From Industry 4.0 to Industry 5.0: What will be the key differences and how can you get a head-start?

Industry 4.0 has already seen a revolution for business and manufacturing, with its significant enhancement of efficiency and productivity through widescale and ever-growing use of automation, AI, IoT, Big Data and other IT-based developments over the last decade. All of these technologies involve machines communicating with each other to optimize efficiency and productivity autonomously. In the coming years, businesses will be able to drive more efficiency with their factory automation by evolving from Industry 4.0 to 5.0, which builds on Industry 4.0 technology, but introduces more personalization and efficiency that is created between the human work force and the automated factory. 

The demand for the increased customization of services already exists, however, under Industry 5.0, the offer is predicted to increase exponentially using technology already in use like cobots, robots and 3D printing, but with far increased efficiency than at present through enhancing operators with increased precision and efficiency

With Industry 4.0’s huge emphasis on automation including AI, various sectors of employment have been impacted, while other new high-tech based roles have grown exponentially.   Industry 5.0, however, is being touted to be far less intrusive, placing humans at the center of the production process with increased human-robot collaboration predicted to increase rather than replace human capabilities. Experts predict that new roles leveraging human creativity, critical thinking, and interpersonal skills will be created. Whereas Industry 4.0 has not been seen to be human-centric, Industry 5.0 advocates for increased ethics in data use, AI and inclusive technologies to ensure that all benefit from its use.

Foundations of Industry 5.0 in place

Another positive development predicted to occur with Industry 5.0 is a vastly increased emphasis on sustainability in production, prioritizing already increasingly popular elements seen as essential to future development like renewable energies and circular economy principles that aim to minimize waste and maximize re-use.

With a huge reliance on Cloud-based data systems, Industry 4.0 has seen industries susceptible to cyber-attacks, system failures and supply chain disruptions, despite powerful cybersecurity systems, most recently seen by the disruption caused worldwide by the failure of a principal global operating system. Thankfully, this is not predicted to be the case with Industry 5.0. where system resilience and adaptability are key components.  

An emphasis on human-robot collaboration and more-data informed decisions taken at the local factory level  will enhance the ability of production systems to respond to unexpected challenges, creating even more robust and adaptive manufacturing processes. With the simultaneous focus on sustainability and local resource use, the aim is to be less dependent on global supply chain sourcing, further boosting the autonomy of systems, even in a completely globalized world.

Prepping for Industry 5.0

Despite Industry 5.0 still being spoken of in the future tense, there are certain ways businesses can start preparing now to get a competitive edge to more quickly take advantage of the benefits as Industry 5.0  comes online.   

Invest in advanced technologies

Advanced Human-Machine Interfaces (HMIs): Developing and implementing advanced HMIs that are intuitive and user-friendly can improve the interaction between humans and machines, promoting seamless collaboration. Investing in training programs to familiarize employees with these interfaces will be essential.  

Artificial Intelligence and Machine Learning: AI and machine learning technologies, already a major focus of Industry 4.0, are predicted to drive innovation in Industry 5.0 by enabling predictive analytics, optimizing production processes, and enhancing decision-making capabilities. Businesses should already be researching and developing possible AI use, focusing on applications and data sets that support human-centric manufacturing.

Collaborative Robots (Cobots):  Cobots enhance productivity by taking over repetitive tasks allowing human workers to focus on complex and creative aspects and have already been in use for years, especially in the high-tech sector. Their use is predicted to continue to grow across industries and current production processes can be assessed to identify areas for potential cobot integration.  

Customization and personalization

Flexible Manufacturing Systems: As Industry 5.0 prioritizes customization and personalization, it will be important to invest in flexible manufacturing systems that quickly adapt to consumer demand. Technologies like modular design, 3D printing, and digital twins can enable the production of customized products with greater efficiency.

Consumer-Centric Design: Expect personalization and customization of products and services down to the individual level. Logically, this involves engaging with consumers to know their preferences, from simple surveys and feedback to data analytics.  

A human-centric workplace

Industry 5.0’s predicted involvement of a far wider cross-section of the workforce should see continued upskilling and reskilling of employees throughout their careers and wide-scale training in areas like AI, robotics and data analysis. New technologies may appear which we have little knowledge of currently, but companies should already be promoting an environment that fosters innovation: Encouraging staff to experiment with new ideas and approaches by implementing open communication channels, cross-functional teams and, if feasible, innovation labs.  A human-centric approach involves prioritizing worker well-being with policies such as promoting a healthy work-life balance and a focus on supporting mental health to boost employee well-being and productivity.

Sustainability at the heart of business

Most companies in developed economies already have sustainability targets in place with Industry 5.0 expected to see accelerated efforts globally in renewable energy, waste reduction and recycling implementation, including increased use of organic and biodegradable materials in manufacture. Transitioning to a circular economy will play a principal role here, involving designing products and processes that minimize waste and promote the reuse and recycling of materials; an area which is already experiencing fast corporate uptake. Companies can begin incorporating circular economy principles into their supply chains by sourcing sustainable materials or developing take-back programs for products at their end-of-life.

Resilient, adaptive systems

Industry 5.0 emphasizes decentralized decision-making to enhance system resilience and adaptability, meaning implementing agile management practices to respond quickly to changes and challenges plus empowering frontline workers to make decisions based on real-time data and insights. Cybersecurity of course will remain vital for business as it already does with the most robust systems in demand and a continued need to conduct regular security audits, implement advanced encryption technologies, and to train employees in cybersecurity best practices. Business resilience will also be enhanced by increased demand for localized production and supply chains under Industry 5.0 to minimize dependence on global supply chains thus reducing the risk of disruptions. This localization in turn reduces the environmental footprint of products and helps contribute to sustainability as well as supporting more equitable regional development.  

Besides creating resilient IT systems, addressing current major ethical concerns over AI and privacy will be integral to Industry 5.0. Companies should already be ensuring data privacy and setting ethical guidelines and frameworks for AI use.

In short, Industry 5.0 will see no major new industrial revolution entailing wholesale changes across all forms of business, rather it will involve qualitative changes, refinement and improvement of technologies and policies that are already in place, or that are being developed, meaning that companies can already start contributing to its rollout now.