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What are the differences between Industry 4.0 and Industry 5.0?

Industry 4.0 (or the fourth industrial revolution) may still be new to many companies. After all, it is about the use of advanced technology to leverage productivity and efficiency in industries.

Technologies such as artificial intelligence, robotics, the internet of things, the use of sensors, and automation of systems, which are capable of transforming the way an industry works.

But in addition to Industry 4.0, nowadays there is the so-called Industry 5.0, which is the next step in the advancement of industries in the world. This new transformation takes place considering the human touch in each of the industrial operations that exist.

In this article, you will understand the main differences between the pillars of industries 4.0 and 5.0. And also the challenges faced by companies to reach this new level.

The origin of Industry 5.0

With Industry 4.0, companies began to use technology intelligently. In this way, the entire market has become more competitive, productive, and efficient. But in addition to focusing on having a factory completely automated by artificial intelligence and other technologies, it is necessary to think about other aspects as well.

The main one is how to unite the work of humans and robots for better and more personalized results.

It is in this sense that the concept of Industry 5.0 is established in the market today. The concept is that man and machine need to work together to facilitate production processes in the industry and make products less automated and lacking in flexibility.

In this way, it is understood that both technological advances and automation, as well as the questioning and creative potential of human beings, are important.

Some companies can be considered pioneers in the use of Industry 5.0. This is because they realized the importance of technology linked to personalization and innovation that humans bring to the business.

The most classic examples are companies like Tesla Motors, Apple, and Boeing. It is possible to notice that we are only mentioning very large companies, and this is not by chance.

Unlike small and medium-sized companies that are still struggling to use Industry 4.0 technology in the right way, these giant companies can already see beyond. They understand that in addition to technology, it is also necessary to invest in the humanization of processes and appreciation of the human factor for a business to grow.

Pillars of Industry 4.0 and Industry 5.0

Industry 5.0 is a new stage after Industry 4.0, and that’s why they have very different pillars and concepts.

While Industry 4.0 is based on pillars that involve a lot of technology, automation, and data analysis. 5.0 already considers customization and innovation in industrial productions much more.

The pillars of Industry 4.0

  1. Big Data Analysis: involves capturing and analyzing data from multiple sources so that better decisions and analyses can be made.
  2. Autonomous Robots: Intelligent robots that can perform repetitive tasks previously performed by humans. While performing their tasks, they can process information and make decisions.
  3. Simulation: Using real-world data to simulate the performance of an industrial product or process.
  4. Systems integration: the combination of data from different departments of a company in an organized and centralized way.
  5. Internet of Things: physical objects connected to each other by sensors, software, and technologies that allow this interaction.
  6. Cybersecurity: ensuring data security is essential, and it happens through robust systems.
  7. Cloud computing: data and analysis are stored in the cloud so that access is available in real-time from anywhere in the world.
  8. Additive manufacturing: 3D printing that allows lighter, stronger parts and systems to be created.
  9. Augmented reality: it happens when a product or physical item is mixed with virtual reality in order to improve industrial processes.

The pillars of Industry 5.0

Industry 5.0 has great potential to transform the way companies work today. And according to the Japanese Council for Science, Technology and Innovation (CSTI), the pillars of Industry 5.0 can be defined as follows:

  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.

In this way, the difference between Industry 4.0 and 5.0 is clear. The first focuses on technology and automation. The second consists of reviewing technological foundations, promoting actions for social transformation and human resources.

Main differences between Industries 4.0 and 5.0

Industry 4.0 has as one of its pillars the connection of machines, making processes more automated. On the other hand, Industry 5.0 is dedicated to the customer experience, which often needs to be considered individually and personalized.

Another big difference between Industry 4.0 and 5.0 is that in 4.0, products must be intelligent, with easy traceability throughout the production process. In 5.0, the main objective is to have products designed for the consumer experience combined with technology.

The workforce in Industry 4.0 is supposed to be far from factories, or at least that’s the goal when implementing its pillars. In Industry 5.0, on the contrary, labor is needed within factories to include the human factor in processes.

Industry 5.0 is also closely linked to the UN’s 2030 Sustainable Development Goals (SDGs). In this way, actions in the industry are carried out aiming at sustainability and better use of the planet’s natural resources.

Gradually, it is possible to see that companies understand the impact of just thinking about productivity and profit. With Industry 5.0 growing more and more, the focus shifts to reflect on the cost of business growth. And also, about how to act to change the reality we live in.

Of course, increasingly conscious consumers are also contributing to this transformation. When people start to evaluate the company ethics and production processes concerned with the environment, they need to adapt to this new demand.

For this, a new positioning is necessary, making it clear that people and the environment are important and must be preserved.

The challenges to evolve to Industry 5.0 and its greatest benefits

The challenges

In general, it is possible to mention two major challenges for the implementation of Industry 5.0. The first of them is one that also blocks industries from implementing version 4.0, which is investing in technology. Although the focus of Industry 5.0 is much more on the human factor, investing in technology remains important.

And the second big challenge is employee training. Especially talking about professionals who have more difficulty understanding and dealing with the modern and changing world we live in today. For everyone to be able to adapt, it is necessary for companies to carry out training and provide a lot of practice for employees.

The Benefits

There are several benefits of Industry 5.0, and it is possible to list 3 main ones.

  1. Cost optimization: people and machines working together to achieve better results for the industry, and consequently reach cost reduction.
  2. Relationship with the environment: companies are realizing how they are affecting the environment with their actions. And so, with Industry 5.0, actions to mitigate these problems become a reality and can improve the situation of the Earth today.
  3. Personalization and human touch: customized products require personalized treatment within the industry. And this is possible because Industry 5.0 works with more focus on the human being than on the automation of processes.


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