International organizations are increasingly recognizing Industry 4.0 technologies for their potential role in industrial decarbonization. Yet, their contribution to climate change mitigation within the manufacturing industry is uncertain and access is highly uneven globally. This section sheds light on Industry 4.0 progress, beyond the superlatives.

Proven technologies  

  • 3D printer printing metal. Laser sintering machine for metal. Metal is sintered under the action of laser into shape. DMLS, SLM, SLS. Modern additive technologies 4.0 industrial revolution. Sparks 3D printer printing metal. Laser sintering machine for metal. Metal is sintered under the action of laser into shape. DMLS, SLM, SLS. Modern additive technologies 4.0 industrial revolution. Sparks

    Additive manufacturing (3D printing) of steel

    Continuous casting – the process whereby steel is shaped and solidified without interruption – has become the industry standard. Over…
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    4. Industry / Industry 4.0 / Proven technologies

    Additive manufacturing (3D printing) of steel

    SLM Solutions
    3D printer printing metal. Laser sintering machine for metal. Metal is sintered under the action of laser into shape. DMLS, SLM, SLS. Modern additive technologies 4.0 industrial revolution. Sparks
    Getty Images /© Marina_Skoropadskaya

    Continuous casting – the process whereby steel is shaped and solidified without interruption – has become the industry standard. Over 96 percent of steel is produced through this process which has reduced significantly the amount of liquid steel needed to produce steel sheets. Two more recent versions of this process are thin slab casting and near-net-shape casting (NNSC). Near-net-shape casting is a family of techniques where the production process is calibrated to make an object as close to its final shape as possible. Additive manufacturing (or 3D-printing) is one example. This reduces waste and removes several post-process stages, ultimately lowering energy consumption. SLM Solutions produces various machines for additive manufacturing. An example is the selective laser melting system SLM 280 2.0 suitable for medium-to-high volumes of metal additive manufacturing.

    • Contracting type: For sale
    • Technology level: High
    • Country of origin: Germany
    • Availability: Worldwide
  • computer modelling for construction industry computer modelling for construction industry

    Computer modelling for reduced resource use in construction

    Autodesk’s BIM 360 is a cloud-based platform providing building information modeling (BIM) software for the construction industry. BIM is…
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    4. Industry / Industry 4.0 / Proven technologies

    Computer modelling for reduced resource use in construction

    Autodesk
    computer modelling for construction industry
    © Autodesk

    Autodesk’s BIM 360 is a cloud-based platform providing building information modeling (BIM) software for the construction industry. BIM is the foundation for digital transformation and allows architects to visualize and plan designs according to various scenarios and parameters. Moreover, it encourages building component reuse. It does so through better design and planning undertaken with a building’s eventual deconstruction in mind. Autodesk’s platform includes tools for 3D modeling, project management and collaboration. This helps reduce over-design and unnecessary use of high-carbon materials such as steel and cement.

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: United States
    • Availability: Worldwide
  • Control panel. Plant for the production of steel. Control panel. Plant for the production of steel.

    Automated control system for electric arc furnaces

    AMI Automation has developed an automated control system for steelmaking electric arc furnaces. The company’s SmartFurnaceTM
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    4. Industry / Industry 4.0 / Proven technologies

    Automated control system for electric arc furnaces

    AMI Automation
    Control panel. Plant for the production of steel.
    Getty Images /© davit85

    AMI Automation has developed an automated control system for steelmaking electric arc furnaces. The company’s SmartFurnaceTM technology is centered around artificial intelligence. Its different modules enable key parameters to be measured and controlled, including temperature, off-gas, slag level, arc stability, as well as gas, oxygen and carbon status. Laser technology and off-gas sensors allow best operating points and energy saving to be quickly identified. The system can also control the rate at which steel is input through continuous feeding systems so as to maintain optimal temperature.

