Industry 4.0 Market Value: Economic Impact and Investment Opportunities

Posted on 2024-10-14 by researchinsights in Internet & Online // 0 Comments

The global Industry 4.0 market size was estimated at USD 146.14 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 19.9% from 2023 to 2030. The factors driving the market growth include increasing adoption of automated equipment & tools on factory floors, warehouses, and manufacturing; rising investment toward addictive manufacturing units; and growing digitalization trends globally. Moreover, the emergence of cutting-edge digital technologies like Machine Learning (ML), Artificial Intelligence (AI), Internet of Things (IoT), 5G connectivity, and cloud-based services, among others contribute to the thriving landscape of the market. These converging factors are projected to create lucrative growth opportunities for the market.

Industries are increasingly subject to stringent regulations related to product safety, quality standards, environmental impact, and data privacy. These technologies enable end-users to effectively comply with these regulations by providing real-time monitoring, traceability, and quality control mechanisms. The end-use compliance issues are categorized into process and product compliance. Industry 4.0 practices are ideal for companies aiming to achieve time and quality metrics at reduced costs. Digitization of production aids in numerous tasks, such as engineering changes, risk assessment, process improvement, improving process visibility, and providing data on demand. Therefore, the need for compliance to gain a competitive edge is expected to act as a significant growth driver for the market.

Gather more insights about the market drivers, restrains and growth of the Global Industry 4.0 Market

Detailed Segmentation:

Component Insights

The hardware segment captured a significant market share of around 50.0% in 2022. Hardware components in Industry 4.0 include sensors, actuators, controllers, and various other devices that enable the collection and analysis of data in real-time. These components are critical to the operation of smart factories, which rely on data-driven decision-making and automation to optimize production. Several factors are driving the growth of the hardware component segment. First and foremost is the increasing demand for smart technologies that can improve manufacturing efficiency, reduce downtime, and enhance product quality. As more companies adopt Industry 4.0, the demand for hardware components will continue to grow. The rapid development of IoT technologies drives the growth of the hardware component segment. IoT devices, which collect data from sensors and other sources, require hardware components to function.

Technology Insights

The Industrial Internet of Things (IIoT) segment captured a significant market share of more than 27.0% in 2022. The IIoT is a technology that is rapidly gaining popularity in the market. This technology is poised to revolutionize how businesses operate, enabling machines and devices to communicate with each other and humans. The IIoT is a critical component of Industry 4.0 because it allows machines and devices to communicate with each other and humans in real time. As the IIoT technology continues to grow, it is expected to impact the manufacturing Industry significantly.

Industry Vertical Insights

The manufacturing segment captured a significant market share of around 31.0% in 2022. The manufacturing Industry is experiencing a significant transformation due to the growth of Industry 4.0. This transformation is driven by a wide range of technologies that enable businesses to operate more efficiently, reduce costs, and improve the customer experience. The key technology driving the growth in the manufacturing Industry is the Internet of Things (IoT). IoT-enabled sensors monitor equipment performance and identify potential issues before they become serious problems. This real-time data and insights can be used to improve operations and increase efficiency, providing significant benefits to businesses.

Regional Insights

Asia Pacific dominated the market in 2022 by holding a revenue share of over 35.0%. The region has been experiencing rapid growth in the market in recent years. The region is home to some of the world’s largest manufacturing hubs, including China, Japan, and South Korea. These countries have been at the forefront of adopting technologies, with China being the leader in this area. In addition, other countries in the region, such as Australia, Singapore, and Malaysia, have also been investing in technologies. For example, Australia has been promoting the adoption of robotics technology in the mining Industry to increase efficiency and safety. The growth of the regional market is expected to continue in the coming years.

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Key Companies & Market Share Insights

The key players in the market often include technology innovators, solution providers, and research institutions. These players contribute to the development of advanced manufacturing, automation, IoT, AI, and data analytics solutions. Their efforts drive the transformation of industries through digitization and smart technologies, impacting supply chains, production processes, and customer experiences. They also encompass software developers, hardware manufacturers, etc. as these entities collaborate to create integrated solutions that optimize production efficiency, enhance predictive maintenance capabilities, enable real-time monitoring, etc.

In addition, regulatory bodies and standardization organizations play a crucial role in shaping the framework and guidelines for the ecosystem. For instance, In August 2023, Denso Corporation acquired a full stake in Certhon Group, a horticultural facility operator. The aim of this acquisition is to further accelerate their efforts to solve global food challenges by leveraging the strengths of both companies and the results of their past collaboration. Some prominent players in the global Industry 4.0 market include:

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