Global Industry 5.0 Market 2023-2030

Global Industry 5.0 Market 2023-2030

Global Industry 5.0 Market Size, Share & Trends Analysis Report by Technology (Artificial intelligence (AI)/Machine learning (ML), Robotics, Internet of Things (IoT), Big data analytics, Others(Digital twins, Edge computing, Quantum computing)), by company size (Small and medium-sized enterprises (SMEs), Large enterprises), and by Industry (Manufacturing, Healthcare, Energy, Retail, Automotive, Others) Forecast Period (2023-2030)

The global Industry 5.0 market is anticipated to grow at a CAGR of 17.8% during the forecast period (2023-2030). Industry 5.0 focuses on the collaboration of advanced technologies such as Artificial Intelligence (AI)/Machine learning (ML), big data analytics, Internet of Things (IoT) with human intelligence. Considering growing stringent environmental regulations, industry 5.0 helps businesses focus on sustainable manufacturing processes and products and improves personalization and resilience. Apart from this, growing market competition, increasing demand for personalized products, technological advancements in AI/ML, IoT, and cloud computing, increasing investments in Industry 5.0 and growing government support are driving growth in this sector.

Segmental Outlook

The global industry 5.0 market is segmented on technology, company size, and industry. Based on the technology, the market is sub-segmented into Artificial intelligence (AI)/Machine learning (ML), robotics, Internet of Things (IoT), big data analytics, and other technologies such as Digital twins, Edge computing, and quantum computing. Based on company size the market is sub-segmented into small and medium enterprises (SMEs) and large enterprises. Based on industry, the market is sub-segmented into manufacturing, healthcare, energy, retail, automotive, and other industries such as government, logistics and supply chain. The healthcare sector is expected to hold a prominent share in the global industry 5.0 sector. According to Global Data Alliance, 94% of global Fortune 1000 companies reported supply chain disruptions due to Covid-19 in early 2020. Digital technologies such as data analytics, artificial intelligence (AI), and blockchain can support freight scheduling, sourcing, and inventory management, promote safety and fight counterfeiting, increase efficiency and resilience, reduce costs, and minimize disruption. Considering the benefits of Industry 5.0, companies are investing in technological advancements such as AI/ML for predictive analytics, cloud computing, and IoT to improve efficiency. For instance, In May 2023, SAP launched an AI solution logistics and supply chain industry named SAP Business AI in collaboration with Microsoft. In this partnership, SAP will integrate its solutions with Microsoft 365 Copilot and Azure OpenAI to help customers expand their logistic capabilities.

The Manufacturing Sub-Segment is Anticipated to Hold a Considerable Share of the Global Industry 5.0 Market

Among the applications, the manufacturing sub-segment is expected to hold a considerable share in the global industry 5.0 market. Application of Industry 5.0 in manufacturing can allow the industry to improve operational efficiency by automation and real-time data analysis but also allow human presence to work alongside machinery to improve processes and provide personalization for customers. According to the World Manufacturing Report of 2022, the manufacturing industry plays an essential role in the economy, contributing to economic growth (representing 17% of global gross domestic product), boosting demand in other sectors, providing employment opportunities (directly employing 13% of workers), and representing a considerable share of global trade. However, the industry witnessed disruption due to factors such as the Russia-Ukraine warm Covid-19 eventually forcing companies and governments to focus on improving operational efficiency and sustainable manufacturing. For this, manufacturers are adopting industry 5.0 methodology to meet demands and stay competitive. Considering the significant contribution of this sector to the global economy, growing globalization, and consumer demand, increasing disposable income, and technological advancements, the manufacturing sector is expected to grow significantly.

Regional Outlook

The global industry 5.0 market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, Europe is anticipated to hold a prominent share of the market across the globe, owing to the high growth potential of the application sector including electronics, pharmaceuticals, Automotive, and others. For instance, according to the European Automobile Manufacturers’ Association, the region saw 21% more registrations of cars in August 2023 as compared to August 2022. The number of automobile production plants in Europe has increased from 301 in 2021 to 322 in 2022. Apart from this growing domestic manufacturing and supply chain sector and stringent environmental regulations are pushing regional market players to focus on industry 5.0 processes which is driving demand for industry 5.0 services providers in the region.

The industry 5.0 Market is Expected to Grow significantly in Asia Pacific Region

Among all regions, the industry 5.0 market is expected to grow significantly in the Asia Pacific region. According to the United Nations Population Fund, the region holds approximately 60% of the global population and is expected to grow at 4.6%. The growing regional Gross Domestic Product (GDP) and disposable income are driving demand for multiple sectors such as manufacturing, healthcare, electronics, and automotive among others. The regional manufacturing sector is also growing significantly due to factors such as low labor costs, high consumer demand, increasing government support through various policies, investments, and changing geopolitical conditions. For instance, according to 2022 statistics, of the International Organization of Motor Vehicle Manufacturers China, India, Japan, and South Korea are among the top 5 countries in in annual automotive manufacturing. Additionally, the region holds a significant presence in global pharmaceutical manufacturing. With growing demand, competition, and stringent environmental regulations, the companies in Asia Pacific are also adopting industry 5.0 processes. For instance, in August 2022, ABB India expanded and upgraded its Smart Power factory in Nelamangala, Bengaluru, with industry 5.0 production processes to meet demand for its products. The company said its Productivity was enhanced by 40%, energy productivity by more than 15%, and test automation ratio by 50% after the implementation of industry 5.0 processes.

Market Players Outlook

The major companies serving the industry 5.0 market include Rockwell Automation, Inc., KUKA AG, Siemens AG, Nexus Integra, Microsoft Corporation, and others. The market players are considerably contributing to the market growth by the adoption of various strategies investing in research and developments, and providing personalized solutions, to stay competitive in the market. For instance, In May 2022, UnifyTwin announced the launch of an Intelligent industrial App suite that offers five business apps to address various aspects of the industrial life cycle driving towards sustainable business outcomes.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global industry 5.0 market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.