Industry 4.0 and Industrial IoT solutions are terms tossing around lately. 

But, how is this interrelated to each other and why would industries adapt with an astonishing speed?

Before we discuss the amalgamation of industry 4.0 and IIoT, let us learn what exactly industry 4.0 is and the evolution from the beginning and how it has transformed the traditional manufacturing processes to smart factories. 

Evolution From Industrial 1.0 to 4.0

The industry made significant advances due to the iteration of the Industrial Revolution in the 18th century, eradicating the manual and traditional process of manufacturing goods that include weapons, tools, clothing, housing, etc. With the evolution of the first industrial revolution in the 18th century, the manufacturing industry has rapidly taken uphill. 

Here’s an overview of the industry 1.0 to 4.0.

Industry 1.0

Water and steam-powered projects were developed in the late 18th century to help workers mass-produce goods. This can be deemed the start of the industry culture focused on quality, efficiency, and scalability.

Industry 2.0

The beginning of the 20th century is when industry 2.0 took birth with the revolution of machines running on electrical energy. Being the primary source of power, electrical machines became efficient to operate and maintain. Many production management techniques, such as in-time manufacturing, lean manufacturing process, and division of labor, improved the quality and output of the work.

Industry 3.0

This revolution evolved by the advances of the electronics industry in the last few decades of the 20th century. The invention of transistors and integrated circuits resulted in reduced effort, increased speed, even complete accuracy and replacement of human intervention in some cases. IT and electronics automated the entire industry, which has led to a further cut-down on manufacturing costs.

Industry 4.0

This is the revolution we are living in currently. So, when did industry 4.0 start? The boom of the internet and telecommunications evolved in the 1990s and has made human intervention a lot less in the manufacturing industry resulting in fewer problems.

What is Industry 4.0 – Why it is Important?

Industry 4.0 definition is not restricted to only this. It has also changed the manufacturing industry and its operations, merging the boundaries of the virtual world. 4.0 industry is still in its nascent stage as the industries are still in the transition phase and seem to gradually adapt to the new systems with interconnectivity and smart automation. 

The automation, data storing and data exchange trend in the manufacturing industry includes cyber systems, IoT, and cloud computing to create an industry 4.0 smart factory

According to a statistical report, industry 4.0 was valued at USD 86.03 billion in the past year and is expected to reach USD 267.01 billion in the next four years. 

We have strongly researched and written down a few reasons as to why industry 4.0 is essential in the smart manufacturing industries. Let’s have a look at these:

  • Cost efficiency
  • Accessible data
  • Operational agility
  • Documentation
  • Retain consumers

Let’s peep into the insights of how does industry 4.0 work?

4.0 Technology: Concepts

technology concepts

There are several thousand terms related to industry 4.0, out of which the below terms are essential irrespective of whether your business needs it or not.

1. IoT

Industry revolution 3.0 had introduced digital technology, and that’s when 4.0 adopted the transformation giving rise to automation and smart devices with the help of IoT- Internet of Things. It’s the connection between two products like machines and sensors with the internet.

For example, those who use Nest at home, view cameras via mobile phone, control AC temperature with an app, etc., are connected with IoT.

To know more about such IoT enabled apps, you can visit our page where we have developed similar applications.

2. IIoT

technology concepts iiot

The industrial internet of things is related to the connectivity between human resources, data, and machines related to manufacturing the products. Just how every product today is equipped, Industry 4.0 and IIoT provides the same with advanced automation.

The software like MRP, PLM, or AMS may not work as they are old and cannot be updated. However, the advancement of sensors/ automation helps in making old equipment compatible.

3. AI

Artificial intelligence is another concept that refers to machine learning and computers. Devices with AI are now ready to recognize the environment and take actions to maximize achieving the goals.

Where AI showed miracles in the food industry, it’s now time to create wonders with these AI-enabled devices in the manufacturing industry too.

4. Cloud computing

Accessing the data at any location with internet connectivity is possible with cloud computing. It helps in storing, managing, and processing data to achieve economies of scale. It enables the companies to focus on their expertise rather than investing in data management.

The best example is how smart cities are monitoring solid waste by cloud-based IoT-enabled solutions.

