**2. What is industry 4.0?**

#### **2.1 An overview of industry 4.0**

There have been three earlier industrial revolutions that have resulted in a transformation in manufacturing patterns: mechanization via water and steam power, mass production in assembly lines, and automating through computer and information technology [6].

The first industrial revolution *(Industry 1.0)* was developed in the United Kingdom at the end of 18th century with the advent of water and steam power and mechanization of production. It was the most significant advancement in human productivity, which considerably aided mechanical production and greatly improved agriculture and trade. Where steam engines could be used for power. Developments such as the steamship or the steam-powered locomotive brought about further massive changes because humans and goods could move great distances in fewer hours [4]. Then, it was followed by the second one (*Industry 2.0*) at the beginning of 19th century which introduced the electrically powered machines and assembly line production, which is described as the period when mass manufacturing became the dominant style of production in general. The introduction of railways into the industrial system was assisted by steel mass manufacturing, which in turn assisted mass production [7]. The third industrial revolution (*Industry 3.0*) took a place in the 1970s by adopting electronics and devices within the machines, which led to developing automation and robots within the manufacturing process. Industry 3.0 developed with the introduction of the Digital Revolution, which is more well-known than Industry 1.0 and 2.0, since most people today are familiar with industries that rely on digital technology in production [4].

The *Fourth Industrial Revolution* is presently being implemented. This is also known as "Industry 4.0," and it is defined by the use of information and communication technology in the industry. It is based on the Third Industrial Revolution's advancements. Production systems using computer technology are enhanced by a network link and, in a sense, have a digital twin on the Internet. These enable communication with other systems as well as the production of data about themselves. This is the next phase in the automation of production [8].

All systems are connected, resulting in "cyber-physical production systems" and, as a result, smart factories, in which production systems, components, and people

interact through a network and production is almost autonomous. When these enablers are combined, Industry 4.0 has the potential to offer some amazing improvements in manufacturing environments. Machines that can foresee faults and initiate maintenance operations on their own, for example, or self-organized logistics that adapt to unexpected changes in production are examples (**Figure 1**) [9].

It also has the ability to alter people's working habits. Individuals can be drawn into smarter networks by Industry 4.0, which might lead to more efficient working. The manufacturing environment's digitization provides for more flexible means of providing the appropriate information to the right person at the right time. Maintenance personnel may now receive equipment documentation and service history more quickly and at the point of use, thanks to the growing usage of digital devices inside factories and out in the field. Maintenance personnel prefer to spend their time addressing issues rather than waste time looking for technical knowledge [10].

In a summary, Industry 4.0 is a game-changer in the industrial world. Manufacturing will alter as a result of digitization, including how things are manufactured and delivered, as well as how products are maintained and enhanced. As a result, it may legitimately claim to be the start of the fourth industrial revolution. Industry 4.0 is presently taking shape and its supporting technologies, such as the Internet of Things (IoT) and Cloud Manufacturing (CM), are, nevertheless, poorly defined, and under-researched.

#### **2.2 Definition industry 4.0**

Industry 4.0 is better known as the fourth industrial revolution and describes a future production system's vision. The idea of Industry 4.0 was established by a group of professionals from several professions (such as business, politics, and academia) as part of an endeavor to integrate all manufacturing industries systems to achieve sustainability. The German government initially officially approved and implemented industry 4.0 for supporting automation in manufacturing, and for boosting German competitiveness in the manufacturing industry. Essentially, as a result of Industry 4.0, operations and manufactures will become further efficient and less expensive. These are accomplished through the simple interchange of information, integrated control of industrial goods and equipment, which work synchronously

#### **Figure 1.**

*Represents a graphic illustration of the industrial revolutions overall. Source: Constructed by the author.*

#### *Industry 4.0 and Its Implications: Concept, Opportunities, and Future Directions DOI: http://dx.doi.org/10.5772/intechopen.102520*

and intelligently in interoperability [11]. However, several researchers have different perceptions of the meaning of industry 4.0.

Kagermann, et al. [12] stress that industry 4 utilizes the power of communications technology and innovative inventions to boost the development of the manufacturing industry. Corresponding to Kagermann et al., the primary features of the industry 4.0 idea are characterized by three aspects: (1) horizontal integration, (2) vertical integration, and (3) end-to-end digital integration of engineering. Qin, Liu, and Grosvenor [13] emphasize that industry 4.0 encourages manufacturing efficiency by collecting data, making correct decisions. By using the most advanced technologies, the procedures will be easier. The interoperability operating ability to ensure a stable manufacturing environment. This overall consciousness gives Industry 4.0 the most important aspect of artificial intelligent functions.

The Fourth Industrial Revolution, 4IR, or Industry 4.0 conceptualizes rapid change to technology, industries, and societal patterns and processes in the 21st century due to increasing interconnectivity and smart automation [14]. Schwab pointed out that Industry 4.0 is one of the most important concepts in the development of global industry and the world economy, he accentuates that, Industry 4.0 is differentiated by a few characteristics of new technologies, the improvement in technologies is bringing significant effects on industries, economies, and governments' development plans [15]. Industry 4.0 also denotes a social, political, and economic transformation from the digital age of the late 1990s and early 2000s to an era of embedded connection marked by widespread technological use (e.g., a metaverse). That, in comparison to humans' inherent senses and industrial ability alone, we have constructed and are entering an augmented social reality [16].

Wang et al., [17] defined the fourth industrial revolution as the modern and more sophisticated machines and tools with advanced software and networked sensors that can be used to plan, predict, adjust, and control the societal outcome and business models. Thus, Industry 4.0 is an advantage to stay competitive in any industry. Also, Industry 4.0 can be perceived as a strategy for being competitive in the future. It is focused on the optimization of value chains due to autonomously controlled and dynamic production [18]. Furthermore, industry 4.0 is possible to indicate three future-relevant themes related to it, such as: dealing with complexity, capacity for innovation, and flexibility [19].

According to the concepts above, the majority of the researchers considered Cyber-Physical Systems (CPS), Internet of Things (IoT), Industrial Internet, and other topics to be part of Industry 4.0. Numerous authors also emphasized Industry 4.0 on the cost and profitability of recently created high-tech information and intelligent services. According to previous research on Industry 4.0, the early focus was mostly on the industrial manufacturing sector, but many industries are now adopting Industry 4.0, including automotive, engineering, chemical, and electronics. As a result, Industry 4.0 is aggregating existing ideas into a different value chain that leads to an improvement in transforming entire value chains of goods life cycles while developing innovative products in manufacturing, involving the connection of systems and things that create self-organizing and dynamic control within the organization.

Industry 4.0, often referred to as the fourth industrial revolution, is the vision or scenario of a future production process characterized by new levels of controlling, organizing, and transforming the entire value chain with the life cycle of products through three types of effective integration: horizontal, vertical, and end-to-end engineering integration, resulting in increased productivity and flexibility, the

industry 4.0 leads to cost optimization and reduction [11]. The Cyber-Physical Systems (CPS), Internet of Things (IoT), artificial intelligence (AI), additive manufacturing, cloud computing, and other technologies are then combined to construct dynamic, real-time optimized, and self-organizing cross-company value networks. All of these components are necessary and integral to the futuristic Industry 4.0 concept.
