Implementation of Industry 5.0 in SME: Scoping Review ^†

Abstract

Industry 5.0 (I5) represents a significant evolution in the trajectory of industrial development, emphasizing a human-centric approach that integrates advanced technologies with the goal of promoting sustainable growth, resilience, and enhanced human well-being. While Industry 4.0 already posed considerable challenges for industrial organizations, particularly in terms of technological integration, workforce adaptation, and strategic realignment, the shift toward Industry 5.0 has introduced additional complexities. The accelerated pace of innovation and the evolving expectations for human–machine collaboration have intensified these challenges. Large manufacturing corporations are already facing difficulties in adapting to this new paradigm; thus, the question arises: how are Small and Medium-sized Enterprises (SMEs), which typically operate with limited resources, infrastructure, and financial capacity, managing this transition? This paper presents a scoping review of 17 research papers, chosen from an initial set of 37 publications sourced from Scopus, Web of Science and ScienceDirect on the implementation of Industry 5.0 in SMEs. A comprehensive synthesis of existing research was conducted to elucidate the current state of the topic, identify the research questions addressed, and outline future directions for this emerging paradigm.

1. Introduction

The advent of Industry 5.0 marks a significant shift from the automation-centric approach of Industry 4.0 towards a more human-centric, sustainable, and resilient manufacturing paradigm. This new industrial revolution emphasizes the integration of advanced technologies such as artificial intelligence, robotics, and the Internet of Things (IoT) with human ingenuity to create more adaptive and personalized production processes, however the deployment of AI technologies remains timid today in virtually all areas [1]. Industry 5.0 aims to enhance collaboration between humans and machines, improve resource efficiency, and foster innovation, ultimately leading to more sustainable and resilient manufacturing systems. For instance, ref. [2] explores the transition from Industry 4.0 to 5.0, highlighting the increasing role of human–robot collaboration and the need for ethical considerations in technology deployment. Similarly, ref. [3] discuss the limitations of full automation of industry 5.0 that seeks to leverage the unique strengths of human capabilities and integrate him in the supply chain.

The implementation of Industry 5.0 necessitates substantial internal transformations, including the integration of advanced technologies, the restructuring of production processes and strategic models, and the upskilling of the workforce. While large enterprises may encounter challenges in adapting to this emerging paradigm, they often benefit from having a well-established system and the resources to carry out experimental and pilot projects without harming the enterprise ref. [4].

In contrast, SMEs are under increasing pressure to keep pace with these technological and organizational shifts in order to remain competitive. The adoption of Industry 5.0 principles poses significant difficulties for them, primarily due to their limited resources, reduced operational flexibility, and the absence of clear guidelines and structured frameworks to support a smooth and effective transition.

By thoroughly examining peer-reviewed studies, this research seeks to clarify the current state of the implementation of Industry 5.0 in SMEs, pinpoint the research questions that have been addressed to date, and map out future directions that can support SMEs in enhancing their competitiveness while minimizing the challenges and constraints.

2. Material and Methods

This research included a scoping review conducted in March and April 2025. This investigation provided a comprehensive overview of the existing studies on the implementation of Industry 5.0 within SMEs. Following this, the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) model was employed, sourced from the official PRISMA website, as illustrated in Figure 1. This method guides aspects such as the search process for relevant studies, inclusion and exclusion criteria, quality assessment of included studies, and result presentation ref. [5].

2.1. Identification

To guarantee the inclusion of high-quality and credible studies, this research utilized two major indexing databases, Scopus and Web of Science, along with the web platform ScienceDirect. In order to maximize the identification of eligible studies, the employed query was:

TITLE-ABS-KEY ((“INDUSTRY 5.0” OR “I5.0”) AND “implementation” AND (“SME” OR “Small and Medium Sized Companies”)).

The search terms were applied across titles, abstracts, and keywords. As a result, it yielded 20 publications from Scopus, 8 from Web of Science, and 9 from ScienceDirect, amounting to a total of 37 studies. These records were subsequently imported into the Zotero 6 reference management software to facilitate the identification of duplicates and inconsistencies. This process revealed 9 duplicate studies and 2 records lacking author information, which were therefore considered ineligible for inclusion in the final dataset, moving to the next step with 26 publications.

2.2. Screening

The second step involved scanning the titles and abstracts of the remaining 26 documents to verify their relevance to our research topic. As a result, 9 studies were found to be out of scope and were excluded. Consequently, 17 papers were deemed relevant and included in our review.

3. Results

This section provides insights into the surveyed research, presenting a synthesis and summary of evidence from these various studies. This compilation offers a clearer understanding of the corpus related to studies about the integration of Industry 5.0 in SMEs.

3.1. Publication Venues and Years

Figure 2 depicts the yearly distribution of publications from 2020 to 2025. The data shows a minimal number of publications in 2020, 2021 and 2023 with only one publication recorded in each of these years and no publications in 2022. A sharp increase is observed in 2024, with nine publications, marking it as the peak year. This is followed by a slight decline to five publications in 2025, which is expected given that the data collection occurred in mid-2025. This thorough examination covers 17 studies collected from trusted databases and web platforms, with the majority of 70.59% sourced from Scopus and a significant portion of 17.65% from ScienceDirect and 11.76% from Web of Science, as illustrated in Figure 3. The distribution across publication types, shown in Figure 4, highlights that 58.82% of the selected studies were journal articles, 35.29% were conference papers, and a smaller portion of 5.88% appeared in book chapters.

