Global Industry 5.0 Market By Technology (Artificial Intelligence (AI), Internet of Things (IoT), Robotics and Automation, Augmented Reality (AR) and Virtual Reality (VR), Additive Manufacturing, Blockchain, Others), By Industry Vertical (Manufacturing, Healthcare, Automotive, Aerospace, Energy & Utilities, Consumer Electronics, Others), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: April 2024
- Report ID: 119051
- Number of Pages: 369
- Format:
- keyboard_arrow_up
Quick Navigation
Report Overview
The Global Industry 5.0 Market size is expected to be worth around USD 964 Billion by 2033, from USD 135 Billion in 2023, growing at a CAGR of 21.7% during the forecast period from 2024 to 2033.
Industry 5.0 represents the next evolution in the industrial sector, focusing on the integration of advanced technologies and human creativity. This concept builds on the foundations of Industry 4.0, which emphasized digitalization and automation, by prioritizing sustainable development and the collaboration between humans and machines. The goal of Industry 5.0 is to enhance workforce creativity and productivity while also addressing environmental and social sustainability.
The Industry 5.0 market is emerging as businesses begin to implement these principles. It encompasses various sectors such as manufacturing, logistics, and healthcare, where there is a significant focus on customization and efficiency. Key technologies driving this market include artificial intelligence, robotics, and the Internet of Things (IoT), all tailored to work seamlessly with human operators.
Additionally, Industry 5.0 promotes sustainability and environmentally friendly practices. By combining technology with human creativity, it enables the development of innovative solutions for reducing waste, optimizing resource utilization, and addressing global challenges like climate change and pollution.
For instance, in May 2023, ABB Beijing marked a significant achievement by opening a new automated production line for miniature circuit breakers (MCBs). This factory has adopted advanced Industry 5.0 ideas to improve its manufacturing processes. With these enhancements, the factory is expected to boost the production, availability, and quality of MCBs. This will benefit ABB’s large network of customers by ensuring they have better access to high-quality products.
Key Takeaways
- The Global Industry 5.0 Market size is expected to reach USD 964 billion by 2033, projected at a CAGR of 21.7% during forecast period.
- In 2023, the Internet of Things (IoT) segment held a dominant market position within the Industry 5.0 framework, capturing more than a 24.6% share.
- In 2023, the Manufacturing segment held a dominant market position within the Industry 5.0 market, capturing more than a 31.8% share.
- In 2023, North America held a dominant market position, capturing more than a 36% share of the global Industry 5.0 market.
Technology Analysis
In 2023, the Internet of Things (IoT) segment held a dominant market position within the Industry 5.0 framework, capturing more than a 24.6% share. This prominence is primarily due to IoT’s integral role in enabling smarter, interconnected industrial environments that are crucial for Industry 5.0’s vision.
IoT technologies facilitate the seamless integration of machines, systems, and people, improving operational efficiency and real-time decision making. As businesses increasingly focus on customization and agility, IoT’s ability to collect and analyze data from a multitude of sensors and devices becomes indispensable.
The leading position of the IoT segment can also be attributed to its versatility across various applications in the industrial sector. For instance, in manufacturing, IoT devices monitor and optimize production processes, thus reducing downtime and maintenance costs.
In logistics, they enhance supply chain transparency and responsiveness. The widespread adoption of IoT technologies is further supported by their declining costs and the growing availability of high-speed internet connections, making them more accessible for businesses of all sizes.
Moreover, the expansion of IoT in Industry 5.0 is facilitated by advancements in complementary technologies such as AI and cybersecurity. AI algorithms enhance IoT capabilities by predicting equipment failures and optimizing energy use, while improved cybersecurity measures address the vulnerabilities inherent in connected systems. Collectively, these factors ensure that the IoT segment not only leads but also propels the overall growth of the Industry 5.0 market.
Industry Vertical Analysis
In 2023, the Manufacturing segment held a dominant market position within the Industry 5.0 market, capturing more than a 31.8% share. This leading position can be attributed to several pivotal factors. Primarily, the integration of smart technology and human ingenuity in manufacturing has significantly enhanced operational efficiency and productivity. Industry 5.0 emphasizes personalized production, sustainability, and worker safety, which aligns closely with the advancements in manufacturing processes.
