Industry 4.0 Market: Analysis of Global Market Share of Industrial IoT and Cyber-Physical Systems in Industry 4.0 Ecosystems

  • The Industry 4.0 Market is expected to reach from USD 257.41 billion in 2025 to USD 1147.40 billion by 2032, at a CAGR of 23.8 % during the forecast period. The demand for automation in manufacturing has been a significant driver for the industry 4.0 market. In 2025, the global deployment of Connected IOT devices was reached to value USD 22.4 Billion, reflecting a 14% annual growth over 2024 and highlighting the expanding adoption of Industry 4.0.

  • Format : PDF | Report ID : SMR_276

Industry 4.0 Market: Analysis of Global Market Share of Industrial IoT and Cyber-Physical Systems in Industry 4.0 Ecosystems
Report ID: SMR_276

Industry 4.0 Market Overview

Industry 4.0 adoption is primarily driven by the usage of Industrial 4.0 technologies like the Internet of Things (IoT), Artificial intelligence (AI), and big data analytics in manufacturing. It empowers manufacturers to improve efficiency, automate processes, and new innovative products and services. In 2025, 542,000 Units advanced robots were Installed. Asia Pacific region has accounted for more than 73% of new deployments compared with 15.8% in Europe and 8.90% in the Americas.  China has recorded the 54% of global deployments of advanced robots in 2025.

 

Key Market Highlights

  • Based on the End user industry, Industrial manufacturing sector held the dominant share of 34% in 2025 and Pharmaceuticals & healthcare manufacturing segment is expected to grow at a more than 25% rate of CAGR during the forecast period.
  • North America held the maximum share in the AI in manufacturing Market with a share of 43.05% in 2025.
  • In the Global Industry 4.0 Market, North America accounted 36% share in 2025 and USA is projected to be continue its dominance during the forecast period.
  • Large Enterprises held the leading position in the industry 4.0 technologies market with a share of 66% in the global Industry 4.0 Market in 2025
  • In Asia Pacific, Japan has maintained its second leading position for installation of industrial robots, with 44,000 units installed in 2025.

 

 

Industry 4.0 by technology

 

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Private 5G Networks: Becoming A Cornerstone of Industry 4.0.

The private 5G offers dedicated, low-latency connectivity within a defined area, which is permitting real-time automation, AI-driven predictive maintenance, seamless integration of IoT sensors, and improved workforce safety. It helps to drive operational efficiency and smart manufacturing use cases over traditional wireless systems. EMSTEEL Group, who is one of the largest steels and building materials manufacturer has launched private 5G network in the manufacturing industry collaborating with UAE. Global Private 5G Networks Market was valued at 3.85 Bn and it is expected to grow at a CAGR of 36.7% rate during the forecast period.

 

Artificial Intelligence: More than 90% of Manufacturers are expected to invest into AI/ML in the forecast Year (2025-2032)

The adoption of AI in the second half of 2025 has increased by 1.2 % compared to the first half of the year across the globe. The adoption rate of AI across developed region is at 24.7% of the working age population, which is far higher than the adoption rate as 14.1% across underdeveloped countries. Accroding to the SMR Analysis, 40% of Manufcaturing sectors are focusing to invest in factory automation hardware, 32% are expected to focus on active sensors and more than 25% are expected to prioritize computer vision systems in the near future. Our analysis also states that more than 85% of manufacturing companies are expected growth by investing  in AI-powered smart factories. The AI in manufacturing market was valued at USD 34.05 billion in 2025 and is expected to grow at a more than 35% rate of CAGR during the forecast period.

 

Industry 4.0 size

 

Industry 4.0 Market Segment Analysis

Industrial Internet of Things (IIoT) held the dominant position in the global Industry 4.0 market with a share of more than 40% in 2025. It lies at the heart of Industry 4.0, which enabling machines to communicate to one another and human operators. It also facilitates real-time data exchange and insights, which drives efficiency, productivity and flexible operations. An adoption of Internet of Things is expected to improve more than 22% in productivity of employee over the forecast period. Advanced robotice adoption makes operations more flexible and easier to quickly adjust to changing production needs. It helps to save cost by replacing  a single shift worker. The global industrial internet of things market size was valed at USD 196.4 Bn in 2025.

