Rapid Growth in the Global Industry 5.0 Market
The increasing usage of advanced automation technology and artificial intelligence is a primary driver of this sector’s growth.
According to Verified Market Research, the revenue of the Industry 5.0 market will exceed 64.79 billion USD in 2024 and is projected to reach approximately 76.7 billion USD by 2032. The market will grow at a CAGR of 3.5% from 2025 to 2032.
Strong Manufacturing Base Drives Europe’s Market
Many innovative industries exist in Europe, particularly in the automotive, aerospace, and machinery sectors, which have long been at the forefront of technical innovation.
According to the European Commission’s 2023 Industrial Policy Report, manufacturing contributes 20% of Europe’s overall GDP, with over €2.1 trillion in yearly production value.
The European Union’s Digital Economy and Society Index (DESI) predicts that 68% of EU manufacturing enterprises have integrated sophisticated digital technology, with Industry 5.0 usage reaching 45% in 2023.
According to the German Federal Ministry for Economic Affairs, industries that implemented Industry 5.0 technology increased productivity by 34% and improved resource efficiency by 52%.
Eurostat figures show that European manufacturers will invest €98 billion in Industry 5.0 technologies in 2023, with 73% of large industrial businesses already using human-centric automation and sustainable manufacturing methods.
Fastest Growth in the Asia-Pacific Region
Asia-Pacific is the fastest-growing region in the Industry 5.0 market. Countries such as China, Japan, and India are adopting sophisticated manufacturing technologies to boost productivity and remain competitive on a global scale, thanks to increasing industrialization and a strong focus on automation, AI, and IoT.
Japan’s Ministry of Economy, Trade and Industry (METI) reported an 85% rise in manufacturing facilities utilizing Industry 5.0 technology in 2023, with investments topping ¥2.5 trillion.
According to the South Korean Ministry of Trade, Industry, and Energy, 62% of its smart factories have integrated human-machine collaborative systems, increasing productivity by 45%.
According to data from China’s Ministry of Industry and Information Technology (MIIT), manufacturers who adopted Industry 5.0 technology saved 56% on operational expenses while improving product quality by 38%.
Singapore’s Economic Development Board states that 70% of its industrial sector has adopted advanced automation and AI technologies, with Industry 5.0 investments increasing at a 28% annual pace.
The Global Industry 5.0 Market will grow at a CAGR of 3.5% from 2025 to 2032. Source: Verified Market Research
AI in the Manufacturing segment
As manufacturing evolves, there is a major emphasis on automation to increase productivity, eliminate human error, and cut costs. AI plays an important part in this by allowing robots to learn from data, adapt to changing conditions, and optimize production in real-time. Manufacturers may use AI to automate difficult activities, foresee maintenance needs, and improve quality control, thereby increasing operational efficiency and agility.
The demand for AI-driven manufacturing solutions is projected to skyrocket as businesses realize the benefits of adopting modern technologies into their operations.
Meeting Sustainability Requirements
Companies are under increasing pressure to meet stricter environmental requirements and minimize their carbon footprint, making the inclusion of sustainable practices and green technologies into production processes even more important. Developing smart factories and innovative manufacturing procedures that optimize resource consumption while minimizing waste is consistent with these goals, pushing additional investment.
New Technologies Enhancing Safety
As companies incorporate new technology such as robots, artificial intelligence, and automation, there is a heavy emphasis on establishing work environments in which humans and machines complement rather than replace one another. Furthermore, implementing smart safety systems, real-time monitoring, and AI-driven decision-making tools will increase worker safety while decreasing risks and increasing operational efficiency.
According to the European Commission’s 2023 Industry 5.0 report, workplace accidents in manufacturing were reduced by 65% in facilities that utilized human-machine collaborative systems.
The U.S. Bureau of Labor Statistics says that industries implementing Industry 5.0 technologies showed a 42% improvement in worker safety measures in 2023, with collaborative robots (cobots) contributing to a 38% reduction in repetitive strain injuries.
The Automotive Industry Leads the Way
With the fast incorporation of modern technologies such as artificial intelligence, robots, augmented reality, and digital twins, the automotive sector is becoming more efficient, versatile, and innovative. These developments allow manufacturers to construct highly customized automobiles, increase manufacturing rates, and lower operating costs.
Furthermore, the inclusion of smart technologies into automobiles improves safety, performance, and sustainability, which aligns with rising consumer desire for smarter, more environmentally friendly vehicles.
High Implementation Costs
According to the report the significant implementation costs involved with implementing Industry 5.0 technologies may stifle market growth, particularly for small and medium-sized businesses (SMEs).
As technology improves and becomes more widely used, costs are likely to fall, making it more affordable for a broader spectrum of businesses. Government incentives, subsidies, and collaborations with technology suppliers may also help to alleviate financial pressures.
Source: Verified Market Research – Industry 5.0 Market Valuation (2025-2032)
Text: Vaula Aunola
Photos: Shutterstock
