The ongoing industrial transformation, Industry 4.0, integrates cyber-physical systems, IoT/IIoT, cloud–edge infrastructures, AI/ML, robotics, and digital twins into manufacturing and supply-chain environments. This paper presents a critical, systematic literature review of 45 peer-reviewed articles (2013–2024) following PRISMA guidelines. We synthesize the conceptual foundations, enabling technologies, applications, benefits, and challenges, and critically assess the transition to Industry 5.0.
Evidence indicates that Industry 4.0 delivers measurable improvements: 10–20% gains in equipment utilization, 15–30% reductions in defects, and 20–40% reductions in downtime when technologies are deployed in integrated configurations (IIoT + digital twin + AI). However, five persistent constraints mediate these benefits: cybersecurity vulnerabilities, high implementation costs (disproportionately affecting SMEs), workforce skills gaps, interoperability deficits, and governance/policy fragmentation.
Significant contradictions in the literature are identified. While some studies report ROI exceeding 30%, fewer than 50% of manufacturing firms achieve positive returns from fragmented deployments. Pilot-to-scale failure is widely acknowledged but rarely quantified. Sustainability claims require rigorous lifecycle assessment due to rebound effects.
Industry 5.0 reorients the trajectory toward human-centricity, sustainability, and resilience. However, it remains conceptually fragmented, policy-driven rather than empirically grounded, with speculative claims about 6G (TRL 2–3) and quantum computing (TRL 1–2). Priority research gaps include longitudinal ROI studies, socio-technical metrics, and comparative policy experiments. This review contributes a critical synthesis and strategic recommendations for academia, industry, and policymakers to achieve equitable and sustainable industrial transformation.
Type of Study:
Review |
Subject:
Manufacturing Process & Systems Received: 2025/12/11 | Accepted: 2026/06/2