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The Rise of Industry 4.0 in Manufacturing

  • Jun 07, 2023
  • Posted By: Robert Duke
  • Category: B2B infographics

The world has become a technology era where artificial intelligence has taken over, robots serve food at restaurants, data is more precious than gold, and spaceships are not just limited to movies. We wouldn’t have thought about this a few years back, but it is happening today. Industry 4.0 has made its presence, and we need to understand that.

Industry 4.0 refers to the fourth revolution that occurred in technology. The world has seen three industrial revolutions, and we have come a long way from steam power to automobile production to robots. In the fourth industrial revolution, we are witnessing digital automation, Artificial Intelligence, smart factories, and so much more. It is right to say that the ongoing industrial revolution is a game changer and will change the industrial outlook completely.

With the industrial revolution having undergone so many shifts in the last decades, here is a quick visual run down of how it has progressed and grown over the years:

The Rise of Industry 4.0 in Manufacturing

Components of Industry 4.0 in Manufacturing

It is the rise of digital industrial technology and signifies a new stage in controlling the industrial value chain. Industry 4.0 is all you can think of- from growing trends towards automation to exchanging data in technology to AI. Its manufacturing segment is set to grow to $377.30 billion in 2029, with a staggering CAGR of 16.3%. With the rising demand, manufacturers are leaning towards new technologies like cloud computing, artificial intelligence, and machine learning.

Here are a few components of Industry 4.0 in Manufacturing

The rise of Industry 4.0 offers a future that surpasses the typical applications of technology and offers many new horizons to explore. This iteration of the industrial revolution has ushered in new technologies like block chain, Artificial Intelligence, IoT, etc. Before getting into details, it is essential to know about the few components of the current industrial revolution.

  • Rapid Prototyping: Rapid prototyping, also known as 3D printing, is a technique where 3D parts are manufactured by depositing layers of metals or plastic. This technique is called 3D printing and can prototype anything. Using this technique, you can build anything and everything. Companies can benefit from this technique as, in a short period, they can create multiple prototypes and save time and energy.
  • Cybersecurity: With data becoming the main asset, it is crucial to protect that data. That’s where cybersecurity comes into play. Many policies are designed under cybersecurity that will protect the data from unauthorized access. It takes measures such as security patches to avoid any harm.
  • Magnified Reality: In this type of reality, computer-generated images and sounds are enhanced and given an appearance of truth. It imposes computer-generated imagery, making the viewer experience the real world on screen. One of the most familiar examples of this is 3D and 4DX movies.
  • Autonomous Robots: Manufacturers are leaning towards autonomous robots because these robots can do any task without supervision. They are designed to follow instructions or do functions without any human help. Manufacturers want autonomous robots as they reduce the chances of errors and hence lower production costs.
  • Cloud Computing: Cloud computing refers to a system that allows companies to store and access data anywhere. It is an essential element of Industry 4.0, enabling companies to store tons of data in real time.

Impact of Industry 4.0 in Manufacturing

Industry 4.0 has impacted companies drastically. This can be seen on many levels in our day-to-day life. Below we have given in detail the impacts of the fourth industrial revolution:

  • Rise in the AI Industry: One of the most booming and intriguing industries in the fourth industrial revolution is the Artificial Intelligence industry. AI, has taken over the world, and one of its significant impacts on our daily lives is AI writing, AI-generated artwork and even lead generation for businesses. By using AI, industries have launched many platforms that help save time and promote quality content. While the world is in awe of this technology, some might see it as a threat.
  • Cloud Robotics: Cloud robotics is propelling faster than ever in Industry 4.0. With its prolific rise, the cloud robotics market is increasing, giving rise to robotics services. Now that 5G internet services are available, cloud robotics is holding a tight grip on the market. After the lockdown, the demand for cloud robotics increased as companies needed centralized monitoring systems to take control of industrial instruments.
  • Increasing Startups: The current iteration of the industrial revolution has brought with it a ton of opportunities for the corporate world. The number of startups in manufacturing has increased immensely by 319%. This brings about a lot of options for job seekers but also creates a threat as the competition is growing daily. To continue the race, startups must adapt and implement regularly.
  • Increase in People’s Interests: According to research, 50,000 research papers were published on Industry 4.0 alone in 2021. This has generated curiosity among people and an opportunity for growth among organizations. Public search interest for the same has gone up by 140 times. 

