What is Industry 4.0?
Industry 4.0 is the fourth industrial revolution, in which machines, products, sensors and business systems are connected through networks and data so that production becomes more flexible, more efficient and more data-driven. At its core is the merging of the physical and digital worlds in cyber-physical systems: installations that measure, communicate and partly make their own decisions. The concept originated in Germany as a government initiative and was translated in the Netherlands into the Smart Industry programme. Because Industry 4.0 links the shop floor to the office and the cloud, it is one of the main drivers of OT convergence.
🕰️ Where does the term Industry 4.0 come from?
Industry 4.0 (in German, Industrie 4.0) was publicly launched at the Hannover Messe in April 2011. Henning Kagermann (acatech), Wolf-Dieter Lukas (German Federal Ministry of Education and Research) and Wolfgang Wahlster (DFKI) described the idea on 1 April 2011 in an article in VDI nachrichten, published just before the fair; at the opening, Wahlster presented the term to policymakers and industry leaders. The German government then made Industrie 4.0 one of the future projects of its High-Tech Strategy 2020.
| Year | Milestone |
|---|---|
| 2006 | The US National Science Foundation introduces the term cyber-physical systems |
| 2011 | Public launch of Industrie 4.0 at the Hannover Messe |
| 2013 | Final report of the Industrie 4.0 working group presented to the Chancellor; Bitkom, VDMA and ZVEI found the Plattform Industrie 4.0 |
| 2014 | The Netherlands launches Smart Industry with the report Dutch industry fit for the future and an action agenda |
| 2015 | Relaunch of the Plattform under two German federal ministries; first version of RAMI 4.0 |
| 2016–2017 | RAMI 4.0 published as DIN SPEC 91345 and IEC PAS 63088 |
| 2020 | Founding of the Industrial Digital Twin Association (IDTA) for the Asset Administration Shell |
| 2021 | The European Commission introduces Industry 5.0 |
| 2023 | IEC 63278-1 standardises the structure of the Asset Administration Shell |
🔄 What are the four industrial revolutions?
The numbering 1.0 to 4.0 is a German framework. Each revolution is linked to a technology that fundamentally changed the way goods are produced.
| Phase | Symbolic starting point | Characteristic |
|---|---|---|
| Industry 1.0 | 1784, first mechanical loom | Mechanisation with water and steam power |
| Industry 2.0 | 1870, first production line in the Cincinnati slaughterhouses | Mass production with electricity and division of labour |
| Industry 3.0 | 1969, first PLC (Modicon 084) | Automation with electronics and IT |
| Industry 4.0 | 2011, launch at the Hannover Messe | Cyber-Physical Systems, IoT, data analytics and AI |
Industry 3.0 automated individual machines and lines. Industry 4.0 connects that automation across the boundaries of machine, factory and company.
⚙️ Which technologies form the core of Industry 4.0?
| Technology | Role in Industry 4.0 |
|---|---|
| Cyber-Physical Systems (CPS) | Physical installations with embedded computing and communication |
| Industrial Internet of Things (IIoT) | Connected machines and sensors that continuously deliver data |
| Edge Computing and Cloud | Processing close to the machine, plus scalable central storage and analytics |
| AI and Machine Learning | Recognising patterns, predicting quality and optimising processes |
| Digital Twin | Virtual representation of a product, machine or process for simulation and monitoring |
| Asset Administration Shell (AAS) | Standardised digital twin of an asset according to IEC 63278 |
| OPC UA | Vendor-independent communication with semantic information models |
| 5G and TSN | Wireless and deterministic networks for real-time applications |
| Additive manufacturing and AR | 3D printing of parts and augmented reality for maintenance and training |
Big data and analytics are the common thread: the value lies not in the connection itself, but in what you do with the data.
🧠 How do RAMI 4.0 and the Asset Administration Shell work?
To standardise Industry 4.0, the Plattform Industrie 4.0 developed the Reference Architecture Model Industrie 4.0 (RAMI 4.0). This three-dimensional model describes every Industry 4.0 system along three axes:
- Layers — six layers from physical to business: Asset, Integration, Communication, Information, Functional and Business
- Life cycle and value stream — based on IEC 62890, distinguishing between type (the design) and instance (the built unit)
- Hierarchy levels — derived from ISA-95 (IEC 62264) and ISA-88 (IEC 61512), extended with Product and Connected World
That hierarchy axis resembles the automation pyramid and the Purdue Model, but Industry 4.0 assumes that components also communicate outside the strict layers.
The Asset Administration Shell is the practical implementation of the digital twin within RAMI 4.0. Every asset, from a sensor to a complete machine, receives a digital “shell” with submodels for, for example, the nameplate, technical data and documentation. The structure is laid down in IEC 63278-1:2023; the IDTA publishes the submodels.
🏭 What are examples of Industry 4.0 applications?
- Predictive Maintenance — vibration and temperature data predict failures before a machine stops
- Real-time quality control — Vision systems with AI inspect every product instead of a sample
- Full traceability — through sensors and integration of MES and ERP, you know how and when each product was made
- Flexible production lines — lines that automatically adapt to product variants, down to batch size one
- Human-robot collaboration — cobots working alongside operators without safety fencing
- Central data layer — a Unified Namespace that makes machine data available to every system
- Production performance — automatically calculated OEE instead of manual recording
An Industry 4.0 factory is therefore connected in real time, flexible and data-driven. Machines make decentralised decisions, but always within limits set by people and safety systems.