The surge in adoption of collaborative robots (cobots), artificial intelligence (AI), and the Internet of Things (IoT) in manufacturing settings has facilitated more flexible and efficient production lines. These technologies not only improve the speed and quality of manufacturing but also ensure that the production processes are more adaptable to changing consumer demands.
For instance, in high-demand sectors such as automotive and electronics, manufacturers are leveraging these intelligent systems to optimize supply chains and reduce downtime, thus further solidifying the segment’s market leadership.
Moreover, the shift towards sustainable manufacturing practices, driven by global environmental concerns and regulatory policies, has prompted companies to invest in smart technologies that reduce waste and energy consumption. This transition is bolstered by Industry 5.0’s focus on ecological manufacturing processes that incorporate recycling, renewable energy, and eco-friendly materials.
As a result, companies in the manufacturing sector are not only achieving cost savings through improved resource efficiency but are also enhancing their brand reputation and compliance with international sustainability standards.
Key Market Segments
By Technology
- Artificial Intelligence (AI)
- Internet of Things (IoT)
- Robotics and Automation
- Augmented Reality (AR) and Virtual Reality (VR)
- Additive Manufacturing
- Blockchain
- Others
By Industry Vertical
- Manufacturing
- Healthcare
- Automotive
- Aerospace
- Energy & Utilities
- Consumer Electronics
- Others
Driver
Increased Demand for Customization and Efficiency
The increasing demand for customized products tailored to individual customer preferences is a significant driver for the Industry 5.0 market. In an era where personalization is key to consumer satisfaction, companies are leveraging Industry 5.0 technologies to enhance their manufacturing processes and supply chain management.
Technologies such as AI and IoT allow for more flexible production lines that can adjust in real-time to changes in demand and specifications. This shift not only improves operational efficiency but also reduces waste and enhances the overall customer experience, creating a strong impetus for further adoption of Industry 5.0 solutions.
Restraint
High Implementation Costs
The transition to Industry 5.0 involves substantial initial investments in advanced technologies and training for personnel, acting as a major restraint. Upgrading existing systems to smarter, interconnected ones requires significant capital, with costs associated with purchasing new machinery, integrating IoT devices, and securing data networks.
Small and medium-sized enterprises (SMEs) often find these expenses particularly prohibitive, which slows down the widespread adoption of Industry 5.0 technologies. Additionally, the need for ongoing maintenance and updates represents a recurring financial burden, further deterring businesses from making the necessary investments to upgrade their operations.
Opportunity
Advancements in Sustainable Technologies
Industry 5.0 presents an excellent opportunity to integrate sustainable practices within industrial operations, aligning with increasing regulatory and consumer demands for environmental responsibility. Advanced technologies such as energy-efficient robots, AI-driven optimization of resources, and sustainable manufacturing processes enable businesses to minimize their ecological footprint. This shift not only helps companies comply with stricter environmental regulations but also appeals to a growing segment of consumers prioritizing sustainability, thus opening new markets and enhancing brand loyalty.
Challenge
Skills Gap and Workforce Adaptation
A significant challenge in the adoption of Industry 5.0 is the skills gap present in the current workforce. As industries move towards more complex and technologically advanced systems, there is a growing need for skilled professionals who can manage and operate these new tools effectively. Training existing employees and attracting new talent with the necessary technical skills is both time-consuming and costly.
Additionally, there is often resistance to change among employees accustomed to traditional methods of working, complicating the transition to newer, more automated processes. This cultural and educational shift is critical for the successful implementation of Industry 5.0 technologies.
Growth Factors
- Integration of AI and Robotics: The adoption of artificial intelligence (AI) and robotics within industrial settings continues to drive significant growth in the Industry 5.0 market. These technologies improve accuracy and efficiency in manufacturing processes, reduce downtime, and facilitate predictive maintenance, thereby enhancing overall productivity.
- Demand for Enhanced Data Security: As industries become more interconnected, the demand for robust cybersecurity solutions increases. Companies are investing in advanced security protocols to protect sensitive data and operations from cyber threats, fueling growth in this sector.
- Government Initiatives and Funding: Several government policies and initiatives promoting digital transformation in manufacturing support the growth of Industry 5.0. Financial incentives, subsidies, and grants provided by governments worldwide encourage businesses to invest in smart technologies, driving market expansion.
