Industry 4.0 market to grow at 16.2% during 2024-2031: SkyQuest

SkyQuest Technology, an IP-focused research and investment bank, and accelerator of technology and assets, has recently published a report on Industry 4.0 market insights.

The Industry 4.0 market size was valued at USD 133.05 billion in 2022 and is poised to grow from USD 154.6 billion in 2023 to USD 513.89 billion by 2031, growing at a CAGR of 16.2% during the forecast period (2024-2031). 

The fourth industrial revolution, known as Industry 4.0, is growing as it accesses real-time information across processes, partners, products, and people, which can be a common difficulty for businesses across industries. 

Several major corporations are currently implementing loT measurements and key performance indicators to demonstrate operational progress, consumer experience, logistics, and supply chain profits. Industrial sectors are increasingly implementing better smart industry solutions and adaptable device systems to control production and supply chain operations from a centralized system. Increased deployment of IoT-connected machines is predicted to considerably drive the industry 4.0 market in the manufacturing sector during the forecast period. 

Segmental analysis

Global industry 4.0 market is segmented based on technology, industry, and region. In terms of technology, the market is segmented into robots (traditional industrial robots {articulated robots, cartesian robots, selective compliance assembly robot arm (SCARA), cylindrical robots, others}, collaborative robots), blockchain in manufacturing, industrial sensors (flow sensors, level sensors, temperature sensors, position sensors, pressure sensors, force sensors, humidity and moisture sensors, gas sensors), industrial 3D printing, machine vision, etc.

Several companies are investing in advanced technologies such as human-machine interaction, analytics and intelligence, advanced engineering, connectivity, data, and processing capacity to boost production efficiency and lower production costs by reducing the downtime in the manufacturing process. These technologies enable firms to forecast and predict future problems that may develop during ongoing operations. The traditional method of preventive maintenance is done manually depending on routine or time. 

However, with the arrival of IoT, preventive maintenance has become much more automated and streamlined. Systems can detect impending difficulties or whether machinery needs to be repaired, allowing organizations to tackle possible concerns before they become major issues. All of these factors will contribute to the expansion of the industry 4.0 market in the coming years. 

Industry 4.0 assists firms in operating and optimizing all areas of their manufacturing operations and supply networks. Machine monitoring solutions, predictive maintenance techniques, and other improved operational technology can assist firms in reducing downtime, increasing throughput, and lowering the overall cost of supplying quality parts. 

Manufacturing organizations, like many others, have seen isolated data with separate divisions inside the organization and at various levels such as machine level, plant level, and corporate. A combined operation provides convenience to several data sources and, when properly conducted, provides an easy way to utilize that data for effective decision-making. Furthermore, any manufacturer must be able to respond quickly to changing demands, the latest product trends, skill gaps, and other irregular obstacles. Manufacturers have a better chance of successfully pivoting when they have the right technologies in place. 

The increasing usage of technology in organizations around the world is driving the growth of the market over the forecast period. Additionally, rising internet penetration and digitization trends are boosting the industry 4.0 market, owing to the increasing requirement for efficiency and cost-effective production in numerous industries. 

Also, the number of market participants in developed nations such as North America is growing. The increased need for technical improvements, as well as rising consumer spending on Industry 4.0 solutions such as advanced robotics, AR/VR systems, and 3D printing solutions, are expected to drive growth of the market during the forecast period.

By technology

The largest market segment within the global Industry 4.0 market is the digital twin technology. Industry 4.2 smoothly integrating towards digital technologies digital twins play an important role, but providing virtual representation of physical assets, processes, and systems. These provide real time monitoring and help in optimizing the process. It enhances decision making, increases efficiency and drives innovation across different sectors such as manufacturing, healthcare, and others. The convergence of digital twin with the industry 4.0 drive towards the market expansion. 

On the other hand, the blockchain in manufacturing technology is the fastest growing segment in the industry 4.0 market. It helps in enhancing traceability, and security in manufacturing processes. The secure data exchange is also driving the market, which is important for supply chain management and quality control. They provide decentralized and secure platforms for digital transactions which represents a major benefit for blockchain technology. Therefore, this can reduce the risk of fraud and cyber-attacks contributing towards market growth. 

