Industry 5.0 and Human-Centered Energy System: A Comprehensive Review with Socio-Economic Viewpoints

Abstract

Industry 5.0 transforms industrial ecosystems via artificial intelligence (AI), human–machine collaboration, and sustainability-focused innovations. This systematic literature review examines Industry 5.0′s role in energy transition through digital transformation, sustainable supply chains, and energy efficiency strategies. Key findings highlight AI-driven smart grids, blockchain-enabled energy transactions, and digital twin simulations as enablers of low-carbon, adaptive industrial operations. This review uniquely integrates technological, managerial, and policy perspectives, providing actionable insights for policymakers and industry leaders. Industry 5.0 enhances innovative energy management, renewable energy integration, and flexible energy distribution, strengthening resilience and sustainability. It fosters environmental responsibility, social impact, and circular economy principles, laying the foundation for a low-carbon economy and accelerating the global energy transition.

1. Introduction

Industry 5.0 expands on the achievements of Industry 4.0 by moving beyond automation toward a manufacturing model centered on sustainability, resilience, and human-centric innovation. This paradigm relies on integrating artificial intelligence (AI), digital twin technologies, and decentralized energy systems to set the foundation for a low-carbon future [1]. Significant challenges do remain, such as evaluating the effectiveness of energy transition strategies and ensuring interoperability between AI-driven smart grids and traditional power infrastructures [2]. This research investigates the technological enablers that support Industry 5.0 and explores their influence on energy transition policies and the development of sustainable supply chains [3]. The evolving role of electric power systems in Society 5.0, a human-centered industrial revolution, underscores global trends such as electrification, decarbonization, decentralization, and digitalization. The study further examines how digital infrastructure can optimize energy applications, thereby bolstering technologies like AI, machine learning (ML), smart grids, data centers, and autonomous driving and aligning with the principles of Industry 5.0 and energy transition. This paper introduces a new concept: the Human-Centered Energy System.

Our research framework is organized into three main components. The first part reviews industrial evolution from Industry 1.0 to Industry 5.0, presenting key points in Figure 1 and

Table 1. Energy transition and national policies from Industry 1.0 to Industry 5.0.

Industrial Phase	Major Technologies	Societal Impact	Environmental Impact	Energy Transition Description
Industry 1.0 (Steam Engine Era) 1760–1840	Steam engine innovation and application	Mechanized production replaced manual labor, boosting productivity and accelerating urbanization and environmental pollution.	High carbon emissions, air pollution, and ecological damage from coal mining	Steam engines (coal) transitioned to electricity and oil, improving energy efficiency but increasing environmental pollution.
Industry 2.0 (Electricity Revolution) 1870–1920	Electricity adoption and internal combustion engine inventions	Enabled mass production, reduced costs, improved quality of life, but led to increased energy consumption	Increased coal and oil consumption, rising carbon emissions	Extensive use of oil, natural gas, and nuclear power increased energy demand and worsened pollution, but solar and wind energy emerged.
Industry 3.0 (Digital and Automation Era) 1960–2000	Electronics, computing advancements, and automation in production	Increased automation, widespread IT adoption, globalization acceleration	Intensified fossil fuel consumption, worsening environmental pollution	Renewable energy (solar, wind) became widespread, with digital technologies (AI, IoT) optimizing energy management and efficiency.
Industry 4.0 (Smart Factory) 2000–2020	IoT, AI, big data, and smart manufacturing	Interconnected production systems enabled innovative management, improving efficiency and resource utilization.	Energy structure adjustments, but still high carbon emissions	Shift to carbon neutrality and smart energy era, leveraging hydrogen, energy storage, blockchain energy trading, and smart grids.
Industry 5.0 (Human-Centric and Sustainable Industry) 2020-Future	Human–machine collaboration, human-centric design, and sustainability technologies	Focuses on human–machine synergy, environmental protection, and social welfare to achieve sustainable industrial development	Carbon neutrality targets and circular economy that reduces waste	Advanced sustainable energy systems integrate AI-driven optimization and decentralized energy networks.

. The second part elaborates on the structural relationship between Industry 5.0 and energy transition by summarizing the differences between Industry 4.0 and Industry 5.0 (

Table 2. Comparison between Industry 4.0 and Industry 5.0: key distinctions.

Feature	Industry 4.0	Industry 5.0
Primary Driver	Technology-driven	Value-driven
Key Objectives	Network system, smart product, smart factory	Human–machine collaboration, sustainability, social responsibility
Impact on Workforce	Reduction in human labor, automation	Enhances human capabilities, promotes job security
Environmental Focus	Potential rise in energy consumption and waste	Promotes circular economy and carbon-neutral processes
Technical Challenges	Data silos, high energy consumption	High cost, cybersecurity risks
Application Cases	Tesla’s Success in Smart Factories	Siemens’ AI-driven energy optimization; Toyota’s use of hydrogen fuel cells

), along with an extended discussion on relevant literature. It also extends topics in Figure 2. Figure 3 illustrates the national-level energy supply and grid optimization strategies, using Taiwan’s smart grid development as an example to demonstrate the role of digital infrastructure and demand-side management in enabling a stable, efficient, and low-carbon power system. The third part showcases case studies in the land, maritime, and air transport sectors, illustrating the latest trends in energy transition and practical applications, as shown in Figure 4. Based on this framework, we shall answer the following research questions:

(1)

How does Industry 5.0 enhance energy efficiency through digital technologies?

(2)

What role does the circular economy play in sustainable supply chain transformation?

(3)

How does AI-driven energy management facilitate a low-carbon transition?

(4)

How does Industry 5.0 lead to the human-centered energy system?

By reviewing 127 academic documents, this paper integrates technological, economic, and policy perspectives to provide a comprehensive overview of Industry 5.0’s role in energy transition. Energy transition refers to the global shift from fossil fuels (e.g., coal and oil) to low- or zero-carbon energy sources, including solar, wind, hydrogen, and electrification. Its primary goals are to improve energy efficiency, expand the share of renewable energy in the global mix, and achieve carbon neutrality [4]. However, fossil fuel combustion remains the dominant source of global greenhouse gas emissions. Without an accelerated transition, climate change could result in irreversible environmental and economic consequences.

