industry 4.0 market is expected to register substantial growth in the near future, attributed to growth in demand for industrial automation, upsurge in the use of robot technology, and increase in government expenditure on digitalization.

The region-wise segments in the Industry 4.0 market are Asia pacific, Europe, North America, and the Rest of the World (RoW).