 

Industry 4.0 by technology

 

The digital twin market was valued at USD 36.19 billion in 2025 and it is expected to grow at a CAGR of 35% during the forecast period. The digital twins are expected to cut maintenance costs by 15% to 55% in the forecast year (2025-2032). It is also expected to cut down on the time when assets were not working by 20%. The global augmented reality market was valued at USD 83.65 billion in 2025 and is projected to grow at a 37% rate of CAGR during the forecast period. Smart contracts are expected to cut lower transaction fees by up to 50% and administrative costs by 40% in manufacturing sector using blockchain technology.

 

Industry 4.0 Market Regional Analysis:

North America held a dominant position with a global industry 4.0 market share of 36% in 2025. High investments in automation and IoT technologies across industries like automotive, electronics, and pharmaceuticals are some of the prominent drivers behind the IOT devices adoption. The United States is a key adopter of smart manufacturing solutions, with key technology providers encouraging forward AI, IIoT, and cybersecurity innovations. Europe follows closely, with strong adoption in Germany, France, and the UK. Currently, European Commission has adopted Horizon Europe work programme for 2026-2027 with a USD 16.33 Bn investment to drive innovations across Strategic goals of Europe Union. It includes achievement of climate neutrality, increasing the use of artificial intelligence (AI) in research and innovation and safeguarding resilience in a rapidly changing world.  In the UK, more than 75% of financial firms use some form of artificial intelligence. AI adoption has permitted financial, banking, and insurance companies to rely on automated data analysis tools, workflow automation solutions that reduce human errors.

  • USA is the leader in AI infrastructure and frontier model development with a 28.3% usage rate in 2025.
  • United Arab Emirates, Singapore, Norway, Ireland, France, and Spain have invested early in digital infrastructure, AI skilling, and government adoption.
  • Despite government initiatives such as “Make in India” or “Digital India” have given a boost, Adoption of Industry 4.0 in India has been slack compared to many other leading countries like the United States of America, Germany and China

 

Industry 4.0 Market Competitive Landscape:

2026 is highlighting a dynamic structure of next-generation technology providers in the Global Industry 4.0 Market. The startups are representing strong innovation drive across RTLS, digital twins, IIoT, robotics, edge computing, AI-driven analytics, and smart manufacturing systems.  Startups like ViTrack Solutions and Scitech Industries are empowering shop-floor visibility and operational efficiency through RTLS and IIoT Industrial 4.0 platforms. The MetAI and PlockControl are integrating adoption of digital twins for smarter design, simulation, and manufacturing optimization. The startup players like Makon Teknoloji, Industry Tech Solutions, and Robco are enabling flexible, robotics-led factory automation, reinforced by edge computing and vision AI solutions from companies like Things Embedded and BlueCore Technology.  The landscape is showing a digital platform shift toward data-centric, autonomous, and sustainable manufacturing models, strengthening the Industry 4.0 market’s role in enlightening productivity, quality, risk management, and long-term industrial competitiveness.

 

Recent Developments:

Date

Description

2025

Bharat Sanchar Nigam Limited (BSNL) and Numaligarh Refinery Limited (NRL) has signed a Memorandum of Understanding (MoU). Both companies are expected to collaborate to deploy India’s first 5G CNPN (Captive Non-Public Network) inside the refinery sector, steering in a new era of secure, ultra-reliable, and real-time industrial connectivity.

2025

Rockwell Automation made a strategic investment in RightHand Robotics, enhancing its logistics automation portfolio by integrating robotic piece-picking with AutoStore ASRS and OTTO Motors AMRs.