In order to establish a low-carbon economy, the energy transition necessitates a multi-faceted approach that encompasses the following three aspects: (i) Energy Source Transformation: gradually phasing out fossil fuels while amplifying the share of renewable energy, such as solar, wind, and hydrogen. (ii) Low-Carbon Manufacturing: adopting energy-efficient technologies, including smart factories and energy management systems (EMS), to improve production efficiency and reduce carbon footprints. (iii) Circular Economy: encouraging material recycling and reuse to minimize energy consumption and waste of resources [5].

Energy transition is not just driven by renewable energy technologies, smart grids, hydrogen development, and transportation electrification, according to [4]. It is also closely linked to Industry 4.0 (digital transformation) and Industry 5.0 (human–machine collaboration and sustainability). As an emerging industrial paradigm, Industry 5.0 emphasizes integrating human–machine collaboration, intelligent technology, and sustainability, fostering innovation in low-carbon manufacturing, smart logistics, and energy management. The development of Industry 5.0 offers technological support for the energy transition, accelerating green transformation at both corporate and policy levels and promoting a more resilient and sustainable global economy.

These frameworks utilize indicators such as energy intensity, unit production energy consumption, and CO₂ emission levels, which serve as benchmarks for evaluating the effectiveness of energy policies. AI is also becoming increasingly important in optimizing energy systems. Studies demonstrate that AI-driven reinforcement learning algorithms improve demand response strategies, enabling real-time load balancing and higher efficiency in smart grids [6]. While [7] emphasizes renewable energy as the key driver of energy transition, [8] highlights the need for economic incentives to accelerate adoption. Together, these insights form the foundation for Industry 5.0, which aims to revolutionize production processes through human–machine collaboration and to create resilient, low-carbon industrial ecosystems.

Industry 5.0 is clearly a transformative paradigm that builds upon the digitalization and automation achievements of Industry 4.0 while emphasizing sustainability, resilience, and human-centric innovation. Unlike its predecessor, Industry 5.0 aims to integrate advanced technologies such as AI, digital twins, blockchain, and the Internet of Things (IoT) with human creativity and expertise to foster a new era of collaborative and sustainable production systems [9,10]. This literature review explores the evolution of industrial revolutions—from the early mechanization stages to the current transformative shift—while discussing the technological enablers, strategic frameworks, and sector-specific applications that underpin the vision of Industry 5.0.

Drawing on a broad spectrum of studies from healthcare innovations [11,12] to energy transitions [13,14] and supply chain resilience [14,15,16], this review presents an integrative perspective on how Industry 5.0 may address current global challenges. It considers the broader social, economic, and environmental impacts highlighted in diverse research streams [17,18]. Including papers on education, marketing, and sustainable manufacturing [19,20,21], this review also elucidates the interplay between technology and society as industries shift toward a more resilient and human-centric future.

We conduct a comprehensive literature search across multiple databases, including Google Scholar, Journal of Productivity Analysis, IEEE, and MDPI, using keywords such as “Industry 5.0”, “Energy Transition”, “Sustainability through Industry 5.0”, and “Industry 5.0 and Energy Transition”. Boolean operators (OR and AND) are employed to broaden our search and ensure extensive literature coverage, yielding 587 records.

We then review the titles and abstracts of 587 records to assess their relevance, excluding studies that do not directly focus on Industry 5.0, supply chain resilience, or renewable energy integration. Additionally, we remove conference papers and articles with low topic relevance. The full texts of the remaining records are then evaluated based on our inclusion criteria. Specifically, we select only peer-reviewed journal articles published within the past 24 months to ensure timeliness. Since we are discussing the industry revolution, papers related to Industry 4.0 and those that include case studies or legal publications are exempt from this restriction. We also limit our selection to studies published in English and within disciplines such as business and management, computer science, economics, environmental science, humanities, and multidisciplinary social sciences. Only articles addressing the relationship between Industry 5.0 and the energy transition are deemed eligible.

2. Evolution from Industry 1.0 to Industry 5.0

The evolution of production systems is defined by successive industrial revolutions, with each one marked by integrating new technologies and organizational paradigms. During Industries 1.0 and 2.0, the shift from manual labor to steam power and electricity increased fossil fuel dependency and higher carbon emissions [22]. Industry 3.0 introduced automation and electronics that improved energy efficiency, but also generated digital waste. In contrast, Industry 4.0 denotes the integration of cyber–physical systems, artificial intelligence (AI), Internet of Things (IoT), and smart factories. While these advancements have optimized production processes and increased the use of renewable energy, they have also led to higher energy consumption due to the growing demand for data centers and high-performance computing [8,23,24].

Figure 1 illustrates the structural framework of Industry 5.0, emphasizing its key characteristics and their interrelated impact on energy transition and supply chain resilience. This diagram highlights that integrating AI and innovative technologies is crucial for optimizing energy consumption, enhancing operational efficiency, and supporting carbon-neutral strategies. Moreover, focusing on human-centric design ensures the transition remains inclusive, balancing advanced automation with workforce sustainability.

In contrast to Industry 4.0, which focuses mainly on automation and efficiency, Industry 5.0 shifts the core point toward renewable energy integration, decentralized networks, and human–AI collaboration to achieve sustainability [2,9,10]. It leverages collaborative intelligence by blending human creativity with machine efficiency. The end result is creating a more adaptive and sustainable industrial ecosystem [25].

Sustainability has become a defining element in the Industry 5.0 narrative. Researchers such as [17,18] argue that a sustainable industrial ecosystem must balance economic growth with environmental stewardship; [26] emphasizes the need for sustainability from a production standpoint, where the efficient use of resources and reduction of waste are prioritized. Similarly, [27] discusses the importance of developing energy indicators that track production efficiency and gauge environmental impact.

The integration of renewable energy sources is critical to achieving sustainability [13]; provide a case study from North Rhine-Westphalia (NRW), Germany, demonstrating how energy transitions reshape industrial value chains [14]; further explores the challenges and opportunities associated with shifting from fossil fuels to renewable energy, particularly in traditionally energy-intensive industries like oil and gas; and [28,29] contribute to this discussion by examining the technical and financial aspects of integrating renewables into smart grids, a necessary step for sustainable industrial operations.

