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Is the market ready for the evolution from Industry 4.0 to 5.0?

Learn about how Industry 5.0 is an evolution of Industry 4.0 in this complete article.

The industry is constantly innovating, that’s what history shows us. After all, the last 300 years have seen many changes in the way the industry works.

The first three industrial revolutions changed the way industry worked. And then, with the Fourth Industrial Revolution (or Industry 4.0) the use of technology and robotics gained much more space.

But in addition to automated and connected processes, the industry is now reaching a new level: Industry 5.0. This new stage of the world industry arrives to show how important human participation is. It is with Industry 5.0 that we are able to understand that the connection between humans and machines brings a great differential for companies.

This article was written with all these aspects of the industry in mind, especially the differences between Industry 4.0 and Industry 5.0. In addition, you will understand how the evolution to today’s reality happened, as well as the existing challenges.

You will learn about how Industry 5.0 is an evolution of Industry 4.0, even though both are expanding at the same time.

Continue reading to learn about each of these aspects and open your mind to the new possibilities in the industry today.

What is Industry 4.0

Industry 4.0 (also called the Fourth Industrial Revolution) is a milestone in the development of industries. It consists of a series of pillars based on technology and automation to make production processes more modern.

Using what each of the 9 pillars of Industry 4.0 offers, it is possible to have a more productive and efficient industry. Industry 4.0 includes decision-making being made based on data and not assumptions. And intelligent, interconnected machines are able to work with little human interference and a lot of technology.

But over time, the market and managers of modern industries began to perceive more needs in this sector. And that’s how the development of Industry 5.0 happened.

But at first, it is important to understand everything that encompasses Industry 4.0 and its pillars.

How did Industry 4.0 was developed?

To get to Industry 4.0, with its automation, technology, and innovation, there were several other developments before.

There were 3 major industrial revolutions that marked the history of the industry since 1765, the date of the First Industrial Revolution. The Fourth Industrial Revolution is what we also call Industry 4.0 nowadays.

Important aspects of the First Industrial Revolution

The First Industrial Revolution took place in mid-1765 in England. Its main aspect was the mechanization of industrial processes that were previously 100% manual.

As expected, it was possible to leverage the production of industries. What once took hours to produce manually by exhausted employees now took place in minutes with machines.

This was the first time that human labor began to be replaced by machines and technology. For industrial purposes, this revolution represented much more productivity and profit.

In addition to the use of machines, coal also became a reality as a source of energy in industries. Thus, large-scale productions evolved to be viable.

Important aspects of the Second Industrial Revolution

After approximately 100 years, getting now to 1870, we have the record of the Second Industrial Revolution. This was marked by electricity and oil being used as a source of energy for industry.

It was also during this period that the chemical and steel industries began to emerge. Consequently, products such as automobiles, telephones, and radios became a reality. In addition, they have become a major milestone for the world industry.

If you are in the industrial sector, you may be familiar with the production organization models created by Taylor and Ford. It was in this period of the Second Industrial Revolution that these concepts were developed.

Important aspects of the Third Industrial Revolution

In mid-1969 we have the records of the Third Great Industrial Revolution. During this period, technology gained more space, and electronic, computer and telecommunication equipment were developed. Likewise, there are records of robots that started their production at this time.

Toyotism, another famous production system, was widely used in industries during the Third Industrial Revolution.

Finally… Industry 4.0

After a few more decades, in 2011, we have the first records of the Fourth Industrial Revolution, Industry 4.0. Now with more connected industries, high-scale data use and the search for more productivity and efficiency in industries.

The goal of the Fourth Industrial Revolution industries is to reduce failures and optimize processes. For this, the wide use of technology draws attention.

There are 9 pillars that explain Industry 4.0 and its resources, as explained in more detail below.

The 9 pillars of Industry 4.0

Since 2011, Industry 4.0 has been developing and being used around the world. Using Industry 4.0 requires a lot of investment and a complete transformation with innovation in many cases. Therefore, applying the pillars of Industry 4.0 is still a challenge for many companies. Even so, there are many advantages associated with the technologies used.

The pillars of Industry 4.0 include: big data, autonomous robots, simulation, systems integration, the internet of things, cybersecurity, cloud computing, additive manufacturing (3D printing), and augmented reality.

Understand what each of these pillars of Industry 4.0 is and how they facilitate production processes.

1) Big data

It is the technology that allows data from different sources to be organized and analyzed automatically. Thus, it makes industries less reliant on human hands to gather and identify trends in data.

From the data collected during the production process, it is possible to avoid or identify failures. And also keep the production quality always at an adequate standard.

It is from the prior analysis of data made by technology that managers are able to make more assertive decisions. And consequently, greater productivity and efficiency are achieved.

2) Autonomous robots

Based on artificial intelligence, robots can act intelligently without human supervision. Still, most robots are used for repetitive actions that put human lives at risk.

