Industry 4.0 is an integrated system that includes automation tools, robot control, and big data analytics. Industry 4.0 has great potential and is expected to grow significantly in the near future. Industry 4.0 involves not only technology, but also companies that collect appropriate data and integrate it with digital services in order to utilize it for their own benefit. Industry 4.0 also includes physically networked systems, cloud computing and the Internet of Things.
Increasing adoption of internet in different industrial applications is one of the major factors driving the market growth. For every organization, Industry 4.0 is at the core of digital transformation. Various key players are currently advocating the Internet of Things (IoT) and Industry 4.0 concept (Industrial Internet) to create smarter factories.
For example, sensors are at the forefront of the supply chain market as they improve the tasks and patterns of tracking, which is part of the development of Industry 4.0. Companies are now adopting Industry 4.0 to improve the productivity and quality of their products. Nokia has applied the concept of supply chain networks in its factories; this was done to leverage digitization throughout the supply chain. This adoption has enabled the company to achieve higher growth over the past five years and is expected to drive continued growth.
This adoption by key players is driving the growth of the market. The major restraint in the global industry 4.0 market is the lack of cost-benefit analysis. Increased focus on efficiency and cost of production will lead to various opportunities for key players digitizing their operations in the global industry 4.0 market.
The global industry 4.0 market is fragmented based on technology, vertical, and region. In terms of technology? technology, the market is segmented into big data, robotics, cybersecurity, Internet of Things (IoT), advanced human-machine interface (HMI), 3D printing, augmented and virtual reality, and artificial intelligence. Based on verticals, the market is segmented into industrial equipment, oil and gas, healthcare, automotive, electrical and electronic equipment, aerospace, chemicals and materials, food and agriculture, energy and power, and others.
The industrial equipment sector led the global industry 4.0 market in 2017 and is expected to maintain this trend in the coming years. The growing global demand for value-based products is expected to drive the industry 4.0 market in the coming years.
Based on region, the market is segmented into Europe, Asia Pacific, North America, Latin America, and the Middle East and Africa. North America led the industry 4.0 market and held a significant market share in terms of revenue in 2017. This can be attributed to the immense technological advancements in the regions. The Asia Pacific industry 4.0 market is also expected to witness significant growth over the forecast period.