Studies on circular economy practices [30] and sustainable manufacturing [20,31] additionally underscore the need for rethinking resource utilization. By turning waste into profitable co-products, industries can achieve a closed-loop system that reduces environmental impact while enhancing profitability. These approaches are supported by [32], which argues that sustainable industrial transformation requires technological innovation and strategic planning. A super-twisting sliding mode control (STSMC) strategy for grid-side inverters in wind power systems appears in [33], demonstrating superior stability and dynamic performance under parameter perturbations compared to traditional PI and other SMC methods. The approach achieves low total harmonic distortion (THD) and high-power tracking accuracy, supporting its applicability in smart grid-integrated renewable energy systems.

The resilience of supply chains and manufacturing systems has become a key focus amid global disruptions. Industry 5.0 technologies enhance flexibility and robustness and mitigate the impact of pandemics, geopolitical conflicts, and climate change [15]. AI-driven models enable rapid responses to disruptions, ensuring continuity in production and distribution [34]. Strategic frameworks emphasize resilience in uncertain markets with senior leadership support crucial in Industry 5.0 implementation [16,35]. Integrating digital technologies further strengthens operational resilience and helps businesses remain competitive during crises [36].

Risk management is another crucial aspect: [37] develops models that quantify risks associated with transitioning from Industry 4.0 to Industry 5.0. These models help decision-makers balance innovation with caution, fostering an environment where resilience is built into the organizational fabric. In this regard, studies such as [38] further emphasize the need for human–robot collaboration that supports a resilient production environment without sacrificing the adaptability required to manage unforeseen challenges.

A core principle of Industry 5.0 is its human-centric design, which prioritizes well-being, creativity, and seamless human–machine collaboration. Research highlights that ergonomically designed work environments enhance user engagement and productivity [39] while empowering employees through digital tools and training improving job satisfaction and efficiency [40]. Rather than eliminating the human element, the future of Industry 5.0 is integrating human insights with machine intelligence that ensures a balanced approach to automation [41]. Maintaining a human touch remains crucial, even in highly automated environments, as seen in studies on customer service robot interactions [42].

In this transition, knowledge management is essential for equipping organizations with the necessary capabilities. Effective knowledge creation and sharing mechanisms strengthen workforce adaptability and innovation [43,44]. Educational initiatives also play a pivotal role in developing a technically proficient workforce capable of navigating the complex socio-technological landscape of modern industry [19,45].

Figure 2 illustrates the evolution of industrial revolutions from Industry 1.0 to 5.0, tracing the shift from mechanization and mass production to digitization and, more recently to, human-centered innovation. While Industries 1.0 to 3.0 focused on cost reduction and efficiency through mechanization, electrification, and automation, the rise of global volatility and consumer demand for customization exposed the limitations of these models. Industry 4.0 introduced cyber–physical systems and IoT, enabling intelligent automation while prioritizing digital efficiency.

Industry 5.0, by contrast, integrates technological advancement with societal and environmental goals. It emphasizes human–machine collaboration, social responsibility, and sustainability. Within this paradigm, Section 3 addresses sustainability through renewable energy and circular economy practices, forming the foundation for a resilient industrial system. Section 4 builds on this by exploring resilience as adapting to disruptions such as climate risks and supply chain shocks. Section 5 highlights human-centricity, advocating for ethical innovation, participatory design, and interdisciplinary education to align technology with human values. Together, sustainability, resilience, and human-centricity form a cohesive framework for Industry 5.0, moving beyond productivity to prioritize ecological integrity and societal well-being.

3. Sustainability

3.1. Circular Economy and Supply Chain Transformation

Transitioning toward a circular economy and reengineering supply chains are essential for resource efficiency and sustainable development within the Industry 5.0 framework. Research shows that circular supply chain management and Lean Six Sigma practices significantly enhance an organization’s triple-bottom-line performance by emphasizing resource recycling and waste reduction [46]. Similarly, integrating circular economy principles into sustainable information systems improves environmental performance [47]. In specific industrial contexts, challenges in textile and apparel supply chains within emerging economies highlight the necessity of a collaborative and sustainable approach for industry-wide transformation [48]. Novel stochastic methods have arisen to evaluate the sustainability of raw material providers from a circular economy perspective, providing valuable quantitative insights into supply chain sustainability [49]. The transition from Supply Chain 4.0 to Supply Chain 5.0 also presents challenges, requiring modern supply chains to be redesigned to support low-carbon and sustainable practices [50].

The increasing disruptions in global supply chains further underscore the urgent need for more adaptive and resilient systems. Industry 5.0 technologies have been identified as practical tools for mitigating disruptions caused by pandemics, conflicts, and climate change [15]. Strong leadership support is also vital in transforming supply chain flows in the post-COVID era [16]. Empirical studies and decision-making models highlight how digital integration enhances supply chain flexibility and resilience, enabling businesses to better navigate environmental and market uncertainties [36].

Resilient supply chains within Industry 5 require a focus on critical success factors (CSFs). Research analyzing these factors emphasizes the role of digital transformation through AI, IoT, and blockchain in creating supply chains that are efficient, sustainable, and capable of withstanding global uncertainties [51]. Developing human capabilities is another key aspect, as strengthening workforce skills and adaptability contributes to overall supply chain performance [52]. Collectively, these studies highlight a future in which supply chains leverage digital transformation to balance operational efficiency, environmental sustainability, and resilience in the face of evolving challenges. Higher education and research institutions are crucial in facilitating this transition, as they are responsible for equipping the workforce with the necessary skills and competencies [19,53]. Beyond technical expertise, these institutions emphasize critical thinking and creative problem-solving abilities, which are essential in the Industry 5.0 landscape. Thus, the transformation is not solely technological, but also socio-cultural. It requires shifts in educational paradigms to support a more collaborative and human-centered industrial environment.

