We now stand on the threshold of Industry 5.0. Here, the focus shifts from just advancing technology to embedding its benefits with sustainability, resilience, and human-centricity. Sounds fantastic, right? But how far have we come on our path towards Industry 5.0? A while back, we wrote a blog post on the transition from Industry 4.0 to Industry 5.0. In this blog post, we put that transition into context and aim to understand the present and the future of the fifth industrial wave.
Three Pillars of Industry 5.0
As a quick recap, Industry 5.0 is a redefinition of industrial purpose rather than an introduction of certain machines or processes. Grounded in the European Union’s industrial strategy, Industry 5.0 seeks to realign industry with societal and environmental goals. This vision is shaped by three core principles:
- Human-centricity: Placing workers at the centre of industrial systems, emphasizing their empowerment and well-being.
- Sustainability: Driving circular production models, reducing environmental impact, and aligning with global sustainability goals like the European Green Deal.
- Resilience: Building adaptable, robust systems capable of withstanding disruptions and uncertainties.
The Current State of Industry 5.0
While the vision and end goal of Industry 5.0 have gained broad acceptance, its practical adoption is still in its early stages. Research shows that the current phase is focused on building the foundation for circular and cross-sectoral practices2. Industry 5.0 reimagines existing technologies, such as cloud computing and robotics, not just as tools for economic efficiency but as enablers of broader societal impacts. Importantly, long-term economic gains are increasingly tied to sustainability and resilience. Also notably, the rising competition for skilled employees underscores the importance of aligning industrial practices with human-centric values. So why are we not pushing the on the gas pedal?
For many organizations, particularly small and medium-sized enterprises (SMEs), the path toward Industry 5.0 is hindered by the ongoing challenge of fully adopting Industry 4.0 technologies6. This challenge is evident in our customers’ environments, where readiness for tools such as our process manufacturing analytics platform varies significantly across potential adopters. Although the willingness to embrace these new technologies is often present, uncertainty fueled by knowledge gaps remains one of the major obstacles. These knowledge gaps often blind manufacturers to the potential of these technologies in aiding their production and their readiness to adopt them. To explore how improving data readiness can address this uncertainty and to help you answer the question of “Are we ready?”, check out our blog on transforming data into value.
At the policy level, initiatives like the European Union’s Community of Practice on Industry 5.0 are driving momentum by fostering dialogue among researchers, businesses, and policymakers. This collaborative approach aims to move Industry 5.0 beyond theory, ensuring it becomes a tangible reality. Outside of the European Union, the push forward is also evident. However, as economic instability increases and the political sphere turns more polarized, the pushback also becomes greater. Consequently, the need to talk loudly about the advantages that Industry 5.0 can provide grows.
The Future of Industry 5.0
As Industry 5.0 continues to knock on doors, its impact is expected to extend beyond the factory floor, offering transformative opportunities across industries and society. A promising vision for the future includes the integration of circular manufacturing practices, enhanced human-machine collaboration, and profound policy and cultural transformation.
Circular manufacturing initiatives are visioned to redefine the production landscape by minimizing waste and optimizing resource use. Predictive maintenance, recycling processes, and other strategies driven by advanced technologies such as machine learning and artificial intelligence will play a critical role in proactively addressing environmental challenges. These tools enable industries to anticipate and mitigate their environmental footprint and to drive more sustainable operations.
Another cornerstone of Industry 5.0 is the evolution of human-machine collaboration. While earlier automation efforts often aimed to replace human labour, Industry 5.0’s goal is to improve human work with the help of technology. Machines are not intended to take jobs but to help humans perform their tasks more effectively. This symbiosis allows industries to combine the best of technology with human creativity and judgment. AI-driven technologies, for instance, can take over repetitive tasks or provide actionable insights, enabling workers to focus on innovation and high-value activities.
Finally, the success of Industry 5.0 relies heavily on a cultural and policy transformation that goes beyond technological advancements. Organisations must foster transparency, ethical practices, and collaboration across industries, while policymakers create regulatory ecosystems that align technological innovation with human-centric values.
Building the Foundation for Industry 5.0
Transitioning to Industry 5.0 involves both technological upgrades and strategic rethinking. Companies must focus on the following areas to thrive in the future:
Centralized and secure data infrastructure
Establishing a robust data infrastructure is essential for managing the vast information flows generated by advanced technologies. This enables real-time insights and ensures data integrity, laying the groundwork for precision and transparency.
Seamless data sharing
Breaking down silos within organizations and along the supply chain is critical. Open data sharing fosters trust improves decision-making, and ensures efficient resource allocation across the value chain.
Workforce empowerment
Reskilling and upskilling employees to work alongside advanced technologies will be crucial. Programs focusing on AI, robotics, and data analytics will ensure that the workforce remains competitive and capable of thriving in the future.
Cultural transformation
Organizations must embrace a culture of continuous learning and collaboration. Encouraging employees to adapt to new technologies and aligning leadership around the principles of Industry 5.0 will foster innovation and resilience.
The Path Ahead
The success of Industry 5.0 hinges on fostering a cultural shift within organizations and outside—one that prioritizes continuous learning and seamless collaboration between humans and machines5. This shift requires not just technical advancements but also a willingness to embrace innovation and adaptability at all levels.
As Marc Lemaître, Director General of DG Research and Innovation, emphasized, Industry 5.0 represents a growing alignment between technological progress and societal needs, ensuring a future where industrial development harmonizes with human well-being and environmental stewardship.
For organizations, embracing Industry 5.0 is an imperative. As consumer demands shift toward ethical and sustainable practices, and as policymakers tighten regulations to combat climate change, businesses must adapt to remain competitive. Early adopters will not only drive innovation but also lead the way in shaping a more equitable and sustainable future.
References:
- Aalto University. (n.d.). Bringing human touch back to industrial settings: 5 things we should know about Industry 5.0. Retrieved from https://www.aalto.fi/en/news/bringing-human-touch-back-to-industrial-settings-5-things-we-should-know-about-industry-50
- Barata, J., & Kayser, I. (2023). Industry 5.0: Past, present, and near future. Procedia Computer Science, 219, 778–788. https://doi.org/10.1016/j.procs.2023.01.351
- European Commission. (2020). Industry 5.0: Towards a sustainable, human-centric, and resilient European industry. Retrieved from https://research-and-innovation.ec.europa.eu/news/all-research-and-innovation-news/industry-50-community-practice-discuss-future-directions-achieve-its-goals-2024-10-16_en
- Ghobakhloo, M., Mahdiraji, H. A., Iranmanesh, M., & Jafari-Sadeghi, V. (2024). From Industry 4.0 digital manufacturing to Industry 5.0 digital society: A roadmap toward human-centric, sustainable, and resilient production. Information Systems Frontiers. https://doi.org/10.1007/s10796-024-10476-z
- PwC Switzerland. (n.d.). Embracing Industry 5.0: Five recommendations for companies to build and deploy Industry 5.0 capabilities at scale. Retrieved from https://www.pwc.ch/en/insights/industry-5.html
- Van Erp, T., Carvalho, N. G. P., Gerolamo, M. C., Gonçalves, R., Rytter, N. G. M., & Gladysz, B. (2024). Industry 5.0: A new strategy framework for sustainability management and beyond. Journal of Cleaner Production, 461, 142271. https://doi.org/10.1016/j.jclepro.2024.142271