5. Big Data

How can big data analytics help in 4.0? When we talk about managing massive data from sensors, cloud computing, and IIoT, where we can improve the efficiency of supply chain management.

Some examples of these big data systems include the stock market, weather forecast, and
medical health records.

This refers to the real-time data captured from the computer systems of machines and giving out the outputs nearing the latest updates. 

6. Machine Learning

Thanks to ML, there has been massive progress in optimizing the manufacturing space. Use of smart devices, machines, and systems, smart factories are digitized to monitor and collect data. Adopting industry 4.0 technologies will maximize efficiency and immediate gains in the manufacturing industry.

Summing up, these are the essential use cases that can help understand the value of the new revolution in the manufacturing industries.

Now let us switch to how these concepts benefit the industries.

7. Enterprise Resource Planning

These are business management tools used to automate the information across the organization. ERP solutions work as the digital backbone of the business. If the business adapts to industry 4.0, it must also implement ERP to leverage the tech-driven revolution. 

ERP runs the manufacturer’s premises, and modern ERP systems are developed for the cloud. It means the database is managed and virtually accessed by all. It also takes care of security, operations, data recovery, etc. and helps the manager work on other essential tasks.

8. Cyber-Physical Systems

Also known as cyber manufacturing, the 4.0 offers real-time data, analysis and transparency across every aspect of operations. CPS is a system with embedded software that helps indirectly record physical data using sensors and evaluating data. CPS is connected to other global networks via digital communication and globally available data.

9. Smart Factory

Smart factory underlies the concept of IIoT. It is to bridge the gap between the traditional machines and digital assets by reducing the manual work of humans with smart innovations and smart machines. Industry 4.0 smart manufacturing gives a place where not only data exchange happens between the machines but also elements in the technology chain. 

Conclusively, IoT in manufacturing is aiding this industry with digital transformation. Embracing the 4th industrial revolution with connectivity opens many opportunities that give you greater flexibility and increase operational performance.

The Working Process of Industry 4.0 Evolving Manufacturing Factories

Industry 4.0 and Industrial IoT are two separate concepts. However, they are considered to provide greater efficiency to increase automation. 

There is a reasonably uniform working process of the 4th revolution for adopting new technology regardless of any industry. Learn the four steps to implement the new technology with the revolution.

1. Identify the Pain Points of the Manufacturers

Many manufacturers seek optimization from innovative factory environments, but opting for new technology and stopping production is not viable. Warehouses have targets to meet, and any schedule changes will cost you thousands of dollars. 

Selecting the right partner will help emphasize the support consistently and help adopt the technology that gives a competitive advantage. 

2. Confidence in New Technology

In industry 4.0, automation, tech and data-sharing come together. One of the world’s largest manufacturers of home appliances put over 50 vehicles to work in their Ohio office. The self-driven vehicles were to be adapted to the new technology by their employees. Management must take charge to help the company in understanding the new technology.

3. Embrace & Verify

Once the employees are confident in using the new technology, they should use the automation to its fullest potential. Human intervention will always take time; it is sometimes a slow and messy process.

4. Optimisation

Many businesses take time to reach this stage. It is difficult to identify where you should use the technology and where improvement needs to be made. By assessing the data and the process, management can understand accordingly. Leading to optimization will lead to improvement.

Industry 4.0 Implementation – Which Industries Benefits From the Technologies?

  • Healthcare Industry

In multiple sectors, we have seen AI, IoT and advanced technology tools having a significant impact on our daily lives. One of the biggest industry 4.0 examples is the healthcare industry, which quickly adapted the right technology to deliver better patient care. 

For example, AI and ML- Examination of pictures and documents to understand the patient’s specific condition. Using smart wearables integrated with AI and ML technology will detect and analyze the findings that humans could easily miss. 

AI is already working towards medical imaging technology to help doctors provide quick and remote treatment to their patients.

  • Retail Industry

Industry 4.0 in manufacturing is an integral part of IT infrastructure that is constantly growing. IoT is related to industry 4.0 supply chain, logistics, and inventory. IIoT is becoming a big thing in the retail industry that helps to monitor the slightest interaction between the customer and the retailer. IIoT in retail promises a better future with quality improvement and business enhancement.