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: Mexico
    • Availability: Worldwide
  • robots welding in a car factory robots welding in a car factory

    Automation and control systems for steel and cement

    Siemens supplies a range of automation solutions for various industries, including steel and cement. Within the steel sector, Siemens offers…
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    4. Industry / Industry 4.0 / Proven technologies

    Automation and control systems for steel and cement

    Siemens AG
    robots welding in a car factory
    Getty Images /© WangAnQi

    Siemens supplies a range of automation solutions for various industries, including steel and cement. Within the steel sector, Siemens offers solutions for automated material handling, such as the Siemens Mechatronic Solution for Material Handling (MSMH). This system uses advanced control algorithms and simulation tools to optimize material flow and reduce energy consumption. It incorportates a range of components – for example, cranes, conveyors and stackers – that can be configured to meet a steel plant’s specific needs. Within the cement sector, Siemens provides the Simine Conveyors system. This uses advanced control algorithms and simulation tools to optimize conveyor belt operation and improve energy efficiency. Similarly, components such as drive systems, pulleys and belt cleaners can be tailored to a cement plant’s specific requirements.

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: Germany
    • Availability: Worldwide
  • A technician oversees the control center for a public water utility company. A technician oversees the control center for a public water utility company.

    Digital energy management system

    Metron’s digital tool optimizes grinding mill efficiency, saving cement plants both cost and energy. The tool enables production planning…
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    4. Industry / Industry 4.0 / Proven technologies

    Digital energy management system

    Metron
    A technician oversees the control center for a public water utility company.
    Getty Images /© Terry J Alcorn

    Metron’s digital tool optimizes grinding mill efficiency, saving cement plants both cost and energy. The tool enables production planning according to energy market conditions by collecting data on production, consumption and operation parameters. Thereafter, sequencing rules are built to provide a holistic view of the plant, with personalized dashboards. Comparing data to baselines, real-time alerts are issued when ideal energy consumption is exceeded. Examples of data collected include mill intensity, furnace temperature, emission analysis and energy consumption.

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: France
    • Availability: Worldwide

Frontier technologies  

  • AI platform for control room operators: optimizing energy use for steel and cement AI platform for control room operators: optimizing energy use for steel and cement

    AI platform for control room operators: optimizing steel and cement energy usage

    Carbon Re’s Delta Zero is a software platform that uses artificial intelligence (AI) to optimize steel and cement production processes. Analysis…
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    4. Industry / Industry 4.0 / Frontier

    AI platform for control room operators: optimizing steel and cement energy usage

    Carbon Re
    AI platform for control room operators: optimizing energy use for steel and cement
    © Carbon RE

    Carbon Re’s Delta Zero is a software platform that uses artificial intelligence (AI) to optimize steel and cement production processes. Analysis of real-time sensor data generates a high-resolution digital twin of the plant. This twin enables AI “agents” to learn process control through deep reinforcement learning – an AI area that has witnessed a significant breakthrough in recent years. Software then provides operators with clear, actionable recommendations for the various process stages and parameters. According to the company, up to 10 percent energy savings and 20 percent emission reductions can be achieved, while also keeping equipment within a safe operating space and controlling NOx emission limits.

    • Contracting type: For collaboration
    • Technology level: High
    • Country of origin: United Kingdom
    • Availability: N/A
  • Simens Insights Hub (former Mindsphere) digital IIoT platform Simens Insights Hub (former Mindsphere) digital IIoT platform

    Distributed ledger technology for product tracking

    Siemens Insights Hub (former Mindsphere) digital IIoT platform tracks products transparently throughout their entire life-cycle. It is based on…
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    Distributed ledger technology for product tracking

    Siemens AG
    Simens Insights Hub (former Mindsphere) digital IIoT platform
    © Siemens AG

    Siemens Insights Hub (former Mindsphere) digital IIoT platform tracks products transparently throughout their entire life-cycle. It is based on distributed ledger technology. The tool assesses all useful information before forwarding relevant data subsets to the distributed ledger. There the data are safely and transparently stored for relevant stakeholder access. This enables a better control of operations and the connection of assets such as products, plants, systems and machines to a central location where sustainability data can be collected, analyzed and acted upon.