🔄 How does Industry 4.0 relate to Smart Industry and Industry 5.0?
| Concept | Origin | Emphasis |
|---|---|---|
| Industrie 4.0 | German government and industry, 2011 | Technology, standardisation and productivity |
| Smart Industry | FME, TNO, VNO-NCW, the Chamber of Commerce and the Dutch Ministry of Economic Affairs, 2014 | Dutch implementation with field labs and regional hubs |
| Industrial Internet | United States: term coined by GE (2012), then the Industrial Internet Consortium (2014), now the Industry IoT Consortium | Industrial IoT across sectors |
| Industry 5.0 | European Commission, January 2021 | Human-centric, sustainable and resilient |
Smart Industry is the Dutch counterpart. The April 2014 report was followed by an action agenda (2014–2018) and an implementation agenda (2018–2021). The number of field labs, practical environments where companies and knowledge institutions test new technology, grew from ten to 47.
Industry 5.0 does not replace Industry 4.0 but complements it. The European Commission wants technology to serve not only efficiency, but also worker wellbeing, the climate and the resilience of supply chains.
🔐 Why does Industry 4.0 make IT/OT convergence and cybersecurity essential?
Industry 4.0 only works when OT (machines, sensors, PLCs) and IT (databases, analytics, cloud platforms) exchange data. This removes the old separation between the two worlds and introduces new risks:
- Larger attack surface — every connected sensor, gateway or cloud link is a potential entry point
- Legacy systems — installations that last twenty years or more were never designed for network connections
- Remote suppliers — remote access for maintenance and monitoring must be strictly controlled
- Different priorities — in OT, availability and safety come before confidentiality
Cybersecurity is therefore a precondition, not an afterthought. The IEC 62443 series provides the framework with zones, conduits and security levels, and network segmentation prevents an incident in IT from spilling over into production. On the regulatory side, NIS2 (implemented in the Netherlands by the Cyberbeveiligingswet, in force since 15 August 2026), the Cyber Resilience Act for products with digital elements (main obligations from 11 December 2027) and the Machinery Regulation (from 20 January 2027) all apply.
🧭 How do you approach Industry 4.0 step by step?
- Start with a business problem — for example unplanned downtime, scrap or energy consumption, not with the technology.
- Map your installations — which machines already deliver data, which protocols are in use and what is brownfield?
- Unlock data in a standardised way — with OPC UA, MQTT or an edge gateway, without disturbing the control system.
- Design security from the start — segment the network according to IEC 62443 and define who gets access to what.
- Start with a pilot — measure the result, for example in OEE or downtime hours, before scaling up.
- Organise IT/OT collaboration — shared responsibility for architecture, operations and incidents.
- Scale up with standards — use AAS submodels and information models so that new machines connect without custom work.
Dutch SMEs can turn to the Smart Industry field labs and regional hubs for support.
❓ Frequently asked questions
Who coined the term Industry 4.0?
The term Industry 4.0 was publicly introduced in 2011 by Henning Kagermann, Wolf-Dieter Lukas and Wolfgang Wahlster, in a VDI nachrichten article published just before the Hannover Messe. The concept grew out of the German High-Tech Strategy, in which government, science and industry worked together. Since then, companies worldwide have used Industry 4.0 as an umbrella term.
What is the difference between Industry 4.0 and Smart Industry?
Industry 4.0 is the original German concept for the digitalisation of industry. Smart Industry is the Dutch name and the associated programme, launched in 2014 by organisations including FME, TNO and the Ministry of Economic Affairs. Both cover the same technologies, but Smart Industry focuses on implementation through field labs.
What is RAMI 4.0?
RAMI 4.0 is the reference architecture model of Industry 4.0, published as DIN SPEC 91345 and IEC PAS 63088. It describes a system along three axes: six layers, the life cycle and the hierarchy levels from product to Connected World. This allows manufacturers and users to position Industry 4.0 components unambiguously.
What is the difference between Industry 4.0 and Industry 5.0?
Industry 4.0 is mainly about connecting, automating and efficiency using technologies such as IIoT, AI and digital twins. Industry 5.0, introduced by the European Commission in January 2021, adds three values: human-centric, sustainable and resilient. Industry 5.0 therefore builds on Industry 4.0 rather than replacing it.
Why is cybersecurity so important in Industry 4.0?
Industry 4.0 connects OT systems that used to be isolated to IT networks and the cloud, allowing attackers to reach production processes. A cyber incident can cause downtime, product damage or dangerous situations. Standards such as IEC 62443 and legislation such as NIS2 and the Cyber Resilience Act therefore make security a mandatory part of Industry 4.0.
Is Industry 4.0 feasible for SMEs?
Industry 4.0 is also feasible for SMEs, provided you start small with one concrete problem and a clearly scoped pilot. Many applications, such as machine monitoring or predictive maintenance, are available as affordable edge or cloud solutions. In the Netherlands, Smart Industry field labs and regional hubs help companies take those first steps.
📌 In summary
Industry 4.0 is the digital transformation of production environments, in which cyber-physical systems, IIoT, AI and digital twins connect machines, products and business systems. The concept started in Germany in 2011, gained a standardised foundation through RAMI 4.0 and the Asset Administration Shell, and is known in the Netherlands as Smart Industry. Success requires IT/OT convergence and a cybersecurity approach based on IEC 62443.