Brief History of Industrial Revolution

Industrial revolution has seen four phases till now and has witnessed a massive growth in the rise of the industry. Let us briefly understand about the history of Industrial Revolution.

  • Industry 1.0: The first industrial revolution, which began in Britain in the late 18th century, made mass production possible by substituting water and steam power for just human and animal power. Finished products were manufactured by machines as opposed to being carefully made by hand.
  • Industry 2.0: Assembly lines, the utilization of gas, oil and electricity were all introduced during the second industrial revolution, which occurred a century later in 1870. With the introduction of these new power sources, manufacturing processes began to be automated and mass produced.
  • Industry 3.0: In 1970 came the third industrial revolution which improved production processes by incorporating computers, modern telecommunications, and data analysis. Programmable logic controllers (PLCs), which were used to automate some processes and gather and share data, were incorporated into machinery as the first step in the digitalization of industries.
  • Industry 4.0: We are currently witnessing the fourth iteration of the industrial revolution, in which with the use of smart machines and factories, production could be more efficient and effective throughout the value chain. By collecting more information from the factory floor and combining it with other operational data from the business, a smart factory can achieve information transparency and improved judgement. Technologies like product designing, healthcare, IoT, etc. have changed the industrial outlook.

Smart Manufacturing and Power of Smart Manufacturing

A common word recently, especially in the corporate world, is Smart manufacturing, but what exactly is it? Let’s find out.

Smart manufacturing is crucial to Industry 4.0 and offers a technology-driven approach. It uses internet-connected machinery to streamline the process and make the work smooth. The goal is to identify opportunities and turn them into successful events using the latest technology. Through smart manufacturing, companies can now store data much better, faster, and more securely.

The smart manufacturing industry 4.0 is currently valued at $249.56 billion, making it a booming sector. The data was stored on individual devices, leading to equipment problems. Manufacturing engineers and data analysts can now look for indications that specific parts may break by evaluating the data coming off an entire factory’s equipment or across different sites. This enables preventive maintenance to eliminate unscheduled device downtime.

Challenges of Industry 4.0 in Manufacturing

Industry 4.0 is rising rapidly in manufacturing, leading companies to grow immensely. To keep up with the pace, companies are facing various challenges. Let us look at some of these challenges:

  • Technical Gap: With the rise of the fourth industrial revolution, new technology advancements occur daily, and to keep up with the pace, it is difficult for employees to maintain their skills. Therefore, there is a substantial technical skill gap among employees of the same organization. Adopters of new technologies say it takes a lot of work to find, train, and reskill people, especially in the user interface, data science, software development, and machine-level controls.
  • Privacy Issues: Data sensitivity and privacy issues are significant problems in Industry 4.0. Data security and other prominent threats like network misconfigurations, device failure, or inaccurate commands can also lead to chaos in the operational functions of organizations.
  • Cultural Difference: The ongoing industrial revolution can have a lot of cultural changes that can lead to chaos and confusion among employees. If the employees are ready to adapt to the changes, then it could maintain the smooth running of the organization. Any digital initiative’s success depends on getting its employees’ support and preparing them for the change in technology. The cultural shift required for digital transformation can be brought about through leadership.
  • No Interoperability: Lack of distinction between protocols, components, products, and systems is a crucial problem as well. Sadly, interoperability limits businesses’ capacity for innovation. Interoperability also restricts the options for upgrading system components because it makes it difficult to “swap out” one vendor or system component for another.

How is Industry 4.0 contributing to manufacturing?

The Fourth iteration of the industrial revolution has been the biggest contributor in manufacturing and turning it into smart manufacturing. The manufacturing sector has a vast potential to join the fourth industrial revolution by developing smart factories. Real-time visibility of manufacturing assets is ensured by analyzing the massive amounts of big data gathered from sensors on the factory floor. This analysis can also provide tools for doing predictive maintenance to reduce equipment downtime. With the continuous rise, smart manufacturing is projected to grow with a CAGR of 14.9% till 2030.

3D printing and software segments are one of the strongest smart manufacturing segments. 3D printing is growing rapidly with a CAGR of 17.8%, whereas, the software segment of smart manufacturing held a 49.6% market share in 2022.


Industry 4.0 is undoubtedly a nerve-wracking movement in the manufacturing industry. Its relevance has led many companies to change and diversify their approach and technology to slip into the technology funnel. This infographic summarizes the gist of the ongoing industrial revolution, and how it has transformed the manufacturing scenario. This revolution brings growth, opportunity, and a chance to change the technology scene worldwide.

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