Industry 5.0 Market Size, Share & Growth Analysis

Updated on : October 23, 2024

Industry 5.0 Market Size & Growth

[228 Pages Report] The global Industry 5.0 market size was valued at USD 65.8 billion in 2024 and is estimated to reach USD 255.7 billion by 2029, growing at a CAGR of 31.2% during the forecast period from 2024 to 2029

The Industry 5.0 market share is rapidly expanding, driven by technological advancements in AI, IoT, robotics, and 3D printing that enable manufacturers to automate processes, personalize products, and increase efficiency. Customer demands for more customized, sustainable, and rapidly updated products necessitate flexible and adaptable manufacturing models. Finally, the growing need for resilience in the face of disruptions and sustainability concerns has led Industry 5.0 to prioritize resource optimization, adaptability, and worker well-being, creating an impactful market landscape.

Industry 5.0 Market Statistics and Forecast to 2029

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Industry 5.0 Market Trends :

Driver: Escalated focus on implementing green technologies for sustainable manufacturing

Green technologies encompass progressive methodologies, materials, and techniques related to clean energy and waste recycling, among other aspects, aiming to mitigate climate change. Embracing these technologies, such as renewable energy and storage, waste-to-energy solutions, implementing AI for carbon emission tracking, and green infrastructure development, empowers the manufacturing sector to promote lean production, minimize emissions, and actively participate in climate action. This results in minimized waste and substantially reduced overall environmental footprint associated with manufacturing processes. Manufacturers requiring substantial energy for continuous operations can embrace sustainability by incorporating renewable sources like solar, wind, and biomass energy. A case in point is Greenam Energy, part of the AM International group, and SPIC, a leader in the fertilizer industry. Greenham Energy's floating solar power plant within SPIC's premises generates green power for captive use, allowing SPIC to power its operations and sell excess energy to the state grid, promoting the adoption of renewable power.

Restraint:  Lack of proficient workforce acquainted with advanced manufacturing equipment

The lack of a proficient workforce poses a significant roadblock to Industry 5.0 adoption. From knowledge and skills gaps in complex technologies to cultural resistance to change, this barrier creates challenges in integration, implementation, and talent acquisition. Also, despite the increasing popularity of digitalization, many organizations are unaware of the capabilities of different technologies due to their complex structure and lack of process understanding. For example, creating a digital twin of an asset/processor to deploy IIoT demands various technologies, skillsets, and trained workers to handle the latest equipment and software systems. The digital change will lead to a change in the specifications of skills required for employees at different stages of the value chain, starting from development to sales and marketing. For this, existing workers must be trained to operate new systems. The consequences include slowed progress, competitive disadvantage, and potential unemployment, highlighting the need for collaborative solutions. This ultimately costs the company to provide accessible training, prioritize reskilling to bring continuous learning to bridge this gap, and ensure a smooth transition to Industry 5.0's transformative potential.

Opportunity: Proliferation of 3D printing technology in the manufacturing of medical equipment and customized drugs

The widespread adoption of 3D printing technology in manufacturing medical equipment and customized drugs within Industry 5.0 has fostered a promising environment full of opportunities. This upsurge is reshaping the landscape by offering increased flexibility, accuracy, and personalization in the production processes of medical devices and pharmaceuticals. Stratasys, a key player in 3D printing solutions, offers BioMimics, enabling the development of highly realistic, patient-specific anatomical models. These models have various applications, including surgical planning, medical training, and the creation of tailored medical devices. Aprecia Pharmaceuticals introduces 3D-printed pharmaceuticals like SPRITAM, featuring precise dosage control and rapid disintegration to enhance patient adherence. Additionally, Organovo's expertise in bioprinting focuses on creating 3D-printed human tissues, revolutionizing medical research and drug testing with personalized and functional tissue constructs. This technological advancement showcases how 3D printing in Industry 5.0 enhances the efficiency of medical equipment and pioneers personalized medicine, marking a transformative shift in healthcare innovation.

Challenge: Necessity for continuous technological advancements

The adoption of Industry 5.0 encounters a significant hurdle due to the constant need for technological advancements. As technology evolves swiftly, businesses aiming to embrace Industry 5.0 principles find it challenging to keep up with the latest developments. This necessitates continual investments in equipment, software, and employee training. For instance, incorporating automated manufacturing systems, which integrate robotics and IoT devices, requires regular updates to ensure compatibility with evolving software and connectivity standards. Edge computing, crucial for real-time data processing in Industry 5.0, depends on advanced AI algorithms, compelling companies to frequently update their algorithms to maintain competitiveness. Likewise, sensor technologies, essential for data capture in Industry 5.0 applications, undergo rapid evolution, requiring regular upgrades to include the latest features. This ongoing need for technological updates can strain financial resources and impede the seamless integration of Industry 5.0 principles. Siemens, a global technology company, is a notable example, emphasizing the necessity of continuous investments to keep its digital twin solutions synchronized with evolving physical counterparts, illustrating the broader challenges faced by industries managing extensive sensor networks, automated manufacturing systems, and AI algorithms.

