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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, 2021-2028

Region : Global | Format: PDF | Report ID: FBI102375

 

KEY MARKET INSIGHTS

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The global industry 4.0 market size was USD 101.69 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with industry solutions/services witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 14.5% in 2020 as compared to the year-on-year growth during 2017-2019. The market is projected to grow from USD 116.14 billion in 2021 to USD 337.10 billion in 2028 at a CAGR of 16.4% in the 2021-2028 period. The steady rise in CAGR is attributable to this market’s growth and demand returning to pre-pandemic levels once the pandemic is over. The product offering of the technology market, such as ABB Ltd., offers robotics, PLC automation, control room solutions, and motors and generators, among others. Similarly, Siemens AG provides building technologies, industrial automation, and mobility, among others.


Rising internet penetration and digitization trends due to the increased focus of various industries on efficiency and cost-efficient productivity are boosting the market’s growth opportunity. Recent advances in digital technologies and industrial automation have started extending the opportunity for industrial value chain disruption. With the emergence of the fourth industrial revolution (i4.0), companies are witnessing improved efficiencies, lower-cost benefits, increased output, customized offering, and more significantly, developing 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 and the Internet of things (IoT) and can be used in various sectors, including retail, industrial manufacturing, healthcare, agriculture, and mobility.


Digital technologies, such as artificial intelligence, the internet of things (IoT), augmented and virtual reality, 3D printing, and blockchain, disrupt all value chain elements, 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 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 ravaged by the COVID-19 pandemic, digitalization across industries is accelerating rapidly. This factor presents a new opportunity for digital leaders to develop and adopt creative solutions to accelerate digital transformation at all levels of the company. The coronavirus outbreak 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 due to the COVID-19 pandemic. Some manufacturing firms have completely stopped production, while others have witnessed a significant decline in demand, while few witnessed an increase in demand.


Enterprises are implementing advanced technologies to mitigate the disruption caused by 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 Industry 4.0, 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 customers can use 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


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Predictive Maintenance Using Digital Twin Solution to Foster Market Development


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 health and 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 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 site digital twins, a solution that creates the exact digital replica of a physical site that enables smoothened digital operations.

  • In October 2018, Microsoft Corporation launched Azure Digital Twins, a platform that helps manufacturing companies and automakers gain extensive visibility into manufacturing operations and create models of projects they’re working on.

  • In June 2020, Siemens AG launched Teamcenter X Software to quickly integrate, scale, and implement PLM technology in functional disciplines. This launch would further help create 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 market's growth in the foreseeable period.


DRIVING FACTORS


Increased Adoption of Industrial Robots is Expected to Drive Growth


Over the last few decades, robots have progressed from being prohibitively costly machines with minimal capabilities to inexpensive machines capable of performing a wide range of tasks. Industrial robots, in particular, are used extensively by people across the globe. 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 due to rapid technological advances in robotics. Industrial robots are multipurpose manipulator devices that are automatically controlled and programmable. Welding, heavy-lifting, ironing, assembling, pick 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. The International Federation of Robotics (IFR) stated that approximately 2.1 million stand-alone industrial and automotive robots were installed worldwide in 2017, with 381,000 robotic units shipped globally. 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 with the growth 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 the 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. The data and security challenges associated with implementing advanced technologies are expected to hamper the Industry 4.0 market growth. According to a study published by IBM Corporation in 2018, the X Force Threat Intelligence Index indicates that the manufacturing sector is the second-most targeted industry for data breaches and cyber-attacks. Industry 4.0 systems cannot 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 comprehend the necessity of cybersecurity solutions at all organizational networks.


SEGMENTATION


By Application Analysis


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Industrial IoT (IIoT) to Gain Momentum during the Upcoming Years


Based on the application, the market is classified into industrial automation, smart factory, and industrial IoT. Industrial automation provides a wide range of technologies that help reduce human intervention. Further, it helps in the flexibility and quality of manufacturing processes. 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 the industrial equipment using wireless connectivity and gathering sensor data from the same, manufacturers can estimate the present state of machines, enhance their performance, and recognize potential failures while planning maintenance programs.


Smart factories allow each customer's requirements to be satisfied profitably. In this technology, 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 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 together to accomplish complex tasks 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 Industry 4.0 ready can also configure individual vehicles and reduce the delivery time. Manufacturers must configure vehicle configurations to meet the changing customer demands. Unlike conventional auto production, the IIoT-enabled device allows customization, such as the dashboard and steering wheel. Furthermore, the concept of self-driving vehicles has become a reality owing to Industry 4.0. 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


Europe Industry 4.0 Market, 2020 (USD Billion)

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


Europe captured the maximum industry 4.0 market share in 2020. 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 the software and are far ahead in its implementation.  


