Global Industry 5.0 Market Size, Share & Trends Analysis Report By Component (Hardware, Software, and Services), By End Use, By Technology, By Regional Outlook and Forecast, 2024 - 2031

The Global Industry 5.0 Market size is expected to reach $376.51 billion by 2031, rising at a market growth of 29.0% CAGR during the forecast period.

As businesses increasingly move toward digital transformation, cloud computing provides the infrastructure to store, manage, and process vast amounts of data. Its scalability, flexibility, and cost-effectiveness have made it a crucial enabler for Industry 5.0, supporting advanced technologies like AI, big data, and IoT. Thus, cloud computing procured 11% revenue share in the market in 2023. Cloud computing also fosters collaboration by allowing seamless data sharing across organizations and reducing the need for on-site infrastructure.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2024, Schneider Electric SE unveiled digital twin services for OEMs, aligning with Industry 5.0 trends. This initiative will provide virtual machine replicas before production, enhancing efficiency. Industry 5.0 emphasizes AI-driven smart factories, human-machine collaboration, and real-time data integration for improved manufacturing and consumer insights. Additionally, In March, 2024, Schneider Electric SE unveiled new Lexium collaborative robots at MODEX 2024, enhancing automation with precise motion control and digital twin capabilities. The Lexium cobots improve efficiency, reduce costs, and integrate seamlessly with EcoStruxure Machine Expert. Designed for Industry 4.0 and 5.0, they enable faster deployment, higher productivity, and ergonomic, AI-driven automation solutions.

Based on the Analysis presented in the KBV Cardinal matrix; Google LLC is the forerunner in the Industry 5.0 Market. Companies such as Cisco Systems, Inc., Siemens AG, Ltd., and SAP SE are some of the key innovators in Industry 5.0 Market. In May, 2024, Siemens AG unveiled the Simatic Automation Workstation, replacing traditional PLCs, HMIs, and edge devices with a centralized software-based solution. This enhances automation scalability, security, and efficiency.

Market Growth Factors

The growing expectation for personalized consumer experiences extends beyond the product to include the entire buying journey. From product configuration to real-time updates on manufacturing status, Industry 5.0 supports enhanced customer experiences through integration with digital platforms and IoT systems. Manufacturers can foster stronger relationships and enhance loyalty by providing consumers with more control and visibility into the production process. In conclusion, Industry 5.0 enables dynamic, responsive, and consumer-focused manufacturing ecosystems, supporting the growth of personalized products.

The integration of real-time data analytics enables manufacturers to optimize their operations continuously. Data collected from sensors, machines, and other IoT devices allows manufacturers to monitor and adjust the entire production process. Predictive maintenance capabilities ensure machinery is serviced before it breaks down, minimizing downtime. With the ability to quickly reconfigure production lines and improve operational processes, manufacturers can meet evolving market demands, enhance product quality, and maintain operational efficiency. Therefore, the growing need for flexible and agile manufacturing systems propels the market's growth.

Market Restraining Factors

Despite the high initial costs, the long-term benefits of Industry 5.0—such as improved efficiency, reduced waste, and greater flexibility—can outweigh these expenses. As technology advances and costs decrease over time, more companies are expected to adopt these systems. Additionally, the availability of government subsidies, grants, and incentives for digital transformation may help ease the financial burden, particularly for companies in regions with supportive policies aimed at fostering technological innovation. Thus, high initial investment and implementation costs hinder the market's growth.

Component Outlook

Based on component, the market is characterized into hardware, software, and services. The hardware segment garnered 48% revenue share in the market in 2023. The increasing adoption of advanced robotics, sensors, IoT devices, and automation equipment drives this. The growing demand for human-robot collaboration, smart manufacturing systems, and edge computing solutions has further propelled hardware investments. Additionally, advancements in AI-powered machinery, 3D printing, and industrial IoT (IIoT) devices have strengthened the segment’s dominance in Industry 5.0.

