Industry 4.0 Market Size, Share & COVID-19 Impact Analysis, By Application (Industrial Automation, Smart Factory, and Industrial IoT), By Vertical (Manufacturing, Energy & Utilities, Automotive, Oil and Gas, Aerospace and Defense, Electronics and Consumer Goods, and Others), and Regional Forecast, 2022-2029

The global industry 4.0 market size was valued at USD 114.55 billion in 2021 and is projected to grow from USD 130.90 billion in 2022 to USD 377.30 billion by 2029, exhibiting a CAGR of 16.3% during the forecast period. Based on our analysis, the global market exhibited an average growth of 13.9% in 2020 as compared to 2019. 

In the scope considered, players are offering solutions such as ABB Ltd., Siemens AG, and Cognex Corporation, among others. The industry 4.0 product offerings of ABB Ltd. Include robotics, PLC automation, control room solutions, and motors and generators, among others. Similarly, Siemens AG provides building technologies, industrial automation, and mobility, among others.

Increasing trends of digitization and internet penetration due to the increasing focus of various industries on efficiency and profitable productivity are driving the growth opportunities of the market. Recent advances in digital technologies and industrial computerization have begun to expand the possibilities for industrial value chain interruption. With the advent of the fourth industrial revolution (i4.0), companies are experiencing improved efficiencies, reduced cost benefits, increased production, personalized offerings, and most importantly, the development of new revenue and business models.

For instance, in May 2021, Robert Bosch Engineering and Business Solutions Private Limited launched Phantom Edge to provide a real-time view of electric parameters, appliance level information, electrical energy consumption, and operating usage. The Phantom Edge combines Artificial Intelligence (AI) and the Internet of things (IoT) and can be used in various sectors, including retail, industrial manufacturing, healthcare, agriculture, and mobility, among others.

Digital technologies, such as artificial intelligence, the Internet of Things (IoT), augmented and virtual reality, 3D printing, and blockchain, are disrupting all elements of the value chain, including product designing, supply chain, manufacturing process, and customer experience. Further, global manufacturing industry giants, such as Germany, the U.S., France, and Japan, were being supported by strategic government initiatives to digitize their production processes across various industries.

COVID-19 IMPACT

COVID-19 to Uplift Demand Supported by Integration of Advanced Solutions in Business Operations

With the global market environment being ravaged by the COVID-19 pandemic, digitalization across industries is accelerating at a rapid rate. This presents a new opportunity for digital leaders to develop and adopt creative solutions to accelerate digital transformation at all levels of the company. The outbreak of the coronavirus is hastening the introduction of the fourth industrial revolution (Industry 4.0), propelling businesses across sectors to a higher level of Internet of Things (IoT) technology and workflow. The global supply chain is undergoing unprecedented instability as a result of the COVID-19 pandemic that has affected the entire planet. Some manufacturing firms have completely stopped production while others have seen a significant decrease in demand and a few witnessed an increase in demand.

Enterprises, on the other hand, are implementing advanced technologies to mitigate the disruption caused by the virus spread. The role of supply chain management is becoming increasingly important in terms of risk management. Manufacturers that have not yet begun or are in the early stages of transitioning to i4.0, on the other hand, may face difficulties. In this scenario, flexibility in analyzing and adjusting inventory requirements, optimizing supply chains, and increasing manufacturing capabilities with advanced technologies will be crucial for manufacturers and enterprises globally. Moreover, favorable government initiatives are expected to help businesses sustain through the pandemic. For instance,

• In March 2020, the European Commission proposed a temporary framework that promoted the growth of advanced industry 4.0 solutions among small and medium-sized businesses.


• In July 2020, Siemens AG launched a SIMATIC Real-time Locating System (RTLS) to provide organizations with real-time location information that can be used by customers to control the manufacturing process during COVID-19 and further help in operating procedures accordingly.

Such initiatives are expected to boost the adoption of technologies in the contextual environment of COVID-19.

LATEST TRENDS

Predictive Maintenance Using Digital Twin Solution Will be a Significant Market Trend

As the Internet of Things (IoT) has grown in popularity in recent years, digital twins have attracted a lot of attention. A digital twin is a virtual model that follows the lifecycle of a physical entity or mechanism. This technology has allowed OEM manufacturers and automakers to remotely track and manage equipment and systems by providing near real-time insights between the physical and digital worlds. To spot bottlenecks, streamline processes, and innovate product growth, digital twin technology provides an unparalleled insight into assets and production.

Companies are incorporating digital twin technology that can detect anomalies and irregularities in operations immediately to gain a holistic view of the performance of the equipment. Spare component maintenance and replenishment can be scheduled ahead of time to reduce time-to-service and prevent costly asset failures. Predictive maintenance with digital twins would help OEMs generate new service-based revenue while also improving product reliability. Additionally, companies in the market are launching advanced digital twin solutions that aid in better visibility into equipment and offer greater operational efficiency. For instance,

• In February 2020, Huawei Technologies Co., Ltd., a digital technology company headquartered in China, launched digital site twins, a solution that creates the exact digital replica of a physical site that enables smoothened digital operations.