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: Germany
    • Availability: Worldwide
  • Augmented reality for manufacturing industries Augmented reality for manufacturing industries

    Mixed reality for manufacturing industries

    HoloLens 2 is a Microsoft product that enables staff at manufacturing plants and other industries to learn complex tasks and collaborate using…
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    4. Industry / Industry 4.0 / Frontier

    Mixed reality for manufacturing industries

    Microsoft Corporation
    Augmented reality for manufacturing industries
    © Microsoft Corporation

    HoloLens 2 is a Microsoft product that enables staff at manufacturing plants and other industries to learn complex tasks and collaborate using mixed reality technology. Through mixed reality applications, the technology aims to make manufacturing processes more lean and efficient, while reducing expert travel time. HoloLens 2 is a head-mounted device that staff can wear on a needs-basis. 

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: United States
    • Availability: Worldwide
  • smart robot in manufacturing industry for industry 4.0 and technology concept. Robotic vision sensor camera system. smart robot in manufacturing industry for industry 4.0 and technology concept. Robotic vision sensor camera system.

    Real-time cement plant optimization

    TITAN Cement Group provides technology for optimizing cement plant production and energy efficiency. Sensors are integrated across plant…
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    Real-time cement plant optimization

    TITAN Cement Group
    smart robot in manufacturing industry for industry 4.0 and technology concept. Robotic vision sensor camera system.
    Getty Images /© kynny

    TITAN Cement Group provides technology for optimizing cement plant production and energy efficiency. Sensors are integrated across plant equipment in order to record large volumes of operational data. Data is then transmitted, analyzed and used for the real-time optimization of production parameters, with the support of artificial intelligence technology.

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: Greece
    • Availability: Worldwide
  • Electrical switchgear room,Industrial electrical switch panel on plant and process control with business icon tools in grainy style. Electrical switchgear room,Industrial electrical switch panel on plant and process control with business icon tools in grainy style.

    AI-based cement plant predictive maintenance

    CemAI – part of TITAN Cement Group – supplies artificial intelligence-based predictive maintenance solutions for the cement sector. A specially…
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    4. Industry / Industry 4.0 / Frontier

    AI-based cement plant predictive maintenance

    CemAI
    Electrical switchgear room,Industrial electrical switch panel on plant and process control with business icon tools in grainy style.
    Getty Images /© Goodvibes Photo

    CemAI – part of TITAN Cement Group – supplies artificial intelligence-based predictive maintenance solutions for the cement sector. A specially developed algorithm, supported by sensors, helps predict plant failure. The technology simultaneously monitors the entire plant for anomalies, improving operational efficiency and reducing maintenance needs. Installation of the CemAI application takes approximately three months.

    • Contracting type: For sale/service
    • Technology level: High
    • Country of origin: Greece
    • Availability: Worldwide

Horizon technologies  

  • Transport and logistic concept, Manager and engineer checking and controlling logistic network distribution and data on tablet for logistic Import export on motorway background Transport and logistic concept, Manager and engineer checking and controlling logistic network distribution and data on tablet for logistic Import export on motorway background

    Digital modeling for optimized transport routes

    Western Digital develops digital models that optimize supply chains by automating transport and shipping routes. They have decreased supply chain…
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    4. Industry / Industry 4.0 / Horizon

    Digital modeling for optimized transport routes

    Western Digital
    Transport and logistic concept, Manager and engineer checking and controlling logistic network distribution and data on tablet for logistic Import export on motorway background
    Getty Images /© ipopba

    Western Digital develops digital models that optimize supply chains by automating transport and shipping routes. They have decreased supply chain transport transit time, thereby avoiding significant greenhouse gas emissions. The model builds on historical supply chain data and machine learning. It self-adjusts shipping routes based on changing requirements and customer purchase orders. This enables transport routes to be predicted more flexibly and accurately. The company has added carbon footprint as a metric to the model in order to track emission reductions, and a digital twin to run multiple model comparisons. The company is now working toward scaling and deploying the model.

    • Contracting type: For collaboration
    • Technology level: High
    • Country of origin: United States
    • Availability: N/A
  • Construction site of an office building in Berlin. The new structure will be built in modular timber construction. MODULAR WOODEN HOUSES made out of renewable resources. Construction site of an office building in Berlin. The new structure will be built in modular timber construction. MODULAR WOODEN HOUSES made out of renewable resources.

