Industry 4.0 Market

Rising adoption of industry 4.0 across industries to boost the market growth

Due to the gradual uptake of IoT and digital transformation across numerous industries, Industry 4.0 has pushed OEMs to integrate it into their operations. For instance, the International Data Corporation (IDC) Worldwide Semiannual Internet of Things Expenditure Guide estimates that Europe will spend more than USD 202 billion on the Internet of Things (IoT) in 2021. Through 2025, it'll probably grow at a double-digit rate. According to Maryville University, every year by 2025, more than 180 trillion gigabytes of data will be produced globally. A significant chunk of this will be produced by industries using IIoT.

Additionally, expanding partnerships between multinational corporations to adopt cutting-edge technology and digital solutions are anticipated throughout the forecast period to support market expansion. For instance, to further the development of the Nokia Digital Automation Cloud (DAC) technology and deliver an industrial 4.0 solution, NOKIA Firm joined WEG Industries, a Brazilian energy and automation firm, in March 2021.

Sustainability initiatives are becoming a cornerstone of the Global Industry 4.0 Market Industry, as businesses strive to reduce their environmental footprint. The adoption of smart technologies facilitates energy-efficient processes and waste reduction, aligning with global sustainability goals. For instance, manufacturers leveraging IoT solutions can optimize energy consumption, leading to significant cost savings and lower emissions. This focus on sustainability not only enhances corporate responsibility but also attracts environmentally conscious consumers, further driving market growth. As the industry evolves, sustainability is expected to play a pivotal role in shaping future strategies.

The Global Industry 4.0 Market Industry is propelled by rapid technological advancements, particularly in automation, artificial intelligence, and the Internet of Things. These innovations enhance operational efficiency and enable real-time data analytics, which are crucial for decision-making. For instance, companies implementing AI-driven predictive maintenance have reported reductions in downtime by up to 30 percent. As of 2024, the market is valued at 102.3 USD Billion, and the integration of these technologies is expected to drive significant growth, with projections indicating a market size of 468.2 USD Billion by 2035.

The Global Industry 4.0 Market Industry is increasingly focused on enhancing supply chain resilience, particularly in response to recent disruptions. The integration of smart technologies enables real-time monitoring and predictive analytics, allowing companies to respond swiftly to supply chain challenges. For example, businesses employing blockchain technology can enhance transparency and traceability, thereby mitigating risks associated with supply chain vulnerabilities. As organizations prioritize resilience, the market is expected to witness substantial growth, driven by the need for robust and adaptable supply chain solutions.

Government support and favorable policies significantly influence the Global Industry 4.0 Market Industry. Many countries are investing in infrastructure and providing incentives for businesses to adopt advanced manufacturing technologies. For instance, initiatives aimed at enhancing digital skills and promoting research and development are crucial for fostering innovation. Such governmental backing not only accelerates the adoption of Industry 4.0 technologies but also creates a conducive environment for startups and established firms alike. This supportive landscape is likely to enhance the market's growth trajectory in the coming years.

The Global Industry 4.0 Market Industry experiences a surge in demand for customization, as consumers increasingly seek personalized products. This trend compels manufacturers to adopt flexible production systems that can quickly adapt to changing consumer preferences. For example, companies utilizing smart manufacturing techniques can reduce lead times and enhance product variety. This shift towards customization is likely to contribute to a compound annual growth rate of 14.83 percent from 2025 to 2035, reflecting the industry's responsiveness to market dynamics and consumer expectations.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Industry 4.0 market accounted for USD 26.6 billion in 2021 and is presumed to witness a noteworthy CAGR growth over the study period. The resurgence of interest in smart manufacturing in North America is a key reason for this. Because they have the modern infrastructure and more highly educated labor to support it, America and Canada are particularly experiencing a renaissance in technologically advanced manufacturing.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Industry 4.0 Market SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe industry 4.0 market accounts for the second-largest market share. In order to maintain its place in the international market, the European industry has made significant investments in technology and capabilities. The use of linked things and automation technologies in German industry has sparked the fourth industrial revolution. Industry paradigms are changing due to connection, networked objects, real-time data processing, and omnipresent information. 

Tech behemoths like General Electric, Siemens, and Honeywell were among industry 4.0's early adopters and are far ahead of the curve with their deployment. Further, the Germany industry 4.0 market held the highest market share, and the UK industry 4.0 market is the fastest-growing market in the European region.

The Asia-Pacific Industry 4.0 Market is expected to grow at the fastest CAGR from 2022 to 2030. In recent years, the use of smart manufacturing and robotics in manufacturing activities has dramatically increased in China, Japan, and India. This explains why the Asia-Pacific region's industry 4.0 market growth rate is the highest. In the Asia-Pacific area, Industry 4.0 technologies are continually advancing. 

This is a significant factor in the industry 4.0 market in this area's explosive expansion. The Asia-Pacific region is anticipated to experience a higher growth rate for the industry 4.0 market due to growing digitalization and rising adoption of cloud computing. Moreover, China industry 4.0 market held the largest market share, and the India industry 4.0 market was the fastest-growing market in the Asia-Pacific region.

Major market players are investing heavily in R&D to enhance their product lines, which will help the industry 4.0 market grow even more. Industry 4.0 Market participants are expected to take a range of strategic initiatives to enhance their global footprint, with key market developments such as new contractual agreements, product launches, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the industry 4.0 industry must offer cost-effective products and services to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the global industry 4.0 industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, industry 4.0 industry has provided medicine with some of the most significant benefits. The industry 4.0 market major player such as Bosch Rexroth AG (Germany), SAS (US), MaschinenfabrikReinhausen GmbH (Germany), Wittenstein AG (Germany), Daimler AG (Germany), and others are working on expanding the market demand by investing in research and development activities.

Siemens is a technology corporation focusing on business, transportation, infrastructure, and healthcare. The company develops technologies to create actual value for consumers, from resource-efficient industries, resilient supply chains, smarter buildings and grids, to cleaner and more comfortable transportation and cutting-edge healthcare. Siemens gives its clients the power to alter their markets and businesses, changing the daily lives of billions of people by fusing the physical and digital worlds. 

Additionally, Siemens holds a controlling interest in Siemens Healthineers, a market leader in medical technology influencing the future of healthcare. Siemens Energy, a world leader in the transmission and generation of electrical power, also has a minority position in the company. In June 2022, to enable the industrial metaverse and increase use of AI-driven digital twin technology that will help bring industrial automation to a new level, Siemens and NVIDIA, two leaders in accelerated graphics and artificial intelligence (AI), have announced an expansion of their partnership.

Also, ABB is a leader in automation and electrification technology, creating a more resource-conserving and sustainable future. The company's solutions link software and engineering expertise to optimise objects' production, movement, power, and operation. In February 2021, GoFa was developed by ABB Ltd. to help employees with repetitive and ergonomically challenging jobs. Additionally, the launch will help meet the rising need for robots that can lift greater payloads to increase flexibility and productivity.