  • Transportation Industry

Industry 4.0 solutions involve robotics and autonomous mechanisms that help the transportation and logistics industry serve better. Thanks to smart sensors integrated with the vehicles and connected to the smart devices that collect and give information. 

IoT provides companies with real-time tracking of goods and services to improve B2B and B2C deliveries. For example, smart waste management– the mechanism of sensors with the trash cans and the companies that collect the trash has transformed each location into a smart city. 

Logistics can become more flexible and deliver the goods to the client quickly. It helps reduce many costs and provides better support to international clients.

  • Automotive Industry

The automotive manufacturing industry has leveraged the IoT and fourth revolution today.  

OEMs and automotive industries use cloud computing to serve quality products and services. From sales to post-sales service, the technology introduces the concept of connected vehicles to the automotive industry. Cloud computing helps maximize uptime and quality, optimize productivity, monitor vehicle performance, and create a quality customer experience. 

Industry 4.0 manufacturing has significantly impacted the automotive industry in terms of flexibility, efficiency, agility, and better demand and supply planning. 

Now that you know how the fourth revolution has transformed each industry, other industries are learning to adapt to the new technology with all the industry 4.0 components.  

In our next section, you can see what benefits industries fetch by integrating IoT and other technologies. 

Benefits of Industry 4.0 for Business

While smart factory applications are exciting, industries always discuss the industry 4.0 advantages. Any investment you make in the IIoT revolution should positively impact and enhance systems. 

The advanced technologies provide transparency to all aspects of business with recent tech development and multiple industry 4.0 applications. 

Read the benefits of the industry 4.0 model:

  • Improved Productivity

Industry 4.0 technologies enable quick production while allocating resources more efficiently. Enhanced machine monitoring and ORR will improve in the journey towards transforming into an industry 4.0 smart factory.

  • Increased Efficiency

The production lines will become more efficient with the industry 4.0 revolution. The technologies or concepts mentioned in the above section will surely help the production lines run faster with less machine downtime and quick delivery. Also, NPIs become more efficient in business decision making.

  • Knowledge Sharing

Knowledge sharing takes a backhand if manufacturing units follow a traditional way to operate in silos. Industry 4.0 technologies allow production lines to communicate irrespective of time, place, platform, etc. Anyone with the knowledge of sensors integrated into a machine should share it throughout the organization. Machine to machine, or system to system without any human intervention can instantly improve operations worldwide.

  • Easy Compliance

Compliance with any product does not have a manual process, especially if it is a medical device. Industry 4.0 with IIoT or cloud computing or sensors, etc is integrated into the medical device development to automate compliance, including track and trace, data logging and more.

  • Reduced Cost

Transforming into a smart factory does not happen overnight, and you need to invest, but there’s no upfront cost in the future. The cost of manufacturing the devices will drastically fall as soon as industry 4.0, automation, data management, and more are integrated.

With all the above benefits, what do you think about industry 4.0? Does it work without industrial IoT, or can it be better impacted in the industries alone? 

Let’s study IIoT vs Industry 4.0, and then you can understand how both work together.

Benefits of Industry 4.0 with IIOT

The ultimate goal of adapting industry 4.0 with industrial internet of things in manufacturing industries is to increase efficiency with automation technologies. Keep reading to learn more about the benefits of adapting to industry 4.0.

  • Optimization

The amalgamation of smart systems and devices can bring along a growing ability to self-optimize production, leading to negligible downtime of your machines. Optimizing plays a vital role in maintenance with the use of the right resources at the right time.

Also, utilize your time to optimize logistics. For better results, invest in logistic warehouse management systems.

  • Customization

The interconnection of smart machines with IIoT allows easy scaling production with the predictive market demand. Big data analysis can help you with the current trends and customize products according to the market requirements.

AI will help in reviewing and tracking the market price. This helps in accurate demand forecasting, improving margins.

  • Technology

Self-driven cars, and AR systems never seemed like a reality. But today, when we look at the transformation of industry 1.0 to 4.0, these technologies are used to a large extent. Technology is seamlessly progressing every day, leaving a high impact on our lives.