    Automated factories for mass production of buildings

    ADMARES has been working with Siemens and KUKA on digitally transforming the construction industry via smart factories (including automation) and…
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    4. Industry / Industry 4.0 / Horizon

    Automated factories for mass production of buildings

    ADMARES + KUKA
    Construction site of an office building in Berlin. The new structure will be built in modular timber construction. MODULAR WOODEN HOUSES made out of renewable resources.
    Getty Images /© JARAMA

    ADMARES has been working with Siemens and KUKA on digitally transforming the construction industry via smart factories (including automation) and homes. KUKA – a supplier of intelligent automation systems – will be supporting the development of the world’s first automated factory for off-site buildings production. Elements will include digital twins, robotized manufacturing and life-cycle digitalization. The technology aims to allow entire buildings to be mass produced at a factory by assembly-line workers.

    • Contracting type: For collaboration
    • Technology level: High
    • Country of origin: Finland
    • Availability: N/A

Innovation examples

  • Indian CEO and senior managers meet on the factory floor to examine manufacturing methods and ensure quality control. Indian CEO and senior managers meet on the factory floor to examine manufacturing methods and ensure quality control.

    India’s industrial lighthouse

    Steel plants operators use a process known as superheating to bring molten steel to the correct temperature for casting. The ideal temperature…
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    4. Industry / Industry 4.0 / Innovation examples

    India’s industrial lighthouse

    Indian CEO and senior managers meet on the factory floor to examine manufacturing methods and ensure quality control.
    Getty Images /© xavierarnau

    Steel plants operators use a process known as superheating to bring molten steel to the correct temperature for casting. The ideal temperature range is narrow. And if the steel is either too hot or not hot enough, quality can be affected. To improve the process, plant managers at Tata Steel’s Kalinganagar plant (one of the largest in India) have created an advanced analytics model that uses historical data to recommend process set points for higher strike rates (i.e., correct temperature predictions). The model is able to assess plant conditions and calculate how much heat to supply during superheating, in order for the molten steel to remain within target temperature range. This has resulted in a more effective process plus cost savings of USD 4 million a year. The plant has also invested in building the digital capacity of staff. It now employs over 30 analytics specialists who integrate the model into the company’s plan to improve performance indicators such as energy consumption, throughput, quality and yield.[181]

  • Industrial technology concept. Female engineer working in the factory. Digital transformation. Industrial technology concept. Female engineer working in the factory. Digital transformation.

    Digital twin and predictive maintenance within the cement sector

    Holcim – a large multinational cement producer – has launched the world’s first digital twin cement plant. The digital twin in question is a…
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    Digital twin and predictive maintenance within the cement sector

    Industrial technology concept. Female engineer working in the factory. Digital transformation.
    Getty Images /© metamorworks

    Holcim – a large multinational cement producer – has launched the world’s first digital twin cement plant. The digital twin in question is a real-time 3D virtual model of a company site in Switzerland. Holcim’s software and performance prediction algorithms are integrated into this 3D model, which uses sensors, data analytics and machine learning to prevent costly downtime and enable predictive maintenance. The project is part of Holcim’s Plants of Tomorrow program, using Industry 4.0 technologies across its sites to boost efficiency. The company plans to scale this digital twin technology across its operations, beginning in Europe. It expects this will save over 400,000 tonnes of CO2 emissions, albeit over an undefined period of time.

What is Industry 4.0?

Industry 4.0 – or the fourth industrial revolution – is a recently introduced term for the current digital transformation of the industrial sector. It is a continuation of the first industrial revolution that brought steam, the second,…
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What is Industry 4.0?

