Industry 5.0 Market - By Technology (Digital Twin, Artificial Intelligence (AI), Industrial Sensors, Augmented & Virtual Reality (AR/VR), Robots), By Organization Size (Large Enterprise, Small and Medium Enterprise), By End-use Industry & Forecast, 2024 – 2032

Industry 5.0 Market Size

Industry 5.0 Market was valued at over USD 51.5 billion in 2023 and is anticipated to grow at a CAGR of over 31.5% between 2024 and 2032. Industry 5.0 promotes flexible and adaptable manufacturing systems that can quickly respond to changing market demands, product variations, and customization requirements. Collaborative robots, digital twins, and agile production processes enable rapid reconfiguration and retooling of production lines, facilitating faster time-to-market and increased responsiveness to customer needs.
 

For instance, in May 2023, ABB Beijing celebrated a new milestone with the official opening of an automated flexible miniature circuit breaker (MCB) production line. The factory has integrated advanced principles within the concept of Industry 5.0. The new enhanced manufacturing capabilities are projected to increase the production, availability, and quality of MCBs for ABB’s extensive customer network.
 

With the proliferation of IoT devices and sensors in the manufacturing field, Industry 5.0 ensures the collection of vast amounts of real-time data from production systems. Analyzing this data using AI and machine learning algorithms enables companies to gain insights into production performance, identify bottlenecks, and make data-driven decisions to optimize productivity and resource utilization.
 

Implementing Industry 5.0 solutions involves integrating multiple advanced technologies such as artificial intelligence, robotics, and Internet of Things (IoT). Managing the complexity of these technologies, ensuring proper interoperability, and overcoming integration challenges can be a complex task for organizations, particularly smaller manufacturers with limited resources and expertise.
 

Industry 5.0 Market Trends

The rising demand for customization and personalization in the industry 5.0 industry has significantly influenced the trends related to additive manufacturing (AM). There is a growing focus on developing new materials tailored for AM processes. Companies are investing in research and development to expand the range of materials compatible with AM, including metals, polymers, ceramics, and composites. This trend enables the production of functional end-use parts with properties that meet specific performance requirements. For instance, in March 2023, Stratasys Ltd., a leader in polymer 3D printing solutions, announced that Adroitec Information Systems Pvt. Ltd., a global engineering solutions provider, is Stratasys' newest channel partner. With Stratasys' advancement to manufacturing at scale, the partnership with Adroitec will further strengthen the ability to drive Additive Manufacturing (AM) adoption in the country.
 

The growing continuous advancements in robotics, AI, and machine learning technologies are fueling the evolution of Industry 5.0, characterized by the availability of increasingly intelligent and capable robots. These robots can autonomously adapt to changing environments, learn from experience, and make real-time decisions to optimize production processes. Key technologies driving the growth include computer vision, natural language processing, and reinforcement learning. For instance, in September 2023, Rockwell Automation announced it has signed a definitive agreement to acquire Canada-based Clearpath Robotics Inc., a leader in autonomous robotics for industrial applications. Autonomous mobile robots (AMRs) are the next frontier in industrial automation and transformation, and this acquisition will supercharge Rockwell’s lead in bringing the Connected Enterprise to life.
 

Industry 5.0 Market Analysis

Based on technology, the market is segmented into digital twin, Artificial Intelligence (AI), industrial sensors, Augmented & Virtual Reality (AR/VR), and robots. Digital twin segment is the fastest market and is and is anticipated to grow at a CAGR of over 34% between 2024 and 2032.
 

• The rise of digital twin technology in the industry 5.0 industry is driven by its ability to bridge the gap between the physical and digital worlds, enable predictive and proactive decision-making, optimize production processes, and enhance collaboration across the entire value chain. As manufacturers embrace Industry 5.0 principles, digital twins will play a crucial role in driving innovation, efficiency, and competitiveness in the manufacturing industry. For instance, in June 2023, Honeywell launched its new Honeywell Digital Prime solution, a cloud-based digital twin for tracking, managing, and testing process control changes and system modifications. Digital Prime is a cost-effective solution that allows users to test frequently for more accurate results while resulting in an overall reduction in reactive maintenance.
   

Based on the end-use industry, the market is divided into automotive, aerospace, healthcare, semiconductor & electronics, metals & mining, and others. In 2023, the semiconductor & electronics segment dominated the market with a share of over 25%.
 

• Semiconductor & electronics is a key driver of Industry 5.0 adoption, leveraging advanced technologies such as robotics, IoT, and AI to enhance manufacturing processes, product design, and customer experiences. For instance, in September 2023, Piher Sensing Systems, a leading provider of sensor solutions, 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.
   

Asia Pacific region has emerged as a dominant force in the industry 5.0 market and is anticipated to register a CAGR of over 32% from 2024 to 2032. As businesses in Asia Pacific continue to prioritize agility, flexibility, and technological advancement to stay competitive in the global landscape, the market is poised for significant expansion, driven by increasing investments in digital infrastructure and the widespread adoption of next-generation industrial technologies. Initiatives focused on digital transformation, such as the integration of artificial intelligence (AI), Internet of Things (IoT), and advanced analytics, are driving the adoption of Industry 5.0 principles across various sectors.
 

Industry 5.0 Market Share

Honeywell International Inc. is a global conglomerate known for its extensive portfolio of technology solutions across various industries, including manufacturing, aerospace, energy, and healthcare. In the context of the industry 5.0 industry, which represents the integration of human-centric approaches with advanced automation and digital technologies, Honeywell plays a significant role in driving innovation and facilitating the transition towards more interconnected and collaborative industrial ecosystems.
 

ABB Ltd. is a global technology company that operates in multiple sectors, including industrial automation, electrification, robotics, and digitalization. In industry 5.0 industry, ABB plays a significant role in shaping the future of manufacturing by providing innovative solutions that bridge the gap bet ween humans and machines.
 

Industry 5.0 Market Companies

Major players operating in the market are:

• Honeywell International Inc.
• Stratasys
• ABB Ltd.
• Rockwell Automation
• 3D System
• Ericsson Electric Co
• Nexus Integra
   

Industry 5.0 Industry News

• In January 2024, Siemens unveiled innovations that are combining the real world and the digital worlds to redefine reality at the CES 2024 exhibition, the world’s leading technology gathering. Siemens announced the new breakthroughs in AI and immersive engineering to enable the industrial metaverse, and highlighted how these technologies are empowering the world’s innovators to thrive using its open digital business platform, Siemens Xcelerator.
   
• In August 2022, ABB India expanded and upgraded its smart power factory in Nelamangala, Bengaluru, to meet the strong demand growth for its smart power solutions and energy management technologies with one of the first Industry 5.0 production processes. The smart facility harnesses advanced collaborative robotics technology for better human-machine interface, artificial intelligence (AI) and advanced digitalization technologies to create a sophisticated, automated, and flexible future-ready factory.
   

The industry 5.0 market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Technology

• Digital Twin
• Artificial Intelligence (AI)
• Industrial Sensors
• Augmented & Virtual Reality (AR/VR)
• Robots

Market, By Organization Size

• Large Enterprise
• Small and Medium Enterprise

Market, By End-Use Industry

• Automotive
• Aerospace
• Healthcare
• Semiconductor & Electronics
• Metals & Mining
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA