Coined in Germany, the term Industry 4.0 alludes to a new version of industry and the ensuing changes in industrial production. This paradigm shift emerged from the combination of the so-called futuristic technologies and the widespread use of the internet, empowering common physical objects with autonomy and “intelligence” [
1]. Many of the technologies that form the pillars of the new industrial paradigm have been evolving since the creation of the first computers and have long been used, in isolation, in manufacturing [
4,
14]. It is, however, in the interaction between physical and digital media that lies the transformative power of Industry 4.0 [
4,
14], as it allows various devices to interact through an internet network [
7], collect information, and assist in decision-making. Thus, existing technologies form an integrated system that has the potential to revolutionize relations between suppliers, manufacturers, and customers and improve the efficiency of the production chain [
2].
2.1.1. 4IR Technologies and Principles
According to the Boston Consulting Group (BCG), Industry 4.0 is supported by the following nine pillars [
14]: additive manufacturing, augmented reality, autonomous robotics, big data and analytics, cloud computing, cybersecurity, vertical and horizontal integration, IoT, and simulation. Additive manufacturing, exemplified by three-dimensional (3D) printing, is the opposite of subtractive manufacturing. Whereas subtractive manufacturing removes surplus materials to shape parts and objects, additive manufacturing builds objects layer-by-layer according to a pre-existing 3D model [
7]. Its main advantage lies in the ability to produce small batches of customized products in a rapid and efficient manner [
13,
14].
As for augmented reality, one of its major benefits is the possibility of assisting workers in their activities. The technology integrates information from computer models into the real environment, representing a valuable tool to guide teams during the execution of familiar and unfamiliar tasks alike. Data, graphics, and virtual images can be reproduced in a user’s field of view, allowing them to interact with information projected onto their surroundings [
7,
16]. A wide variety of activities can be facilitated by augmented reality, such as maintenance services, wherein workers can receive instructions and remote support during task execution and stock selection, and virtual training for emergency situations, wherein practitioners can receive specific instructions in a controlled environment [
14].
Robotics has long been used in manufacturing, having evolved and becoming increasingly useful over the years [
14]. Autonomy, flexibility, and cooperation are some of the characteristics attributed to the new generation of autonomous robots [
14]. Given their ability to self-configure and negotiate with each other to adjust to changing needs [
4], autonomous robots are expected to play a key role in smart manufacturing. Collaborative robots have been developed to interact with humans and provide support during work activities [
17]. Safe and collaborative human–machine interactions have been envisioned and are expected to become widespread when the cost of such equipment decreases [
14].
Arising from the various data acquisition and storage technologies that emerged with the ubiquitous use of the internet, big data and analytics became an important pillar of Industry 4.0. This comes as no surprise, given that the capacity to analyze large amounts of data is essential for the digital transformation of companies [
7]. Big data technologies can be used to process and select data quickly and efficiently, separating relevant from less important information [
18] amidst the gigantic realm of available data—a task beyond the capacity of any other method, especially human processing. Algorithms based on correlations and probabilities can be used to mine the data, evaluate patterns, and generate information for knowledge building [
4]. Big data-derived knowledge has the potential to improve production quality, reduce energy consumption, assist in rapid decision-making, and improve equipment operation [
14].
Most of the analyzed data is stored in the cloud, which represents another pillar of the 4IR. Possibly one of the most widespread tools nowadays, cloud computing allows the creation of a network connecting people, data, services, and objects through the internet [
7]. With the ability to store data in remote databases [
19], cloud services provide easy access to information [
17] and make it financially affordable to store the exponential amount of data generated over time [
4].
This plethora of data sharing and connectivity technologies explains the importance of cybersecurity for the diffusion of Industry 4.0. The need to protect industrial systems and information from cyberattacks is fundamental and expanding [
14]. Malicious software can spread through interconnected machines to modify processes, destroy data [
7], or steal inside information. Therefore, technologies that reduce concerns about cyberattacks have a strong appeal in the new industrial reality. Security requirements vary according to the needs of each networked system. It should be recognized, however, that the complex reality of interconnected environments makes it unfeasible to attain complete security [
4]. Nevertheless, it is possible to create means for real-time detection of atypical behaviors and generate quick responses to keep network-connected equipment and users safe [
4].
