What is Industry 5.0?
Industry 5.0, also referred to as the Fifth Industrial Revolution, is a new and upcoming stage of industrialization where humans work alongside advanced technology and A.I.-powered robots to augment workplace environments. This is coupled with a more human-centric focus, resilience, and sustainability.
More than simply manufacturing, this new stage is built on the Fourth Industrial Revolution (Industry 4.0) and enabled by information technology advancements like artificial intelligence, automation, big data analytics, The Internet of Things (IoT), machine learning, robotics, smart systems, and virtualisation.
Extending the concepts of Industry 4.0, this next industrial revolution articulated by the European Union enables, “a vision of industry, which aims beyond efficiency and productivity as the only aims, and strengthens the industry’s role and contribution to society.”
This is an important departure from the approach prescribed in respect of Industry 4.0 as “it places the well-being of the worker at the centre of the production process and uses new technologies to create prosperity beyond jobs and growth while automatically respecting the limits of production on the planet.”
This marks a shift from economic value to a broader conception of value and wellbeing relating to society. While this concept has been previously been addressed, in Corporate Social Responsibility for example, the idea of placing importance on people and the planet instead of profits introduces a new focus for the industry.
That said, simply due to the definition of Industry 5.0 it extends beyond industry and covers all organisations and business models in order to create a wider context than Industry 4.0.
So, how did we arrive at the fifth industrial revolution?
History of the Industrial Revolution (Industry 1.0 to 5.0)
The First Industrial Revolution began back in the 18th Century, with five manifestations as technologies and processes developed over the following centuries…
Industry 1.0
Starting in approximate 1780, this first revolution emphasised industrial production through machines, specifically those powered by steam and water.
Industry 2.0
About 100 years later, in 1870, this second industrial revolution emphasised electrification and capitalised on mass production through assembly lines.
Industry 3.0
Progressing another 100 years to 1970, the industry 3.0 revolution saw automation via the use of computers and electronics. This was further progressed into globalisation (Industry 3.5) involving the offshoring of production to low-cost economies.
Industry 4.0
Presently, we are in the fourth industrial revolution, defined by the concept of digitalisation which includes automation, artificial intelligence (AI) technologies, connected devices, data analytics, cyber-physical systems, digital transformation, etc. For more information on Industry 4.0 check out our FAQ.
Industry 5.0
We are now moving into the fifth industrial revolution with an emphasis on the man and machines working together. Based on a human-centric approach, working alongside collaborative robots, people are free to provide value-added tasks for customers. This last stage of industrial revolutions is not limited to manufacturing processes but extends towards enhanced resilience and sustainability and a human-centric view, which we will discuss in more detail below.
Industry 5.0 Benefits and drawbacks.
Benefits
The most significant benefit of industry 5.0 is the creation of higher value jobs which enrich end-user products and services by encouraging further personalisation for customers and greater freedom of design for workers. By allowing manufacturing processes to be completed through autonomous machines, workers become able to spend much of their time providing better and personalised services and products.
Industry 4.0 had begun this process, while industry 5.0 develops this further by enabling a collaborative human-machine approach, which creates a service model in which humans may provide human connection, agency and added value for end-users.
The push towards sustainability and resilience supports this further as organisations build resilience and sustainability into their fundamental operating processes, making them more agile and providing positive impacts on their community, society and environment, rather than mitigating the disadvantages.
Drawbacks
There are not immediately identifiable drawbacks to Industry 5.0; however, the difficulty will be for organisations in how they are able to adapt and embrace human centricity, resilience and sustainability.
Those organisations that can become more human-centric, resilient and sustainable will likely be the ones providing solutions to future challenges; while those who cannot keep pace with the need for human contact and personalisation will begin to struggle.
In order to understand this further, we will begin to explore the distinctive features of Industry 5.0 – a human-centric approach, resilience and sustainability.
Industry 5.0 Strategies
As outlined above Industry 5.0 has three strategies:
1. Human-Centred
Industry 5.0 incorporates a strategy that shifts people from being people as resources to people as genuine assets. This is a shift where the organisation serves the people not the other way around. So while talent will still be used to create a competitive advantage and value for the customer, Industry 5.0 also looks to create further value for the worker as a means to attract and retain the best employees.
2. Resilience
With greater global interconnectedness in contemporary society, we have all felt the impact of global issues like the Covid-19 pandemic and international supply shortages.
While most businesses are looking to improve efficiencies and optimise profits, neither of these will improve resilience; in fact, there is conjecture that increasing an organisation’s agility and flexibility actually diminishes that organisation’s resilience.
Therefore, more resilient organisations would focus on anticipation and reaction to the next crisis in order to achieve stability through the times of crisis, rather than focusing simply on growth, profits, and efficiencies.