3.2. Corpus Analysis

Moving towards analyzing the abstracts of the 17 papers in question, our initial method involved using qualitative data analysis software, specifically NVIVO. The results of this analysis are depicted in Figure 5, presenting a visually insightful word cloud. By strategically employing this technology, we were able to identify and visually represent the frequency of words within the abstracts. The significance of particular terms is indicated by their varying sizes, revealing that keywords closely correspond to our research objectives. The word cloud visualizes key themes and concepts related to the implementation of Industry 5.0 in SMEs, highlighting the prominence of terms such as manufacturing, industry, sustainability, technologies and human, which collectively reflect the paradigm’s emphasis on integrating advanced technologies with human-centric and sustainable practices. The frequent appearance of words such as requirements, transition, risk, barriers, and challenges indicate that SMEs are encountering significant obstacles in adapting to the demands of Industry 5.0. To complement this visualization, a keyword co-occurrence analysis using VOSviewer version 1.6.20 was conducted to identify dominant research clusters within the selected publications. The resulting map reveals two major thematic groupings: the first centers around the three foundational pillars of Industry 5.0: human-centricity, sustainability and digital transformation, the second highlights the current limitations and implementation challenges faced by SMEs.

3.3. Synthesis Grid

In this section, we undertook a thorough review encompassing the 17 publications. An extraction was conducted to identify the sources and publication outlets that have addressed the topic of Industry 5.0 implementation in SMEs, along with an analysis of the countries actively contributing to this research domain. Additionally, the research purpose of each selected study was examined to gain insight into the specific objectives pursued by the authors. This detailed analysis enabled a nuanced understanding of the motivations and thematic orientations across the literature, thereby providing a solid foundation for identifying prevailing research gaps and future directions in the field,

Table 1. Synthesis grid.

Ref	Source Title	Country	Purpose of the Study
[6]	“Sustainable Strategic Business Infrastructure Development and Contemporary Digital Practices in Industry 5.0”	India	“1—researching the role of SMEs and Industry 5.0 in economic advancement, 2—investigating the opportunities and challenges of implementing Industry 5.0 in SMEs, and 3—proposing the Industry 5.0 model for SMEs.”
[7]	“Proceedings of the 17th international conference on industrial engineering and industrial management, icieim-xxvii congreso de ingenieria de organizacion, cio 2023”	Spain	“Identifying the factors that must be taken into account in the implementation of I5.0 by SMEs.”
[8]	«Safety Science»	Italy	“Exploring the digital transition and the barriers influencing the adoption of this solution”
[9]	“Lecture Notes in Mechanical Engineering”	France	“The formulation of a framework for the implementation of digital twin technology as an Industry 5.0 concept in the SME.”
[10]	“Latest advancements in mechanical engineering, vol 2, isiea 2024”	Argentina/Austria	“Defining the obstacles to the implementation of AI face SMEs in the manufacturing sector and the requirements they must meet to adopt it.”
[11]	“IFIP Advances in Information and Communication Technology”	France/Tunisia	“Identifying the risk management related to the digital transition of SMEs into I5.0.”
[12]	“International Journal of Production Research”	Denmark	“Defining how can the approach to competence development in SMEs explain patterns of slow digital transformation.”
[13]	«Journal of Manufacturing Systems»	Germany	“Assess the extent to which existing Industry 4.0 maturity models accommodate the specific requirements of Industry 5.0.”
[14]	“31st CIRP Conference on Life Cycle Engineering”	Germany	“Proposing a guided decision support method for SMEs to help them on the sustainability pathway.”
[15]	“Technological Forecasting and Social Change”	Italy	“Proposing a framework to evaluate the maturity of SMEs in Industry 5.0 practices and outlining improvement strategies and operational information to enhance the enterprise’s maturity.”
[16]	“Mechanical Technology and Structural Materials”	Croatia	“Selection of key success factors for Lean implementation of Industry 5.0 into SME.”
[17]	«Sensors»	Slovakia	“Identify the gaps preventing the effective integration of human centricity into industrial practices, particularly within SME.”
[18]	«Acta Logistica»	Poland	“Study and describing the case of a manufacturing company that decided to change the means of internal transportation to automated.”
[19]	“Proceedings of the International Conference on Industrial Engineering and Operations Management”	Indonesia	“Offering the process product innovation model for facing Industry 5.0 in food manufacturing SME industries.”
[20]	«Sustainable Development»	Finland/Italy	“Determine how the connection between IoT and social sustainability is facilitated by PMM.”
[21]	«Applied System Innovation»	Mexico	“Design and testing of an innovative model aimed at supporting organizations, especially SMEs, in overcoming the challenges of emerging technologies under the paradigms of Industry 4.0 and 5.0.”
[22]	“6th International Conference on Industry 4.0 and Smart Manufacturing”	Argentina/Italy	“Define what human-centered challenges SMEs in the manufacturing industry encounter when moving towards I5.0, and what criteria must be fulfilled to embrace it.”