Another principle of the new IR is production chain integration, both horizontally and vertically. Vertical integration is defined as integration of information systems along the hierarchical levels of a company [
3], which results in more flexible and faster communication between levels [
20]. Such an integration model encompasses from product development and purchase to manufacturing, logistics, and services [
10]. Horizontal integration, on the other hand, refers to the connection between different phases of production and design processes that involve the exchange of materials, energy, or information, and between the different companies participating in a value chain [
3]. The purpose of integration is to connect both ends of the value chain. This represents an important innovation in that it fully interconnects information technologies, culminating in an extraordinary level of association between companies, suppliers, and clients, as well as between departments within companies [
14].
At the heart of information exchange and storage lies another key concept of the 4IR—IoT. Objects enriched with sensors and actuators are able to communicate in real time at high speeds with each other and with controllers, creating an intelligent and interconnected environment [
4,
14]. Ultimately, products will be able to communicate with other products and systems in a manner that amplifies their performance and offers novel and improved solutions before and after sale [
13], altering the course of business strategies [
19]. IoT-based solutions play a key role in increasing efficiency in the field of logistics and mobility, as they allow real-time monitoring of objects and goods in transport and urban mobility services [
4,
18]. Three characteristics make IoT a revolutionary technology [
18]: (i) context, objects can provide information on location, weather, and physical conditions; (ii) ubiquity, capacity for large-scale communication between objects; and (iii) optimization, whereby objects can acquire multiple functionalities. The smart ecosystem formed by interconnected objects supports decentralized decision-making and real-time responsivity to changes and needs [
14].
Finally, the last pillar is simulation, considered the cornerstone of Industry 4.0 by BCG. Although its use was common in modeling before the current IR, simulation technology has gained new uses and applications. Current models are able to mirror the real environment, including not only geometric but also behavioral characteristics in real time [
3,
14]. Simulation tests and optimizations carried out using virtual models improve the quality of final products and the rate of introduction of new products into the market [
9]. Logistics and transport alternatives can be tested, relevant risks associated with production processes can be assessed, and costs and environmental impacts can be compared between suppliers through simulations [
3].
The different technologies of Industry 4.0 can be classified into two types, frontend and base technologies [
17]. Technologies that connect and smarten existing technologies are called base and form the foundation upon which Industry 4.0 resides. Examples include IoT, cloud computing, and big data and analytics. Frontend technologies, on the other hand, are linked to operational activities and market needs and can be divided into four dimensions: smart manufacturing, smart products, smart working, and smart supply chain. Smart production technologies are at the core of research on Industry 4.0, whereas smart working has received less attention [
21]. However, it is the implementation of base technologies that sets apart the new paradigm from previous stages of industrial development, ultimately transforming a conventional company into a smart one [
21].
From a theoretical point of view, the implementation of 4IR technologies can be conducted in one, a few, or all four dimensions, depending on the objectives of digitization. Nevertheless, it should be noted that, in practice, 4IR technologies are considered complementary and tend to be implemented progressively, with new technologies being added as the maturity of the company increases [
17]. As stated by Schwab [
2], innovations “build on and amplify each other,” and integration between different dimensions leverages the benefits of Industry 4.0 [
21].
Consumers’ decision to adopt or not innovations was shown to be influenced by the following five factors [
22]: (i) perception of economic advantage, social prestige, convenience, or increased satisfaction in comparison with the current state; (ii) perception of compatible values, experiences, and needs; (iii) level of complexity of technology use; (iv) ability to test or experiment technologies for a period of time; and (v) observation of the results of peers who used the innovation. As for organizations, a cautious attitude and a lack of trained professionals represent structural challenges that may delay technology adoption in medium and small companies [
3]. There are also concerns related to the high initial financial investment required to implement technologies, which can be intimidating for smaller companies, especially on a return basis [
23]. In line with these observations, studies conducted in the manufacturing industry indicate that larger organizations tend to be at more advanced stages of Industry 4.0 implementation [
17].
2.1.2. Industry 4.0 Trends in the Construction Sector
Compared to other industrial sectors, the construction industry lags significantly behind in adopting 4IR technologies, potentially because of its conservative nature [
24,
25]. Despite this, there is great potential for digitization of the sector, which can provide cost and time savings to projects [
24], among other benefits.Oesterreich and Teuteberg [
5] identified several Industry 4.0 technologies and concepts that are key to the construction sector and enable process digitization, automation, and integration. A previous study [
6] classified some of these concepts into five groups according to their similarity of application in the construction sector, as shown in
Table 1.