2025

Ericsson deployed private 5G at Jaguar Land Rover’s Solihull plant, enabling real-time IoT data and vision analytics as part of the UK-funded West Midlands 5G program

 

INDUSTRY 4.0 Market Scope

INDUSTRY 4.0 Market

This Report Covers

Details

Base Year:

2025

Forecast Period:

2026-2032

Historical Data:

2019 to 2025

Market Size in 2025:

USD 257.41 Bn

Forecast Period 2025 to 2032 CAGR:

23.8 %

Market Size in 2032:

USD 1,147.40 Bn

INDUSTRY 4.0 Market Segments Covered:

By Component

Hardware

Software

Services

By Technology

Industrial Internet of Things (IIoT)

Artificial Intelligence / Machine Learning

Big Data & Advanced Analytics

Cloud Computing (public/private/hybrid)

Edge Computing

Digital Twin

Industrial Robotics & Cobots

Additive Manufacturing (3D printing)

AR/VR (augmented & virtual reality)

Blockchain for industrial traceability

5G / Industrial wireless communication

Cybersecurity (OT security, ICS security)

By Deployment Model

On-Premises

Cloud

Hybrid

By Enterprise Size

 

 

 

Large Enterprises

Small & Medium Enterprises (SMEs)

By End-Use Industry

Automotive

Electronics & semiconductor manufacturing

Industrial manufacturing / discrete manufacturing

Process industries (chemicals, oil & gas, refining)

Food & beverages

Pharmaceuticals & healthcare manufacturing

Metals & mining

Energy & power (utilities)

Aerospace & defense

Packaging

Logistics & warehousing

Pulp & paper

Others

 

INDUSTRY 4.0 industry key Players 

  1. Siemens AG
  2. ABB Ltd.
  3. Rockwell Automation, Inc.
  4. Schneider Electric SE
  5. Cisco Systems Inc.
  6. Intel Corporation
  7. IBM Corporation
  8. Nvidia Corporation
  9. DENSO Corporation
  10. Fanuc Corporation
  11. Hewlett Packard Enterprise
  12. Robert Bosch GmbH
  13. SAP SE
  14. Stratasys Ltd.
  15. Swisslog Holding AG
  16. Techman Robot Inc.
  17. Mitsubishi Electric Corporation
  18. Emerson Electric Co.
  19. Cognex Corporation
  20. Toshiba Corporation
  21. Universal Robots
  22. PTC Inc.
  23. AVEVA Group
  24. Oracle Corporation
  25. Microsoft Corporation
  26. Google Cloud (Alphabet Inc.)
  27. Infor
  28. Epicor Software Corporation
  29. KUKA AG
  30. Pepperl+Fuchs SE
  31. Addverb Technologies
  32. Unitronics
  33. FORCAM GmbH
  34. Radixweb
  35. Visual Decisions
  36. Expert Global Solutions
  37. Bosch Rexroth AG
  38. Festo AG & Co. KG
  39. TRUMPF GmbH + Co. KG
  40. Kion Group

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Frequently Asked Questions

An increase in adoption of IoT, AI, and big data analytics, which enable automation, real-time monitoring, and enhanced decision-making are expected to drive the Industry 4.0 Market Growth.

1.    INDUSTRY 4.0 Market Introduction
1.1. Study Assumption and Market Definition
1.2. Scope of the Study
1.3. Executive Summary

2.    Global INDUSTRY 4.0 Market: Competitive Landscape
2.1. SMR Competition Matrix
2.2. Key Players Benchmarking
2.2.1. Company Name
2.2.2. Headquarter
2.2.3. Product Segment
2.2.4. End-User Segment
2.2.5. Revenue Details in 2024
2.2.6. Market Share (%)
2.2.7. Growth Rate (%)
2.2.8. Return on Investment (%)
2.2.9. Technological Capabilities
2.2.10. Geographical Presence

