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The Fourth Industrial Revolution

Everything about industry 4.0

Reading time: 11 min

An industrial revolution is characterized by the appearance of new technologies that will signify a profound change in the structure of society and in the economic model. Users' access to the internet and to technological devices, Artificial Intelligence (AI), and machine learning have resulted in a Fourth Industrial Revolution, which may represent an empowerment of humans through the use of machines.

What does the Fourth Industrial Revolution consist of and how did it come about?

We find ourselves at the start of the Fourth Industrial Revolution, also known as Industry 4.0, a term that was coined in 2011 by economist Klaus Schwab, founder of the World Economic Forum. This concept defines computerized manufacturing, which combines advanced production techniques with smart technologies that will be integrated into organizations and people’s lives.

To understand the changes of this fourth revolution, let’s first summarize the three previous ones:

First Industrial Revolution

It started in the 18th century and was characterized by the use of the steam engine and new materials as energy sources, such as coal. Thanks to these advances, the economy shifted from an agriculture-based to an industry-based economy.

Second Industrial Revolution

Later, at the end of the 19th century, with the appearance of automated machines, a new economic and commercial order emerged, the Second Industrial Revolution. This period was marked by the development of industries and the appearance of new energy sources such as electricity and oil.

Third Industrial Revolution

The Third Industrial Revolution emerged In the mid-1940s with the so-called "Information Society". Internet communication technology and renewable energy sources in the 21st century led to major innovations, such as the smart distribution grid and the emergence of hybrid cars.

Fourth Industrial Revolution

Currently, with the implementation of technology in companies, we are experiencing the start of the Fourth Industrial Revolution. The digitalization of industry and services is being applied to all areas, building agile and collaborative companies that improve their products and services aimed at a digitally-driven public.

Advantages of the Fourth Industrial Revolution

The smart decision-making that characterizes the Fourth Industrial Revolution will have an evident positive impact on our lives. It will increase productivity while responding effectively to urgent market demands.

Greater productivity

With technological advances, mistakes and interruptions in production are removed, optimizing the process while reducing manufacturing times and necessary resources.

More competitiveness

New technologies help to develop products that meet the most stringent quality standards and allow manufacturing to be increasingly personalized.

More safety at work

The safety of workers increases as robots carry out the riskiest tasks, reducing exposure for human capital.

Data processing

Only authorized people can access and interact with data, guaranteeing greater security and compliance with current legislation.

Technology associated with the Fourth Industrial Revolution

Some emerging technologies are fundamental for this Fourth Industrial Revolution to take place. The majority of the professions of the future will handle one of these disruptive technologies in one way or another. Let’s see some examples:

Internet of Things (IoT): the Internet of Things refers to technology that connects objects in our daily lives to the internet in order to facilitate our daily tasks. This growing trend is being integrated into our lives through our cars, household appliances, and more.
Artificial intelligence and cognitive computation: cobots are collaborative robots designed to interact with humans in work environments. They are applied in automated industrial processes to optimize production and prevent workers from carrying out risky tasks.
Big Data: in Industry 4.0, the interpretation and combination of quantities of data facilitates the decision making of companies. So the application of Big Data improves the production and storage processes, shows predictions of demand, and helps to define commercial strategies.
Augmented and virtual reality: thanks to technological advances and the application of the internet in devices, we will be able to live an immersive and multi-sensory experience with the arrival of Mark Zuckerberg's "Metaverse", a shared virtual space where we will be able to socially and economically relate as avatars.
Computation in the cloud: cloud services are environments that store, administer, and process databases, servers, and networks. For example, virtualization in the cloud allows simulated and secure environments to be created, while decentralization makes it possible for machines to make autonomous decisions.

Main characteristics of the Fourth Industrial Revolution

In Industry 4.0, industrial automation systems are used to computerize, control, and monitor a process, machine, or device in order to perform repetitive tasks. This new industry is characterized by emerging technological advances in different fields, such as robotics, artificial intelligence, and autonomous vehicles, among many others.

Automation

More agile supply chains can be created, as the machines have autonomy to decide. Systems are programmed to monitor production line changes, and human actions are replicated through interactions with the interface of a computer system.

a sustainable energy engineer controlling a drone

Virtualization

Virtualization, on the other hand, makes processes much more efficient, thanks to sensors connected to predictive analytical applications or through simulation models.

Decentralization

Lastly, decentralization is based on the idea that machines are able to assess production needs, facilitate work cycle information in real time, and make autonomous decisions.

Repsol and Industry 4.0

At Repsol, we are proud to be the first company in the sector to set a target of Net Zero Emissions by 2050. To meet our commitment to the energy transition and decarbonization, we have an Industrial Digital Program for the transformation of the company that is fundamentally supported on four lines.

The first is based on a comprehensive vision of all departments and processes in industrial plants.
The second line works towards autonomous plants that improve the efficiency and safety of processes.
The third manages the plants and processes under the premise of zero unexpected breakdowns by applying the Internet of Things.
Lastly, the fourth line relies on technology to help people make decisions.

At Repsol, we have more than 280 initiatives to implement and execute our Cross-company Digitalization Program

Out of them, more than 100 focus on the industrial area with the aim of reducing the carbon footprint in the whole value chain.

These four major lines contribute to the generation of new skills, tools, and technologies, such as Artificial Intelligence, the automation of operations, and mass sensing. Moreover, at Reposl, we rely on a cloud-use strategy and the performance of communications networks.

New native digital plants: the Decarbonization Hub

At Repsol, we have seven large industrial complexes that we are converting into circular multi-energy hubs to generate low, zero, or even negative carbon footprint fuels and materials.

With the aim of advancing in our target of Net Zero Emissions by 2050, we have launched the Energy Decarbonization and Circular Economy Hub, which works primarily on the conceptualization of the new plant in Bilbao, which will be "digital native" and will contribute to accelerating the global digitalization of the business.