Industry 4.0 – or the fourth industrial revolution – is a recently introduced term for the current digital transformation of the industrial sector. It is a continuation of the first industrial revolution that brought steam, the second, electricity, and the third of the early 1970s that brought digital technologies, electronics and factory floor automation. Today’s technologies have evolved into so-called cyber-physical systems centered on connectivity. Thanks to its active promotion by organizations such as the World Economic Forum, Industry 4.0 as a term has gained popularity and is typically associated with anything linking industrial processes to advanced computing and modelling, internet of things (IoT), artificial intelligence (AI), robots, additive manufacturing, blockchain and so on.
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Transforming sustainable manufacturing through technology integration

The technologies enable communication between industrial machines and systems (the physical world) and external systems (the cyber world). This means industrial parts can perform tasks with little human intervention, thereby increasing…
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Transforming sustainable manufacturing through technology integration

The technologies enable communication between industrial machines and systems (the physical world) and external systems (the cyber world). This means industrial parts can perform tasks with little human intervention, thereby increasing efficiency. The integration of such connections has so far been expensive and complex, but new standards and a rapid price drop for technologies such as sensors now enables smaller companies to access “plug and play” integration for their IT systems.[142] In short, Industry 4.0 has the ability to enable predictive and preventive maintenance, optimize supply chains, enhance customization and personalization, and can adapt quickly to changing market demands.

Some technologies have seen a higher rate of uptake among manufacturing industries. They include cloud computing, horizontal and vertical data integration, IoT and big data analytics. Others – among them additive manufacturing, virtual/augmented reality and AI – are being adopted at a slower rate, particularly among small and medium-sized enterprises.[143] Of course, the picture varies from sector to sector, and applications for technologies such as AI are developing rapidly.
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Does Industry 4.0 contribute to industrial decarbonization today?

The narrative around Industry 4.0 and its contribution to decarbonizing manufacturing industries lacks consensus. The contribution of digital technologies to climate change mitigation in relation to sectors such as transport, buildings, media…
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Does Industry 4.0 contribute to industrial decarbonization today?

The narrative around Industry 4.0 and its contribution to decarbonizing manufacturing industries lacks consensus. The contribution of digital technologies to climate change mitigation in relation to sectors such as transport, buildings, media and agriculture is better understood. Empirical assessment of the manufacturing industry has been less comprehensive in comparison, other than in relation to smart grids. This may be owing to the relatively low digital penetration in this sector. Research also tends to focus on measuring Industry 4.0’s impact on a firm’s productivity rather than its decarbonization potential.

Research also tends to focus on measuring Industry 4.0’s impact on a firm’s productivity rather than its decarbonization potential

In general, gray literature dominates current research with sparse empirical data on implementation.[144] For instance, Fritzsche, Niehoff [145] analyzed documents from various intergovernmental organizations (IGOs) such as the International Energy Agency (IEA) and the United Nations Industrial Development Organization (UNIDO) on Industry 4.0’s role in climate change. They all strongly associated Industry 4.0 with climate change mitigation. Moreover, the technologies were viewed as enablers for increasing energy and resource efficiency within industrial production. They note that:

Modern digital technologies are viewed – by IGOs – as enablers for clean industrial development, but again concrete figures or case studies regarding Industry 4.0 and climate change mitigation are lacking.[146]

Industry reports also provide a positive outlook on the mitigation potential of digital technologies. A lot of data are emerging from companies themselves, such as Ericsson and Swisscom, on the enabling impact of digital technologies in relation to climate change.[147] However, assessment of their impact on industrial decarbonization has been less systematic than for other sectors.

Furthermore, research on possible negative environmental impacts from improving manufacturing productivity through digitalization is missing.[148][149] Data on the net climate impact of digital technologies is also sparse. This is important considering the substantial energy demand of digital technologies themselves. In total, the information and communications technology (ICT) sector’s carbon footprint has been estimated to be anything between 1.5–4 percent of the global total. But similar sector-wide data on Industry 4.0's GHG emissions abatement potential are less robust and there is no internationally agreed method of measurement.[150]
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Positive view of Industry 4.0 often based on predictions of the future

More work is required to gather empirical evidence on Industry 4.0’s GHG abatement impact. Meanwhile, countries’ industrial decarbonization plans increasingly include digital transformation elements. Furthermore, there is no shortage of reports…
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Positive view of Industry 4.0 often based on predictions of the future

