Industry 5.0 Market by Technology (Digital Twin, Al in Manufacturing, Industrial Sensors, Augmented & Virtual Reality, Industrial 3D Printing, Robotics), Sustainability (Waste-to-Energy Conversion, Recycle, Material), Industry - Global Forecast to 2029
[228 Pages Report] The global Industry 5.0 market size was valued at USD 65.8 billion in 2024 and is estimated to reach USD 255.7 billion by 2029, registering a CAGR of 31.2% during the forecast period. The Industry 5.0 market is rapidly expanding, driven by technological advancements in AI, IoT, robotics, and 3D printing that enable manufacturers to automate processes, personalize products, and increase efficiency. Customer demands for more customized, sustainable, and rapidly updated products necessitate flexible and adaptable manufacturing models. Finally, the growing need for resilience in the face of disruptions and sustainability concerns has led Industry 5.0 to prioritize resource optimization, adaptability, and worker well-being, creating an impactful market landscape.
Industry 5.0 Market Forecast to 2029
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Market Dynamics:
Driver: Escalated focus on implementing green technologies for sustainable manufacturing
Green technologies encompass progressive methodologies, materials, and techniques related to clean energy and waste recycling, among other aspects, aiming to mitigate climate change. Embracing these technologies, such as renewable energy and storage, waste-to-energy solutions, implementing AI for carbon emission tracking, and green infrastructure development, empowers the manufacturing sector to promote lean production, minimize emissions, and actively participate in climate action. This results in minimized waste and substantially reduced overall environmental footprint associated with manufacturing processes. Manufacturers requiring substantial energy for continuous operations can embrace sustainability by incorporating renewable sources like solar, wind, and biomass energy. A case in point is Greenam Energy, part of the AM International group, and SPIC, a leader in the fertilizer industry. Greenham Energy's floating solar power plant within SPIC's premises generates green power for captive use, allowing SPIC to power its operations and sell excess energy to the state grid, promoting the adoption of renewable power.
Restraint: Lack of proficient workforce acquainted with advanced manufacturing equipment
The lack of a proficient workforce poses a significant roadblock to Industry 5.0 adoption. From knowledge and skills gaps in complex technologies to cultural resistance to change, this barrier creates challenges in integration, implementation, and talent acquisition. Also, despite the increasing popularity of digitalization, many organizations are unaware of the capabilities of different technologies due to their complex structure and lack of process understanding. For example, creating a digital twin of an asset/processor to deploy IIoT demands various technologies, skillsets, and trained workers to handle the latest equipment and software systems. The digital change will lead to a change in the specifications of skills required for employees at different stages of the value chain, starting from development to sales and marketing. For this, existing workers must be trained to operate new systems. The consequences include slowed progress, competitive disadvantage, and potential unemployment, highlighting the need for collaborative solutions. This ultimately costs the company to provide accessible training, prioritize reskilling to bring continuous learning to bridge this gap, and ensure a smooth transition to Industry 5.0's transformative potential.
Opportunity: Proliferation of 3D printing technology in the manufacturing of medical equipment and customized drugs
The widespread adoption of 3D printing technology in manufacturing medical equipment and customized drugs within Industry 5.0 has fostered a promising environment full of opportunities. This upsurge is reshaping the landscape by offering increased flexibility, accuracy, and personalization in the production processes of medical devices and pharmaceuticals. Stratasys, a key player in 3D printing solutions, offers BioMimics, enabling the development of highly realistic, patient-specific anatomical models. These models have various applications, including surgical planning, medical training, and the creation of tailored medical devices. Aprecia Pharmaceuticals introduces 3D-printed pharmaceuticals like SPRITAM, featuring precise dosage control and rapid disintegration to enhance patient adherence. Additionally, Organovo's expertise in bioprinting focuses on creating 3D-printed human tissues, revolutionizing medical research and drug testing with personalized and functional tissue constructs. This technological advancement showcases how 3D printing in Industry 5.0 enhances the efficiency of medical equipment and pioneers personalized medicine, marking a transformative shift in healthcare innovation.
