Industry 4.0 Market Size, Share and Industry Analysis, By Application (Industrial Automation, Smart factory, Industrial IoT), By Vertical (Manufacturing, Energy & Utilities, Automotive, Transportation, Chemical, Pharmaceuticals, Consumer Electronics, Metals, Others) and Regional Forecast, 2019-2026

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Rising internet penetration and digitization trends due to increased focus of various industries on efficiency and cost-efficient productivity are boosting the industry 4.0 market growth. Recent advances in digital technologies, along with 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 costs benefits, increased output, customized offering, and, more significantly, the development of new revenue and business models.

Digital technologies (such as artificial intelligence, internet of things, 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, the global manufacturing industry giants such as Germany, United States, France, and Japan have been supported by strategic government initiatives to digitalize their production processes across various industries.

MARKET TRENDS

Attaining Meaningful Insights from the Enormous Amount of Data Has Emerged as a Significant Industry 4.0 Market Trend

Development of interactive AI-enabled systems, surplus data generation, digitalization, and shifting in focus towards energy harvesting are among the major i4.0 market trends. Data (big and small) is one of the major results of digitalization. As a result of which organizations can collect vast data. However, only a small proportion of these companies can analyze and attain useful insights from the data. The quality of data collected has a major role in the analysis compared to the data quantity.

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Shifting Focus of Key Players towards B2B2C

Among the major advantages provided by the i4.0, B2B2C comprises enhanced customer data, price control, brand control, better profitability, and quick delivery services. Functionalities such as secure payment, improved order fulfillment and tracking features, customer service management, sales, and marketing are paving the way for B2B2C adoption. This is because industry 4.0 has made selling products directly to the customers possible using e-commerce sites. This among the top trends in the industry 4.0 market landscape.

 MARKET DRIVERS

Advancements in Intelligent Sensing and Control Augmenting to Aid Industry 4.0 Market Penetration

Industry 4.0 or Industrie 4.0 defines the new era of the smart manufacturing process and intelligent factory. In the fourth industrial revolution, distinct manufacturing processes are linked together through industrial protocols for generating intelligent data. Industry 4.0 functions as a subset of IoT spanning all the aspects of industrial development. Technological developments of sensing components functioning in the industry landscape are taking place, which also includes connected sensors and actuators. The rising shift towards self-reliance with low power consumption and integrated computing capabilities of IoT sensors are expected to drive the Industrie 4.0 demand. Such advanced solutions offer integrated computing codes that provide automation solutions. As a result of technical innovations in intelligent electronic sensing, communication, and control, factory automation has paved the way for the smart factory. Smart factories offer greater efficiency and provide high-end products to the customers. Equipment manufacturers are motivated to add and introduce more sophisticated electronics by improved usage of Programmable Logic Control (PLC) units and integrating disruptive technologies. Industry 4.0 based systems use smart devices, IoT sensors, and data collection to improve operational efficiency. This is projected to offer significant opportunities for the market development.

Ongoing Developments in 3D Printing to Drive Industry 4.0 Market Demand

3D printing forms an essential component of Industry 4.0. 3D printing is among the potential turning point to fully disrupt the manufacturing value chain. This is likely to allow a shift from centralized to distributed production and from mass production to full customization. Even though 3D printers came into existence in the 1980s but commercially viable 3D printing become operational only a decade back. At present, customers have initiated adopting 3D printing technology and are making substantial investments in 3D printing knowledge. The Industrie 4.0 wave, along with 3D printing has the potential to transform supply chains, product portfolios, and traditional business models. This works well for the market, transforming the framework of Industry 4.0.

MARKET RESTRAINT

Difficulty in Ensuring Data Security and Handling Associated Risks to Restrict Market Growth

Integration and connectivity offer numerous advantages, but they also carry some potential risks capable of challenging advancements in business in the near future. Security is the missing growth factor for this market. According to a report published by IBM Corporation in 2018, X Force Threat Intelligence Index indicates that the manufacturing industry ranks second in the targeted industry for attacks. Due to vulnerability towards attacks, industry 4.0 technologies are unable to prevent hackers from accessing the manufacturer’s data and capturing all the confidential information.  Thus, there is a need to spread awareness towards such risks and understand the increased levels of interconnectivity and interdependency while ensuring efficient data management.  

SEGMENTATION

By Application Analysis

Industrial IoT (IIoT) to Gain Momentum during the Forecast Period

Based on the 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 IIoT technology have motivated several industrial equipment manufacturers to adopt IoT. By connecting industrial equipment using wireless connectivity and gathering sensor data from the equipment, manufacturers are able to 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 Industry 4.0, a 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

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Manufacturing Segment to Lead the Industry 4.0 Adoption

Global industry 4.0 market based on vertical includes manufacturing, energy & utilities, automotive, transportation, chemical, pharmaceuticals, consumer electronics, metals, and others. The manufacturing sector is estimated to dominate the global industry 4.0 market during the forecast period. While automotive, transportation and chemical segments are projected to emerge as the most promising verticals implementing i4.0. 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 utilizing sensor connected human-machine interfaces.