- Rise in Consumer Expectations for Sustainability and Traceability: Consumers are increasingly demanding products that are sustainably produced and easily traceable. Industry 5.0 technologies enable businesses to meet these expectations by offering greater transparency and optimizing resource use, which in turn drives market growth.
Emerging Trends
- Collaborative Robots (Cobots): Cobots designed to work alongside humans are becoming increasingly popular in Industry 5.0 environments. These robots enhance operational efficiency and worker safety, making them ideal for tasks that require human-machine interaction.
- Digital Twins: The use of digital twins to create virtual replicas of physical systems allows companies to simulate and analyze operations before they are implemented. This technology is gaining traction for its ability to improve planning, optimize performance, and reduce the risk of operational failures.
- Augmented Reality (AR) and Virtual Reality (VR): AR and VR are reshaping training and maintenance processes in industrial settings. These technologies provide immersive experiences that improve the precision and speed of complex tasks, from assembly to repair.
- Edge Computing: Moving data processing to the edge of the network reduces latency and bandwidth use, which is crucial for real-time applications required in Industry 5.0 setups. Edge computing supports faster decision-making and increased responsiveness in automated systems.
- Customization at Scale: Advances in technologies like 3D printing and AI are enabling mass customization, allowing manufacturers to offer personalized products without sacrificing efficiency or increasing costs significantly. This trend is expected to redefine production strategies and consumer engagement in the coming years.
Regional Analysis
In 2023, North America held a dominant market position, capturing more than a 36% share of the global Industry 5.0 market. This significant market share can be attributed to several key factors. Primarily, the region’s robust technological infrastructure and the presence of a highly skilled workforce have fostered an environment conducive to the advanced manufacturing techniques central to Industry 5.0. These include increased automation integrated with human ingenuity, promoting efficiency and innovation in manufacturing processes.
The demand for Industry 5.0 in North America was valued at USD 48.6 billion in 2023 and is anticipated to grow significantly in the forecast period. Moreover, North America’s leadership in Industry 5.0 is further supported by substantial investments in research and development. U.S. companies, in particular, are at the forefront of deploying artificial intelligence and machine learning technologies, which are pivotal in driving the Industry 5.0 revolution.
This technological edge is complemented by proactive governmental policies aimed at promoting smart manufacturing practices, which have encouraged industries to adopt more human-centric technology solutions. For example, initiatives that facilitate collaboration between public and private sectors have accelerated the development of smart factories and sustainable manufacturing practices in the region.
Key Regions and Countries
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
The Industry 5.0 market is witnessing the emergence of several key players who are driving innovation and shaping the future of this transformative industry. These key players are at the forefront of developing and implementing technologies that enable human-machine collaboration and facilitate the transition towards a more sustainable and inclusive industrial landscape.
One of the prominent key players in the Industry 5.0 market is Siemens AG. Siemens is a global leader in industrial automation, digitalization, and electrification. The company offers a wide range of solutions that integrate advanced technologies like AI, IoT, and robotics with human-centric approaches. Siemens’ expertise in industrial software, smart manufacturing, and energy management positions them as a key player in shaping the Industry 5.0 ecosystem.
Top Market Leaders
- Honeywell International Inc.
- 3D Systems
- Emerson Electric CO.
- Kuka AG.
- Universal Robots A/S
- Nexus Integra
- Siemens A.G.
- Rockwell Automation Inc.
- Schneider Electric
- Cisco Systems Inc.
- FANUC CORPORATION
- Yaskawa Electric Corp
- Other Key Players
Recent Developments
- January 2024, Siemens unveiled innovations that merge the real and digital worlds, redefining reality at the CES 2024 exhibition, a premier global tech event. Siemens introduced groundbreaking AI and immersive engineering developments aimed at fostering the industrial metaverse. These technologies empower global innovators through Siemens Xcelerator, its open digital business platform.
- October 2023, Amphenol Corporation subsidiary Piher Sensing Systems launched its new hcso-1w open loop current sensor. This high-accuracy sensor is perfect for measuring AC and DC currents in applications like battery management systems, industrial battery chargers, and motor controls.
- June 2023, Honeywell introduced the Honeywell Digital Prime solution, a cloud-based digital twin designed to enhance the monitoring, management, and testing of process control changes and system modifications. This cost-effective tool allows users to perform frequent tests, improving accuracy and significantly reducing the need for reactive maintenance.