Challenge: Necessity for continuous technological advancements
The adoption of Industry 5.0 encounters a significant hurdle due to the constant need for technological advancements. As technology evolves swiftly, businesses aiming to embrace Industry 5.0 principles find it challenging to keep up with the latest developments. This necessitates continual investments in equipment, software, and employee training. For instance, incorporating automated manufacturing systems, which integrate robotics and IoT devices, requires regular updates to ensure compatibility with evolving software and connectivity standards. Edge computing, crucial for real-time data processing in Industry 5.0, depends on advanced AI algorithms, compelling companies to frequently update their algorithms to maintain competitiveness. Likewise, sensor technologies, essential for data capture in Industry 5.0 applications, undergo rapid evolution, requiring regular upgrades to include the latest features. This ongoing need for technological updates can strain financial resources and impede the seamless integration of Industry 5.0 principles. Siemens, a global technology company, is a notable example, emphasizing the necessity of continuous investments to keep its digital twin solutions synchronized with evolving physical counterparts, illustrating the broader challenges faced by industries managing extensive sensor networks, automated manufacturing systems, and AI algorithms.
Industry 5.0 Market Ecosystem
The Industry 5.0 market is competitive, with major companies such as ABB, Honeywell International Inc, 3D Systems, Rockwell Automation, Siemens, and Emerson Electric Co, among others, being significant manufacturers of Industry 5.0 solutions and numerous small- and medium-sized vital enterprises. Many players offer industry 5.0 solutions and their components, while many players and details offer integration services. These integration services are widely required in process as well as discrete industries.
Based on the technology, the digital twin segment is expected to account for the largest market share during the forecast period.
Digital twin technology is anticipated to undergo rapid expansion in the foreseeable future, primarily due to the advent of Industry 5.0 principles. Industry 5.0 signifies a transformative shift towards seamlessly integrating digital technologies with human-centric processes, wherein digital twins play a pivotal role by offering virtual representations of physical assets, processes, and systems, facilitating real-time monitoring, analysis, and optimization. This collaborative environment, characteristic of Industry 5.0, encourages synergistic interactions between humans and machines, leveraging digital twins to enhance decision-making, boost efficiency, and foster innovation across diverse manufacturing, healthcare, and transportation sectors. Moreover, Industry 5.0's focus on personalization and customization aligns well with digital twins' capabilities, enabling organizations to create tailored simulations and models to address specific needs and preferences, ultimately leading to more precise insights and superior outcomes. Overall, the convergence of digital twin technology with Industry 5.0 principles drives its expansion by unlocking new avenues for collaboration, innovation, and efficiency within an increasingly interconnected and human-centric industrial landscape.
Based on industry, the automotive segment is projected to contribute significant market share during the forecast period
The automotive segment is poised for rapid growth in the coming years, largely due to the influence of Industry 5.0 principles. Industry 5.0 represents a significant evolution in manufacturing processes, emphasizing the seamless integration of digital technologies, automation, and human expertise. In the automotive sector, advancements such as automated manufacturing facilities, connected vehicles, and enhanced customer experiences drive the market. Industry 5.0 facilitates the development of intelligent manufacturing systems capable of real-time data analysis, predictive maintenance, and adaptive production processes, leading to increased efficiency, reduced downtime, and enhanced product quality. Additionally, Industry 5.0 promotes greater customization and personalization, allowing automotive manufacturers to tailor products and services to individual customer preferences, thereby improving customer satisfaction and brand loyalty.
Based on region, North America is projected to grow fastest for the industry 5.0 market
The scope of the Industry 5.0 market in North America includes the US, Canada and Mexico. The Industry 5.0 market in North America is expected to record the highest CAGR during the forecast period. Industry 5.0 represents a transformative shift in manufacturing and industry, emphasizing the integration of advanced digital technologies with traditional processes, thereby enhancing efficiency, productivity, and competitiveness. In North America, this transition is facilitated by several factors, including a strong ecosystem of technology companies, research institutions, and innovative startups, as well as robust infrastructure and a skilled workforce. Moreover, North America boasts a vibrant entrepreneurial culture and a supportive regulatory environment, which fosters innovation and encourages investment in emerging technologies.
Industry 5.0 Market by Region
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Top Industry 5.0 Companies - Key Market Players:
The industry 5.0 companies is dominated by a few globally established players such as ABB (Switzerland), Honeywell International Inc (US), 3D Systems (US), Rockwell Automation (US), Siemens (Germany ), and Emerson Electric Co (US), among others, etc.
