Name a key technology that characterizes Industry 4.0.

The Internet of Things (IoT) is a cornerstone technology that characterizes Industry 4.0 due to its ability to connect devices and systems, enabling them to communicate and share data seamlessly. This interconnectedness allows for real-time monitoring, analysis, and optimization of processes across various industries. In the context of Industry 4.0, IoT facilitates smarter manufacturing, where machines can self-diagnose issues, predict maintenance needs, and enhance overall operational efficiency.

The importance of IoT lies in its capacity to generate vast amounts of data from sensors and devices, which can be analyzed to improve decision-making and innovation. This connectivity is essential for implementing advanced concepts such as smart factories, where automation and data exchange are optimized for productivity.

While robotics, augmented reality, and advanced machine tools are also significant technologies in the Industry 4.0 landscape and contribute to enhanced operational capabilities, the fundamental characteristic that enables the integration of these technologies and their function within a connected ecosystem is the Internet of Things. Thus, identifying IoT as a key technology underscores its pivotal role in the transformation brought about by Industry 4.0.