More work is required to gather empirical evidence on Industry 4.0’s GHG abatement impact. Meanwhile, countries’ industrial decarbonization plans increasingly include digital transformation elements. Furthermore, there is no shortage of reports linking Industry 4.0 and climate change based on scenarios and assumptions about potential future impact on carbon, energy and materials savings. The IEA estimates digitalization of industrial processes could produce energy savings of up to 30 percent globally.[151] Consultancy company Accenture and World Economic Forum analyses estimate that digital technologies – if scaled across all of heavy industry – could reduce emissions by 20 percent by 2050.[152] For the material manufacturing sector specifically, they estimate that technologies like big data analytics and cloud or edge computing (i.e., distributed computing frameworks) could reduce emissions by 7 percent by 2050. Furthermore, the Association of German Engineers states that digitalization might lead to a 25 percent greater resource efficiency and a 20 percent reduction in carbon emission.[153]

Meanwhile, organizations such as the Global e-Sustainability Initiative have explored digital case examples and assessed digital technologies’ overall climate abatement potential for the manufacturing and construction sectors. Their prediction is that data-driven, AI-powered, networked smart factories and supply chains could save 171–495 MtCO2eq across seven major country studies.[154] On a global level, they predict that smart manufacturing could abate 22 percent (or 2.71 GtCO2eq) in these two sectors by 2030 (although that figure may require updating).[155] Again, these are predictive assessments and, as such, not based on empirical evidence.
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Industry 4.0 does not guarantee climate mitigation

There are optimistic expectations for the digital transformation of the manufacturing industry. However, industry’s willingness to collect data via Industry 4.0 technologies does not automatically translate into climate change mitigation…
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Industry 4.0 does not guarantee climate mitigation

There are optimistic expectations for the digital transformation of the manufacturing industry. However, industry’s willingness to collect data via Industry 4.0 technologies does not automatically translate into climate change mitigation efforts, or even productivity growth. A study by IBM suggests that 90 percent of all data stored is never utilized.[156] Industry 4.0’s potential contribution to manufacturing industry decarbonization therefore also depends on the ability of users to translate data into action.

90 percent of all data stored is never utilized. Industry 4.0’s potential contribution to manufacturing industry decarbonization therefore also depends on the ability of users to translate data into action

Environmental benefits from new technologies are not guaranteed. An example from the steel sector is additive manufacturing (AM). According to one claim by the IEA, steel sector material losses could be reduced through improved manufacturing techniques, including AM. In this scenario, AM would enable complex shape formation and high-added-value products to be made from recycled powders, potentially reducing emissions and minimizing material loss.[157] However, there is no consensus on the sustainability of AM in the academic literature.
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At worst, Industry 4.0 technologies could increase emissions

Additive manufacturing has been shown to have a larger carbon footprint compared to conventional steel manufacturing for each kilogram of material processed. This is owing to its high electrical energy intensity and low productivity.…
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At worst, Industry 4.0 technologies could increase emissions

Additive manufacturing has been shown to have a larger carbon footprint compared to conventional steel manufacturing for each kilogram of material processed. This is owing to its high electrical energy intensity and low productivity.[158][159][160] Moreover, Dusík et al.[161] assessed the best and worst-case environmental impacts of technologies, such as IoT, AM and AI, and found they could all increase GHG emissions if not managed properly.

The productivity gains for manufacturing industries expected from Industry 4.0 may lower product prices and stimulate higher consumption. 

Potential risk factors include higher energy consumption and greater energy intensity, as well as over-consumption and a change in business models. Difficult  to measure and subject to much uncertainty, rebound effects deserve more attention.[162] The productivity gains for manufacturing industries expected from Industry 4.0 may lower product prices and stimulate higher consumption.[163] Ultimately this could offset or even reverse any energy and material savings achieved by applying Industry 4.0 technologies in the first place. This underscores the need to better understand the impact of these technologies before integrating them into decarbonization plans.
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Slow rate of adoption

Industry itself appears cautious with regard to seizing Industry 4.0’s potential for climate change mitigation. Among energy-intensive industries in Sweden (steel, pulp-and-paper, chemicals) energy efficiency is considered a positive side-effect…
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Slow rate of adoption

