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The term "Industry 4.0" was coined by German scientists developing a high-tech strategy for the German government in 2011. It refers to the current phase of industrial development, in which machines can communicate and collaborate with one another and with business processes and IT in ways that make industrial processes more efficient, flexible, and responsive to business needs.
Industry 4.0 follows Industry 3.0 (robotics and automation), Industry 2.0 (assembly lines and mass production), and Industry 1.0 (mechanization of human labor).
Industry 4.0, also known as the Fourth Industrial Revolution (4IR), goes beyond smart manufacturing. In transportation, it enables smart management of traffic and creates more sustainable systems that reduce pollution, improve air quality, and contribute to a healthier environment. In energy, it supports smart grids that offer a more efficient, reliable, and sustainable approach to energy delivery, benefiting both utilities and consumers. In agriculture, it enables precision farming and livestock monitoring. Any industry that uses connected assets, sensors, and data insights can use Industry 4.0 principles.
Industry 4.0 is made possible by the emergence of cyber-physical systems that are characterized by software control of physical components. Technologies that securely integrate machines, control systems, and software make cyber-physical systems and Industry 4.0 possible. The industrial network is the key to this integration, providing connectivity, collecting data, and transporting the data to applications. Analysis of this data in data centers and the cloud can yield valuable insights to help detect operational issues, optimize operations, and reduce unplanned downtime.
Industrial IoT is central to Industry 4.0. IIoT connects equipment, sensors, and other devices across an industrial environment. It makes it easier to collect, transform, and use process data from sources such as machinery, production lines, and controllers. Analyzing relevant data from these sources can lead to insights into how each component is working individually and together.
Industrial networks are essential to Industry 4.0, to help ensure smooth communications among OT, IT, and cloud resources. Networks have been a key part of Industry 3.0. But in 4.0, they're central to allowing ultra-low-latency data flow and control, regardless of location (on-premises, remote data centers, and private or public clouds). Such networks must have the reliability, scalability, flexibility, determinism, and security to be able to support critical operations.
Learn how real-time data can help to reduce unplanned outages.
Industry 4.0 creates a wide attack surface for cybercriminals, because of its interconnected systems and reliance on data. Industrial security measures are crucial to protect sensitive data, prevent disruptions, and maintain operational integrity. Visibility into connected assets, traffic flows, and existing vulnerabilities can inform segmentation policies, threat detection, and threat response.
What is OT security? Explore industrial security
Learn how network-embedded security protects operations better.
AI is a key technology for Industry 4.0 that is transforming operations through data analysis and is helping to drive informed decisions. For instance, AI/ML algorithms use historical data to create virtual representations of operational processes (digital twins). These tools can be used to optimize production, allow for predictive maintenance, improve quality control, fortify cybersecurity, and drive data-based decisions.
See how digital twins and predictive models help to reduce energy usage.
Embracing Industry 4.0 involves a strategic and phased approach to integrating advanced digital technologies into industrial processes.
A healthy partnership between IT and OT teams (also called "IT/OT convergence") is vital for modern industrial success. IT focuses on data integrity, cybersecurity, and networking, while OT prioritizes safety, uptime, and efficiency. These differing priorities make collaboration between these complementary roles essential for system efficiency, security, and achieving organizational goals.
How do OT and IT differ? Read about IT/OT collaboration in industrial IoT
A strong networking foundation is key to efficient, secure, and reliable operations. It needs industrial-grade hardware, deterministic performance, resiliency, scalability, and flexibility. Industrial wireless networks must offer low latency and high reliability, despite obstacles and radio frequency interference (RFI). Both wired and wireless networks must be managed in ways that help to ensure they're meeting performance and uptime needs.
Cybersecurity in operations protects the entire operational ecosystem. As IT and OT converge, cybersecurity must follow with visibility and response across domains. Unified security strategies, threat intelligence, and monitoring for both IT and OT with an integrated approach are essential. Compliance with directives such as NIS2 (PDF) and use of ISA/IEC 62443 standards are necessary. Certified equipment helps to meet security regulations.
AI is a cornerstone of Industry 4.0, driving innovation, efficiency, and transformation across various industrial sectors. A robust OT and IT network infrastructure to collect relevant process data and transport it in near–real time to AI applications in data centers and the cloud is essential. Successful AI implementation also needs both a big-data platform and advanced algorithms for actionable insights.
Industry 4.0 advances through tech and market shifts. Current trends include more-sophisticated AI/ML algorithms to enable machines to learn and adapt independently, digital replicas for simulation, enhanced sustainability, and stronger cybersecurity. Industry 4.0 promises major gains in productivity, efficiency, and innovation, with the power to reshape manufacturing and introduce new opportunities for businesses and workers alike.
Industry 5.0 is an emerging vision that's gaining attention among researchers, policymakers, and industry leaders. Building on the advancements of Industry 4.0, Industry 5.0 emphasizes the unique value that people bring to human-machine collaboration.
It also focuses on sustainability, reducing emissions, and creating a more resilient, more flexible operational environment that can adapt quickly to disruptions and other types of changes.