• In June 2020, Siemens AG launched Teamcenter X Software, which enables enterprises to quickly integrate, scale, and implement PLM technology in functional disciplines. This launch would further help in the creation of a digital twin with a bill of material integration and multi-domain design.

Such initiatives by key market players are expected to contribute to the industry 4.0 market growth in the forecast period.

DRIVING FACTORS

Increased Adoption of Industrial Robots and Surge in Industrial Automation Demand Drive the Market Growth

Over the last few decades, robots have progressed from being prohibitively costly machines with minimal capabilities to being inexpensive machines capable of performing a wide range of tasks. Industrial robots, in particular, are widely used by people all over the world. According to the latest robotics industry trends, industrial robots are increasingly being used in manufacturing hubs, resulting in rapid advancements, development, and evolution.

The manufacturing sector has witnessed a growing acceptance of robotics engineering and technology in its production processes as a result of rapid technological advances in robotics. Industrial robots are multipurpose manipulator devices that are automatically controlled and programmable. Welding, heavy-lifting, ironing, assembling, picking and position, palletizing, product inspection, and testing are just a few of the popular industrial robot applications, all of which require a lot of human endurance, speed, and precision. According to the International Federation of Robotics (IFR), around 486,800 units were shipped around the globe in 2021. Industrial robots perform repeatable tasks and eliminate the need for human labor. Furthermore, they can operate in hazardous and external risks that humans cannot. Thus, robotics technology will be a key trend of the industry.

• For instance, in February 2021, ABB Ltd launched SWIFTI cobot, a collaborative robotic family that provides enhanced safety measures and precision of an industrial robot, robustness, and ease of use with speed to various applications, including manufacturing and logistics, among others.

RESTRAINING FACTORS

Data Risks Associated with Integration of Advanced Technologies to Restrict Growth

The integration and implementation of industry solutions have several benefits but they also pose multiple risks that could hamper business developments in the near future. Data and security challenges associated with the implementation of advanced technologies are expected to hamper the market growth. According to a study published by Cybercrime Magazine in 2021, the cost of cybercrime reached USD 6.0 trillion globally in 2021 and is predicted to reach USD 10.5 trillion by 2025. Industry 4.0 systems are unable to prevent hackers from accessing the manufacturer's data and collecting all sensitive details due to their susceptibility to attacks. As a result, there is a need to raise consciousness about such threats and to comprehend the necessity of cybersecurity solutions at all levels of organizational networks.

SEGMENTATION

By Application Analysis

Industrial IoT (IIoT) to Gain Momentum during Forecast Period

Based on application, the market is classified into industrial automation, smart factory, and industrial IoT. IoT in the industrial sector (Industrial IoT) combines advancements of two transformative revolutions. The possible benefits of IoT technology have motivated several industrial equipment manufacturers to adopt IoT. By connecting industrial equipment using wireless connectivity and gathering sensor data from the same, manufacturers are able to estimate the present state of machines, enhance their performance, and recognize potential failures while planning maintenance programs. Industrial automation provides a wide range of technologies that help in reducing human intervention. Further, it helps in flexibility and quality of manufacturing processes.

Smart factories allow each customer's requirements to be satisfied profitably. In i4.0, the dynamic business and engineering processes allow end-process changes to production and convey the ability to respond flexibly to disorders and failures in place of suppliers.

By Vertical Analysis

Manufacturing to Capture Maximum Market Share in the Forthcoming Years

Based on vertical, the market is further segregated into manufacturing, energy & utilities, automotive, oil and gas, aerospace and defense, electronics and consumer goods, and others. The manufacturing segment is estimated to dominate the global market during the forecast period. The automotive, transportation, and chemical segments are projected to emerge as the most promising verticals implementing i4.0. The deployment of smart robots & machines in the manufacturing sector has witnessed an increasing trend over the past years. Investments in research and development are taking place to design an integrated system in which robots and humans can work on complex tasks together by utilizing sensor-connected human-machine interfaces.

The adoption of advanced solutions will be high in the automotive sector during the forecast period. Plants equipped with technology can track the production equipment and processes to detect possible problems before they cause production downtime. Automobile manufacturers that are i4.0ready can also configure individual vehicles and reduce the delivery time. Manufacturers must configure vehicle configurations to meet changing customer demands. Unlike conventional auto production, the IIoT-enabled device allows for customization such as the dashboard and steering wheel. Furthermore, the concept of self-driving vehicles has become a reality owing to i4.0. Companies around the automotive ecosystem are investing heavily in product and manufacturing process innovations to stay competitive in the face of rapid technological growth.

