Enjoy complimentary customisation on priority with our Enterprise License!
The Industry 4.0 Market size is estimated to grow at a CAGR of 21.88% between 2022 and 2027. The market size is forecast to increase by USD 211.43 billion. The growth of the market depends on several factors, including the need for simplification of complex manufacturing activities, the increasing demand for automation to achieve efficiency and quality, and the increasing focus on smart factories. Industry 4.0 is transforming how businesses make, improve, and distribute their products. Manufacturers are incorporating new technologies such as the IoT, cloud computing and analytics, artificial intelligence (AI), and machine learning (ML) into their manufacturing facilities and processes. These smart factories are equipped with cutting-edge sensors, integrated software, and robotics that collect and analyze data to help with decision-making. These digital technologies lead to improved automation, predictive maintenance, self-optimization of process improvements, and, most importantly, a new level of efficiency and responsiveness to customers that was not previously possible.
This industry 4.0 market report extensively covers market segmentation by application (industrial IoT, smart factory, and industrial automation), end-user (manufacturing, automotive, energy and utilities, oil and gas, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The need for simplification of complex manufacturing activities is driving growth in Industry 4.0 market. Maintaining plant assets has been an important goal for industrial operators, given the change in the process over time. The production process has become more complex, owing to the production of different products with personalized characteristics due to cyclic demand. The close interrelated relationship between production equipment, inventory, and support systems in various plants creates a complex process environment.
Nowadays, industries are facing challenges with obtaining high operational efficiency and, at the same time, ensuring that their critical assets are properly maintained. Even minor interruptions or failure of critical equipment may result in significant revenue losses during rapid operation cycles. Industrial automation ensures proper maintenance and effective management of physical assets. Such factors are expected to boost the growth of the global Industry 4.0 market during the forecast period.
The virtualization of automation control systems is a key trend in Industry 4.0 market growth. Virtualization with software called hypervisors, which creates and manages virtual machines, could be used in the area of industrial and factory automation. The virtual machine contains the operating system and the software. On top of the primary operating system, virtual machines are being used to run different operating systems. Virtualization can be applied to communication layers in industrial premises, such as a server, storage, desktop, file, and network.
However, even small data centers require multiple servers to run different applications on operating systems, which increases the overall costs. Increasing awareness of virtual software and the flexibility of using automation software, despite the low adoption of virtualization in industrial premises. It is expected to increase the demand for virtualization in industrial automation, which will have a positive impact on the growth of the global Industry 4.0 market during the forecast period.
Technical challenges associated with the implementation is a major challenge in the market growth. The challenges of design at the level of control have risen significantly with the advent of the industrial Internet of Things (IoT) in the context of automation. IIoT offers various benefits, such as real-time communication and reliability. IIoT for manufacturing and factory automation aids in smart maintenance distributed intelligence systems, and predictive analytics.
However, with the increasing adoption of IoT-enabled devices, manufacturers and system integrators are facing design challenges in factory automation. There are three basic levels of control, which include field level, control level, and operator level, within the factory automation process. The smooth move from traditional automation to Industry 4.0 in the manufacturing industry. Hence, these factors might hamper the growth of the market in focus during the forecast period.
The market share growth by the industry IoT segment will be significant during the forecast period. IoT is a network of physical devices, machines, and sensors integrated into everyday objects connected to the Internet for effective data communications. It is building smart communications environments like shops, homes, transportation, and healthcare.
Get a glance at the market contribution of various segments View Free PDF Sample
The industrial IoT segments showed a gradual increase in the market share of USD 26.23 billion in 2017 and continued to grow by 2021. IoT enhances operational efficiency by increasing the speed of communications over the existing infrastructure and, in turn, improves business productivity in any industrial setup. IoT software helps to set, monitor and keep track of connected devices that are part of the manufacturing process.
The manufacturing segment includes the machinery, food and beverage, chemicals and materials, and electrical and electronics segments. With the aim of enhancing business productivity and gaining a competitive advantage, manufacturers around the world benefit from the IoT and other technologies. Machines and devices are connected to the Internet through software. Predictive maintenance and optimization of performance on the factory floor shall be carried out using data that is gathered and insights gained from the production process. The manufacturing segment faces certain challenges, such as the need for more investments, redesigning of business models, security concerns, the lack of standardization, and interoperability issues.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. A major share of the revenue in the global Industry 4.0 market was generated from North America, as it is a key manufacturing region with a strong presence in industries such as oil and gas, power, automotive, food and beverage, and pharmaceutical. Most coal-fired power plants in the US are expected to be replaced by natural gas-based power plants by 2035.
In addition, investments in chemical and petrochemical facilities are expected to increase due to the increased availability of shale oil and gas within the US as well as a low level of crude oil and natural gas prices. Few investments are expected to increase the demand for industrial automation in the region, which in turn will boost the growth of the regional Industry 4.0 market during the forecast period.
The COVID-19 pandemic had a significant impact on the North America Industry 4.0 market in 2020. However, as the pandemic progressed, the importance of digitalization and automation in ensuring business continuity became evident. Remote monitoring and preventive maintenance, as well as flexible production systems, are becoming increasingly important. As a result, there was an accelerated adoption of Industry 4.0 technologies in North America in 2020 and 2021. The pandemic highlighted the susceptibility of traditional manufacturing processes, leading to a greater focus on resilience and agility. The increasing focus on digital transformation and data-driven decision-making is further expected to fuel the growth of the regional Industry 4.0 market during the forecast period.
The Industry 4.0 Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes critical purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Industry 4.0 Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cisco Systems Inc. - The company offers industry 4.0 solutions such as Cisco Edge Intelligence.
Cognex Corp. - The company offers industry 4.0 solutions such as Cognex DataMan fixed-mount barcode readers.
FANUC Corp. - The company offers industry 4.0 solutions such as FANUC smart factory.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, robust, tentative, and weak.
The Industry 4.0 market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Industry 4.0 Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.88% |
Market growth 2023-2027 |
USD 211.43 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.67 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADLINK Technology Inc., Advantech Co. Ltd., AURA DIFUSION S.L., Cisco Systems Inc., Cognex Corp., Emerson Electric Co., FANUC Corp., General Electric Co., Honeywell International Inc., Huawei Technologies Co. Ltd., MIDEA Group Co. Ltd., Mitsubishi Electric Corp., OMRON Corp., Qualcomm Inc., Robert Bosch GmbH, Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, and Stratasys Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.