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


In the Asia Pacific, the 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. In 2015, the Government in China launched a ten-year scheme called “Made in China” that would operate until 2025. The plan encompasses the top ten 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 fourth industrial revolution 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 the fourth industrial revolution. This factor will provide training, support, and guidance to companies in Southeast Asia.


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In Latin America and the Middle East, and Africa, the fourth industrial revolution is supported by government initiatives and the realization of the significance of adopting digital technologies to sustain in the global market. For instance, in September 2017, the U.A.E. government launched a strategy for the country’s I4.0 during the annual meetings. The strategy is designed to strengthen its position as a global hub and proliferate its support to the national economy. Also, in Brazil, leading players have partnered up to stimulate the implementation of technological assets to speed up the adoption of advanced technologies.


KEY INDUSTRY PLAYERS


The Emphasis of Key Players on Mergers and Acquisition to Strengthen Competition


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 forces key market players to focus on the acquisition strategy to strengthen their positions. For instance,



  • 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 data flow through IoT edge.

  • 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 capable of handling heavier payloads to enhance flexibility and productivity.


LIST OF KEY COMPANIES PROFILED:



  • ABB Ltd (Zürich, Switzerland)

  • Siemens AG (Berlin, Germany)

  • Cognex Corporation (Massachusetts, U.S.)

  • Schneider Electric SE (Rueil-Malmaison, France)

  • Honeywell International Inc. (North Carolina, U.S.)

  • Emerson Electric Co. (Missouri, U.S.)

  • Rockwell Automation, Inc. (Wisconsin, U.S.)

  • General Electric Company (New York, U.S.)

  • Robert Bosch GmbH (Stuttgart, Germany)

  • Cisco Systems Inc. (California, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • 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.

  • March 2021 – NOKIA Corporation partnered with WEG Industries, a power and automation company headquartered in Brazil, to boost the development of the Nokia Digital Automation Cloud (DAC) platform and launch a fourth industrial revolution solution.

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


REPORT COVERAGE


An Infographic Representation of Industry 4.0 Market

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The Industry 4.0 market research report provides an in-depth analysis of the market and focuses on key aspects such as leading companies, applications, and the 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 advanced market over recent years.


Report Scope and Segmentation












































   ATTRIBUTE



  DETAILS



Study Period



2017 – 2028



Base Year



2020



Estimated Year



2021



Forecast Period



2021 – 2028



Historical Period



2017 – 2019



Unit



Value (USD billion)



 



By Application



  • Industrial Automation

  • Smart Factory

  • Industrial IoT



By Vertical



  • Manufacturing

  • Energy & Utilities

  • Automotive

  • Oil and Gas

  • Aerospace and Defense

  • Electronics and Consumer Goods

  • Others (Transportation, Etc.)



By Region



  • North America (By Application, By Vertical, By Country)

    • U.S. (By Application)

    • Canada (By Application)



  • Europe (By Application, By Vertical, By Country)

    • U.K. (By Application)

    • Germany (By Application)

    • France (By Application)

    • Scandinavia (By Application)

    • Rest of Europe



  • Asia Pacific (By Application, By Vertical, By Country)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • South Korea (By Application)

    • Southeast Asia (By Application)

    • Rest of Asia Pacific



  • The Middle East & Africa (By Application, By Vertical, By Country)

    • GCC (By Application)

    • South Africa (By Application)

    • Rest of Middle East & Africa



  • Latin America (By Application, By Vertical, By Country)

    • Brazil (By Application)

    • Mexico (By Application)

    • Rest of South America





Frequently Asked Questions

According to Fortune Business Insights, the global market is expected to reach USD 337.10 billion by 2028.

Fortune Business Insights says that the market value stood at USD 101.69 billion in 2020.

By 2028, the market size is expected to reach USD 337.10 billion.

The market is expected to grow at a CAGR of 16.4% in the forecast period (2021-2028).

By application, the industrial IoT is expected to lead the market during the forecast period.

The increased adoption of industrial robots is one of the key drivers.

Siemens AG, Cognex Corporation, Schneider Electric SE, Honeywell International Inc., Emerson Electric Co., Rockwell Automation, Inc., General Electric Company, and Robert Bosch GmbH are the top companies in the market.

By vertical, manufacturing holds the major market share.

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