🎉Celebrating 25 Years of Tech Excellence and Trust - Learn More
Quick Summary: With cut-throat competition and evolving customer demands, manufacturing businesses are under pressure to innovate or risk obsolescence. That’s where Industry 4.0 powered by IoT has the master key to navigate through these turbulent times. This revolution promises increased efficiency, productivity, and innovation. But are you ready to embrace it? Let’s delve into this blog to closely understand Industry 4.0, its potential, core concepts, and the challenges. Read on.
Industry 4.0 is a term encompassing a promise of the innovative industrial revolution – that married advanced techniques in manufacturing with the IoT (Internet of Things). The idea is to create new and interconnected manufacturing systems that can communicate, use information, and analyze data to drive intelligent actions in this physical world. Hence, it is also called Industrial Revolution 4.0.
As of 2019, it is estimated that the market value of Industry 4.0 technologies would be $71.7 billion. After that, the same market value is expected to reach $156.6 billion in 2025, at a 16.9% CAGR from 2019 to 2025.
Increasing industrial internet adoption worldwide in the manufacturing units, better focus on improving the efficiency of systems and machinery, and reducing production costs are significant factors responsible for the growth of this market globally.
Drive Smart Business Outcomes to Deliver Targeted Experiences with Robust Digital Transformation Services
Consult Experts Now
Industry 4.0 is defined as the name for the latest trends of data exchange and automation in manufacturing technologies, such as the Internet of Things, cyber-physical systems, cognitive computing, cloud computing, and building intelligent factories.
It is the revolutionary digital transformation of production/manufacturing and other related industries and processes that create value.
Cyber-physical systems are the basis of this revolutionary technology. Using advanced control systems, they have successfully embedded software systems and dispose of the Internet address for connecting and are addressed through IoT.
In this way, products and manufacturing processes are networked to communicate to enable the industry 4.0 technologies to create value and optimize in real-time. Cyber-physical systems are the source that makes capabilities for modern smart factories, which includes remote tracking, monitoring, etc.
Interchangeably used with the fourth worldwide industrial revolution, industry 4.0 represents another stage in the organization and controls the on-ground value chain. Its characteristics include:
How would you know if your existing business needs Industry 4.0 technologies?
Here's a checklist.
There are several hundred terms and concepts related to Industrial 4.0. Of these, 12 foundational phrases and words are essential, irrespective of you want to invest in these solutions or not:
i) ERP: Enterprise resource planning is an essential tool for business process management. It is used for managing information across the organization.
ii) IoT: The Internet of Things refers to connections between physical industrial objects, such as machines or sensors, and the internet.
iii) IIoT: Industrial Internet of Things is the link between human resources, data, and machines/equipment related to manufacturing.
iv) Big Data: A large set of structure and unstructured data compiled, stored, analyzed, and organized to disclose patterns, associations, trends, and opportunities.
v) AI: Artificial Intelligence is another concept, which refers to the computer's ability to perform tasks and make decisions historically requiring human intelligence.
vi) Digitization: It refers to the method of collecting information and converting them into a digital format.
vii) M2M: Machine-to-machine is a communication taking place between two distinct machines through wired or wireless networks.
viii) Smart Factory: It is a facility that invests in and leverages Industry 4.0 technologies, approaches, and solutions.
ix) Cloud Computing: The act of using multiple interconnected remote servers on the internet for storing, managing, and processing information.
x) Real-time Data Processing: Computer systems and machines can automatically and continuously process data to provide real-time or simply near-time outputs plus insights.
xi) Ecosystem: In manufacturing, an ecosystem means the potential connection or connectedness of the entire operation, including inventory planning, financials, supply chain management, customer relationships, manufacturing execution, etc.
xii) Cyber-physical System (CPS): Also called cyber manufacturing, is the Industry 4.0-enabled environment for manufacturing, which provides real-time data collection and analysis, with transparency across different aspects of the manufacturing operations.
Industrial revolution 4.0 spans an entire lifecycle of a product as well as its supply chain. It involves designs, inventory, sales, quality, scheduling, engineering, field service, and customer service. Everyone wants up-to-date, informed, and relevant views of their business processes and production.
Noted below is a non-exhaustive list stating the key benefits of Industry 4.0 in the modern business model:
Anything that comes with a lot of benefits also has a few challenges. Industry 4.0 challenges include incorporating new technology or process into the organization. Besides, there are some other real-time challenges, such as:
To build one of the most scalable and sustainable business environments, you must use tools to streamline tasks, collaborate, boost productivity, and leverage real-time data. Industry 4.0 solutions can be highly effective for your business to get on the right track and leverage the ever increasing clout of emerging technologies like IoT Services.
Ready to brush up on something new? We've got more to read right this way.