As a result of using autonomous robots, industry costs are reduced. In addition, delicate or time-consuming processes which used to be performed by humans can now be done by these robots more quickly.

3) Simulation

The ability to simulate production processes and changes in the industrial plant is an advantageous innovation of Industry 4.0. With simulation technology, it is possible to identify problems or opportunities for improvement in the industry.

Therefore, there is no waste of time, spare parts, and money when a change shows up with possible failures or losses.

4) Systems Integration

When an industry integrates its processes, departments, and systems in one place, there are many advantages.

Collecting data from different sources and sharing information in real time are some of them. It is also possible to mention more assertive analyzes and innovation in processes.

This happens today through ERP, MES, and SAP systems.

5) Internet of Things

For an industry to be able to apply the pillars of Industry 4.0, an internet connection is essential. Equipment, workstations, and sensors are linked to a network of “things” that makes this revolution happen.

Thus, we can see that without the Internet of Things, the other pillars of Industry 4.0 do not happen. Therefore, this connection is essential.

6) Cybersecurity

As the departments and areas of the company are connected through the internet, it is necessary to guarantee the security of everything that is happening online.

This happens from systems that use cybersecurity technology. The risks of not using this type of system are huge and can greatly harm the company in the event of data loss. Or even if hackers invade the industry’s servers and data storage.

7) Cloud Computing

Just as cloud computing is common in people’s daily lives, this is also an important technology for industries. After all, it is from cloud sharing that people can access information in real time from anywhere with internet access.

In this way, in Industry 4.0 a machine operator is able to include data in the system. And meanwhile, their supervisor or manager accesses this data in at the same time from another location.

8) Additive Manufacturing (3D printing)

This pillar ensures that custom parts and products are created to meet an Industry 4.0 need.

What is created from 3D printing has two major advantages. They are: to be a lighter and more resistant product than other types of materials.

9) Augmented Reality

To finish the pillars of Industry 4.0, it is important to mention augmented reality. This pillar is based on a mix of physical and digital content.

It is possible to use this technology to improve machine management, for example. Where technicians are able to assess problems from digital guidelines and even in virtual reality.

This kind of maintenance happens on the same premise as the mobile game Pokémon Go. In this game, the virtual characters are superimposed on the real environment where the player is.

The evolution of Industry 4.0: Industry 5.0

Now that you understand how Industry 4.0 developed and what its pillars are, let’s address questions about Industry 5.0.

You can even think that it is still too early for a new industrial revolution. And it’s true, companies are still adapting to all the technology and innovation involved in Industry 4.0.

However, during this shift to more technological production processes, a new need was perceived. The human presence in industries, something that has been reduced with Industry 4.0, is more important than previously thought.

With this, the evolution of Industry 4.0 is called Industry 5.0. And now the main point to observe is how to unite the work of humans and machines.

After all, the market is increasingly demanding customized and higher-quality products. For this, machines and humans need to work together to facilitate production processes. And consequently, reach the products according to what consumers are demanding.

Using the creative potential and capacity for human questioning and innovation seems to be a good way to reach this new level.

In this sense, large companies that already use Industry 4.0 were able to identify this need. This is interesting for this range of companies, but also for small and medium-sized companies.

At the same time, industries that are still struggling to adapt to Industry 4.0 technologies can already implement the pillars of Industry 5.0. This becomes reality because the approach of each one is quite different.

Understand below what are the pillars of Industry 5.0.

The 4 pillars of Industry 5.0

The pillars of Industry 5.0 were defined according to the Japanese Council for Science, Technology and Innovation (CSTI).

  1. Promote actions to create new value for the development of future industry and social transformation.
  2. Respond to economic and social challenges.
  3. Reinforce the foundations of Scientific and Technological Innovation.
  4. Establish a virtuous systemic cycle of human resources, knowledge, and capital for innovation.

As you can see, Industries 4.0 and 5.0 have very different pillars. In general, the main objective of the first is to have industries using more technology and automation. On the other hand, the second seeks more collaboration between humans and robots. And for that, it promotes actions of innovation in processes, social transformation, and human resources.

What are the main differences between Industries 4.0 and 5.0

There are some clear differences when we compare the way industries work. There are those that are still focused on implementing the technology and automation pillars of Industry 4.0. Others already understand the importance of also applying the human pillars of Industry 5.0.

1) Pillars with different focuses

Industry 4.0 works so that machines are connected to each other and so that data is shared in real-time. By doing so, it’s possible to make processes more automated and the industry more productive.

In Industry 5.0, the biggest focus is on the customer experience. This needs to be considered in an individualized and personalized way in order to work.

2) Products

The products that are developed in Industry 4.0 start from the idea of ​​having easy traceability. In addition, the connection between the various stages of the production process based on technology is also very important.

On the other hand, Industry 5.0 says that products need to be designed according to the consumer’s experience. But it is still necessary to use technology in favor of a traceable and reliable product.