Industry 5.0 Market Report Scope :
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Report Metric |
Details |
| Estimated Market Size | USD 65.8 billion in 2024 |
| Projected Market Size | USD 255.7 billion by 2029 |
| Growth Rate | CAGR of 31.2% |
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Market Size Availability for Years |
2020–2029 |
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Base Year |
2022=3 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD) |
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Segments Covered |
Sustainability, Technology, End-Use and Region. |
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Geographies Covered |
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Companies Covered |
ABB (Switzerland), Honeywell International Inc (US), 3D Systems (US), Rockwell Automation (US), Siemens (Germany ), and Emerson Electric Co (US among others |
Industry 5.0 Market Highlights
This research report categorizes the Industry 5.0 market based on sustainability technology, end-use industry, and region
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Segment |
Subsegment |
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Based on Technology: |
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Based on Industry: |
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Based on Region: |
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Recent Developments Industry 5.0 Market
- In October 2023, Amphenol Corporation subsidiary Piher Sensing Systems 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.
- In June 2023, Honeywell unveiled its latest Honeywell Digital Prime solution, a cloud-based digital twin designed to streamline the monitoring, management, and testing process control changes and system modifications. This cost-effective tool empowers users to conduct frequent testing, leading to heightened precision in results and a notable reduction in the need for reactive maintenance.
- In April 2023, Stratasys introduced GrabCAD Print Pro software, including Riven’s integrated quality assurance features. This advanced software manages the print preparation process for Stratasys 3D printers, catering to manufacturers seeking efficient production of end-use parts at scale. It focuses on enhancing printed-part accuracy, minimizing waste, and reducing time to production.
Frequently Asked Questions (FAQs):
Which are the major companies in the industry 5.0 market? What are their significant strategies to strengthen their market presence?
The major companies in the industry 5.0 market are – ABB, Honeywell International Inc, 3D Systems, Rockwell Automation, Siemens, Emerson Electric Co, and so on. The significant strategies these players adopt are product launches and developments, contracts, collaborations, acquisitions, and expansions.
What is the potential market for Industry 5.0 in the region?
The North American region is expected to dominate the Industry 5.0 market
What are the opportunities for new market entrants?
Opportunities in the Industry 5.0 market arise from the growth of the automotive, power & energy, chemicals and medical industries.
What are the drivers and opportunities for the industry 5.0 market?
Factors such as increasing demand for sustainable manufacturing and rising focus on technological advancements fuel the need to grow the industry 5.0 market.
Who are the major end users of the industry expected to drive the market’s growth in the next 5 years?
The significant consumers for Industry 5.0 are automotive, electronics, energy, oil & gas, medical, and chemicals, which all show effective growth rates.
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To estimate the size of the Industry 5.0 market, the study utilized four major activities. Exhaustive secondary research was conducted to gather information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Finally, market breakdown and data triangulation methods were utilized to estimate the market size for different segments and subsegments.
Secondary Research
In the secondary research process, various sources have been referred to to identify and collect information for this study on the Industry 5.0 market. Secondary sources for this research study include corporate filings (such as annual reports, investor presentations, and financial statements), trade, business, and professional associations, white papers, certified publications, articles by recognized authors, directories, and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of key secondary sources
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SOURCES |
WEBLINK |
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International Federation of Robotics (IFR) |
www.ifr.org/ |
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IEEE Robotics and Automation Society |
www.ieee-ras.org |
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Processing Magazines |
www.processingmagazine.com |
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Sensors Online |
www.sensorsmag.com |
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International Federation of Robotics |
www.ifr.org |
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3D Printing Association |
www.the3dprintingassociation.com |
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Chinese Association of Automation |
https://www.caa.org.cn/ |
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Association for the Advancement of Artificial Intelligence (AAAI) |
https://www.aaai.org/ |
Primary Research
To gather insights on market statistics, revenue data, market breakdowns, size estimations, and forecasting, primary interviews were conducted. Additionally, primary research was used to comprehend the various technology, application, vertical, and regional trends. Interviews with stakeholders from the demand side, including CIOs, CTOs, CSOs, and customer/end-user installation teams using Industry 5.0, were also conducted to understand their perspective on suppliers, products, component providers, and their current and future use of Industry 5.0, which will impact the overall market. Several primary interviews were conducted across major countries of North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
To estimate and validate the size of the industry 5.0 market and its submarkets, both top-down and bottom-up approaches were utilized. Secondary research was conducted to identify the key players in the market, and primary and secondary research was used to determine their market share in specific regions. The entire process involved studying top players’ annual and financial reports and conducting extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives. Secondary sources were used to determine all percentage shares and breakdowns, which were then verified through primary sources. All parameters that could impact the markets covered in this research study were accounted for, analyzed in detail, verified through primary research, and consolidated to obtain the final quantitative and qualitative data.
