Industry 4.0 is a term that describes the fourth industrial revolution and encompasses the digitalization and automation of industrial production. The term was first introduced at the Hannover Messe in 2011 and is part of the German government’s high-tech strategy to promote digitalization in industry (link to the latest version of the strategy).

What does Industry 4.0 mean?

Industry 4.0 stands for the integration of modern information and communication technologies into industrial production. It encompasses the networking of machines, plants and systems via the Internet of Things (IoT) and the use of data in real time to optimize production processes. The aim is to make production more flexible, efficient and individualized while conserving resources.


Origin of the term

The term “Industry 4.0” was coined by a working group led by German industry experts and scientists. The fourth industrial revolution follows:
First industrial revolution (18th century): Introduction of mechanical production facilities using water power and steam power.
Second industrial revolution (19th century): Introduction of mass production using assembly lines and electrical energy.
Third industrial revolution (1970s): Use of electronics and IT to further automate production.
Fourth industrial revolution (Industry 4.0): Cyber-physical systems, the Internet of Things and smart factories.

What is the difference between “digitalization” and “Industry 4.0”?

Industry 4.0 and digitalization are closely linked, but not identical: Digitalization generally refers to the process of converting analogue information and processes into digital formats. It encompasses the introduction of digital technologies in various areas, such as administration, communication or customer service.
Industry 4.0 goes beyond pure digitalization and focuses specifically on the integration of digital technologies into industrial production. This involves the networking and automation of production facilities, the use of big data for decision-making and the development of intelligent, self-optimizing systems.
So while digitalization tends to describe a broad, fundamental transformation of processes, Industry 4.0 is a specific concept aimed at production and industrial value creation.

Main components of Industry 4.0

Cyber-physical systems: Systems that combine physical processes with digital technologies to make autonomous decisions.
Internet of Things (IoT): networking of devices and machines that communicate with each other and exchange data.
Artificial intelligence and machine learning: analysis of large amounts of data to identify patterns and optimize processes

Cloud computing: Provision of computing power and storage capacity via the internet.
Smart factories: Intelligent factories that can react flexibly and efficiently to changing requirements.

What comes after Industry 4.0?

Industry 5.0 represents the next phase of the industrial revolution, in which the focus is on synergy between people and intelligent machines. While Industry 4.0 relies heavily on automation and the networking of machines, Industry 5.0 puts the focus back on people and promotes collaboration between humans and robots, also known as “cobots” (collaborative robots).

Conclusion

Industry 4.0 is revolutionizing the production landscape by combining digitalization and automation. It stands for a smart, networked and efficient industry driven by technologies such as IoT, AI and big data. The distinction from general digitalization lies in the specific application to industrial processes and the targeted networking of machines and systems.

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