Industry 4.0 and Society 5.0

Industry 4.0 and Society 5.0 are concepts that, although different, are paired to help businesses thrive in the future. They contribute to the competitiveness, efficiency, and sustainability of industries.

In an increasingly populous world with rapid technological advancements, companies must quickly adapt to changing market demands.

In this sense, Industry 4.0 and Society 5.0 emerge as two fundamental pillars supporting the development of the Metalworking Industry in Portugal. While Industry 4.0 focuses on the digitization and automation of production, Society 5.0 aims to improve people’s quality of life through new technologies.

What is Industry 4.0?

According to data provided by Mordor Intelligence, the market size of Industry 4.0 is expected to grow from $94.42 billion in 2023 to $241.58 billion by 2028, with a CAGR of 20.67%. For example, in Europe alone, IoT-related expenses exceeded $202 billion in 2021, with significant growth at a double-digit rate expected by next year.

Moreover, it is notable that, globally, the Asia-Pacific region stands out as the leader in investments in new Industry 4.0 technologies. Countries like Japan, South Korea, India, Malaysia, Thailand, Singapore, and Australia are at the forefront of this transformation.

Driven by disruptive technologies such as Artificial Intelligence (AI), IoT, Big Data, Augmented Reality (AR), and Cloud Computing, Industry 4.0 represents a significant transformation in how companies operate. It allows for redefining both production processes and the marketing approaches of their products.

Industry 4.0 creates a smarter, connected, and efficient industry that offers companies several benefits, namely:

  • Increased productivity;
  • Improved quality of products and services;
  • Creation of customized products to meet specific customer needs;
  • Improved working conditions; and
  • Reduced negative environmental impacts.

However, companies must consider that, while there are advantages, there are also drawbacks associated with adopting Industry 4.0. Therefore, it is essential for companies to act consciously to maximize the benefits of this transformation. Some challenges include:

  • Risks of cyberattacks;
  • Lack of qualified personnel to operate new technologies; and
  • High initial investment for implementing technologies in the company.

What is Society 5.0?

According to the concept’s pioneer, Yoko Ishikura, Society 5.0 is an innovative model of social organization that “places humans at the center of innovation and technological transformation.” The new technologies of Industry 4.0 play a crucial role in promoting human well-being.

Aiming to build a more prosperous and sustainable future, Society 5.0 seeks to:

  • Solve social problems, such as population aging;
  • Combat climate change;
  • Create a fairer and more inclusive society; and
  • Promote the economic development of companies.

However, implementing Society 5.0 requires a collective effort from all sectors of society. It is necessary to ensure that new technologies are used responsibly and ethically to improve everyone’s lives.

Examples of Society 5.0 implementation include:

  • Smart cities using sensors to monitor traffic, optimize vehicle flow, reducing congestion and pollution;
  • Personalized healthcare using AI to diagnose diseases more accurately and recommend treatments; and
  • Personalized education using Big Data to tailor teaching to each student’s needs.

What are the Advantages for the Metalworking Sector?

Industry 4.0 and Society 5.0 offer a set of advantages that can help Portuguese companies in the metalworking sector thrive in the future, increasing their productivity, competitiveness, and sustainability while contributing to the development of a more prosperous society.

Some of the various advantages of adopting Industry 4.0 and Society 5.0 by Portuguese companies in the metalworking sector include:

  • Automation and process optimization: By implementing robots, cyber-physical systems, and artificial intelligence, it is possible to automate repetitive tasks and optimize production flow, reducing costs and increasing production capacity.
  • Quality improvement: Constant process monitoring ensures product traceability and early fault detection, ensuring high production quality.
  • Greater flexibility: The use of these technologies allows companies to quickly adapt to changing market demands, offering customized products to meet each customer’s needs.
  • Connectivity and integration: The interconnection of machines, systems, and people through IoT facilitates communication and information sharing between different areas of the company, promoting collaboration and teamwork.
  • Strategic partnerships: They encourage partnerships between companies, universities, and research centers, fostering the sharing of knowledge and resources for the development of joint solutions.
  • Resource consumption reduction: Process optimization and the use of efficient technologies contribute to reducing energy, water, and other resource consumption, decreasing the environmental impact of production.
  • Improvement of working conditions: Automating dangerous and repetitive tasks improves working conditions, reducing the risk of accidents.
  • Creation of new jobs: Implementing these technologies can lead to the creation of new jobs in areas such as engineering, programming, and data analysis.

In summary, companies that invest in implementing these technologies will be better positioned to lead the market in the coming years.