Global Industry 5.0 Market Size: Botton Up Approach
- Identifying various industry 5.0 technology manufacturers
- Analyzing the penetration of each component through secondary and primary research
- Analyzing integration of Industry 5.0 in different applications through secondary and primary research
- Conducting multiple discussions with key opinion leaders to understand the detailed working of industry 5.0s and their implementation in multiple industries; this helped analyze the break-up of the scope of work carried out by each major company
- Verifying and cross-checking the estimates at every level with key opinion leaders, including CEOs, directors, operation managers, and finally with the domain experts at MarketsandMarkets
- Studying various paid and unpaid sources of information, such as annual reports, press releases, white papers, and databases
Global Industry 5.0 Market Size: Top-Down Approach
The top-down approach has been used to estimate and validate the total size of the industry 5.0 market.
- Focusing initially on the R&D investments and expenditures being made in the ecosystem of the industry 5.0 market, further splitting the market on the basis of sustainability, technology, end-use industry, and region, and listing the key developments
- Identifying leading players in the industry 5.0 market through secondary research and verifying them through brief discussions with industry experts
- Analyzing revenue, product mix, geographic presence, and key applications for which products are served by all identified players to estimate and arrive at percentage splits for all key segments
- Discussing splits with industry experts to validate the information and identify key growth pockets across all key segments
- Breaking down the total market based on verified splits and key growth pockets across all segments
Data Triangulation
Once the overall size of the Industry 5.0 market was determined using the methods described above, it was divided into multiple segments and subsegments. Market engineering was performed for each segment and subsegment using market breakdown and data triangulation methods, as applicable, to obtain accurate statistics. To triangulate the data, various factors and trends from the demand and supply sides were studied. The market was validated using both top-down and bottom-up approaches.
Market Definition
"Industry 5.0" refers to the latest stage in the evolution of industrial manufacturing processes, characterized by the seamless integration of digital technologies with human expertise. While previous industrial revolutions focused primarily on automation and machine-centric production, Industry 5.0 emphasizes the harmonious collaboration between humans and machines to achieve optimal results. This paradigm shift seeks to leverage advanced technologies such as artificial intelligence, robotics, the Internet of Things (IoT), and augmented reality to enhance productivity, innovation, and customization while maintaining a human-centric approach to manufacturing. Industry 5.0 aims to empower workers with smart tools and technologies, enabling them to perform tasks more efficiently, creatively, and safely, ultimately leading to more sustainable and resilient industrial ecosystems.
Key Stakeholders
- Industry 5.0 Manufacturers
- Industry 5.0 Suppliers
- Industry 5.0 Integrators
- Industry 5.0 distributors
- Industry 5.0 software solution providers
- Technology investors
- Research organizations
- Analysts and strategic business planners
- Venture capitalists, private equity firms, and startups
- Educational Institutes and Universities
- Component Suppliers and Distributors
- Logistics and shipment companies
Report Objectives
- To define, describe, and forecast the Industry 5.0 market based on sustainability, technology, end-use industry and region
- To forecast the size of the market segments for four major regions—North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW)
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To study the complete value chain and allied industry segments and perform a market value chain analysis.
- To provide ecosystem analysis, case study analysis, patent analysis, technology analysis, pricing analysis, Porter’s five forces analysis, key stakeholders and buying criteria, key conferences and events, and regulatory bodies, government agencies, and regulations pertaining to the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies2.
- To analyze the opportunities in the market for stakeholders and describe the competitive landscape of the market.
- To analyze competitive developments such as collaborations, agreements, contracts, partnerships, mergers & acquisitions, product launches, and research & development (R&D) in the market
- To analyze the impact of the recession on the industry 5.0 market
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the industry 5.0 market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the industry 5.0 market.
Growth opportunities and latent adjacency in Industry 5.0 Market