For example, with the help of sensors and connectivity, technologies have given rise to smart office automation, smart home automation, smart waste management systems, smart switches, and many other IoT-enabled devices that have helped businesses grow.

  • Reduced Costs

Lastly, implementing these smart devices in any business may cost you initially. Still, if you have invested right, the implementation of automated systems, data management, AI, etc., all play a key role in increasing profits.

The above-mentioned list is not the end, industry 4 has more to it. To understand more in-depth smart technologies, you can reach out to us.

Are You Ready to Transform Your Business with Industry 4.0 and IIoT?

Integrating industry 4.0 technology into your manufacturing business by using the latest technologies is now possible. We provide flexible and industry-specific software solutions designed around your needs.

Industry 4.0 Vs IIoT

Industry 4.0 is the 4th revolution, an advanced phase after discovering electronics. The innovations and advances enable the connectivity of devices in modern life, leading to efficient operations. 

It was coined by the German government to introduce automation systems advancing the manufacturing industry without human intervention. 

On the other hand, Industrial IoT started around the late 1990s, though people weren’t clear about the concept then. But later, with the evolving technology, the devices and products communicated with each other to improve their performance. Thus, these are connected and termed ‘smart’ devices or products integrated with IoT. 

In simple terms, IIoT is a component of 4.0, but there are differences. Without connectivity, 4.0 would not exist, and IIoT is the key driver of industry 4.0. 

So without further ado, let us learn how impactful is the combination of Industry 4.0 and IIoT.

Industry 4.0 With IIoT Together

As mentioned earlier, the 4.0 revolution would not exist if there wasn’t any connectivity with automation. IoT has played a significant role in revolutionizing the industrial internet of things, and it would not be very effective without the bigger picture of automation. Let us give you a few similarities between IIoT and Industry 4.0 to understand how they would work when together.

  • Efficiency & Reliable

Both industry 4.0 and IIoT are efficient in streamlining the production lines and keeping product manufacturing operable.

  • Technology Driven

With the revolution of technology, the rise of the fourth revolution has made the high-speed connection, integrated wireless connectivity, etc., possible.

  • People Driven

Implementing automation to the industries or factories to become smart allows only IIoT with Industry 4.0 to process it faster and more efficiently. People who know IIoT can plan better and implement actions for better ROI. 

Despite these similarities, there are differences too. 

  • Scope

IIoT will always refer to the equipment in the manufacturing process to server locations. Industry 4.0 comprises the industrial revolution that places long-term sustainability in the manufacturing unit to a more significant extent.

  • Actions

Industry 4.0 is more of a philosophy-driven technology. IIoT is tech implemented with either old or new devices, sensors, data transmitters, wireless equipment, etc., with a broader scope with a larger vision. Whereas IIoT may be manifested by investing in equipment and industry 4.0 by buy-in from management.


Is Industry 4.0 and IIoT same?

The IIoT refers to the sensors and machine communications with automated systems whereas, Industry 4.0 is a broad term that involves the entire digital revolution of the industry. The IIoT is one of the emerging technologies of industrial revolution 4 adopted by manufacturers.

Does Industry 4.0 include AI?

AI is the driving force of industry 4.0. It permeates the ecosystem and not only the production department. The best example of AI with industry 4.0 is the optimization of supply chain management to anticipate and respond to changes in the market.

What are the 4 stages of the industrial revolution?

The four stages of the industrial revolution have brought a huge change in society. Let’s have a check on what those were.

  • The first Industrial Revolution 1765 – The use of Steam engines and water power.
  • The second Industrial Revolution 1870 – Mass production of goods using electricity.
  • The Third Industrial Revolution 1969 – Rise of Digital Technology.
  • Industry 4.0 – Enhancement of digital technology with automation (Smart devices, IoT, Machine Learning and Automation)
Paresh Sagar

Article By

Paresh Sagar

Paresh Sagar is the CEO of Excellent Webworld. He firmly believes in using technology to solve challenges. His dedication and attention to detail make him an expert in helping startups in different industries digitalize their businesses globally.