Industry 5.0 Market size is poised to reach USD 866 Billion by the end of 2036, growing at a CAGR of 20% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of industry 5.0 was USD 183 Billion. The reason behind the growth is impelled by the rising emergence of advanced technologies, namely industrial Internet of Things (IIoT) and artificial intelligence, as these are indispensable for effective data collection, analysis, and feeding the gathered insights into the manufacturing process to create improved products, and drive business success in the era of Industry 5.0. For instance, by 2025, it's predicted that there will be more than 30 billion linked devices worldwide.
The rapid industrial digitization is believed to fuel the market growth. The industrial sector as a whole is quickly changing owing to digital transformation as a result the manufacturing sector is adopting new technologies at a quick pace to enhance all facets of the production process, including data analytics and factory automation.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~20% |
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Base Year Market Size (2023) |
~ USD 183 Billion |
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Forecast Year Market Size (2036) |
~ USD 866 Billion |
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Regional Scope |
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End-Use Vertical (Manufacturing, Supply Chain Management, Automotive, Healthcare, Electrical & Electronics Equipment)
The manufacturing segment in the industry 5.0 market is estimated to gain a robust revenue share of 45% in the coming years. Industry 5.0 will drastically alter the manufacturing sector, and can support the individualized manufacturing process to enable businesses and industries to actively supply solutions for society to preserve resources, promote social stability, and address climate targets, and will lead to better automation of industrial processes.
Moreover, Industry 5.0 is a new paradigm for production, which aids in increasing production, cutting expenses, increasing competitiveness, decreasing human injury, and yielding consistent and uniform output.
Application (Smart Factories, Personalized Healthcare, Autonomous Vehicles, Smart Cities, Industrial Automation)
The smart factories segment in the industry 5.0 market is set to garner a notable share shortly. The smart factory is a cyber-physical system that expresses the ultimate purpose of digitalization in production through the use of cutting-edge technologies including artificial intelligence (AI) and machine learning. Smart factories are highly digitalized and can automate and optimize themselves to improve processes and offer opportunities to generate new kinds of efficiency and flexibility. Moreover, the implementation of Industry 5.0 IoT technology in manufacturing facilities is seen as the next evolution of the smart factory, built upon the principles of Industry 4.0.
Our in-depth analysis of the global industry 5.0 market includes the following segments:
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End-Use Vertical |
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Enterprise |
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Application |
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Technology |
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APAC Market Forecast
Industry 5.0 market in Asia Pacific is predicted to account for the largest share of 48% by 2036 impelled by the presence of government initiatives such as Made in India, Skill India, and Made in China. India hopes to establish itself as a manufacturing hub which is expected to result in higher demand for Industry 5.0 as it has a lot of potential to work with these initiatives. Moreover, the "Made in India" campaign is built around four pillars that the Indian government has determined to stimulate entrepreneurship in the country and establish it as the top global manufacturing destination for product development, and assembly.
In addition, "Made in China 2025" is a campaign that the Chinese government has started which is a state-led industrial program and national strategic plan of the Chinese Communist Party (CCP) that aims to establish China as a global leader in high-tech manufacturing, and quickly grow its high-tech sectors and base of advanced manufacturing to catch up with—and eventually surpass-Western technological prowess in advanced industries.
North American Market Statistics
The North America Industry 5.0 market is estimated to be the second largest, during the forecast timeframe led by the growing adoption of advanced technologies. In terms of AI development, the US leads the globe, and with its worldwide IT giants, the region has been a hub for technological innovation. For instance, more than 70% of US businesses have already incorporated AI into some aspect of their operations. Additionally, the market is increasing as cloud-based machine learning services are becoming more and more popular in North America which is an innovative technology that is positively transforming business, healthcare, education, and finance.
Author Credits: Abhishek Verma, Hetal Singh
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