3.2. Energy Efficiency and Low-Carbon Transition Strategies

A key aspect of Industry 5.0 is its ability to enhance energy efficiency while facilitating the transition from fossil fuels to low-carbon energy sources. The literature on the rebound effect in energy efficiency policies suggests that although efficiency improvements reduce overall consumption, behavioral responses may offset some of these gains [54]. In addressing energy demand reduction, comprehensive reviews have proposed quantitative metrics, such as energy intensity, unit production energy consumption, and CO₂ emissions, that serve as benchmarks for assessing energy conversion efficiency [55]. Integrating renewable energy into smart grids is another essential component of modern energy systems, providing a critical foundation for sustainable energy management [56].

Advancements in AI-driven reinforcement learning have improved demand response in smart grids and further supported the incorporation of renewable energy sources [6]. To reinforce the low-carbon transition, strategic roadmaps have outlined pathways for replacing fossil fuels with renewable alternatives such as wind, water, and solar power [7]. Beyond the energy sector, other industries have adapted the principles of Industry 5.0, demonstrating the broad applicability of human-centered AI in promoting low-carbon strategies. For instance, Forestry 5.0 integrates these principles to enhance sustainability efforts in forestry management [57]. Collectively, these studies illustrate how Industry 5.0 fosters energy efficiency, accelerates the shift toward a low-carbon economy, and ensures that technological advancements align with global sustainability goals.

3.3. Integration of Renewable Energy and Smart Grids

The transition toward renewable energy is a fundamental component of the Industry 5.0 vision, requiring innovative strategies to integrate sustainable energy sources into industrial systems. Research has explored the challenges associated with this integration, highlighting technical and operational complexities [13,14]. In addition to these challenges, incorporating renewable sources into smart grids relies heavily on advancements in power electronics and substantial financial investments, which are critical factors in a successful transition [28,29].

Beyond the technical aspects, the role of big data analytics and AI-driven intelligence in facilitating a prosumer model, where energy consumers also generate energy, has created a more decentralized and resilient energy ecosystem [58]. Developing IT-enabled frameworks for renewable energy integration is crucial for optimizing smart grids and aligning them with the objectives of Industry 5.0 [59]. Another key aspect of this transition involves measuring and modeling energy resilience an essential indicator of industrial sustainability [60]. Comparative analyses of energy resilience across different economies illustrate how variations in energy policies and technological capabilities impact the trajectory of sustainable industrial development [61]. These studies collectively underscore Industry 5.0’s importance in fostering an adaptive, technology-driven approach to renewable energy integration, ultimately contributing to more resilient and sustainable energy.

Figure 3 shows that energy supply is a trend, and developing smart grids is a key strategy to enhance power system reliability, energy efficiency, and renewable energy integration. By deploying information, communication, and automation technologies, such as real-time monitoring equipment and two-way communication systems, Taiwan aims to digitize and analyze electricity generation, transmission, and consumption data to optimize power resource allocation. This infrastructure improves grid stability, resolves transmission issues, and strengthens supply quality and operational efficiency. Notably, the nation’s renewable energy capacity reached 27 GW in 2015, reflecting progress in grid-connected integration. Efforts to improve service continuity have increased the share of automatic power restoration within five minutes of outages to 25% in 2020, with a target of 70% by 2025. In parallel, energy conservation is promoted through time-of-use pricing and demand response programs, encouraging large users to shift consumption to off-peak periods. These initiatives could achieve a demand response capacity of 2.8 GW, or approximately 7% of peak load, supporting carbon reduction goals and system stability.

It is worth mentioning that, excluding Tesla, China accounts for 6 of the world’s top 10 electric vehicle brands in 2024. The primary reasons for the dominance of Chinese electric vehicles in the global market are its own large domestic market and the government’s proactive incentives. BYD is the leader in sales volume among Chinese-branded EVs.

4. Resilience

4.1. Digital Technologies, Smart Manufacturing, and the Integration of Economies

Industry 5.0 integrates advanced digital technologies and intelligent manufacturing systems to optimize production and to drive the energy transition. The concept of the industrial metaverse has been introduced to strengthen the connection between industry and society, enhancing energy efficiency and operational performance [62]. Digital transformation has also demonstrated significant production planning and control advantages, effectively improving resource utilization [63]. Incorporating sustainability, resilience, and customer engagement into AI-driven marketing strategies also increases corporate competitiveness [64]. At the same time, evolution within the product–process matrix provides a theoretical foundation for innovative manufacturing models [65].

The core philosophy of Industry 5.0 emphasizes automation and human–machine collaboration, ensuring that digital technologies align with ethical and sustainable development principles [66]. This transition moves beyond pure mechanical automation to AI-assisted human decision-making. Data analysis confirms the strong correlation between digital technology and sustainability [67]. In contrast, integrating digital, knowledge-based, and circular economies is essential for unlocking the full potential of Industry 5.0 [68]. Applying blockchain technology within the industrial metaverse at the same time enhances privacy and cybersecurity throughout the digital transformation process [69].

Manufacturing remains a central focus in Industry 5.0 research, with the convergence of Industry 4.0 and 5.0 technologies reinforcing sustainability and resilience in production processes [70,71]. Integrating innovative manufacturing systems with renewable energy and energy resilience models [27,60] and digital twin technology [72,73] is a key driver of industrial transformation. Additionally, applications of the Internet of Things (IoT) and machine learning (ML) have significantly improved energy efficiency in manufacturing [74], while additive manufacturing [75] and sustainable manufacturing decision-support systems [31] have contributed to resource efficiency and green production.

4.2. Artificial Intelligence, Machine Learning, and Human–Machine Collaboration

Integrating AI and machine learning is a key driver of Industry 5.0, significantly enhancing innovation capacity, operational efficiency, and product development [76]. Beyond optimizing industrial processes, AI also strengthens cybersecurity. This is demonstrated by implementing a Bayesian reinforcement learning model for threat detection in Industry 5.0 networks that ensures security and transparent decision-making [77].

Generative AI models, such as ChatGPT 4.0, further contribute to Industry 5.0 by improving communication and organizational decision-making [78]. However, challenges remain in deploying human-centered and sustainable AI in manufacturing. There is clearly a need to balance automation with human oversight in order to maintain ethical and operational integrity [79].