REGIONAL INSIGHTS

Geographically, the market is segmented across five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North American companies are increasingly embracing the concept of smart manufacturing, and the region is expected to dominate the market. The majority of factories operating in the market are now equipped with new machinery and smart factory technology, allowing other businesses to transition to smart manufacturing from conventional manufacturing methods. Major players operating in the market, government initiatives, and increasing funding for research and development activities are vital factors that make North America a dynamic region for the growth opportunity of the market.

Europe had the second largest global industry 4.0 market share in 2021. The European industry has made a substantial investment in technologies and skills to maintain its position in the global market. The deployment of connected objects and automation techniques has transformed the German manufacturing process and has given rise to the fourth industrial revolution. The establishment of connectivity, networked objects, real-time data processing, and ubiquitous information is shifting paradigms in industries. Tech giants, including Siemens, Honeywell, and General Electric are among the early adopters of i4.0 and are far ahead in its implementation. 

The Asia Pacific market growth is led by Japan, China, and South Korea due to their exhaustive measures to adopt industrial automation and implement disruptive technologies in their manufacturing system value chain. The plan encompasses the top 10 industries, including semiconductors, advanced robotics, electric cars, and artificial intelligence. This state-driven industrial policy aims to make China dominant in global high-tech manufacturing and has derived its inspiration from the German government’s i4.0 development plan. Japan launched its Society 5.0 program, which is aimed to address the economic, social, and industrial challenges.

• For instance, in September 2020, Siemens AG launched an Advanced Manufacturing Transformation Center (AMTC) in Southeast Asia to support i4.0. This will provide training, support, and guidance to companies in Southeast Asia.

In Latin America and the Middle East & Africa, the fourth industrial revolution is supported by government initiatives and the realization of the significance of adopting digital technologies to sustain the global market. For instance, in October 2020, the Middle East government planned to develop industry 4.0 revolution by making partnership with the World Economic Forum. The progress in the UAE economy also reinstates its sheer prowess of becoming the world leader by addressing the key challenges present in digital transformation and technology advancements. The strategy is designed to strengthen its position as a global hub and to proliferate its support to the national economy. Also, in Brazil, leading players have partnered to stimulate the implementation of technological assets to speed up the adoption of advanced technologies.

KEY INDUSTRY PLAYERS

Key Players are Adopting Several Strategies such as Mergers and Acquisition to their Position in the Market

Oracle Corporation, Cisco Systems Inc., and others are some of the major players in the market. They are currently deploying advanced solutions integrated with digital twins and 3D printing, among others. Additionally, the high market competition is forcing key market players to focus on the acquisition strategy to strengthen their positions. For instance,

• February 2021 – Software and SAP SE partnered to combine SAP's S/4HANA Cloud with Software AG's analytics platform, TrendMiner. This alliance will bring sensor-generated data into analytics for companies looking to opt for industry 4.0 solutions.


• February 2021 – ABB Ltd. launched GoFa to assist workers with ergonomically and repetitive tasks. Further, the launch will support the growing demand for robots that are capable of handling heavier payloads to enhance flexibility and productivity.


• March 2020 - Cisco Systems Inc. collaborated with Microsoft Corporation to allow seamless data orchestration from Cisco IoT Edge to Azure IoT Cloud. This collaboration will empower customers to get a pre-integrated IoT edge-to-cloud application solution and seamless flow of data through IoT edge.

LIST OF KEY COMPANIES PROFILED:

• 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.)

KEY INDUSTRY DEVELOPMENTS:

• March 2021 – NOKIA Corporation partnered with WEG Industries, a power, and automation headquartered in Brazil, to boost 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, launched IntelliCyient suite that enables digital transformation for the manufacturing industries. The solution provides significant value to the assets such as manufacturing, industrial, aerospace, automotive, and utilities.


• February 2021 – Schneider Electric partnered with Nexans for a digital transformation program to bring industry 4.0 to amplify sustainability and operations. The digitization helps factories to improve predictive maintenance, reduce carbon emissions, and improve the efficiency of production lines.


• October 2020 –Siemens announced expansion with industry 4.0 offerings in India with the launch of four Mind Sphere Application Centers. The centers are located across several cities, including Noida, Pune, and Gurgaon in India. Siemens has around 20 centers for i4.0 for digital customer applications across 17 countries globally.


• March 2019 - Telefonaktiebolaget LM Ericsson, a leading telecommunication and technology company headquartered in Sweden, launched Ericsson Industry Connect. It is an efficient cellular connectivity solution that will help manufacturers and automakers accelerate industry 43.0 adoptions by making 4G and 5G technology accessible to new global markets.

REPORT COVERAGE

The research report provides an in-depth industry 4.0 market analysis and focuses on key aspects such as leading companies, applications, and adoption of advanced technologies among several industry verticals. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several key factors that have contributed to the growth of the market in recent years.

Report Scope and Segmentation