Industry itself appears cautious with regard to seizing Industry 4.0’s potential for climate change mitigation. Among energy-intensive industries in Sweden (steel, pulp-and-paper, chemicals) energy efficiency is considered a positive side-effect of digital technologies, but not the main driver.[164] Indeed, a survey conducted among manufacturing industries in Italy reveals potential economic gain to be the key driver, while few associated Industry 4.0 with beneficial environmental impacts.[165]

Barriers to adopting Industry 4.0 technologies within the manufacturing industry typically include poor value-chain integration, cyber-security challenges, uncertainty about economic benefits, the workforce lacking necessary skills, high up-front costs, a lack of infrastructure and so on.[166]

Many developing countries are exploring digital technologies. But their readiness for implementing Industry 4.0 technologies is modest and the sustainability adoption rate in the manufacturing industry low compared to developed nations.[167] A total of 2.7 billion people globally continue to be offline.[168] Therefore inadequate or lacking digital infrastructure is an important barrier to adoption. That said, the high level of investment required for manufacturing industries to adopt Industry 4.0 is likely to be the most critical hurdle for companies in the developing world, along with the lack of a qualified workforce.[169]
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Cases of Industry 4.0 use in manufacturing industry

Despite a need for a better understanding of Industry 4.0 impacts, there are plenty of cases of existing and potential use. While adoption rates within manufacturing industry are lower than for other sectors, digital frontrunners have adopted…
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Cases of Industry 4.0 use in manufacturing industry

Despite a need for a better understanding of Industry 4.0 impacts, there are plenty of cases of existing and potential use. While adoption rates within manufacturing industry are lower than for other sectors, digital frontrunners have adopted several of the technologies. Table 4.1 lists prevailing Industry 4.0 technologies alongside their potential application for climate change mitigation within manufacturing industry. Industry 4.0 technologies may have high or higher mitigation potential in other sectors, particularly the energy sector, which have not been included in this review.  

Table 4.1 Potential cases for Industry 4.0 technology use for industrial decarbonization within manufacturing industry [170][171][172][173][174]

Industry 4.0 technology Applications for climate change mitigation within manufacturing industry
Additive manufacturing and 3D printing
  • Producing lightweight parts and products to reduce material consumption
  • Reducing energy use through optimized design and lower production runs
  • Waste as raw material
  • Customizing production to reduce process waste
  • Enabling local and on-site production to reduce transportation emissions
  • Enabling manufacturing to use fewer combinations of materials for easier material collection, sorting and recycling into manufacturing process
Advanced robotics and automation
  • Streamlining manufacturing processes and reducing material loss
  • Smart sorting of industrial waste fractions for enhanced reuse and recycling
  • Optimizing inventory management, warehouse operations and transportation in manufacturing facilities
  • Reducing energy consumption in logistics and decarbonizing supply chains
Artificial intelligence
  • Predictive maintenance to replace only required parts in a timely manner so as to extend machinery lifespan
  • Optimizing energy use through smart grid integration and energy management systems
  • Improving supply chain efficiency to reduce waste and emissions and optimize transport routes
Augmented reality
  • Providing remote assistance to reduce travel and transportation emissions
  • Training employees in sustainable practices
Big data analytics
  • Identifying energy and resource efficiency opportunities
  • Optimizing system and supply chain management
  • Analyzing climate impact of products throughout their life-cycle
Distributed ledger technology/blockchain
  • Ensuring transparency and accountability in supply chain management and for carbon tracking
  • Digital material passports for identifying different material types and grades during disassembly to allow reuse and recycling into manufacturing process
  • Internet of materials accessing information on quality, availability and location of secondary materials for reintegration into manufacturing process
Cloud computing
  • Hosting and scaling energy management and other related software
Cyber-physical systems
  • Optimizing fuel consumption and material handling
  • Flexible design configuration
  • Making available reliable data and life cycle assessment data collection
Digital twin
  • Simulating manufacturing processes in order to identify and optimize energy and resource use
  • Enabling predictive maintenance to replace only the required parts in a timely manner so as to extend machinery lifespan
Drone technology
  • Monitoring machinery and production line temperature using infrared and thermal technology
  • Detecting gas leaks
Internet of things
  • Real-time monitoring and control of energy usage and emissions 
  • Monitoring of waste generated during remanufacturing
  • Transparency and tracking of resource consumption in manufacturing processes and supply chains
  • Optimizing transport routes and logistics
Radio-frequency identification (RFID) and real-time
locating system (RTLS)
  • Optimizing material flow and the supply chain
  • Optimizing production inventory and storage space to avoid overstocking
  • Optimizing transport route

