Concept Encompassed by Cyber-physical Systems, the Internet of Things, Cloud Computing and Cognitive Computing
Industry 4.0 technologies are revolutionizing manufacturing by enabling a degree of flexibility and efficiency that will dramatically lower production costs while increasing scale and profitability.
Industry 4.0 initiatives generated $5.1 billion in 2017, and this is expected to reach nearly $7.7 billion in 2018 and $21.7 billion in 2023 at a compound annual growth rate (CAGR) of 23.1%, according to the report Industry 4.0 Technologies: Global Markets Through 2023.
At its core, Industry 4.0 is based on a set of design principles—interoperability, information transparency, technical assistance and decentralized decisions—and is essentially a structure for seamlessly integrated physical machinery, robotics, information technology and the internet in manufacturing factories. Four new technologies in manufacturing, cyber-physical systems, the Internet of Things (IoT), cloud computing and cognitive computing, are expected to drive significant growth during the forecast period.
- Two factors are driving regional adoption of Industry 4.0: the intensity of manufacturing and the level of advanced technology investment.
- Leading investors in Industry 4.0 can be found in all global industry sectors, but the Asia-Pacific region, especially China, will retain the greatest market share through 2023.
- By technology type, cyber-physical systems are expected to achieve the highest CAGR of 26.7%, reaching a total market value of $4.8 billion in 2023.
“Many technological trends and innovations have positively affected manufacturing over the past decades,” said Michael Sullivan, BCC Research senior editor and author of this report. “With the advent of improved communications and the ongoing demand for greater production efficiency, business leaders are always seeking new solutions to achieve higher output with more accuracy and insight—and technology has delivered. As organizations turn to leaner, more efficient methods of production, new expert systems, sensors and network-based solutions have come to the forefront and created more automation and new resource capabilities.”