By industry

Manufacturing is expected to dominate the global market throughout the forecast period. The automotive, transportation and chemical industries are expected to be the most promising for deploying I4.0. In recent years, there has been an increase in the deployment of smart robots and machines in the manufacturing industry. Research and development funds are being invested to create an integrated system in which robots and humans can collaborate on complicated tasks via sensor-connected human-machine interfaces. 

On the other hand, during the forecast period, the automotive segment is the fastest growing segment in the market. Plants that are technologically advanced can track manufacturing equipment and processes to discover potential problems before they cause production interruptions. 

Automobile manufacturers who are ready for I4.0 can also customize individual automobiles to shorten delivery time. Vehicle configurations must be adjusted by manufacturers to satisfy changing client demands. Unlike traditional auto manufacturing, the loT-enabled gadget allows for the customization of components such as the dashboard and steering wheel. 

Furthermore, thanks to I4.0, the concept of self-driving automobiles has become a reality. To remain competitive in the face of rapid technological advancement, companies throughout the automobile ecosystem are spending extensively on product and manufacturing process improvements.

Regional insights

Asia Pacific is the largest region in the global industry 4.0 market and words that have been shared up about 34.6%. China, Japan, and Korea have the major manufacturing hubs, which is contributing towards the dominance. The countries in this region are continuously adopting new technologies with China being the major contributor are driving the market. 

Furthermore, regions such as Australia Singapore and Malaysia have also been investing in this market contributing to research and development. For instance, Australia is adopting robotics technology in the mining industry to increase efficiency and safety. 

On the other hand, North America is the fastest growing region in the industry 4.0 market. The region's corporations are increasingly adopting the notion of smart manufacturing, and the region is expected to dominate the market. Most factories in the market are now outfitted with new machinery and smart factory technology, allowing other enterprises to shift from traditional production processes to smart manufacturing. 

Major market players, government efforts, and increased financing for research and development activities are all important aspects that contribute to North America being a dynamic place for market growth.

Market drivers

Increasing use of additive manufacturing: 3D printing and additive manufacturing are two of today's most cutting-edge technologies. In recent years, 3D printing has been widely employed to meet the massive increase in demand for ventilator valves in hospitals around the world. Currently, 3D printing technology is positioned to alter a number of industrial industry trends. 

Globally, governments are launching projects and offering financing to educational institutions, research centers, and research and technology organizations to further investigate and stimulate the development of 3D printing technology. The United States, the United Kingdom, and Canada are developing government initiatives to encourage university-level 3D printing research, which is propelling technological innovation and the establishment of start-ups. In the future, the introduction of new uses for 3D printing will entice businessmen and governments all over the world to invest in the technology.

Market restraints

There are significant implementation costs to restrict employment of industrial robots in startups.

In a smart production, the industrial robots can save time, reduce downtime, and eliminate monotonous manual labor. However, industrial robot deployment is too expensive. A single industrial robot might cost up to 20,000 USD. As a result, the deployment of industrial robots in industries necessitates significant financial resources. Startups operate on a very small scale, making the deployment of industrial robots in their manufacturing units impractical. The robots also have exorbitant repair and maintenance costs.

Market trends

There is growing adoption of digital twins in Industry 4.0. Digital twins have received a lot of attention as the Internet of Things (IoT) has risen in popularity in recent years. By offering near real-time insights between the physical and digital worlds, this technology has enabled OEM manufacturers and automakers to remotely track and manage equipment and systems. 

Digital twin technology delivers unmatched insight into assets and production to identify bottlenecks, improve operations, and create product growth. Companies are implementing digital twin technology, which can detect anomalies and irregularities in operations quickly and provide a comprehensive perspective of the equipment's performance. 

Spare component maintenance and replacement can be planned to reduce time-to-service and avoid costly asset breakdowns. Predictive maintenance using digital twins would assist OEMs in generating new service-based revenue while enhancing product reliability. Additionally, market players are introducing innovative digital twin solutions that improve equipment visibility and operational efficiency.