4IR technologies can play significant roles in different phases of the lifecycle of a construction project [
25], often serving different purposes in each of them. Because of the fragmented and dynamic nature of the construction industry, innovation needs differ between phases. There is a tendency toward a more organic approach to innovation in the initial phases of a project (e.g., planning and design) and toward a more systematic approach during subsequent phases, which typically require greater discipline as a result of stricter deadlines [
26]. Such differences in approach may indicate the need for different technologies. Industry 4.0 concepts have been most explored in the planning and management phases, during which the main focus of technologies lies on task execution, smart manufacturing, and smart working [
6], that is, dimensions related to internal processes of companies [
21]. Technologies applied to external processes (smart products and smart supply chain), as well as those based on Industry 4.0, remain little explored in the construction sector [
6].
The potential applications of Industry 4.0 principles and technologies in construction are summarized in
Table 2, which was constructed based on a previous literature review [
6]. IoT, sensors, and cyber-physical system (CPS) technologies were grouped under a single concept, given their similarity and interrelatedness.
2.1.3. Impact of New Technologies
The ongoing technological revolution is expected to have a prominent impact on the economic, social, and cultural spheres of societies worldwide, particularly on economic development and the labor market [
2]. Current innovations may dramatically affect skill profiles and workplace activities [
3], potentially exerting some negative effects in the short term owing to the rapid replacement of human labor by computers [
2]. Schwab [
2] argued that, in the long term, however, new demands for services and products are likely to catalyze the emergence of new professions, which eventually absorb the available workforce. With the new IR, workers will be more focused on creative and added-value activities and dedicate less time to routine and repetitive activities [
3], as the latter can be easily replaced by machines. There is a prospect that there will be an increased supply of high-salary positions with high cognitive and creative demands, just as there will be a reduced need for low-paid, fundamentally manual occupations [
2].
The expected benefits of the 4IR can be classified into three main categories [
13]: (i) product-related benefits, including those directly linked to the performance, quality, and release timing of final products; (ii) operation-related benefits, which refer to improvements in internal production activities, such as increased yields and reduced operating costs; and (iii) side benefits, which are not directly linked to products or productivity but can be equally advantageous to companies [
13].
Table 3 describes some of the benefits that new technologies can provide to the construction industry, stratified into categories.
In the context of Brazilian manufacturing, certain 4IR technologies can be associated with different benefits; that is, by adopting a certain technology, there is a greater probability of achieving the benefits related to it [
13]. Such an association, if well established, would allow users to direct technology adoption efforts according to the desired goals.
Despite the countless gains that can be achieved with the Industry 4.0 model, many difficulties still have to be addressed for the full development of this industrial age. Some of the barriers that may hamper the progress of the 4IR include lack of regulations and standards [
9,
12,
52,
53,
54,
55], job cuts [
2,
12], information security risk [
9,
12,
23], insufficient infrastructure [
9,
12], lack of customer demand [
23,
53,
55], limited clarity of returns and benefits [
9,
12,
53], difficulty and lack of time for implementation [
9,
12,
53], lack of knowledge or insufficient information [
12,
53,
55,
56], lack of trained professionals [
9,
12,
53], resistance to change [
9,
12,
52,
53,
55], and high implementation costs [
9,
12,
23,
53,
54].
Consideration should also be given to the structural challenges that emerging economies need to overcome to achieve a satisfactory level of technological implementation [
13]. Many emerging countries differ greatly from developed countries in terms of technological, scientific, and social barriers and market peculiarities that interfere with the acceptance of innovations [
57]. For this reason, in order for adaptation to occur in a satisfactory manner, it is “important to understand the results of the 4IR in the context of each specific industry and country” [
2]. It is expected that, with the satisfactory implementation of Industry 4.0, Brazilian companies will experience renewed growth, increased efficiency, and reduced costs [
10]. Such results may stem from new products and services that generate additional revenue, as well as from improvement of operational factors, such as process digitization, real-time quality control, inventory management, and production flexibility [
10].