4.3. Digital Twin Technology and Simulation

A six-dimensional digital twin framework is able to capture the complexity of modern industrial systems, significantly improving decision-making and process efficiency [72]. In the manufacturing sector, digital twins revolutionize sheet metal stamping by reducing waste and enhancing operational effectiveness [73]. Integrating digital twin and blockchain technologies also transforms supply chain management, offering improved traceability and fostering innovation [80].

4.4. Blockchain, IoT, and Cyber–Physical Systems

Blockchain technology enhances transparency, security, and traceability within industrial systems. It supports human-centric, sustainable, and resilient solutions. At the same time, such technology enables circular economy practices through secure data sharing, ultimately improving organizational performance [81,82].

The integration of IoT and cyber–physical systems further strengthens connectivity across industrial devices. Research highlights that IoT-based health monitoring systems and connected devices enhance human–robot collaboration and operational safety [37,83]. Next-generation wireless networks facilitate real-time communication and coordination, ensuring that data seamlessly flow across distributed systems in Industry 5.0 [84].

As organizations transition from Industry 4.0 to Industry 5.0, decision-making becomes increasingly complex. A multi-criteria decision-making framework has been proposed to evaluate Industry 5.0 technologies, providing insights into key challenges and future directions [85]. Risk modeling approaches further assist in balancing innovation with risk mitigation, ensuring that new technologies are integrated while maintaining sustainability and resilience in industrial operations [36].

5. Human-Centricity

5.1. Shifting Paradigms: From Automation to Human-Centricity

Industry 5.0 emphasizes talent development, diversity, and empowerment to improve the overall quality of life and to create a more balanced society beyond industrial activities [86]. At its core, this example seeks to harmonize technology with human capabilities, shifting away from early models and prioritizing efficiency and automation. With increasing focus on social and environmental imperatives, these traditional models are now being reassessed [9].

A growing body of research suggests that the future of manufacturing and service delivery will depend on a hybrid approach. Here, technological advancements enhance rather than replace human expertise [38,86]. Studies also highlight that incorporating human-centric design fosters more significant innovation, adaptability, and resilience in industrial systems [40].

5.2. Industry 5.0 in Sectoral Applications

Healthcare stands out as one of the most promising sectors for applying Industry 5.0 principles, with advancements in adaptive federated learning that enhance multidisciplinary cancer classification and improve diagnostic accuracy and patient outcomes [11]. Integrating advanced analytics and AI further transforms patient care, creating new opportunities for technology-driven value creation in healthcare [12]. Additive manufacturing also significantly contributes to the healthcare supply chain by supporting circular economy goals while addressing operational challenges [75]. Additionally, human-centered IoT-based health monitoring systems are crucial in advancing the Healthcare 5.0 agenda. They demonstrate the importance of merging technological innovation with human-centric approaches to create resilient and sustainable healthcare ecosystems [83].

The transition to Industry 5.0 extends beyond technological advancements into education and organizational transformation. The development of University and Education 5.0 is a key factor in preparing the future workforce with digital skills necessary for a highly connected society [19]. The transformation of vocational education through intelligent technology is recognized as a fundamental component of the Industry 5.0 shift, emphasizing the need for educational reforms that align with technological advancements [45]. Effective knowledge management practices also play a critical role in this transition, ensuring that digital and cognitive skills continue to evolve in a dynamic learning environment [43,44]. Research further highlights that developing human capabilities fosters an ecosystem where continuous skill enhancement becomes integral to organizational success [49,86]. In parallel, innovative business models and organizational transformations reshape industry structures and demonstrate that an agile, learning-oriented workforce is essential for maintaining a sustained competitive advantage [50,87].

Beyond industrial applications, Industry 5.0 is reshaping marketing strategies and societal interactions. The evolution of Marketing 5.0, built on the foundations of Industry 5.0 and Society 5.0, influences societal trends and customer engagement, driving a more human-centric approach to market dynamics [21]. Sentiment-based predictive models that integrate big data analytics with personalized marketing are revolutionizing online purchasing behaviors, creating a more responsive and customer-driven digital marketplace [88]. Integrating sustainability, resilience, and customer engagement within AI-driven marketing approaches underscores the alignment of Industry 5.0 with ethical and sustainable business practices [64]. Corporate leadership in Environmental, Social, and Governance (ESG) initiatives is becoming increasingly central, with responsible investment strategies and sustainable business models shaping modern corporate agendas [89].

5.3. Policy Initiatives and Governance

Policy and governance play a crucial role in driving the successful implementation of Industry 5.0. In the European context, several visionary policy documents have articulated the importance of transitioning toward a sustainable, human-centric, and resilient industrial system, emphasizing the need for systemic reconfiguration of traditional industrial models [90,91]. Building on these frameworks, governance models have underscored the necessity of cross-sectoral coordination, ethical innovation, and inclusive value creation to achieve long-term industrial sustainability [92]. One representative example is the European Union’s “Fit for 55” legislative package, which sets ambitious carbon reduction targets across multiple sectors and integrates regulatory tools such as carbon pricing, digital innovation incentives, and green taxation to spur the industrial green transition [93].

Beyond the EU, global momentum toward Industry 5.0-aligned governance has intensified. In Japan, the “Society 5.0” initiative has been formally incorporated into national development plans. It aims to integrate cyber–physical systems with societal innovation to address challenges such as population aging, urbanization, and environmental degradation, thereby positioning human-centered technology as a policy core. Germany’s “High-Tech Strategy 2025” advances Industry 5.0 principles by focusing on sustainability, digital transformation, and skills development to empower workers in increasingly automated environments. South Korea’s “Digital New Deal” supports smart manufacturing and green digital infrastructure through public investment while aligning with social inclusion and decarbonization objectives. These efforts demonstrate how diverse national strategies reflect a shared recognition of Industry 5.0 as a strategic policy domain, although contextualized differently across economies.