2.3. Market Structure
2.3.1. Market Leaders 
2.3.2. Market Followers
2.3.3. Emerging Players

2.4. Mergers and Acquisitions Details

3.    INDUSTRY 4.0 Market: Dynamics
3.1. INDUSTRY 4.0 Market Trends 
3.2. INDUSTRY 4.0 Market Dynamics
3.2.1. Drivers
3.2.2. Restraints
3.2.3. Opportunities
3.2.4. Challenges

3.3. PORTER’s Five Forces Analysis
3.4. PESTLE Analysis
3.5. Regulatory Landscape by Region
3.6. Key Opinion Leader Analysis for the Global Industry
3.7. Analysis of Government Schemes and Initiatives for Industry

4.    Pricing & Cost Structure Analysis (2025)
4.1.1. Average Selling Price Trends by Hardware Product
4.1.2. Technology Cost Impact (AI, Robotics, IoT)
4.1.3. Manufacturing Cost Structure
4.1.4. Regional Price Variations
4.1.5. Incentive-Driven Pricing
4.1.6. Future Pricing Outlook

5.    Technology Landscape
5.1.1. IIoT Adoption & Trends
5.1.2. AI & Machine Learning Innovations
5.1.3. Industrial Robotics & Cobots Developments
5.1.4. Digital Twin Technology
5.1.5. Edge Computing & Cloud Solutions
5.1.6. Cybersecurity for Industrial Systems
5.1.7. 5G Integration in Manufacturing
5.1.8. Blockchain for Traceability & Supply Chain Management

6.    Regulatory & Policy Framework
6.1.1. Global Industry 4.0 Regulations
6.1.2. Technology Standards Impact
6.1.3. Data Privacy and Cybersecurity Regulations
6.1.4. Subsidies & Incentives for Industry 4.0 Adoption
6.1.5. Health & Safety Standards in Smart Factories
6.1.6. Policy Outlook for Industry 4.0 Technologies

7.    End User Adoption Trends (2025)
7.1.1. Purchase Decision Factors for Industry 4.0 Technologies
7.1.2. Price Sensitivity in Industry 4.0 Solutions
7.1.3. Brand Perception in Industrial Automation
7.1.4. Adoption Trends by Region & Industry
7.1.5. Small & Medium Enterprises (SMEs) vs Large Enterprises
7.1.6. Cost of Ownership and ROI Analysis in Industry 4.0

8.    INDUSTRY 4.0 Market: Global Market Size and Forecast by Segmentation (by Value in USD Million) (2025-2032)
8.1. INDUSTRY 4.0 Market Size and Forecast, By Component (2025-2032)
8.1.1. Hardware
8.1.2. Software
8.1.3. Services

8.2. INDUSTRY 4.0 Market Size and Forecast, By Technology (2025-2032)
8.2.1. Industrial Internet of Things (IIoT)
8.2.2. Artificial Intelligence / Machine Learning
8.2.3. Big Data & Advanced Analytics
8.2.4. Cloud Computing (public/private/hybrid)
8.2.5. Edge Computing
8.2.6. Digital Twin
8.2.7. Industrial Robotics & Cobots
8.2.8. Additive Manufacturing (3D printing)
8.2.9. AR/VR (augmented & virtual reality)
8.2.10. Blockchain for industrial traceability
8.2.11. 5G / Industrial wireless communication
8.2.12. Cybersecurity (OT security, ICS security) 

8.3. INDUSTRY 4.0 Market Size and Forecast, By Deployment Model (2025-2032)
8.3.1. On-Premises
8.3.2. Cloud
8.3.3. Hybrid

8.4. INDUSTRY 4.0 Market Size and Forecast, By Enterprise Size (2025-2032)
8.4.1. Large Enterprises
8.4.2. Small & Medium Enterprises (SMEs)

