The Industry 4.0 (I4.0) market is one that is constantly developing and growing at an exponential rate, so what might it look like in just under a decade come 2030?
According to recent suggestions, the global I4.0 market could be pegged to reach a staggering $327.78 billion by 2030, with expected growth to reach even further in the following years. This is a stark increase from the value seen in 2021, which was around $114.55 billion.
Whilst China and America rule the global market currently compared to their Japanese, Korean, and European competitors, the rate at which they have adapted to new technology has been rather lacklustre comparatively. However, as margins close and the utility of the I4.0 world has been revealed, these kingpins of the market are now rapidly expanding into I4.0, driving the market forwards.
As I4.0 becomes more prevalent in the manufacturing and supply chain worlds, it is now uncommon to see industrial plants not utilising some form of digital technology to improve, modernise and automate sectors or even entire processes. With more companies pushing for an I4.0 future within the market, competition to outclass and adapt is a top priority. Technologies such as robotics, IIoT, AI, ML, and 3D printing are among the top when it comes to improving and modernising industrial systems.
The dynamics of the Industry 4.0 market
This growth in the I4.0 market is not all smooth sailing, however. The market is dynamic and not one without its fair share of restraints and challenges.
Whilst there are certainly some key drivers and opportunities driving the market growth, such as the rapid adoption of blockchain technology and rising government investments in additive manufacturing, restraints remain, the crucial one being the sometimes-massive costs behind implementation and maintenance. These limitations are especially prevalent in ‘up and coming’ regions where pre-existing economic and industrial aspects are not present.
Regional Industry 4.0 insights
The global market is sectioned into five major regions for a better understanding of trends and developments, these being North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. Looking at each of these regions individually can bring clarity as to the reasoning behind this expected growth come 2030.
North America, home to the tech giant that is the United States, is one of the most prominent regions exploring the new possibilities I4.0 has to offer, rapidly becoming one of its biggest advocates. Companies within the region are increasingly embracing everything relating to smart manufacturing and are expected to dominate the market in the future. Most of the factories operating out of North America house the latest smart machinery and smart factory tech which allow their businesses to adapt to smart manufacturing at an accelerated rate. Additionally, these tech businesses are seeing an ever-increasing amount of funding from government initiatives which are striving to make sure they run the growing market. This ambition is one of the driving factors behind the global growth of I4.0.
Europe is another big player region when it comes to understanding the growth of I4.0, the region called home by some of the biggest tech nations and companies in the world. Europe sees some of the most substantial investments seen in technological and skills development alongside manufacturing automation and connectivity. Many European companies, like Siemens, Nokia, and Vantiva, are some of the earliest adopters of I4.0 technologies and thus are amongst the furthest along in its implementation.
The Asia Pacific market is one pioneered by China, Japan, South Korea, and Taiwan, all big-tech nations that are rapidly expanding their use of I4.0, especially in manufacturing. Industrial automation and innovation are the name of the game in this region, encompassing many of the biggest industries within the I4.0 market. Semiconductors, EVs, advanced robotics, and AI are just some of the biggest industries this market is shaking up. Moving forward, with the juggernauts China at its helm, the Asia Pacific market will be one of the major forces behind the growth of the global I4.0 market becoming the major competitor of the ambitious North American region.
In the Latin America and Middle East & Africa regions, growth is also occurring at an accelerating rate, wholly backed by government initiatives and the growing realisation of the importance of I4.0 in the future. Whilst these regions may not house the giant industries seen in Asia Pacific, Europe, or North America, it does not mean they are dormant. The Middle East is moving to shape itself into a global hub of I4.0 innovation. The UAE, for example, has made countless alliances with big-name I4.0 players and partnered itself with the World Economic Forum. In Latin America, Brazil has also adopted this sort of approach, partnering with existing industry 4.0 giants to help kickstart its own innovation initiatives.
Highlights in the market
As the growth of the market continues, so does analysis of it. From this analysis, notable trends can be picked up which reveal some key highlights in the market.
With the general success seen in the earliest smart production methods, its continued growth is almost assured. Automation within factory work has increased by almost 85% in the past five years alone. Despite this growth in use, revenues have actually suffered a loss of around 12%, a result of two of the biggest I4.0 industries, automotive and electronics, going through a rough patch. However, these losses are expected to equal out and gain traction in the years to come.
As a result of the growth in automation, growth in I4.0-related specialists is also occurring. Thanks to automation freeing up human resources, more of these engineers are able to go into less monotonous activities that can better use their skill set in more profitable ways.
Innovation in the industry means that vendors can constantly further technology in a repeating cycle. As technology improves, such as those in robotics, even more areas can be furthered as a result. Additionally, these advancements are then able to leak into other industries to create innovations elsewhere.
There’s also plenty of other industrial editorial at IoT Insider’s sister publication, Electronic Specifier. And you can always add to the discussion at our comments section below or on our LinkedIn page here.