On the global stage, international cooperation frameworks reinforce the policy momentum. Leaders’ declarations from high-level G7 and G20 summits have emphasized the urgency of coordinated actions in achieving sustainable innovation and industrial resilience [94,95]. The transition to clean and low-carbon energy, central to Industry 5.0’s decarbonization objectives, follows multiple trajectories tailored to distinct regional and economic conditions. The core policy is to enhance energy resilience, security, and affordability while embedding sustainability into industrial development models.

Responsible investment frameworks in parallel have gained international traction. The growing number of signatories to initiatives such as the UN-backed Principles for Responsible Investment (PRI) signals an evolving alignment between policy, financial strategies, and industrial transformation agendas. They demonstrate how financial systems are increasingly leveraged to support sustainable industrial innovation, closing the loop between governance, investment, and technological advancement [96].

6. Discussion

Figure 4 shows the key technologies and strategies adopted by the land, sea, and air transport sectors in the energy transition context. This serves as an introduction to the subsequent case analyses. The left section highlights how hydrogen fuel and electrification are applied in land transport, featuring representative companies such as Tesla and Toyota that drive carbon-reduction transformations in the automotive industry. The middle section focuses on maritime transport, illustrating alternative fuel options like methanol and ammonia and digital measures such as AI-based route optimization and innovative container management exemplified by industry leaders. Finally, the right section addresses trends in aviation, including adopting sustainable aviation fuel (SAF), performance-based navigation (PBN), and the carbon-reduction strategies of industry firms like China Airlines. The following content delves into practical case studies across these sectors, demonstrating specific approaches and outcomes in advancing the energy transition.

6.1. Case Study: Land Transport—Tesla and Toyota

Tesla is a company based in Palo Alto, California, that utilizes AI-driven predictive maintenance and blockchain technology for energy transactions, aiming to reduce energy waste and improve sustainability. At the same time, Toyota’s hydrogen fuel cell technology exemplifies how Industry 5.0 innovations can decarbonize manufacturing. These shifts illustrate the global impetus toward more resilient, energy-efficient, and human-centric industrial practices, positioning Industry 5.0 as a key driver of the low-carbon transition.

In Table 1, the key distinctions between Industries 4.0 and 5.0 highlight the fundamental transformation in industrial priorities, shifting from automation-driven efficiency to human-centric sustainability and energy-conscious production models. Tesla’s Gigafactories are prime examples of Industry 4.0 via harnessing advanced automation, AI, and data analytics to enhance production efficiency. The company improves manufacturing precision through robotics and machine learning, effectively reducing defects and elevating quality standards. Tesla implements AI-driven predictive maintenance to minimize downtime and utilizes real-time data analytics for supply chain optimization, thereby decreasing waste and costs. The company’s commitment to sustainability is also prominent, as it employs renewable energy sources for its manufacturing processes.

Tesla’s Full Self-Driving (FSD) technology, powered by AI and deep learning, exemplifies the principles of Industry 4.0 with its cyber–physical systems. It enable machines to learn and adapt with minimal human intervention. By embracing automation, data-driven decision-making, and AI-enhanced systems, Tesla establishes a high standard for smart manufacturing in the automotive sector.

Toyota, based in Tokyo, Japan, demonstrates Industry 5.0 by prioritizing human-machine collaboration, sustainability, and ethical production. Unlike Industry 4.0′s focus on complete automation, Toyota’s Smart Factory initiative integrates collaborative robots to assist workers rather than replace them, ensuring high-quality production through human expertise and intelligent automation. The company is also a leader in sustainable manufacturing. It incorporates hydrogen fuel cell technology into its factories, forklifts, and backup energy systems, significantly reducing its carbon footprint and reliance on fossil fuels. Toyota’s Kaizen philosophy extends beyond efficiency, emphasizing employee well-being, ethical labor practices, and environmentally responsible operations. Toyota exemplifies Industry 5.0′s vision of a balanced, future-oriented manufacturing ecosystem by integrating advanced technology with human-centered and sustainable practices.

The emergence of Industry 5.0 is recognized as a strategic response to climate change and resource scarcity. It emphasizes low-carbon transformation as a key priority. Research on sustainable performance under Industry 4.0 identifies sustainability as a crucial driver of modern organizational transformation [2]. A global perspective on emerging trends further reinforces the necessity of a green future, positioning Industry 5.0 as a framework for sustainability [97].

Efforts to achieve resilience, sustainability, and human-centric innovation have been widely explored, highlighting their role in shaping Industry 5.0 [1]. Green manufacturing innovations are central to the low-carbon transition and demonstrate their effectiveness at reducing emissions and enhancing environmental efficiency [71,98]. Additionally, green finance mechanisms provide essential capital to support sustainable innovations, facilitating the transition toward an eco-friendlier industrial landscape [99].

Beyond technological advancements, Industry 5.0 represents a holistic transformation. The goal is to integrate human-centric and resilient approaches that ensure long-term sustainability [100]. Examining historical energy transitions situates Industry 5.0 within a broader effort to mitigate climate change via sustainable energy policies [8,22].

6.2. Case Study: China Airlines (TW)

Sustainable Aviation Fuel (SAF) is a key technology for achieving a low-carbon transition in the aviation industry, capable of reducing 50% to 80% of carbon emissions [101]. According to the International Energy Agency [102], SAF primarily derives from biofuels (e.g., HEFA, Fischer-Tropsch) and synthetic fuels (e.g., Power-to-Liquid, PtL). Despite its potential, widespread adoption faces significant challenges, including high production costs (2 to 5 times the cost of conventional fuel) and limited production capacity. The global SAF supply in 2022 was only 300 million liters, which remains insufficient to meet demand while representing a 200% increase from 2021. In response to these challenges and the broader energy transition in aviation, China Airlines, based in Taoyuan, Taiwan, has implemented a multi-faceted sustainability strategy, integrating SAF, flight route optimization, fleet renewal, and carbon offset mechanisms while leveraging Industry 4.0 and Industry 5.0 technologies to enhance energy efficiency and environmental sustainability.

As part of its SAF adoption strategy, China Airlines has already incorporated SAF into its operations. It plans to gradually increase SAF usage in order to reduce reliance on fossil fuels and lower carbon emissions [103]. However, due to the high cost and limited supply of SAF, additional regulatory incentives and investments in production capacity are necessary to support its large-scale implementation.