8.5. INDUSTRY 4.0 Market Size and Forecast, By End-Use Industry (2025-2032)
8.5.1. Automotive
8.5.2. Electronics & semiconductor manufacturing
8.5.3. Industrial manufacturing / discrete manufacturing
8.5.4. Process industries (chemicals, oil & gas, refining)
8.5.5. Food & beverages
8.5.6. Pharmaceuticals & healthcare manufacturing
8.5.7. Metals & mining
8.5.8. Energy & power (utilities)
8.5.9. Aerospace & defense
8.5.10. Packaging
8.5.11. Logistics & warehousing
8.5.12. Pulp & paper
8.5.13. Others 

8.6. INDUSTRY 4.0 Market Size and Forecast, By Region (2025-2032)
8.6.1. North America
8.6.2. Europe
8.6.3. Asia Pacific
8.6.4. Middle East and Africa
8.6.5. South America

9.    North America INDUSTRY 4.0 Market Size and Forecast by Segmentation (by Value in USD Million) (2025-2032)
9.1. North America INDUSTRY 4.0 Market Size and Forecast, By Component (2025-2032)
9.2. North America INDUSTRY 4.0 Market Size and Forecast, By Technology (2025-2032)
9.3. North America INDUSTRY 4.0 Market Size and Forecast, By Deployment Model (2025-2032)
9.4. North America INDUSTRY 4.0 Market Size and Forecast, By Enterprise Size (2025-2032)
9.5. North America INDUSTRY 4.0 Market Size and Forecast, By End-Use Industry (2025-2032)
9.6. North America INDUSTRY 4.0 Market Size and Forecast, by Country (2025-2032)
9.6.1. United States
9.6.2. Canada
9.6.3. Mexico 

10.    Europe INDUSTRY 4.0 Market Size and Forecast by Segmentation (by Value in USD Million) (2025-2032)
10.1. Europe INDUSTRY 4.0 Market Size and Forecast, By Component (2025-2032)
10.2. Europe INDUSTRY 4.0 Market Size and Forecast, By Technology (2025-2032)
10.3. Europe INDUSTRY 4.0 Market Size and Forecast, By Deployment Model (2025-2032)
10.4. Europe INDUSTRY 4.0 Market Size and Forecast, By Enterprise Size (2025-2032)
10.5. Europe INDUSTRY 4.0 Market Size and Forecast, By End-Use Industry (2025-2032)
10.6. Europe INDUSTRY 4.0 Market Size and Forecast, by Country (2025-2032)
10.6.1. United Kingdom
10.6.1.1. United Kingdom INDUSTRY 4.0 Market Size and Forecast, By Component (2025-2032) 
10.6.1.2. United Kingdom INDUSTRY 4.0 Market Size and Forecast, By Technology (2025-2032)
10.6.1.3. United Kingdom INDUSTRY 4.0 Market Size and Forecast, By Deployment Model (2025-2032)
10.6.1.4. United Kingdom INDUSTRY 4.0 Market Size and Forecast, By Enterprise Size (2025-2032)
10.6.1.5. United Kingdom INDUSTRY 4.0 Market Size and Forecast, By End-Use Industry (2025-2032)
10.6.2. France
10.6.3. Germany
10.6.4. Italy
10.6.5. Spain
10.6.6. Sweden
10.6.7. Russia
10.6.8. Rest of Europe

11.    Asia Pacific INDUSTRY 4.0 Market Size and Forecast by Segmentation (by Value in USD Million) (2025-2032)
11.1. Asia Pacific INDUSTRY 4.0 Market Size and Forecast, By Component (2025-2032)
11.2. Asia Pacific INDUSTRY 4.0 Market Size and Forecast, By Technology (2025-2032)
11.3. Asia Pacific INDUSTRY 4.0 Market Size and Forecast, By Deployment Model (2025-2032)
11.4. Asia Pacific INDUSTRY 4.0 Market Size and Forecast, By Enterprise Size (2025-2032)
11.5. Asia Pacific INDUSTRY 4.0 Market Size and Forecast, By End-Use Industry (2025-2032)
11.6. Asia Pacific INDUSTRY 4.0 Market Size and Forecast, by Country (2025-2032)
11.6.1. China
11.6.2. S Korea
11.6.3. Japan
11.6.4. India
11.6.5. Australia
11.6.6. Indonesia
11.6.7. Malaysia
11.6.8. Philippines
11.6.9. Thailand
11.6.10. Vietnam
11.6.11. Rest of Asia Pacific