REGIONAL ANALYSIS

Based on our research findings and analysis, Europe is estimated to lead the industry 4.0 market closely, followed by the Asia Pacific. The European industry has made a substantial investment in technologies and skills to maintain its position in a 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 Industry 4.0 and are far ahead in its implementation. The high rate of adoption of automation technologies in various industries in North America has promoted industry 4.0 growth in the region.

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Asia pacific industry 4.0 market is led by Japan, China, and South Korea due to their exhaustive measures to adopt industrial automation and implement disruptive technologies in its manufacturing system value chain. In 2015, the government in China launched a ten-year scheme called “Made in China” until 2025. The plan encompasses the top ten industries, including semiconductors, advanced robotics, electric cars, and artificial intelligence, etc. 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 Industry 4.0 development plan. Japan launched its Society 5.0 program which is aimed to address the economic, social and industrial challenges.

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 UAE government launched the strategy for UAE’s I4.0 during the annual meetings of government. The strategy is designed to strengthen its position as a global hub for industry 4.0 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 Industry 4.0.

KEY INDUSTRY PLAYERS

Cisco Systems, Inc. Focusing on Strategic Partnerships with Key Players as a part of its Digital Transformation Strategies

• Cisco Systems, Inc. and Tech Mahindra proposed a new digital factory scheme in October 2019 that incorporates 5G technology into industrial operations. The innovative solution is designed to set a model for IT-OT integration and security while also providing high-grade cyber-security. The model comprises some factory functions, including wireless networking on the shop floor, and data integration and networking connectivity between operational technology (OT) and information technology (IT).


• Cisco Systems, Inc. partnered with Emerson Electric Co. in September 2019 to introduce a next-generation industrial wireless networking solution. The solution is designed to transform data management leading to improved plant productivity, reliability, and safety. The Cisco Catalyst IW6300 Heavy Duty Series Access Point and Emerson Wireless 1410S Gateway integrates advanced wireless technology with advanced WirelessHART sensor technology. The resulting solution developed delivers highly reliable and secure data, even in adverse industrial environments.

List of Key Companies Profiled in the Report:

• ABB Ltd.


• FANUC


• General Electric Company


• Hewlett Packard Enterprise Company


• IBM Corporation


• Intel Corporation


• KUKA


• Microsoft Corporation


• Mitsubishi Electric Corp.


• Siemens AG


• Stratasys LTD.


• Yaskawa Electric Corporation

KEY INDUSTRY DEVELOPMENTS:

• May 2019 - Magic Software Enterprises Ltd. introduced FactoryEye for Industry 4.0 specific applications to expand its product portfolio and customer base. It is designed particularly for the manufacturers having a user-friendly dashboard to provide detailed analysis to the manufacturer and guide them in decision making.


• April 2019 – Siemens AG launched Simatics PCS 7, a digital solution in the manufacturing sector using cloud and edge-based data analytics. It is a machine that connects Mindsphere and industrial applications for unified data integration. Further, Siemens introduced several additions to its Digital Enterprise portfolio at the Hannover Messe 2019, for the next level of digitally transforming the manufacturing sector.

Key Players Focusing on Enhancing Product Offerings

Key companies are making huge investments in implementing industrial 4.0 technologies and solution offerings. A large number of organizations are shifting towards industry 4.0. Adopting industrial control systems (ICS) has enabled modern industrial automation. The market leaders are focused on deriving new opportunities to increase operational efficiency and launch a new generation of industrial products and services.

Currently, the global industry 4.0 market is led by the top ten market players holding nearly two-thirds of the industry 4.0 market share. These key players are actively spending in the research & development of i4.0 technologies, product portfolio up-gradation, adopting innovative automation platforms, strategic partnerships, and acquisitions.

FUTURE OUTLOOK

The promise of i4.0 is appealing, i.e., offering unparalleled flexibility and efficiency, M2M communication, access to real-time data, production lines that runs smoothly without sudden breaks, identical final products, minimal wastage of raw materials, desired production yields, and low cost of energy. The fourth industrial revolution encompasses intensive usage of Information and Communication Technologies (ICT) in the smart factory and interrelated domains. Both the smart factory and the cross domains Industry 4.0 utilize vertical and horizontal integration, having the same goal of delivering an optimal end-to-end solution to their customer.

REPORT COVERAGE

The report offers quantitative and qualitative insights on industry 4.0 technology solutions and the detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of emerging trends, market dynamics, and competitive landscape. Key insights offered in the report are the implementation trends of Industrie 4.0 by individual segments, recent industry developments such as mergers & acquisitions, partnerships, Porter’s five forces analysis, consolidated SWOT analysis of key players, key business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

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