- April 2023, Stratasys released GrabCAD Print Pro software, featuring integrated quality assurance from Riven. This advanced software is tailored for Stratasys 3D printers, helping manufacturers efficiently produce end-use parts at scale. It focuses on improving accuracy of printed parts, reducing waste, and cutting down production time.
- Additionally, Accel, a global venture capital firm, announced a call for applications for its AI and Industry 5.0 cohort. Targeting entrepreneurs from the UAE, Southeast Asia, and India, the program offers personalized mentorship and industry-specific advice from top operators and entrepreneurs. The initiative also supports businesses in team development, concept evaluation, and funding acquisition through a series of mentorship sessions.
Report Scope
Report Features Description Market Value (2023) USD 135 Bn Forecast Revenue (2033) USD 964 Bn CAGR (2024-2033) 21.7% Base Year for Estimation 2023 Historic Period 2018-2022 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Technology (Artificial Intelligence (AI), Internet of Things (IoT), Robotics and Automation, Augmented Reality (AR) and Virtual Reality (VR), Additive Manufacturing, Blockchain, Others), By Industry Vertical (Manufacturing, Healthcare, Automotive, Aerospace, Energy & Utilities, Consumer Electronics, Others) Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, Australia, Singapore, Vietnam, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA Competitive Landscape Honeywell International Inc., 3D Systems, Emerson Electric CO., Kuka AG., Universal Robots A/S, Nexus Integra, Siemens A.G., Rockwell Automation Inc., Schneider Electric, Cisco Systems Inc., FANUC CORPORATION, Yaskawa Electric Corp, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is Industry 5.0?Industry 5.0 represents the integration of human intelligence with advanced technologies, focusing on collaboration between humans and machines to enhance productivity, innovation, and sustainability in industrial processes.
How big is Industry 5.0 Market?The Global Industry 5.0 Market size is expected to be worth around USD 964 Billion by 2033, from USD 135 Billion in 2023, growing at a CAGR of 21.7% during the forecast period from 2024 to 2033.
What are the key technologies driving Industry 5.0?Key technologies driving Industry 5.0 include advanced robotics, artificial intelligence, augmented reality, additive manufacturing, and sustainable energy solutions, among others.
What are some examples of Industry 5.0 applications?Examples of Industry 5.0 applications include collaborative robots (cobots) working alongside human workers on assembly lines, smart factories equipped with AI-powered predictive maintenance systems, and supply chains optimized through blockchain technology for increased transparency and efficiency.
What challenges does Industry 5.0 face?Challenges facing Industry 5.0 include concerns about data security and privacy, the need for regulatory frameworks to govern emerging technologies, and ensuring equitable access to the benefits of digital transformation across different regions and industries.
Which are the major companies in the industry 5.0 market?Honeywell International Inc., 3D Systems, Emerson Electric CO., Kuka AG., Universal Robots A/S, Nexus Integra, Siemens A.G., Rockwell Automation Inc., Schneider Electric, Cisco Systems Inc., FANUC CORPORATION, Yaskawa Electric Corp, Other Key Players
Which is the largest regional market for Industry 5.0?In 2023, North America held a dominant market position, capturing more than a 36% share of the global Industry 5.0 market.
- Honeywell International Inc.
- 3D Systems
- Emerson Electric Co. Company Profile
- Kuka AG.
- Universal Robots A/S
- Nexus Integra
- Siemens A.G.
- Rockwell Automation Inc.
- Schneider Electric SE. Company Profile
- Cisco Systems Inc.
- FANUC Corporation Company Profile
- Yaskawa Electric Corp
- Other Key Players
- settingsSettings
Our Clients
Single User $4,599 $3,499 USD / per unit save 24% | Multi User $5,999 $4,299 USD / per unit save 28% | Corporate User $7,299 $4,999 USD / per unit save 32% | |
---|---|---|---|
e-Access | |||
Report Library Access | |||
Data Set (Excel) | |||
Company Profile Library Access | |||
Interactive Dashboard | |||
Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
Accessibility | 1 User | 2-5 User | Unlimited |
Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |
Buy Now ($ 3,499) | Buy Now ($ 4,299) | Buy Now ($ 4,999) |