Sensors embedded in the devices connected by IoT collect data and fuel advanced analytics for actionable insights. Cloud computing and AI/ML have become mainstream in modern industrial processes. Valued at $130.90 billion in 2022, the market size for Industry 4.0 is expected to reach $377.30 billion by 2029.
Given Industry 4.0’s massive appeal and adoption, it is only reasonable that industry experts are already pivoting toward the next growth phase—Industry 5.0—that will usher in an era of more intuitive and seamless interactions between humans and machines. According to the European Union (EU), Industry 5.0 “aims to achieve societal goals beyond jobs and growth, and become a resilient provider of prosperity by making production more sustainable and placing the worker well-being at the center of the production process.”
Broadly, Industry 5.0 is based on three fundamental pillars:
#1. Sustainability
The adverse impact of industrialization has historically been overlooked. And while business leaders today express concern for the environment and reducing carbon footprint, many fail to live up to their climate pledges. According to the LEK Global Corporate Sustainability Survey, 58% of the respondents said their leadership team disagrees with balancing short-term priorities with long-term environmental, social, and governance goals.
Industry 5.0 extends the concept of sustainability from minimizing climate damage to proactively bringing positive change by paying stronger attention to the 17 Sustainable Development Goals. Ahead of becoming carbon-neutral, they must become climate-positive. They can also incorporate circular economy practices by sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.
#2. Human-centricity
For decades, employees have been viewed as a business ‘resource.’ In contrast, Industry 5.0’s human-centric approach views people as assets and requires organizations to create value for them before leveraging their skills for profit. While selecting technologies for a manufacturing environment, an organization must prioritize ones that align with its workers’ needs. For example, using robots for repetitive and hazardous tasks allows people to focus on roles that require mental insight, sensitivity, and adaptive thinking.
Other strategies to improve employee well-being include ergonomic workplace exposure, job rotation, work schedule diversity, and involving multiple stakeholders in the conception, design, and innovation of production systems.