How Industry 5.0 will transform supply chains and energy equity?

As global industries confront climate imperatives and energy insecurity, a new industrial paradigm is emerging with the potential to harmonize sustainability, technology, and human welfare. Industry 5.0 - a progression from the automation-driven Industry 4.0 - is now gaining traction as a model that not only drives digital innovation but also embeds social responsibility and resilience into the core of industrial systems. This shift is especially critical in the context of energy transitions.

A recent comprehensive review titled “Industry 5.0 and Human-Centered Energy System: A Comprehensive Review with Socio-Economic Viewpoints” by Jin-Li Hu, Yang Li, and Jung-Chi Chew, published in Energies, offers a deep dive into how Industry 5.0 technologies can revolutionize global energy systems and supply chains for a low-carbon future.

What new technologies are shaping the energy transition under Industry 5.0?

The study identifies several core technologies reshaping the energy landscape. These include artificial intelligence (AI), digital twin systems, blockchain, and the Internet of Things (IoT). Together, they enable smarter, decentralized, and adaptive energy infrastructures. Unlike Industry 4.0, which emphasized automation and cyber-physical systems, Industry 5.0 puts people and sustainability at the center of innovation. It supports energy management models that prioritize real-time responsiveness, low-carbon output, and equitable access.

Digital twin technologies, for instance, allow industries to simulate and optimize energy-intensive processes with unparalleled precision. Blockchain supports transparent and secure energy transactions, especially in decentralized grids and microgrids. Meanwhile, AI and machine learning improve demand forecasting, automate energy distribution, and strengthen system resilience. These innovations are not limited to theory: case studies from sectors like land transport (Tesla and Toyota), aviation (China Airlines), and maritime shipping (Maersk and NYK) demonstrate practical applications of Industry 5.0 in decarbonizing heavy infrastructure.

Importantly, the study underscores how these technologies converge in smart grids. In Taiwan, for example, grid modernization initiatives leverage two-way communication, demand response programs, and real-time monitoring. These systems are designed to optimize renewable energy integration and reduce dependency on fossil fuels, reflecting how national energy policies are increasingly aligned with Industry 5.0 principles.

How does the circular economy interact with sustainable supply chains?

A defining component of Industry 5.0 is its emphasis on circularity. The study highlights that achieving a sustainable energy transition also requires reengineering supply chains with circular economy principles. This entails minimizing waste, recycling materials, and creating closed-loop systems that reduce overall environmental footprints.

The authors review strategies such as Lean Six Sigma combined with circular supply chain models that boost triple-bottom-line performance - environmental, economic, and social. They cite the importance of transitioning from Supply Chain 4.0 to Supply Chain 5.0, which not only digitizes operations but also embeds values like equity, flexibility, and long-term environmental stewardship.

Global disruptions, from pandemics to geopolitical tensions, have revealed vulnerabilities in supply networks. According to the study, Industry 5.0 technologies can make supply chains more resilient by enabling real-time decision-making, distributed manufacturing, and energy-autonomous operations. Artificial intelligence plays a key role in predictive analytics and scenario modeling, while human-centered design ensures that these technologies are accessible and adaptable to different regional contexts.

Moreover, the study discusses how educational institutions and research bodies are essential to this transformation. By equipping the workforce with technical, critical thinking, and sustainability-focused skills, universities can help bridge the gap between technological advancement and its responsible application.

How does Industry 5.0 advance the Human-Centered Energy Transition?

Perhaps the most innovative contribution of this research is its proposal of a Human-Centered Energy Transition (HCET) model. This framework argues that technical efficiency alone is insufficient to ensure sustainable energy futures. Instead, energy systems must also promote social equity, transparency, and public engagement.

At the core of HCET is the principle that energy decisions, such as how and when energy is produced, distributed, and consumed, should ultimately rest with humans, not automated systems. The study warns against over-reliance on AI and promotes human–machine collaboration as a means to uphold ethical standards and societal needs.

One enabling technology spotlighted is geofencing. This tool uses spatial data to dynamically manage energy flows, allowing systems to prioritize renewable sources based on location, time, and user behavior. For instance, geofencing can automatically switch to solar energy during peak generation hours or adjust EV charging schedules based on real-time grid capacity. Combined with smart grids and AI forecasting, this approach ensures not only technical optimization but also accessibility and user empowerment.

The HCET model also supports decentralized energy communities and smart energy hubs, where local institutions or neighborhoods co-manage energy resources. This decentralization boosts resilience, reduces energy inequality, and enhances democratic participation in sustainability governance.

Policy initiatives in the EU, Japan, Germany, and South Korea reflect growing recognition of these principles. From “Fit for 55” legislation in Europe to the “Digital New Deal” in Asia, governments are actively promoting regulatory frameworks that support Industry 5.0 and HCET. The study stresses that such policies must prioritize long-term sustainability, not just short-term efficiency gains.