Industry 5.0 Market

Industry 5.0 Market Highlights

The global industry 5.0 market is expected to cross a value of USD 491.3 billion by the end of 2032. The market was valued at USD 64.8 billion in 2023 and is expected to expand at a CAGR of 32.1% between 2024-2032.

• Over the mid-term, quick industrial digitization is the primary factor anticipated to drive the global industry 5.0 market.
• Primary restraint factor is the major factors to challenge the market growth.
• The North America industry 5.0 market is projected to dominate the global market.

Industry 5.0 Market Outlook

The new evolving phase of industrialization is known as the fifth industrial revolution or Industry 5.0. It witnesses humans working along with progressive technology and AI-powered robots to heighten workplace processes. Industry 5.0 is the latest phase which is going afar manufacturing processes. It involves resilience, a human-centric approach, and a focus on sustainability.

All together, the industrial sector is rapidly shifting towards digital transformation. Consequently, the manufacturing sector is embracing the new technologies at a faster pace to develop all components of the production process, including data analytics and factory automation. This growing shift towards the digitalization of industries is expected to drive the growth of the global industry 5.0 market. Our experts predict that during the 2nd half of 2023, industrial manufacturing sector invested about USD 350 billion, while chemical industries invested close to USD 300 billion. Siemens AG, General Electric Company (GE), and ABB Ltd. are some of the significant parties in the global market for industry 5.0.

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Industry 5.0 Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global industry 5.0 market are:

• Growing Focus on Integrating Human and AI Capabilities: The growing emphasis of organizations globally on integrating the capabilities of humans with digital transformation technologies, such as artificial intelligence (AI) and automation technologies is expected to contribute to the market growth. By leveraging human creativity, intuition, and problem-solving skills in conjunction with advanced robotics, machine learning, and IoT (Internet of Things) systems, manufacturers can optimize production processes, improve product quality, and drive innovation. According to our experts, the proper management of digital tools in organizations can help them save costs of up to 5%, unlike the traditional cost-cutting levers, which provide only about 2%.
• Rising Focus on Responsible Manufacturing Practices: Business worldwide are increasingly focusing on adopting responsible manufacturing practices that minimizes the impact on the environment by lowering consumption of resources and promoting a circular economy. By the adoption of Industry 5.0, business organizations can optimize supply chain logistics and also implement waste reduction strategies, thereby promoting operational efficiency. Hence, the rising focus of businesses on adopting responsible manufacturing practices is expected to boost the market growth.

Which Probable Factors Could Hamper the Growing Industry 5.0 Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of industry 5.0 are:

• Lack of Technological Expertise: The integration of human intelligence with automation technologies demands the workforce to have higher proficiency in digital technologies, data analytics, programming, and cybersecurity. Due to the lack of such skilled workforce, employers struggle to recruit and retain employees. Such a factor is therefore projected to limit the market growth.
• High Initial Investment: The transition to industry 5.0 requires massive investment in advanced technologies. The high upfront costs required for implementing these advanced technologies may not be possible for small and medium-sized enterprises, which is expected to hinder the growth of the market.

How is the Global Industry 5.0 Market Segmented?

Our experts at KD Market Insights have segmented the global industry 5.0 market as:

What are the Probable Factors Influencing the North America Industry 5.0 Market Forecast?

The North America industry 5.0 market is majorly driven by the fact that the region is a hub for technological innovation, supported by bulging investments in R&D across various industries. The continuous advancement of technologies such as artificial intelligence (AI), robotics, Internet of Things (IoT), and additive manufacturing drives the growth of Industry 5.0 by enabling more efficient, flexible, and interconnected manufacturing processes. Besides this, the presence of a robust manufacturing ecosystem and higher focus on sustainability and resilience, are also expected to boost the market growth in the years to come.

As per our analysts at KD Market Insights, the following five players lead the North America industry 5.0 market growth:

• General Electric Company (GE)
• IBM Corporation
• Rockwell Automation, Inc.
• Emerson Electric Co.
• Honeywell International Inc.

Which Key Players Top the Global Industry 5.0 Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global industry 5.0 market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with industry 5.0 market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global industry 5.0 market share:

• Siemens AG
• General Electric Company (GE)
• ABB Ltd.
• Schneider Electric SE
• IBM Corporation
• Bosch GmbH
• Honeywell International Inc.
• Rockwell Automation, Inc.
• Mitsubishi Electric Corporation
• Fanuc Corporation
• Emerson Electric Co.
• Yokogawa Electric Corporation

What are the Recent Developments Observed in the Industry 5.0 Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global industry 5.0 market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, Piher Sensing Systems stated that its subsidiary Amphenol Corporation has introduced the new open loop current sensor known as hcso-1w, ideal for measuring AC and DC currents in battery management systems.

Further, Honeywell shared that it has launched its latest cloud-based digital twin solution known as Honeywell Digital Prime, designed to empower users to conduct frequent testing for reactive maintenance.