We are currently in the midst of a new industrial revolution. You may not see it, but it's happening. Advances in computing power, AI and internet speed are changing the way industries operate. 

Granted, this is a quiet revolution by most measures. But its effects will be felt well beyond the factory walls of its inception. We're talking about "Industry 4.0".

What is Industry 4.0?

In business and manufacturing terms, Industry 4.0 is a milestone in the history of industrial relations and production.

But how did we get here?

Before diving into the ramifications of this fourth industrial revolution and how it relates to extended reality (XR) more broadly, let's remind ourselves of the big three that got us here.

1.0

The first industrial revolution began in the 18th century with the transition from hand to machine production. This was achieved through the use of diverse mechanical processes such as steam power and water power, as well as new standards in factory planning and management.

2.0

Differing from the first, the second industrial revolution was a shift in gear in the organisation and assembly of productive forces to new standardised models of mass production. With the expansion of communication and transport networks alongside scientific breakthroughs, Industry 2.0 marked a new era of manufacturing and globalisation. 

3.0

And that brings us to the third and penultimate industrial revolution of our time. Industry 3.0, or the "digital revolution", was the transition from mechanical to digital processes and computerisation. This expedited shifts in operational speed and efficiency across industries and ushered in a new standard in communication technology. 

Industry 4.0 

So what are the advances that have caused many to pronounce a fourth industrial revolution? 

Industry 4.0 is a response to the rapid expansion and increasing capabilities of the types of digital communication technology and modern networks realised in the third industrial revolution. 

These changes have been aided by advances in computing power, artificial intelligence and the speed and security of wireless networks – strengthening the potential for machine learning, automation and interconnectivity on a global scale.

Industry 4.0 is the optimisation of these technologies, combined with innovative systems of integration and enterprise implementation. 

Smart factories

One of the defining features of the fourth industrial revolution is the emergence of "smart factories".

The concept is similar to your smartphone or your smart TV. Smartphones are "smart" because they combine modern computing capabilities and telecommunication into a functional device with a powerful CPU. 

Smart factories work on a similar basis of combining the data from workers and machines into a centralised, digital system that administers and manages complicated datasets. The benefit of these systems is that they greatly assist in complex data analysis, which maximises productivity and minimises unnecessary waste. 

This data can be used to predict and plan effective business strategies that can be quickly implemented into production and machine automation.

With the incredible advances in AI and machine learning, data can even be used to preempt maintenance issues and system failures in ways that would be impossible for humans.

So how do these systems work and where does XR fit in?

Think of XR as the human-machine interface, allowing workforces to seamlessly interact with one another and with the machines in the factory.

When you say it out loud, it might sound a little odd ("People talking to machines!?"). However, in practice, it makes total sense. 

Modern factories are tight and efficient operations responding to increasing global demand and beholden to firmer regulations and safety protocols. Balancing a safe and professional workspace whilst meeting daily targets and quotas requires innovative solutions.

XR provides a means of connecting workers to each other at all times while equipping them with all the information they need to excel at their job. It transforms workspaces into immersive, intelligent environments and encourages collaboration.

XR is a key component of Industry 4.0, but it's nested amongst a host of other innovative technologies that, when combined, become powerful systems that can update and transform stilted workflows.

IoT (internet of things)

IoT is a new paradigm in always-on connectivity. Rather than limiting internet access to human-centric touchpoints like PCs and smartphones, the IoT opens up the web to all manner of things – from weather sensors to industrial machinery to toasters.

In industry, IoT devices are typically fitted with sensors and identifiers that allow other IoT-enabled devices to connect and communicate with them. 

It's a way of monitoring machines (their activity and status) by enabling operational data to be automatically updated on a cloud server – and a way of controlling them with automated commands.

Most XR wearables today are IoT-compatible. For example, a worker with AR glasses in a smart factory can visualise the status of a piece of machinery by simply looking at it through their glasses. The glasses scan the unique identifier and overlay the information on the worker's field of vision, enabling them to quickly identify and act upon issues.

Artificial intelligence

In this age of information, it stands to reason that you might ask, "Who in their right mind is sifting through it all?"

With the expedient capture of real-time data unlocked through XR, industries can leverage powerful AI systems to help with the endless flow of information. AI technology has the power and speed to plough through reams of data and produce insights and evaluations like never before. 

This isn't limited to industries like manufacturing, either. Within healthcare, data can be harvested from VR training simulations and analysed with AI programs to highlight aspects of the trainees' performance – improving surgical proficiency and saving lives.

In other studies, AI and machine learning have been proven to improve VR training by simulating more realistic scenarios, particularly those involving interpersonal interactions.

XR is promising to become a major player in Industry 5.0, which is an emerging stage of industrial practice influenced by AI sophistication. With ChatGPT making headlines every other week, it's not unfathomable to imagine future AI systems integrated with XR on an industrial scale.

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