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4. Discussion

Since the primary objective of this article is to establish a comprehensive framework for understanding the current state of research on the implementation of Industry 5.0 in SMEs, the preceding sections have provided critical insights into the evolution and direction of this emerging field. The analysis of publication trends, as illustrated in Figure 2, reflects a beginning of growing scholarly interest in the topic starting 2024. This upward trend highlights the emergent recognition within both academic and industrial spheres of the transformative potential of Industry 5.0, particularly in the context of SME.

Furthermore, the word cloud visualization in Figure 5 emphasizes Industry 5.0’s core focus on striking a balance between technological advancement and human-centric values, including sustainability and well-being. However, the transition toward this paradigm appears to be particularly challenging for SMEs, as evidenced by the frequent recurrence of terms such as challenges, barriers, and risks. This suggests that while the theoretical underpinnings of Industry 5.0 are being discussed, practical implementation remains constrained.

The keyword co-occurrence network represented in Figure 6 reveals a strong conceptual link between Industry 5.0 and Industry 4.0, despite the latter not being explicitly included in the search query. This indicates that Industry 5.0 is still intertwined with its predecessor and has yet to fully assert itself as an independent and dominant paradigm within the broader discourse of industrial transformation.

This observed gap underlines the necessity for further research to refine the conceptual boundaries of Industry 5.0 and to develop tailored strategies that facilitate its adoption among SMEs, enabling them to navigate the shift more effectively and maximize the paradigm’s intended benefits.

Based on the detailed analysis summarized in Table 1, a clear geographic trend emerges in terms of research engagement with the implementation of Industry 5.0 in SMEs. Italy stands out as the most active contributor to this domain, holding 4 studies, followed by Argentina, Germany, and France, each contributing with 2 publications.

A discernible pattern emerges among the research objectives and problematics outlined in the reviewed studies, facilitating their systematic categorization. This analysis has allowed for the identification of three principal research questions about implementation of Industry 5.0 in SME.

RQ1: What are the supporting models and factors for implementing Industry 5.0 in SMEs?

This research question explores the theoretical frameworks, enabling factors, and contextual conditions that support the integration of Industry 5.0 into SME operations, which constitutes the central problematic of this study.

RQ2: What are the challenges, barriers, and associated risks influencing the adoption of Industry 5.0 in SMEs?

This question addresses the obstacles that SMEs encounter in the process of adopting Industry 5.0, including financial limitations, lack of expertise and resistance to change. It also explores the perceived and actual risks related to this transition.

RQ3: What are the requirements and strategies necessary for SMEs to successfully embrace I5?

This question focuses on the preconditions and strategic actions needed for SMEs to adopt I5 depending on the level of maturity and the aspect lacking in the company.

These research questions offer valuable insights into the limited but qualitative body of literature concerning the implementation of I5 SMEs. Despite the relevance and academic contribution of the existing studies, the fact that only two implementation models have been proposed highlights a significant gap in the current research landscape. These few models are insufficient to address the diverse operational realities and sector-specific challenges faced by SMEs, particularly given the wide variation in technological capabilities, financial resources, and organizational maturity across industries. To bridge this gap, there is a pressing need for the development of more innovative and adaptable frameworks that support a smoother and more context-sensitive integration of Industry 5.0. Future research should focus on designing sector-specific models that can account for the unique needs and constraints of different industries. Moreover, further studies could explore low-cost, high-impact strategies that allow for incremental adoption of Industry 5.0 in SMEs with limited budget. Another promising direction would be to investigate the implementation of Industry 5.0 for SMEs whose current technological maturity aligns more closely with Industry 3.0.

5. Conclusions

In conclusion, this article has synthesized the growing scholarly interest in implementing Industry 5.0 in SMEs, starting 2024, which showcase that this a trending topic that has the potential to support the small companies survive the industrial competitiveness. The analysis revealed that Italy stands out as the country most actively engaging with this topic, which may contribute positively to its industrial development and innovation capacity. Through a structured scoping review, the study mapped the existing body of research and identified three primary research questions that encompass the core dimensions of Industry 5.0 integration in SMEs: supporting models and enablers, existing challenges and risks, and requirements for effective implementation. While these studies offer valuable insights, the overall number of contributions remains modest, and there is a notable absence of concrete, real-world examples that demonstrate the seamless and practical implementation of Industry 5.0 in SMEs. To bridge this gap, there is a pressing need for the development of more innovative and adaptable frameworks that support a smoother and more context-sensitive integration of Industry 5.0. Future research should focus on designing sector-specific models that can account for the unique needs and constraints of different industries. Moreover, further studies could explore low-cost, high-impact strategies that allow for incremental adoption of Industry 5.0 in SMEs with limited budget. Another promising direction would be to investigate the implementation of Industry 5.0 for SMEs whose current technological maturity aligns more closely with Industry 3.0.