News Article

Industry 5.0: New Revolution

By Sofía Garduño | Wed, 09/28/2022 - 17:58

The world, and the automotive sector, is transitioning from Industry 4.0 toward Industry 5.0, which puts people and sustainability at the center. Consequently, the automotive industry is seeking to achieve a synergy between machines and human talent. However, there are still challenges to overcome to reach this goal, such as cybersecurity threats and the disparate digital transformation. 


The speed at which new technologies are being developed is forcing companies to be alert to sudden changes. “Over 200 years passed between Industry 1.0 and 4.0. The gap between Industry 4.0 and 5.0 was only 10 years,” said Marco Galindo, Managing Partner, KPMG Mexico.


Industry 4.0 is the convergence of new technologies in manufacturing. It is characterized for an increase in automation and the use of smart machines, smart factories and the use of informed data to strengthen the value chain, according to IBM. “Mexico has managed to implement Industry 4.0 in different industries and regions to an extent, leaving a broad opportunity to consolidate the digital transformation,” said Keiichi Harasaki, Head of Business 4.0 & Industry Solutions for LATAM, TCS. 


Meanwhile, Industry 5.0 aims to merge the expertise of humans with the capabilities of intelligent machines. Industry 5.0 requires a broader perspective to exploit human talent and use technology to leverage this capability. “Industry 5.0 is more friendly with people, providing them greater adaptability and resilience,” said Mauricio Blanc, Director Customer Services Americas & Mexico, Omron. 


Additionally, it promotes sustainability and environmental goals through the rethinking of production processes. While Industry 4.0 was centered on profitability and productivity, Industry 5.0 promotes a human-centric, socio-environmental sustainability. Moreover, it is expected to have a transformative impact in society since it will require workers to upskill, as reported by the European Commission. 


“The most repetitive tasks that demand effort will be done by cobots and humans will bring creativity and experience,” said Harasaki.


Industry 5.0 puts people at the center of production, shying away from mass production to focus on customization. “Before, customization was done in batches. Now, the industry is looking to create unique products, which is a great challenge,” said Harasaki. To successfully adapt to customization, companies must listen closely to their customers’ needs. 


“Communication is key with customers. Personalization creates value and is achieved through listening to customers. All technologies will be available, but if production is done on demand and on time, we can be more efficient and better control the supply chain,” said Ricardo Anaya, Product Manager, Qualcomm. 


For Industry 5.0 to unseat Industry 4.0, the use of the fifth-generation (5G) network is essential. The 5G network will support the connectivity that automation needs and the whole world is working to implement it. The 5G network is necessary to manage the needs of the next decade and the growing number of connected devices. 5G, compared to 4G, brings 10 times more capacity for downloads and uploads. It also provides 10 times less latency, which is crucial for automotive processes. 


“The connectivity must be powerful for everything to work and for the cost to make sense. The industry is even beginning to develop its own networks. There is a trend to use a private 5G network to be able to connect everything securely where data can be protected,” added Anaya. 


Although connectivity is basic, its implementation has been unequal but this is not necessarily a problem. “Connectivity is not everything, companies need a holistic plan to face crises and react to large amounts of collected information,” said Blanc.


The security of information within Industry 5.0 has to be ensured and cybersecurity plays an important role as the management of data gains more relevance.  “Data analysis is a powerful tool when the objective is clear. The power of data processing enables decision-making regarding future business transformations. This is an issue that is still addressed in a general way in an industry and demands that the computation and data storage layer is working perfectly,” said Francisco Solano, Head of Technology and Portfolio, Logicalis.

Sofía Garduño Sofía Garduño Journalist & Industry Analyst