Industry 4.0 Market to Reach Valuation of USD 254.5 Billion by 2028 - Rapid Adoption of Artificial Intelligence (AI) and Internet of Things (IoT) in Manufacturing Sector is Driving the Industry 4.0 Market

Industry 4.0
  • Industry 4.0 Market

In terms of revenue, the Global Industry 4.0 Marketis expected to reach USD 254.5 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 19.8% from 2021 to 2028. The key factors responsible for the growth of Industry 4.0 Market include increasing rapid adoption of Artificial Intelligence (AI) and Internet of Things (IoT) in the manufacturing sector, a rise in demand for industrial automation in healthcare device manufacturing, and rising government investments in 3D printing and additive manufacturing. Additionally, the increasing application of AI and IoT in medical wearables is expected to create a growth opportunity for the Industry 4.0 market.

Industrial robots’ sub-segment of the technology segment accounted for the largest share of the Industry 4.0 Market owing to increasing need and faster production. Also, minimizing labor is the key factor for adopting industrial robots in manufacturing companies.

AI and IoT technologies have been rapidly penetrating the medical industry over the last five years. Medical wearable has started making use of AI and IoT technologies, resulting in an integrated hospital ecosystem. For example, through continuous glucose monitoring, a wearable device paired with intelligent algorithms can monitor glucose levels and automatically deliver the correct dosage of insulin to diabetes patients.

The high cost of AI and IoT implementation is one of the restraining factors. Though industries are dynamic toward adopting new technologies, they face a shortage of highly skilled engineers and a workforce conversant with new developments in AI and IoT technologies.

As consumers update their services for their electronic devices, factories are making similar changes in how they operate. Industry 4.0 will see the increased use of 5G technology in place of slower systems. For instance, Kitmondo points out that developed countries are becoming overwhelmed by using 4G technology for factory work. The value of tools improved by a fast internet connection will increase productivity in the processes involved in factory jobs. Workers will be connected with the tools they need to complete jobs, and machines will take advantage of greater bandwidth. In addition, the increased use of 5G technologies in 2022 will help companies improve the efficiency involved with tracking, cloud data storage, communications, and other operations.

Asia Pacific is expected to grow at the fastest Compound Annual Growth Rate (CAGR) in the coming years due to the high demand for Industry 4.0 in the healthcare industry. Industry 4.0 is currently undergoing a transition from the initial development phase to the commercialization phase in this region. The combination of targeted material characteristics with complex internal electronics programs has been realized with manufacturing techniques which intensified the manufacturing process of these devices in production in coming years. Major players in countries such as the U.S and Canada are investing huge funds for implementing Industry 4.0 which will be beneficial to serve a better purpose in coming years.

Some of the key players dominating the GlobalIndustry 4.0 MarketincludeABB Ltd., Alphabet Inc., Ansys, Inc., Cisco Systems, Inc., Cognex Corporation, FANUC Corporation, General Electric Company, HMS Networks AB, Intel Corporation, International Business Machines Corporation, KUKA AG, Microsoft Corporation, Mitsubishi Electric Corporation, Rockwell Automation, Inc., SAP SE, Schneider Electric SE, Siemens AG, Stratasys Ltd., The Hewlett Packard Enterprise Company, The Yaskawa Electric Corporation. and others.