Technology Outlook

On the basis of technology, the is classified into 3D printing, robotics, industrial sensors, cloud computing, artificial intelligence (AI) & machine learning (ML), augmented reality (AR) & virtual reality (VR), digital twin, big data & advanced analytics, and others. The robotics segment acquired 22% revenue share in the market in 2023. This is driven by the increasing adoption of cobots, autonomous mobile robots (AMRs), and AI-powered robotic systems. These technologies enhance precision, efficiency, and safety in manufacturing, logistics, and other industrial applications. The demand for human-robot collaboration and advancements in robotic automation have significantly contributed to the segment’s dominance.

End Use Outlook

By end use, the market is divided into manufacturing, healthcare, automotive, energy & utilities, oil & gas, food & beverage, aerospace and defense, and others. The automotive segment garnered 18% revenue share in the market in 2023. The automotive industry is rapidly adopting Industry 5.0 technologies such as robotics, AI, and advanced analytics to enhance vehicle design, manufacturing processes, and autonomous driving systems. These innovations are helping automotive manufacturers optimize production lines, improve safety features, and meet the growing demand for electric and connected vehicles.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 33% revenue share in the market in 2023. This region’s dominance can be attributed to its advanced technological infrastructure, high adoption rates of automation and AI, and strong manufacturing base. North America is home to many industries at the forefront of digital transformation, particularly in manufacturing, automotive, and healthcare, which has driven the region’s rapid growth in Industry 5.0 technologies.

Recent Strategies Deployed in the Market

• Feb-2025: ABB Ltd. teamed up with Agilent Technologies, a Consumer electronics company to advance laboratory automation, integrating AI, robotics, and lab software to enhance efficiency, precision, and flexibility in pharma, biotech, energy, and food sectors. This collaboration automates sample handling, testing, and data processing, accelerating research, quality control, and time-to-market for laboratories.
• Jan-2025: Schneider Electric SE teamed up with MaxGrip, a global consultancy firm in asset performance management and maintenance to enhance asset performance management, reducing downtime and costs for industries. This collaboration integrates MaxGrip’s Asset Improvement Program with Schneider’s digital transformation services, improving reliability, efficiency, and sustainability. The initiative aims to optimize asset lifecycle management, boost OEE, and lower Total Cost of Ownership.
• Nov-2024: Siemens AG acquired Altair Engineering, a software company marking its second largest takeover. This acquisition aims to integrate hardware and software, reinforcing its leadership in industrial software while expanding globally.
• Jan-2024: ABB Ltd. acquired Sevensense, a Swiss AI-based 3D vision navigation leader, strengthening its autonomous mobile robot (AMR) portfolio. This acquisition enhances speed, accuracy, and autonomy in logistics and manufacturing, integrating Visual SLAM technology for intelligent navigation. ABB now leads next-gen AMRs, transforming industrial automation with AI-driven robotics.
• Aug-2022: ABB Ltd. announced the establishment of its Smart Power factory in Bengaluru, integrating Industry 5.0 technologies like AI, IoT, and collaborative robotics for enhanced efficiency. The facility boosts productivity and energy efficiency, catering to sectors like infrastructure, utilities, and renewable energy, ensuring safety, reliability, and sustainability.

List of Key Companies Profiled

• ABB Ltd.
• Rockwell Automation, Inc.
• Siemens AG
• Hexagon AB
• Schneider Electric SE
• Cisco Systems, Inc.
• Kuka AG (Midea Group Co., Ltd.)
• Google LLC (Alphabet Inc.)
• Nokia Corporation
• SAP SE

Global Industry 5.0 Market Report Segmentation

By Component

• Hardware
• Software
• Services

By End Use

• Manufacturing
• Automotive
• Food & Beverage
• Oil & Gas
• Healthcare
• Energy & Utilities
• Others

By Technology

• Robotics
• 3D Printing
• Artificial Intelligence (AI) & Machine Learning (ML)
• Industrial Sensors
• Cloud Computing
• Big Data & Advanced Analytics
• Augmented Reality (AR) & Virtual Reality (VR)
• Digital Twin
• Other Technology

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA