Autonomous warehouses where robots talk to each other over secure Wi-Fi, and where production machines are fixed before they fail –the future factory is coming.

By 2025, the sector called Industry 4.0 –the Fourth Industrial Revolution–is expected to generate close to $1 trillion in economic value, much of it unlocked by the efficiencies and disruptions transforming factories and production lines around the world.

Manufacturing, which in many places hasn’t fundamentally changed in hundreds of years– meaning labor intensive factories pumping out commodities under constant pressure to produce at lower cost—is now poised to become a lot smarter, with automation and AI creating innovations not seen since the First Industrial Revolution some 300 years ago.

Israel Industry 4.0: Beyond Man and Machine, a conference scheduled for October in Tel Aviv, is going to highlight some of this innovation. According to Start-Up Nation Finder, there are around 200 currently active Industry 4.0 startups operating in Israel right now, a number that’s doubled in under 5 years. Eighty of them (40%) have between 11-50 employees, meaning they’ve grown past their initial small “garage stage” and are now scaling. Over a quarter of the 200 (55) work in operations optimization—things like data and sensors to create smart factories, including predicting which machines are going to fail and when. Around 15% of the startups in Israeli Industry 4.0 are in cybersecurity, a growing concern as factories connect to the Internet, where they’re vulnerable to hacking, sabotage, and IP theft.

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