Industry 5.0 Market Ecosystem

The Industry 5.0 Industry is competitive, with major companies such as ABB, Honeywell International Inc, 3D Systems, Rockwell Automation, Siemens, and Emerson Electric Co, among others, being significant manufacturers of Industry 5.0 solutions and numerous small- and medium-sized vital enterprises. Many players offer industry 5.0 solutions and their components, while many players and details offer integration services. These integration services are widely required in process as well as discrete industries.

Industry 5.0 Market Share

Based on the technology, the digital twin segment is expected to account for the largest market share during the forecast period.

Digital twin technology is anticipated to undergo rapid expansion in the foreseeable future, primarily due to the advent of Industry 5.0 principles. Industry 5.0 signifies a transformative shift towards seamlessly integrating digital technologies with human-centric processes, wherein digital twins play a pivotal role by offering virtual representations of physical assets, processes, and systems, facilitating real-time monitoring, analysis, and optimization. This collaborative environment, characteristic of Industry 5.0, encourages synergistic interactions between humans and machines, leveraging digital twins to enhance decision-making, boost efficiency, and foster innovation across diverse manufacturing, healthcare, and transportation sectors. Moreover, Industry 5.0's focus on personalization and customization aligns well with digital twins' capabilities, enabling organizations to create tailored simulations and models to address specific needs and preferences, ultimately leading to more precise insights and superior outcomes. Overall, the convergence of digital twin technology with Industry 5.0 principles drives its expansion by unlocking new avenues for collaboration, innovation, and efficiency within an increasingly interconnected and human-centric industrial landscape.

Based on industry, the automotive segment is projected to contribute significant market share during the forecast period

The automotive segment is poised for rapid growth in the coming years, largely due to the influence of Industry 5.0 principles. Industry 5.0 represents a significant evolution in manufacturing processes, emphasizing the seamless integration of digital technologies, automation, and human expertise. In the automotive sector, advancements such as automated manufacturing facilities, connected vehicles, and enhanced customer experiences drive the market. Industry 5.0 facilitates the development of intelligent manufacturing systems capable of real-time data analysis, predictive maintenance, and adaptive production processes, leading to increased efficiency, reduced downtime, and enhanced product quality. Additionally, Industry 5.0 promotes greater customization and personalization, allowing automotive manufacturers to tailor products and services to individual customer preferences, thereby improving customer satisfaction and brand loyalty.

Industry 5.0 Market Regional Analysis

Based on region, North America is projected to grow fastest for the industry 5.0 market

The scope of the Industry 5.0 market share in North America includes the US, Canada and Mexico. The Industry 5.0 market size in North America is expected to record the highest CAGR during the forecast period. Industry 5.0 represents a transformative shift in manufacturing and industry, emphasizing the integration of advanced digital technologies with traditional processes, thereby enhancing efficiency, productivity, and competitiveness. In North America, this transition is facilitated by several factors, including a strong ecosystem of technology companies, research institutions, and innovative startups, as well as robust infrastructure and a skilled workforce. Moreover, North America boasts a vibrant entrepreneurial culture and a supportive regulatory environment, which fosters innovation and encourages investment in emerging technologies.

Industry 5.0 Market Size by Region

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Top Industry 5.0 Companies - Key Market Players:

The industry 5.0 companies is dominated by a few globally established players such as

• ABB (Switzerland),
• Honeywell International Inc (US),
• 3D Systems (US),
• Rockwell Automation (US),
• Siemens (Germany ), and
• Emerson Electric Co (US), among others, etc.

Industry 5.0 Market Report Scope : 

Industry 5.0 Market Highlights

This research report categorizes the Industry 5.0 market size based on sustainability technology, Trends,  end-use industry, and region

Recent Developments Industry 5.0 Market

• In October 2023, Amphenol Corporation subsidiary Piher Sensing Systems announced the introduction of its new hcso-1w open loop current sensor. The hcso-1w is a high-accuracy sensor that is ideal for measuring AC and DC currents in battery management systems, industrial battery chargers and motor control applications.
• In June 2023, Honeywell unveiled its latest Honeywell Digital Prime solution, a cloud-based digital twin designed to streamline the monitoring, management, and testing process control changes and system modifications. This cost-effective tool empowers users to conduct frequent testing, leading to heightened precision in results and a notable reduction in the need for reactive maintenance.
• In April 2023, Stratasys introduced GrabCAD Print Pro software, including Riven’s integrated quality assurance features. This advanced software manages the print preparation process for Stratasys 3D printers, catering to manufacturers seeking efficient production of end-use parts at scale. It focuses on enhancing printed-part accuracy, minimizing waste, and reducing time to production.

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