Industry 4.0 Market Will Reach $214B by 2023
January 16, 2018 | PRNewswireEstimated reading time: 2 minutes
According to the new 4-volume report by HSRC; Global Industry 4.0 Market & Technologies 2018-2023, the Industry 4.0 market is projected to reach $214B by 2023, outweighing the projected 2023 cybersecurity market by 33%. The Industry 4.0 market is dominated by global technology giants including Alphabet-Google, HP, Samsung, IBM, NEC, Microsoft, and more.
Following three decades of decline in the manufacturing sector of Western and other economies, governments and private companies are adopting technologies of the 4th industrial revolution to resuscitate manufacturing and create R&D and management jobs in their home countries. The 4th Industrial revolution is set to swiftly alter the competitiveness of nearly all industrial sectors across the world, as well as change long-held dynamics in commerce and global economic balance of power.
In the U.S., despite the country's long-time dependency on imports, since 2010 there have been signs of gradual change, with rises in both domestic and export demand. One of President Donald Trump's principal campaign promises was restoring manufacturing jobs in the United States' struggling Rust Belt communities. It is expected that the Trump administration will follow the Obama government's 2011 Industry 4.0 policy, bringing together the industry and federal government to invest in Industry 4.0 technologies. Such efforts to reinvent the U.S. manufacturing industry by creating smart factories will have a substantial impact on U.S. economic growth.
The industrial sector is also important to the EU economy, which comprises 2 million manufacturing companies and is responsible for over 80% of EU exports. In response to a four-decade deterioration of the industrial sector, the EU set a target that manufacturing should represent 20% of total value added in the EU by 2020. As part of its new Digital Single Market Strategy, the European Commission wants to help all industrial sectors exploit new technologies and manage the transition to a smart, Industry 4.0 industrial system.
On the one hand, these changes may add to the traditional business pressure on manufacturers, but on the other hand, they offer unprecedented opportunities to optimize production and manufacturing processes.
According to the report, the Industry 4.0 revolution will be driven by an ensemble of emerging technologies, such as Industrial Internet of Things (Industrial IoT), Big Data analytics, advanced industrial robots, Artificial Intelligence (AI) and predictive maintenance. In the next decades, businesses will establish global networks that incorporate their machinery, warehousing systems, and production facilities in the shape of cyber-physical systems that can be managed in real time. These extremely flexible value networks will require new forms of collaboration between companies, both nationally and globally.
The Industry 4.0 "market race" is led by global tech giants that have already invested billions in Industry 4.0 products, R&D, commercialization, and M&A.
HSRC "Meta-Research" through industry experts and executives revealed that:
- 63% of the respondents stated that their business future depends on the Industry 4.0 transformation
- 88% of the respondents agreed that delaying the Industry 4.0 transformation of their enterprises may risk their business future
- 12% of the respondents have already implemented some Industry 4.0 conversion and reported clear improvements in their value chain performance
- Respondents forecast that internal Industry 4.0 manufacturing efficiencies and improved value chain management will lead to a cost reduction of 4.1% per annum, as well as a revenue increase of 3.0% per annum over 2018-2023, driven by customized products, predictive maintenance, and additional services.
- 55% of the respondents assume a two-year full Return on Investment (ROI) and enormous long-term gains
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