3. Sustainability
Industry 5.0 extends sustainability from merely reducing, minimising or mitigating climate harm and instead takes active effort to achieve positive change.Often referred to as ‘Net Positive’, this is a goal to make the world a better place with businesses being part of the solution, rather than being part of the problem, or merely adding a level of green washing, by paying lip service to sustainability goals.
Industry 5.0 Applications and Examples
Although robots have been used to do dangerous, grimy, or repetitive jobs in factories and workplaces, Industry 5.0 takes this a step further to allow robots and other smart machines working with human workers.
For example, Cobot (collaborative robot) technology is a new generation of robots that can work safely with humans, instead of being fenced in for safety reasons, and create opportunities for businesses. A human worker and a robot working side by side, allows the human to spend their time on value-adding things to really enhance the personalisation of the product.
Example from the medical profession working collaboratively to create a device for someone, like a diabetes app that knows your lifestyle and data to guide the manufacture of a device for you, personally.
Personalisation can be expanded into many other industries as well, such as electronics, automotive and more to take the human element in the offering from Industry 4.0, and layer a personal touch on it.
Conclusion
Industry 5.0 refers to smart machines and robots working alongside humans, with an added resilience and sustainability focus to them. Industry 4.0 focused on technologies such as the internet of things and big data, while Industry 5.0 is focusing on adding back human, environmental and social aspects as well.
In this context, we can view Industry 5.0 as an enhancement of Industry 4.0 along with the capacity of technology to enable and support humans rather than replace them, allowing humans to intervene when needed and moving from over-automation to combine technology with human critical thinking and adaptability alongside the precision and repeatability of machines.
FAQs
When will industry 5.0 start?
Industry 5.0 is starting to occur now, although it needs to develop further to increase its momentum. Many businesses are still concentrating on Industry 4.0, but as more businesses work to incorporate the concept of Industry 5.0, the subject will develop and grow as an approach.
Are We Experiencing Industry 5.0?
Industry 5.0 is beginning, and we are witnessing AI driven systems receiving the proverbial “low hanging fruit” of repetitive tasks for people to, in essence, work on more productive and value-adding business tasks.
Industry 5.0 is still only in a embryonic stage, with many businesses still engaged in industry 4.0 (see above), but as more businesses look to align themselves to the goals of industry 5.0, the industry will evolve.
What will Industry 5.0 Mean for Manufacturing?
Industry 5.0, when operating at full capacity, will allow for improved automation of manufacturing processes, providing real time data but also allowing people to work alongside machines to enhance our processes to help provide individualisation for customers.
What are some of the Challenges of Industry 5.0?
As a consequence of enhanced data streams, alongside the sensors and monitoring associated with Industry 5.0, it becomes evident that energy management poses one of the largest challenges, as this can be optimised to ensure that large smart devices can be integrated through smarter energy consumption and energy harvesting.
Other challenges for Industry 5.0 include perception, and the willingness, ability and financial capabilities of businesses to invest in adopting different ways of working.
What does the Future of Industry 5.0 look like?
The future for Industry 5.0 includes the manufacture of robots, including industrial robots, which can take advantages of advances in Cognitive Computing Technologies and algorithms to improve efficiencies and speeds of delivery, whilst also allowing people to focus on other aspects.
How is Industry 5.0 different from previous Industrial Revolutions in history?
The difference with the Fifth Industrial Revolution lies with how we are using modern technologies to drive collaborative work with people, machines and AI-enabled robots to make informed decisions about our workplace processes in order to deliver a more people-centred, resilient and environmentally conscious, sustainable future.
Industry 4.0 vs Industry 5.0: what is the difference?
There will clearly be crossover between these two revolutions, but where Industry 4.0 was distinctly technology-based and driven, Industry 5.0 is value-based and driven.
Where 4.0 embraced automation and a more significant reliance on technology, 5.0 brings humanity back in the mix and also with technology to bring about systems and processes to serve people, as well as the environment, above and beyond all else.
What Industries are most impacted by Industry 5.0?
In particular, Health, Supply Chains and Manufacturing industries can expect to reap the rewards of Industry 5.0 through big data analysis, IoT, collaborative Robots, Digital Twins, and more, together with a heightened focus on personalisation and sustainability.
Why is Industry 5.0 important?
Industry 5.0 is important since it allows business and industry to contribute and enact solutions for society to save resources, create social stability (amongst business practice and processes) while achieving climate goals.
With its focus on the broader world, including employees as employees and rather than strictly productivity and profitability, Industry 5.0 engaged connected businesses and would help them to become part of the solution, rather than risk being a potentially harmful environmental and societal problem.