What is Industrial Revolution 4.0 and How Does it Work?

Industrial Revolution can be defined as the changes that occurred, notably in the economic sector, from farming-based economic activities to economic activities based on machine use.

Friedrich Engels and Louis Aguste Blanqui coined the term industrial revolution in the middle of the 19th century. Consequently, the Industrial Revolution has indirectly facilitated human occupation, which began with handicrafts before transitioning to machinery.

As is common knowledge, the Industrial Revolution had four phases: the First Industrial Revolution (1784–1870), the Second Industrial Revolution (1870–1969), the Third Industrial Revolution (1969–present), and the Industrial Revolution 4.0.

First Industrial Revolution

James Hagreaves’ introduction of the cotton spinning machine in roughly 1767 marked the beginning of the first Industrial Revolution, which eventually grew and gave rise to the usage of steam power and machinery. The usage of machines that facilitate easier manufacturing provides evidence of the technological side. For instance, the crop becomes more structured and organised, which contributes to a better environment where environmental problems like flooding and contamination are not as prevalent.

In the meantime, the Industrial Revolution had a significant impact on the economy as a tool for raising productivity, which indirectly helped to promote goods and boost income flow. The demographic component demonstrates how, during the Industrial Revolution, people tended to move their manufacturing from the domestic (at home) to the industrial (at factories) levels. Inadvertently, this demonstrates that population growth was rapid, leading to a rise in both the supply and demand for work. As a result, the First Industrial Revolution resulted in the development and deployment of work-facilitating machines, which eventually led to the establishment of demand and supply.

Second Industrial Revolution

Regarding its technological component, the Second Industrial Revolution concentrated on the utilisation of electricity and the mass production of resources. This is owing to the fact that the development of numerous machine types, ranging from steam-powered machines with competence to yarn spinning machines, has resulted in a significant increase in output and production. The development of its technology has brought about advances in communication as well as the opening of the railways and the usage of metal by the chemical industry.

While this is happening, more factories are sprouting up, increasing competition as they compete for access to more advanced technology that will eventually produce large amounts of goods. The Second Industrial Revolution also demonstrates the emergence of contemporary capitalism, in which individuals frequently own their own businesses and run them profitably in a market environment. Additionally, the demographic picture demonstrates that industrial activity has grown and is drawing more people to jobs. The population is expanding quickly, which has led to a rise in demand. As a result, this revolution increased revenue and raised people’s living standards relative to earlier times.

Third Industrial Revolution

The Third Industrial Revolution commenced in 1969, with a primary emphasis on the fields of electronics and information technology (IT). This revolution mostly centres around the progress in technology manufacturing, specifically in the fields of computers and the internet. Hence, the advent and utilisation of the Internet have the potential to enhance work processes, increase flexibility, reduce production time, and improve control. Moreover, the utilisation of the Internet might expedite the progression of market demand. The reason for this is that the internet facilitates prompt responses and enhances accuracy. In the realm of economics, this phenomenon serves to aid corporations in the reduction of costs and the augmentation of revenues.

The Third Industrial Revolution places significant emphasis on Asia as a key actor in the market dynamics, with several countries in the region emerging as formidable competitors to their developed counterparts. The accelerated dissemination of knowledge facilitated by the utilisation of the Internet has enabled Asian countries to rapidly acquire knowledge and skills necessary for market development. The demographic component reveals that market demand has experienced growth as a result of a twofold increase in population. However, the progress of the Third Industrial Revolution, facilitated by the utilisation of computers and the Internet, has not met the anticipated speed. This can be attributed to the high cost of software required for the functioning of computers and the Internet, as well as the scarcity of qualified labour.

Industrial Revolution 4.0

Industrial Revolution 4.0 (Industry 4.0) is a term used to describe the ongoing automation and digitalization of manufacturing and industrial processes. It is driven by a convergence of technologies, including artificial intelligence (AI), robotics, the Internet of Things (IoT), 3D printing, and blockchain.

The advent of Industry 4.0 has brought about significant changes in the operational and value delivery processes of enterprises. The advancement is facilitating enhanced degrees of efficiency, productivity, and personalisation. Furthermore, it is important to note that this phenomenon is also giving rise to novel prospects for innovation and fostering economic expansion.

Here are some specific examples of how Industry 4.0 is being used today:

Automotive industry: Automakers are using AI and robotics to automate production lines and develop self-driving cars.

Manufacturing industry: Manufacturers are using IoT sensors to monitor their production lines and predict maintenance needs. They are also using AI to optimize their supply chains and improve product quality.

Healthcare industry: Hospitals are using AI to develop new treatments, diagnose diseases more accurately, and provide personalized care to patients.

Retail industry: Retailers are using AI to personalize the shopping experience for customers, optimize inventory levels, and reduce fraud.

Key characteristics of Industry 4.0

Cyber-physical systems: Cyber-physical systems are physical objects that are embedded with sensors, software, and networking capabilities. They can collect and exchange data with other systems in real-time, enabling new levels of automation and control.

Internet of Things (IoT): The IoT connects physical objects to the Internet, allowing them to be monitored and controlled remotely. This is enabling new forms of supply chain management, predictive maintenance, and customer service.

Artificial intelligence (AI): AI is being used to automate tasks, make decisions, and improve efficiency. AI is also being used to develop new products and services.

3D printing: 3D printing is enabling the rapid prototyping and production of custom products. This is disrupting traditional manufacturing processes and creating new opportunities for businesses.

Blockchain: Blockchain is a distributed ledger technology that can be used to track and manage transactions securely. Blockchain is being used to develop new applications in supply chain management, finance, and other industries.

Impact of Industrial Revolution 4.0 on society

Industry 4.0 has a significant impact on society. It is altering how we work, reside, and interact with the outside world.

Economic impact: Industry 4.0 is expected to create new jobs and boost economic growth. However, it is also likely to displace some workers, as automation takes over more tasks.

Social impact: Industry 4.0 is changing the nature of work. Workers need to be more adaptable and willing to learn new skills. Industry 4.0 is also creating new opportunities for education and lifelong learning.

Environmental impact: Industry 4.0 can help to reduce environmental impact by making manufacturing more efficient and sustainable. For example, AI can be used to optimize energy consumption and reduce waste.

Challenges of Industrial Revolution 4.0

Industry 4.0 also poses some challenges, including:

Ethical concerns: Some people are concerned about the ethical implications of AI and other emerging technologies. For example, there is concern about job displacement and the potential for AI to be used for malicious purposes.

Job displacement: As automation takes over more tasks, some workers may be displaced. It is important to invest in education and training to help workers adapt to the changing workplace.

Widening inequality: There is a risk that Industry 4.0 will widen the gap between the rich and the poor. It is important to ensure that the benefits of Industry 4.0 are shared widely.


Industry 4.0 is a complicated and revolutionary force that is fundamentally altering civilisation. It is vital to possess knowledge regarding the difficulties and opportunities that are associated with Industry 4.0. Collaborative efforts are necessary to ensure the equitable distribution of benefits derived from Industry 4.0.

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Raj Maurya

Raj Maurya is the founder of Digital Gyan. He is a technical content writer on Fiverr and When not working, he plays Valorant.

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