Industry 4.0 readiness challenges and strategic pathways for manufacturing in developing economies

This systematic review examines Industry 4.0 (I4.0) readiness in manufacturing sectors across developing economies, where adoption gaps constrain sustainable industrial transformation. Guided by PRISMA, 31 peer-reviewed studies published between 2019 and 2024 were analyzed to evaluate readiness levels, identify interconnected barriers, and synthesize context-appropriate strategic pathways. The findings indicate predominantly low-to-moderate readiness and a “dual-speed” adoption pattern: large firms in technology-intensive sectors progress faster, while small and medium enterprises (SMEs) and labor-intensive industries lag significantly. Financial limitations, digital skills shortages, infrastructure deficits, and fragmented policy frameworks emerge as mutually reinforcing constraints requiring coordinated responses. The review highlights strategic pathways including phased technology adoption; targeted workforce upskilling aligned with sustainable manufacturing goals, strengthened institutional support, and triple-helix and inter firm collaboration. Emphasis is placed on context-sensitive implementation models that integrate digital transformation with sustainability. The study provides practical insights for policymakers designing national Industry 4.0 roadmaps, industry leaders enhancing competitiveness, and researchers addressing gaps in SME-focused and underrepresented regions, contributing to progress toward SDG 9 (Industry, Innovation and Infrastructure).