Beyond SAF, China Airlines is optimizing flight routes using Performance-Based Navigation (PBN) technology. It leverages satellite navigation to improve flight efficiency by reducing unnecessary fuel consumption and flight time and thereby lowering carbon emissions. This aligns with ICAO’s global air traffic efficiency initiatives to enhance sustainability. China Airlines is also continuously phasing out older aircraft in favor of next-generation fuel-efficient models, such as Airbus A350 and Boeing 787, which deliver 20% to 25% greater fuel efficiency than previous generations.

The airline is actively exploring hydrogen fuel and electric aviation technologies in its long-term decarbonization strategy, but commercial viability for these technologies remains a challenge. To meet ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) requirements, China Airlines also purchases carbon credits to offset emissions and to gradually reduce its overall carbon footprint. The airline’s compliance with CORSIA and participation in carbon markets reflect a broader industry effort to achieve the 2050 net-zero target set by ICAO’s Long-Term Aspirational Goal (LTAG).

Despite these advancements, the aviation sector faces regulatory, economic, and technological challenges in achieving a complete energy transition. Adequate policy support, such as SAF production incentives, infrastructure investment, and international collaboration, will be critical to accelerating decarbonization in the industry.

6.3. Case Study: Maritime Transport—Maersk and Nippon Yusen Kaisha (NYK)

Maersk, a company based in Copenhagen, Denmark, is advancing low-carbon shipping with green methanol-powered vessels. The firm is leading the way in low-carbon shipping by introducing green methanol-powered cargo vessels that reduce greenhouse gas emissions significantly. Compared to traditional fuels, methanol is a cleaner alternative for greatly cutting CO₂ emissions. The shipper employs AI-driven route optimization that analyzes real-time weather conditions, ocean currents, and cargo loads to adjust sailing routes effectively, minimizing fuel consumption. Maersk harnesses AI-powered innovative container management systems to enhance port operations, reduce vessel docking time, and improve overall operational efficiency, all while decreasing unnecessary energy usage and carbon emissions [104].

Nippon Yusen Kaisha (NYK) is an ammonia-fueled firm, paving the way for zero-carbon shipping. NYK is making noteworthy progress in decarbonizing maritime transport by leading the conversion of Liquefied Natural Gas (LNG)-fueled tugboats into ammonia-powered vessels. The company delivered its first LNG-powered tugboat in August 2015, which served in Tokyo Bay for eight years. In 2023, through its subsidiary Keihin Dock Co., Ltd., Kanagawa, Japan, NYK enhanced this vessel by replacing its main engine with an ammonia-fueled system. It successfully conducted a sea trial, marking it as one of the world’s first ammonia-powered ships. Unlike traditional fuel ships, vessels powered by ammonia produce zero CO₂ emissions, establishing them as a vital technology for achieving zero-emission shipping [105].

6.4. Integration and Interoperability Challenges

Despite its potential, Industry 5.0 faces challenges in technology integration and interoperability. While digital twin technology enhances industrial efficiency [72,73,80], achieving seamless connectivity between cyber–physical systems (CPS), AI models, and blockchain networks remains a significant hurdle [59,106]. The transition to renewable energy adds complexity, requiring decentralized energy networks, adaptive regulatory frameworks, and robust digital solutions [13,14,28,29,58]. Despite environmental benefits, poor management could lead to economic and social disruptions [8,60].

Interoperability issues are evident in the food industry, where IoT, blockchain, AI, and additive manufacturing are reshaping production and supply chains [107]. While automation and innovative food systems enhance efficiency, they raise concerns about data security, regulatory compliance, and traceability [108]. A multidisciplinary approach is needed to address these challenges.

The human-centric vision of Industry 5.0 introduces ethical concerns, including job displacement, data privacy, and the digital divide [38,41,42,86]. Aligning technological advancements with ESG principles ensures sustainable progress [89]. Integrating AI diagnostics and innovative medical systems in healthcare also presents security and compliance challenges [11,12,75]. Education transformation depends on digital adaptation and workforce development [45,109]. Thus, a collaborative research agenda is crucial for addressing these complexities [19,110].

Emerging topics like metaverse sustainability [111], regenerative innovation [112], and blockchain applications in circular economy practices [30,81] are influencing Industry 5.0. Sustainable initiatives, such as bamboo industrialization, offer promising alternatives [113]. However, digital integration remains essential for fostering a green economy [109].

From a governance perspective, achieving the Industry 5.0 vision requires global collaboration. Policy initiatives emphasize multi-stakeholder engagement that involves policymakers, industry leaders, researchers, and end-users [90,91,92,93,113,114,115].

6.5. Human-Centered Energy Transition

The energy transition is a critical issue facing modern society. However, existing energy systems are constrained by large-scale infrastructure, long-term investments, and complex technological deployments, making the transition slow and difficult to achieve true sustainability. The energy market is primarily controlled by government institutions and large corporations, lacking transparency, limiting citizen participation, and leading to unfair resource allocation and pricing. Even though renewable energy technologies have advanced, their supply and distribution remain centralized, making it challenging to establish decentralized energy autonomy. Therefore, technological advancements alone cannot guarantee an adequate energy transition. A Human-Centered Energy Transition (HCET) strategy is essential to align technological progress with social equity, environmental sustainability, and human well-being.

HCET emphasizes that energy system design should go beyond technical efficiency and incorporate human well-being, ethical responsibility, and sustainable development goals to ensure that technological innovation serves broader societal needs. Unlike traditional approaches focusing solely on upgrading electricity systems, HCET promotes multi-energy integration including electricity, heat, mechanical, and chemical energy, while utilizing digitalization, decarbonization, and decentralized energy management to drive a low-carbon transition. By embedding the principles of Industry 5.0 and Society 5.0, this model prioritizes efficiency, economic benefits, social equity, and long-term sustainability. Within the HCET framework, although artificial intelligence (AI) and machine learning (ML) optimize energy distribution and enhance efficiency, the ultimate decision-making authority must remain with humans to ensure that energy policies and strategies align with ethical standards and social needs. Automation should not entirely dictate energy decisions; instead, human–machine collaboration should be emphasized, ensuring that technology is a tool for informed decision-making. Unlike Industry 4.0, which focuses on full automation, Industry 5.0 seeks a balance between technological advancement and human control. It allows users to adjust energy systems in real time through mobile applications, voice assistants, and intelligent dashboards, ensuring that energy management remains accessible and responsive to human needs.

