Industry 5.0: Welcome to the Era of Human-Centric Automation

Not so long ago, Industry 4.0 was one of the hottest tech trends. These days, attention has shifted to the next wave – Industry 5.0. What differentiates these two iterations is their respective focus: While 4.0 was built on efficiency through automation, 5.0 is all about collaboration and the relationship between humans and technology.  

The relevance of Industry 5.0 is rising fast: What started out as little more than a concept in 2019 is now a widely recognized competitive advantage. In addition to being one of Accenture’s tech trends for 2025, it also featured in my blog of last December, in which I previewed some of this year’s top trends. This month, we’ll take a closer look at this new era. 

The Road to Industry 5.0 

Back in 2022, Forbes summed up the differences between Industry 4.0 and 5.0 as follows: “Industry 5.0 reflects a shift from a focus on economic value to a focus on societal value, and a shift in focus from welfare to wellbeing.” Before diving deeper into the fifth wave of industrialization, let’s look back over the ones that came before. 

What we now call Industry 1.0 was the first era of industrial production, powered by steam and water. The advent of electrification and mass production ushered in Industry 2.0. Here, as elsewhere, it’s important to remember that the various iterations tend to overlap in terms of their underlying tech – with some technologies continuing to play their part right up to the present day. 

Shifting Focus from Productivity to Society 

Widespread adoption of computers, electronics, and globalization were the defining features of Industry 3.0. During this era, the development of linear, hierarchical systems laid the foundation for Industry 4.0. The fourth iteration, in turn, was characterized by digitization and automation, AI technologies, connected devices, data analytics, and digital transformation through the Internet of Thing (IoT).  

Finally, we come to Industry 5.0. Here, as already mentioned, the focus is on collaboration between humans and technology. Other central factors include increased resilience and sustainability. As the EU Commission puts it: “Industry 5.0 provides a vision of industry that aims beyond efficiency and productivity as the sole goals and reinforces the role and the contribution of industry to society.” 

Distinctive Features of Industry 5.0 

According to EU Commission research, Industry 5.0 has the following core characteristics. It is: 

• Human-centric  

• Resilient 

• Sustainable 

  
  

Human-centricity puts the wellbeing of the worker at the heart of the production process. AI and other emerging technologies must, therefore, be human-centric. These technologies include human-machine interfaces (HMIs), such as augmented reality (AR) and virtual reality (VR) as well as gesture control. What’s more, the tech must be regulated to ensure ethical use – for example, by the provisions of the EU AI Act. 

Resilience entails using new technologies to deliver more than just job security. Tech should also help secure growth in times of geopolitical uncertainty and disruption. Here, too, HMIs have a part to play, enabling real-time human oversight and higher response rates. 

The final characteristic, sustainability, needs little explanation. Here, as elsewhere, the top priority is to respect the production limits of the planet. 

Technological Differentiators 

Industry 5.0 is shaped not only by these general characteristics, but also by distinctive technological aspects. AI-driven automation is one important element. Additionally, physical AI – in other words, cobots (collaborative robots), robots, edge AI, and smart sensors – plays a pivotal role. Big data analytics, smart systems, virtualization, and machine learning also have their parts to play. 

Although the European Commission formally introduced Industry 5.0 back in 2021, it was initially little more than a conceptual framework. Adoption in real-world applications began to take off in 2023 and 2024 – for example, through the integration of cobots in the automotive sector.  

Key Drivers of Industry 5.0

One of the main drivers for Industry 5.0 is the ongoing workforce transformation. Aging workforces in Europe and Asia, plus an increasing focus on meaningful work are reshaping the way that humans interact with machines. One example of this in action is provided by an Amazon warehouse in Shreveport, Louisianna. This facility boasts 10 times more robotics and advanced AI than earlier warehouses, simultaneously offsetting the negative effects of labor shortages and creating 30% more skilled jobs. 

Increasing pressure to operate sustainably is also driving the adoption of Industry 5.0 ideals and technologies. Today, companies are obliged to show their environmental, social and governance (ESG) impact – for example, in accordance with Corporate Sustainability and Reporting Directive (CSRD). Such requirements are fueling demand for energy-efficient, circular, and socially responsible production models. 

Another factor is the maturity of the enabling technologies. For example, advances in AI agents, robotics, edge computing, and human-machine interfaces have made collaborative environments more scalable and intuitive. 

Example: The Role of AI Agents 

Agentic AI is pivotal to the rise of Industry 5.0, enabling augmentation instead of automation. Not only can AI agents interpret real-time signals and make contextual decisions; they can also collaborate with human workers on semi-structured tasks.  

In this way, agentic AI bridges the gap between data insight and operational action. Better yet, the tech adapts continuously through feedback and learning. In fact, Gartner predicts that by 2028 agentic AI will be making at least 15% of day-to-day work decisions autonomously, securing the tech’s position as a main driver of Industry 5.0. 

The Future Is Now 

It’s important to realize that industry 5.0 isn’t some trend of the far-distant future – it’s with us today. You could say that we’re already in the midst of a new era. And there’s more to come: The three central aspects identified by the European Commission (human-centricity, resilience, and sustainability) are expected to gain importance and urgency in the coming years.  

On the tech side, the increasing implementation of cobots and AI agents will help drive this current wave of the industrial revolution in manufacturing. The vast potential of collaborative robots is reflected in projected growth figures for the tech. While the global cobots market was valued at USD 2.14 billion in 2024, it’s currently expected to hit USD 11.64 billion by 2030, with a CAGR of 31.6%. 

Have Your Say 

What are your thoughts on the topic of Industry 5.0? Where do you see current and future developments taking us? If you’d like to contribute to the discussion, please leave a comment below. I look forward to hearing your views.