“Global Industry 5.0 Market to reach a market value of USD 376.51 Billion by 2031 growing at a CAGR of 29.0%”
The Global Industry 5.0 Market size is expected to reach $376.51 billion by 2031, rising at a market growth of 29.0% CAGR during the forecast period.
As businesses increasingly move toward digital transformation, cloud computing provides the infrastructure to store, manage, and process vast amounts of data. Its scalability, flexibility, and cost-effectiveness have made it a crucial enabler for Industry 5.0, supporting advanced technologies like AI, big data, and IoT. Thus, cloud computing procured 11% revenue share in the market in 2023. Cloud computing also fosters collaboration by allowing seamless data sharing across organizations and reducing the need for on-site infrastructure.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2024, Schneider Electric SE unveiled digital twin services for OEMs, aligning with Industry 5.0 trends. This initiative will provide virtual machine replicas before production, enhancing efficiency. Industry 5.0 emphasizes AI-driven smart factories, human-machine collaboration, and real-time data integration for improved manufacturing and consumer insights. Additionally, In March, 2024, Schneider Electric SE unveiled new Lexium collaborative robots at MODEX 2024, enhancing automation with precise motion control and digital twin capabilities. The Lexium cobots improve efficiency, reduce costs, and integrate seamlessly with EcoStruxure Machine Expert. Designed for Industry 4.0 and 5.0, they enable faster deployment, higher productivity, and ergonomic, AI-driven automation solutions.
Based on the Analysis presented in the KBV Cardinal matrix; Google LLC is the forerunner in the Industry 5.0 Market. Companies such as Cisco Systems, Inc., Siemens AG, Ltd., and SAP SE are some of the key innovators in Industry 5.0 Market. In May, 2024, Siemens AG unveiled the Simatic Automation Workstation, replacing traditional PLCs, HMIs, and edge devices with a centralized software-based solution. This enhances automation scalability, security, and efficiency.
The growing expectation for personalized consumer experiences extends beyond the product to include the entire buying journey. From product configuration to real-time updates on manufacturing status, Industry 5.0 supports enhanced customer experiences through integration with digital platforms and IoT systems. Manufacturers can foster stronger relationships and enhance loyalty by providing consumers with more control and visibility into the production process. In conclusion, Industry 5.0 enables dynamic, responsive, and consumer-focused manufacturing ecosystems, supporting the growth of personalized products.
The integration of real-time data analytics enables manufacturers to optimize their operations continuously. Data collected from sensors, machines, and other IoT devices allows manufacturers to monitor and adjust the entire production process. Predictive maintenance capabilities ensure machinery is serviced before it breaks down, minimizing downtime. With the ability to quickly reconfigure production lines and improve operational processes, manufacturers can meet evolving market demands, enhance product quality, and maintain operational efficiency. Therefore, the growing need for flexible and agile manufacturing systems propels the market's growth.
Despite the high initial costs, the long-term benefits of Industry 5.0—such as improved efficiency, reduced waste, and greater flexibility—can outweigh these expenses. As technology advances and costs decrease over time, more companies are expected to adopt these systems. Additionally, the availability of government subsidies, grants, and incentives for digital transformation may help ease the financial burden, particularly for companies in regions with supportive policies aimed at fostering technological innovation. Thus, high initial investment and implementation costs hinder the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of technology, the is classified into 3D printing, robotics, industrial sensors, cloud computing, artificial intelligence (AI) & machine learning (ML), augmented reality (AR) & virtual reality (VR), digital twin, big data & advanced analytics, and others. The robotics segment acquired 22% revenue share in the market in 2023. This is driven by the increasing adoption of cobots, autonomous mobile robots (AMRs), and AI-powered robotic systems. These technologies enhance precision, efficiency, and safety in manufacturing, logistics, and other industrial applications. The demand for human-robot collaboration and advancements in robotic automation have significantly contributed to the segment’s dominance.
By end use, the market is divided into manufacturing, healthcare, automotive, energy & utilities, oil & gas, food & beverage, aerospace and defense, and others. The automotive segment garnered 18% revenue share in the market in 2023. The automotive industry is rapidly adopting Industry 5.0 technologies such as robotics, AI, and advanced analytics to enhance vehicle design, manufacturing processes, and autonomous driving systems. These innovations are helping automotive manufacturers optimize production lines, improve safety features, and meet the growing demand for electric and connected vehicles.
Based on component, the market is characterized into hardware, software, and services. The hardware segment garnered 48% revenue share in the market in 2023. The increasing adoption of advanced robotics, sensors, IoT devices, and automation equipment drives this. The growing demand for human-robot collaboration, smart manufacturing systems, and edge computing solutions has further propelled hardware investments. Additionally, advancements in AI-powered machinery, 3D printing, and industrial IoT (IIoT) devices have strengthened the segment’s dominance in Industry 5.0.
Free Valuable Insights: Global Industry 5.0 Market size to reach USD 376.51 Billion by 2031
The Industry 5.0 Market is highly competitive, driven by the integration of human intelligence with advanced technologies like AI, IoT, and robotics to enhance automation and customization. Providers focus on human-centric solutions, real-time data analytics, and sustainable manufacturing practices. Growth is fueled by increasing demand for hyper-personalization, collaborative robotics, and AI-driven decision-making. Intense competition pushes companies to innovate in cyber-physical systems, edge computing, and resilient supply chains while ensuring ethical AI adoption and environmental sustainability in industrial operations.
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 33% revenue share in the market in 2023. This region’s dominance can be attributed to its advanced technological infrastructure, high adoption rates of automation and AI, and strong manufacturing base. North America is home to many industries at the forefront of digital transformation, particularly in manufacturing, automotive, and healthcare, which has driven the region’s rapid growth in Industry 5.0 technologies.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 50.46 Billion |
| Market size forecast in 2031 | USD 376.51 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 29.0% from 2024 to 2031 |
| Number of Pages | 329 |
| Number of Tables | 454 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, End Use, Technology, Region |
| Country scope |
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| Companies Included | ABB Ltd., Rockwell Automation, Inc., Siemens AG, Hexagon AB, Schneider Electric SE, Cisco Systems, Inc., Kuka AG (Midea Group Co., Ltd.), Google LLC (Alphabet Inc.), Nokia Corporation, SAP SE |
By Component
By End Use
By Technology
By Geography
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