3) Sustainability in industrial processes

Industry 5.0 is closely linked to the UN SDGs. These are the 2030 Sustainable Development Goals.

Thus, the actions carried out by the industries must be in accordance with these objectives. Therefore, the planet’s natural resources must be preserved and sustainability is always on the agenda.

All of this is happening because companies are realizing their impact on the world. Industries are responsible for the emission of gases that contribute to the greenhouse effect. In addition, air and water pollution also happens when companies do not take proper care.

But you can see that the view of these businesses is changing now that consumers demand more responsibility. Companies that do not act in favor of the environment are increasingly losing their customers. After all, they are looking for products that are more aligned with their personal values. And often these values ​​include the preservation of the planet.

Benefits of Industry 5.0

3 major benefits can be listed for Industry 5.0 as explained below.

1. Cost optimization

A company that has people and machines working together can identify more opportunities to reduce costs. These are processes that can be simplified, more assertive decisions, and problem analysis with greater efficiency. All this contributes to cost reduction in Industry 5.0.

2. Relationship with the environment

As already mentioned above, one of the differentials of Industry 5.0 is the concern with the environment. Thus, in Industry 5.0 it is important that actions are taken to mitigate environmental problems. In the end, the winner is the environment, which will be better preserved from now on.

3. Personalization and human touch

To create more personalized products, more humanized processes are included in Industry 5.0. This is made possible mainly by the focus that Industry 5.0 has on the union of humans and machines.

However, while these benefits are incredible, there are still challenges in the evolution to Industry 5.0. Check out the biggest challenges faced by companies below.

Challenges to evolving to Industry 5.0

There are two major challenges in the evolution from Industry 4.0 to Industry 5.0. The first one is related to investment in technology.

In the application of Industry 4.0, heavy investment in technology is necessary, and in Industry 5.0 this also happens. Even if the focus of Industry 5.0 is more on the human factor, it is necessary to use the technology available today.

Only with more connected processes and a structure to make everything run smoothly that there is progress. Thus, moving from Industry 4.0 and its automation to Industry 5.0 requires a well-structured foundation.

In addition, training employees is another major challenge. This is because more and more people need to be open to innovation and different work focuses. And companies still have sectors with many narrow-minded employees to accept these changes.

In this way, well-structured training that makes clear the reasons why things are happening is necessary. Dealing with today’s modern world requires skilled people ready to interact with this reality.

Another option that helps is putting people to experience Industry 5.0 in practice. By doing so, learning difficulties are identified. And so it becomes easier to act according to demands.

What are the characteristics of Industry 5.0

During the text, it was already clear that Industry 5.0 works on the connection between man and machine on a large scale. The main intention is always to guarantee product innovation and customization. But maintaining agility and efficiency in production processes at the same time.

So, it is possible to understand that Industry 5.0 is characterized by interconnection, cognitive support, and personalization and human touch. Technologies such as Artificial Intelligence and robotics can also be used in Industry 5.0.

Below you understand better each of these characteristics of Industry 5.0.


To achieve more personalized products that meet what consumers are looking for, interconnection is essential.

That’s why this is one of the biggest features of Industry 5.0. Thinking and acting in a connected way, humans and machines can work better. Consequently, reaching more interesting results and products more aligned with market demand.

Cognitive support

The cognitive support that humans bring to industrial processes is yet another feature of Industry 5.0.

The questions that a human is capable of asking, in addition to their ability to be creative, are essential points of Industry 5.0. As a result, more personalized and customized products are created.

It is also interesting to remember that because of this characteristic, a fear that people had in the past is no longer a reality. The fear that technology and machines would completely replace the human workforce in industries.

In fact, what is observed with Industry 5.0 is the opposite of that. This is because human skills are increasingly valued.

Of course, it’s important for people to be able to interact with technology and machines. But thinking about a replacement is no longer possible.

Thus, it is essential that professionals update themselves and are always attentive to new technologies and market trends.

Personalization and human touch

Finally, it is possible to mention personalization and the human touch as great characteristics of Industry 5.0. It is with this type of action that industries are able to add value to the products they create daily.

And this is in line with what consumers are increasingly looking for. So the human touch and the customization it provides are essential today.

Recognizing the importance of human participation is a reality in Industry 5.0. In addition to the use of cutting-edge technology, now qualified employees are also great differentials.

Thus, people can be considered a strategic aspect of Industry 5.0. However, for this to be a reality, training and investment in innovation are essential.

Industry 5.0 is developing fast and showing that the way industries operate needs to change. And to remain competitive in the market, companies must be part of this wave of transformation and innovation.

Just as Industry 5.0 arrived quickly, new changes can continue to happen. And if you work in the industrial sector be aware of new trends and news in this market.

Looking for empowerment, using technology as your partner is a great attitude to take. With this, it is possible to learn about Industry 4.0, Industry 5.0, and their opportunities.


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