Rethinking industrial reliability in the AI era: power and advanced materials.

The rapid evolution of Industry 4.0 and the emerging Industry 5.0 is transforming modern manufacturing at an unprecedented pace through advanced robotics, machine learning (ML) and artificial intelligence (AI). This shift is ushering in a new era of connected, intelligent industrial automation systems.

These increasingly sophisticated automation systems demand solutions that are efficient, reliable and sustainable, pushing engineering boundaries across every level of design. As a result, new challenges are being introduced in thermal management and component durability — two vital determinants of system‑wide reliability and performance. In addition to that, these advancements also place increasing pressure on the power systems needed to support rapidly evolving automation environments.

In 2024, the global growth in energy demand doubled from the previous decade, according to the International Energy Agency (IEA). This surge is expected to accelerate even further as electrification expands, AI adoption grows and data centres continue to scale. Meeting these rising power needs requires robust power systems — from power supplies and conversion technologies to EV charging infrastructure, UPS solutions and advanced energy storage.     

This rising demand for power is also closely tied to the evolution of industrial automation that we’re witnessing. Industry 4.0, powered by AI, ML and the Industrial Internet of Things (IIoT), is helping organizations modernize their operations and is paving the way for Industry 5.0. While manufacturing has become more digitized, only 28% of firms currently consider their operations to be smart (NAM). By 2027 though, that number is expected to soar to 76%.  

Despite the current low adoption rate, the payoff from AI driven automation is huge for industrial manufacturers with the industrial automation and control systems market projected to grow at a 10.6% CAGR from 2025 to 2030 (Grand View Research). In pursuit of these gains, the next five years promise tremendous growth as end-to-end industrial automation solutions move from early adoption to mainstream use.  

As AI and automation drive unprecedented efficiency, precision and cost savings, they also present new challenges in designing systems that can support these demands. Failure to address these challenges properly can undermine profitability, compromise safety, reduce productivity and erode market competitiveness.   

Key challenges include:  

• The need for dependable, long‑lasting electronic designs, as one weak link (e.g: an erratic PLC module) can compromise an entire automation system  
•  The requirement for higher‑performing electronics while maintaining the need for greater miniaturization 
• Environmental demands on grid decentralization, reduction of energy-intensive processes, hazardous materials and electronic waste  

Collectively, these challenges intensify the demand for advanced materials that can deliver significant improvements in performance, reliability and sustainability in the power and industrial automation industry. 

As touched upon above, the challenges brought forth by AI and increased digitization of the industry has intensified the demand for advanced sustainable materials that can bring improvements in performance and reliability for power electronics. Advanced materials support power electronics in three critical areas: 

Thermal Management: In industrial power electronics, it’s vital to dissipate heat to ensure efficiency, reliable performance and maximize system life expectancy. Thermal interface material (TIM) solutions used during component manufacturing and assembly provide these capabilities and include material solutions such as GAP PAD^® and SIL PAD^®, which span a wide range of thermal conductivities from typical values around 1 – 10 W/m-.K up to advanced silicone free formulations capable of 40 W/m-.K, along with greases, gels and phase change materials. 

Protection: Industrial operations cause exposure of electronics to environmental contaminants such as temperature, moisture, corrosive materials and vibration. Therefore, protective solutions such as solvent-free conformal coatings, gasketing materials, sealants and potting compounds are used to safeguard vital electronics so they can operate continuously at peak performance. 

Integrity:  Next generation systems of industrial automation demand both structural and electrical integrity. Advanced materials like threadlockers and structural adhesives provide structural integrity whereas electrically conductive adhesives, underfills and potting compounds deliver electrical integrity. Together, structural and electrical integrity meet the stringent demands of next-generation industrial automation systems by showcasing reliability and longevity.

As the industrial landscape accelerates toward more automated, connected and energy‑efficient operations, the reliability of the underlying electronic systems and the power systems become a decisive factor in long‑term success and payoff.

Advanced materials play a crucial role in supporting this shift by delivering the thermal performance, environmental protection and integrity required by increasingly compact electronics and robust power systems. Ultimately, advanced materials act as the foundation to support creating industrial systems that are efficient, durable and capable to meet the escalating demands of Industry 4.0 and the emerging Industry 5.0. 

With a global innovation network, dedicated electronics laboratories and deep expertise in materials development, Henkel continues to invest in next‑generation encapsulation and thermal technologies, including GAP PAD^® materials, SIL PAD^® materials, phase change materials, LIQUI-FORM^® products and thermal adhesives. The company’s commitment is reinforced by strong collaboration with OEMs and Tier suppliers to accelerate the adoption of advanced materials across critical industrial and power electronics applications.