A key technological enabler of HCET is geofencing, which optimizes energy use by dynamically managing energy distribution based on real-time data. Geofencing establishes virtual geographic boundaries that monitor renewable energy supply and adjust energy distribution based on user behavior and regional characteristics by leveraging GPS, RFID, Wi-Fi, or Bluetooth technology. For instance, when peak solar or wind energy generation is detected, geofencing can automatically switch to green energy, reducing reliance on fossil fuels. It can also integrate AI-driven forecasting mechanisms to ensure real-time energy control and supply stability during extreme weather conditions or energy shortages, thereby enhancing system resilience and flexibility. By integrating with smart grids, geofencing allows energy systems to dynamically adapt to fluctuating demand and environmental changes. It ensures that renewable energy is efficiently utilized and waste is minimized.

The integration of HCET and geofencing demonstrates significant potential across multiple industries. In manufacturing, smart energy hubs can be established where businesses and public institutions co-manage energy, thus improving regional energy coordination, reducing waste, and optimizing production efficiency. In energy management, geofencing combined with smart grids can improve renewable energy distribution, enhance grid stability, and lower dependence on fossil fuels. Geofencing can facilitate smart charging for electric vehicles (EVs) in transportation and ensure that charging stations dynamically adjust power supply based on real-time demand to prevent grid overload. Additionally, geofencing can optimize the allocation of sustainable aviation fuel (SAF), promote low-carbon air travel, and spur green aviation efficiency. In urban planning and public policy, governments can employ geofencing to monitor city-wide energy consumption, enforce air quality regulations, and support innovative city initiatives, aligning urban development with sustainability goals.

HCET supports innovative energy governance models, such as autonomous energy communities, where local neighborhoods establish decentralized energy systems through shared renewable energy networks that cut dependence on centralized grids while promoting equitable energy distribution. Similarly, implementing smart energy hubs enables collective energy management among enterprises and ensures that energy supply remains efficient and adaptable to dynamic economic and environmental conditions. HCET actively empowers communities and industries to shape a sustainable energy future by fostering these decentralized energy ecosystems.

HCET ultimately presents a transformative vision for energy transition by integrating technological innovation with human-centric values, ensuring that energy systems are efficient, yet also equitable and inclusive. This model goes beyond merely upgrading energy infrastructure; it represents a fundamental shift in how energy is produced, distributed, and managed, prioritizing social responsibility alongside technical progress. Through integrating geofencing, AI, and intelligent energy management, HCET enables a truly human-centered energy transition, driving the global energy industry toward a more just, transparent, and sustainable future. This approach advances the operational efficiency of energy systems. It ensures that technological progress aligns with societal needs and paves the way for an energy landscape that benefits all stakeholders while addressing critical environmental and social challenges. By adopting HCET, government and industry can redefine sustainable energy management and create a resilient, inclusive, and low-carbon future that harmonizes technological advancement with human well-being.

7. Conclusions

Human-Centered Energy Transition (HCET) emphasizes the necessity of balancing energy efficiency with social equity and environmental sustainability. Unlike centralized energy systems, HCET promotes the integration of multiple energy forms, including electric, thermal, mechanical, and chemical, through decarbonization, digitalization, and decentralized energy management. A core feature of this approach is the preservation of human agency in energy-related decision-making, supported by enabling technologies such as geofencing. Geofencing, utilizing GPS, RFID, and Wi-Fi, facilitates real-time energy monitoring and dynamic allocation, enhances grid resilience, and spurs the efficient use of renewable energy. These capabilities have been applied in domains such as smart manufacturing, electric vehicle charging, urban energy systems, and the establishment of Smart Energy Hubs and Autonomous Energy Communities that foster regional energy autonomy and sharing.

Building on the digital foundation of Industry 4.0, Industry 5.0 introduces human-centricity, sustainability, and resilience as key pillars of industrial evolution. Integrating environmental, knowledge, and societal dimensions into innovation ecosystems has been conceptualized within the quintuple innovation helix framework [116]. A structured pathway has also been outlined for transitioning from digital manufacturing to a human-centric digital society that embeds sustainability into core production models [117]. Empirical research further demonstrates that implementing Industry 5.0 enablers strengthens supply chain resilience, particularly during disruption [118]. The triple transition of digital, green, and social imperatives is essential for industrial adaptation, supported by theoretical frameworks and bibliometric analyses [119,120]. Additionally, the need for flexible and adaptive business processes has been emphasized in response to the shifting demands of Industry 4.0 and 5.0 contexts [121].

Governance and policy frameworks are essential to this transformation. Research highlights the role of governmental regulation in enhancing firm competitiveness and resilience under Industry 5.0 [122]. This runs alongside calls for global collaboration to accelerate fusion energy development in alignment with broader socio-technical visions [123]. Integrating blockchain technology into industrial IoT environments is a mechanism for enhancing transparency and supporting decentralized energy governance [124].

Sustainability remains a cornerstone of Industry 5.0. Emerging frameworks have illustrated how Industry 5.0 promotes green innovation and resilience in manufacturing [125]. Moreover, systematic reviews affirm its critical role in advancing sustainable production ecosystems [126]. Foundational studies also support integrating intelligent manufacturing technologies with environmental sustainability goals [127].

In summary, three overarching themes emerge from the literature: (1) the evolution of industrial paradigms that seek a balance between automation and human intelligence; (2) sustainability and technology-enabled low-carbon transition, leveraging digital technologies, AI, and circular economy principles; and (3) multi-stakeholder policy frameworks that reinforce institutional and regulatory mechanisms to guide transformation. Together, these dimensions offer a comprehensive and inclusive blueprint for integrating HCET and Industry 5.0. They all support a future of energy and industrial systems that are efficient, equitable, and sustainable.