What is Industry 4.0?

We live in an era of constant change. We have seen many changes in the individual stages of industry. And while we have long since entered the so-called fourth industrial revolution – Industry 4.0 – it has to be said that we have already arrived in Industry 5.0. So what exactly does Industry 4.0 mean and why are we already in Industry 5.0?

The history of industry: from the steam engine to digitalization

Before we turn to the question of what Industry 4.0 is all about, it is worth taking a look back:

  • Industry 1.0 – The steam engine: In the 18th century, the invention of the steam engine marked the beginning of industrialization. This mechanical energy source revolutionized production and transport and laid the foundations for mass production.
  • Industry 2.0 – Electricity: Electricity brought the assembly line to the production halls. Particularly in the automotive industry, where Henry Ford introduced the assembly line, processes accelerated and industrial production achieved a completely new level of efficiency.
  • Industry 3.0 – Electronics, IT & Automation: The third revolution began in the middle of the 20th century. Electronic systems, computers and programmable logic controllers (PLCs) led to the automation of production. The introduction of robots increased efficiency even further.

What does Industry 4.0 mean?

Industry 4.0 stands for the digital transformation of industrial production, if not the entire corporate world. It is characterized by the networking of machines, products and people in real time. The focus is on cloud computing and the constant communication and exchange of data in real time through the Internet of Things (IoT). These systems enable machines to communicate with each other, exchange data in real time and make decisions autonomously. Here are some key elements:

  1. Networked systems: Machines and production systems are connected via the Internet and continuously exchange data in order to optimize production processes.
  2. Real-time data analysis: Sensors and other IoT devices collect huge amounts of data that are analyzed in real time to identify problems early on and optimize processes. Especially in the case of big data, it is a great advantage to process these data volumes.
  3. Autonomous production processes: Thanks to networking and real-time analysis, many production steps can now run autonomously, which significantly increases efficiency.

Industry 4.0 has revolutionized the way products are manufactured. Production processes are more flexible, more efficient and more intelligent. But despite these enormous advances, we are actually already in Industry 5.0 and therefore the smart factory.

Phases of industrialization from the steam engine to electricity and automation to networked Industry 4.0 and AI.

The five phases of industrialization: steam engine, electricity, automation, internet and the integration of AI and IoT.

Industry 5.0 – The future is now

The exponential acceleration of technological innovation means that the time between industrial revolutions is getting shorter and shorter, from several centuries in the first revolution to just a few years in the fourth and fifth. The future trends are clear and the technologies are advancing. The development of robots and intelligent systems is part of everyday life. While Industry 4.0 has driven forward the automation and networking of production, Industry 5.0 is now going one step further: the focus is once again more on people. The use of artificial intelligence (AI) and advanced cyber-physical systems as well as increased networking through the Internet of Things will enable even closer collaboration between humans and machines. Industry 5.0 is not just about mass production, but about customized solutions and individual needs. The collaboration between man and machine is designed in such a way that the strengths of both sides complement each other. Humans contribute creativity and problem-solving skills, while machines take on repetitive tasks and data analysis. Industry 5.0 brings with it a wave of new value creation that reflects the growing influence of human-machine interactions, artificial intelligence and personalized production processes. Artificial intelligence (AI) and generative artificial intelligence (Gen AI) play a key role in Industry 5.0 as they take collaboration to a new level. AI enables personalized production processes and optimizes workflows in real time, while Gen AI generates innovative designs, products and solutions. These technologies create more efficient, sustainable and human-centered working environments in which creativity and automation go hand in hand. Industry 5.0 brings the best of the human and machine worlds: Efficient, automated processes combined with human creativity and flexibility. This enables us to achieve many process optimizations and create a balance between the two sides. Research and innovation are increasingly focused on cloud computing, sustainability and improved market opportunities. Discussion groups such as the Industry 4.0 platform are developing concepts on how the economy can comply with the framework conditions. Data protection and security naturally come to the fore. While Industry 4.0 laid the foundation for this, Industry 5.0 is creating the next generation of intelligent production, thereby also changing profitability and competitiveness.

Modern networked factory with robots and digital technology, demonstrating Industry 4.0 and the digital transformation.

Industry 4.0: The networking of machines and people in real time to increase efficiency and automate production.

Conclusion

Industry 4.0 has revolutionized industrial production by enabling machines, products and people to be networked and autonomous processes via the internet. But we are already looking ahead: Industry 5.0 is here and now and, thanks to AI, promises even closer collaboration between man and machine, in which individual solutions and customized products play a central role. Companies that prepare for this revolution today will secure decisive competitive advantages for the future. The future belongs to Industry 5.0 – a world in which man and machine work hand in hand to make production even more efficient and flexible.