 

In addition to optimizing processes to reduce material and energy usage, digital technologies can be applied to monitoring emissions, such as those through leaks, or supply chain carbon tracking. This is particularly important in the context of Scope 3 emissions (see box 4.6) for which manufacturing industry is increasingly accountable in terms of measuring and then addressing. Scope 3 emissions are those beyond a plant’s immediate control, but which may cause significant climate impact. One example is the shipping or transportation of a final product from plant to consumer.

In this regard, digital technologies such as IoT and distributed ledger technology may enable better supply chain control and carbon tracking to optimize shipping routes. While cement sector emissions fall mainly within Scopes 1 and 2, 29 percent of steel sector emissions originate from Scope 3 supply chain emissions.[175]


Box 4.6 Greenhouse gas Scope 3 emissions

Digital technologies can play a key role in improving the monitoring of emissions from the manufacturing industry. This may be particularly relevant for tracking and reporting according to emission standards such as the GHG Protocol Corporate Accounting and Reporting Standard. This standard classifies a company’s GHG emissions according to three “scopes.” Scope 1 emissions are direct emissions from owned or controlled sources; for example, emissions associated with fuel combustion in boilers and furnaces. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions that occur within the reporting company’s value chain, including both upstream and downstream emissions. Notably, digital technologies can help overcome the challenge of emissions double-counting by two or more organizations.[176]


 
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Industry 4.0 in steel and cement sectors

This chapter of the Green Technology Book is focused on the steel and cement sectors. This section on Industry 4.0 explores the range of digital technologies relevant to these two sectors. Industry 4.0 implementation within the steel…
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Industry 4.0 in steel and cement sectors

This chapter of the Green Technology Book is focused on the steel and cement sectors. This section on Industry 4.0 explores the range of digital technologies relevant to these two sectors. Industry 4.0 implementation within the steel and cement sectors has been slow. The metal industry in general is lagging behind other industries when it comes to digital technology deployment.[177] However, there is some movement. A survey of the European steel sector reveals a majority of respondents strongly intend to invest in almost every Industry 4.0 technology, with a priority focus on cyber security and analytics, followed by IoT and virtual simulations. It is notable that the main expected benefit was reduced production costs (81 percent), whereas reduced CO2 emissions were expected by little more than half (56 percent).[178]

Digital technologies are already used by the steel and cement sectors to monitor energy-related process parameters. Beyond that, such innovations can enable manufacturing plants to take a holistic look at fuel consumption and emissions from both upstream and downstream processes.
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Steel and cement: from digital twins to material databases

The steel and cement sectors are now experimenting with the use of digital twins to simulate production processes and save on energy usage and resources, but it is still early days. Advanced diagnostics software is another key component. AI and…
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Steel and cement: from digital twins to material databases

The steel and cement sectors are now experimenting with the use of digital twins to simulate production processes and save on energy usage and resources, but it is still early days. Advanced diagnostics software is another key component. AI and machine learning tools are allowing real-time tracking in a way not previously possible. Material databases are another active field of research. Such databases are already common within the electronics manufacturing industry, with the EU and various standardization organizations working on developing Digital Product Passes.

The steel and cement sectors are now experimenting with the use of digital twins to simulate production processes and save on energy usage and resources, but it is still early days

The key economic driver behind these technologies is greater production flexibility.[179] But there are often clear dual benefits for cost and energy savings, for example for energy management systems or advanced automation processes. In related sectors, for example, the construction sector, connectivity, remote monitoring, 3D printing and predictive analysis are already transforming parts of traditional supply chains.[180] The technology solutions described provide an overview of the current state of Industry 4.0 technologies within the steel and cement sectors, ranging from proven to horizon stage.
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