12.    Middle East and Africa INDUSTRY 4.0 Market Size and Forecast (by Value in USD Million) (2025-2032)
12.1. Middle East and Africa INDUSTRY 4.0 Market Size and Forecast, By Component (2025-2032)
12.2. Middle East and Africa INDUSTRY 4.0 Market Size and Forecast, By Technology (2025-2032)
12.3. Middle East and Africa INDUSTRY 4.0 Market Size and Forecast, By Deployment Model (2025-2032)
12.4. Middle East and Africa INDUSTRY 4.0 Market Size and Forecast, By Enterprise Size (2025-2032)
12.5. Middle East and Africa INDUSTRY 4.0 Market Size and Forecast, By End-Use Industry (2025-2032)
12.6. Middle East and Africa INDUSTRY 4.0 Market Size and Forecast, by Country (2025-2032)
12.6.1. South Africa
12.6.2. GCC
12.6.3. Egypt
12.6.4. Nigeria
12.6.5. Rest of ME&A

13.    South America INDUSTRY 4.0 Market Size and Forecast by Segmentation (by Value in USD Million) (2025-2032)
13.1. South America INDUSTRY 4.0 Market Size and Forecast, By Component (2025-2032)
13.2. South America INDUSTRY 4.0 Market Size and Forecast, By Technology (2025-2032)
13.3. South America INDUSTRY 4.0 Market Size and Forecast, By Deployment Model (2025-2032)
13.4. South America INDUSTRY 4.0 Market Size and Forecast, By Enterprise Size (2025-2032)
13.5. South America INDUSTRY 4.0 Market Size and Forecast, By End-Use Industry (2025-2032)
13.6. South America INDUSTRY 4.0 Market Size and Forecast, by Country (2025-2032)
13.6.1. Brazil
13.6.2. Argentina
13.6.3. Colombia
13.6.4. Chile
13.6.5. Rest Of South America

14.    Company Profile: Key Players
14.1. Siemens AG
14.1.1. Company Overview
14.1.2. Business Portfolio
14.1.3. Financial Overview
14.1.4. SWOT Analysis
14.1.5. Strategic Analysis
14.1.6. Recent Developments
14.1.7. BYD Auto

14.2. ABB Ltd.
14.3. Rockwell Automation, Inc.
14.4. Schneider Electric SE
14.5. Cisco Systems Inc.
14.6. Intel Corporation
14.7. IBM Corporation
14.8. Nvidia Corporation
14.9. DENSO Corporation
14.10. Fanuc Corporation
14.11. Hewlett Packard Enterprise
14.12. Robert Bosch GmbH
14.13. SAP SE
14.14. Stratasys Ltd.
14.15. Swisslog Holding AG
14.16. Techman Robot Inc.
14.17. Mitsubishi Electric Corporation
14.18. Emerson Electric Co.
14.19. Cognex Corporation
14.20. Toshiba Corporation
14.21. Universal Robots
14.22. PTC Inc.
14.23. AVEVA Group
14.24. Oracle Corporation
14.25. Microsoft Corporation
14.26. Google Cloud (Alphabet Inc.)
14.27. Infor
14.28. Epicor Software Corporation
14.29. KUKA AG
14.30. Pepperl+Fuchs SE
14.31. Addverb Technologies
14.32. Unitronics
14.33. FORCAM GmbH
14.34. Radixweb
14.35. Visual Decisions
14.36. Expert Global Solutions
14.37. Bosch Rexroth AG
14.38. Festo AG & Co. KG
14.39. TRUMPF GmbH + Co. KG
14.40. Kion Group

15.    Key Findings 

16.    Analyst Recommendations

17.    INDUSTRY 4.0 Market: Research Methodology