Mega Trend 1:
The Third Industrial Revolution
Prof. P B Sharma
Vice Chancellor
Delhi Technological University
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The Idea originated from Jeremy Rifkin
 We are at the Crossroads of our Industrial Civilization.
 Sun setting on Fossils fuels, Energy Infrastructure on fossil
fuel
is aging. Climate change destabilizing the ecosystem
 In this despair a great new hope has emerged.
 Communication revolution empowered one and all with
power of connectivity & access to knowledgeware.
 A new Energy revolution is in the making with renewables.
 Convergence of Energy and communication revolution is on
the envil.
 The Third Industrial revolution is in the offing.
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The Great Economic Transformations
 History suggests that the great economic transformations occur
when new communication technology converges with new energy
systems.
 New forms of communication become the medium for organizing
and managing more complex civilizations made possible by the
new sources of energy.
 The infrastructure that emerges shrinks time and space, connecting
people and markets in more diverse economic relations. When
those systems are put in place, economic activity advances, moving
along a classic bell shaped curve that ascends, peaks, plateaus and
descends in tandem with the strength of the multiplier effect
established by the communications & energy dynamics.
 The power of innovation today is such that it pushes the product
cycle upward, in turn creating an even higher peak of acceptability
by successive innovations.
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Why The Third Industrial Revolution?
• First Industrial Revolution powered by the wheels of
power run by steam.
• Second Industrial Revolution thrived on great
advances on automation & mobility.
• The Third Industrial Revolution will be propelled by
the power of connectivity, power of mind and
energy farming, mass entrepreneurship.
• There will be no poor, no hunger and no
unemployment in the third industrial revolution.
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Impact of ICT
 The ability of man to innovate and create new designs, new
materials, new manufacturing systems and to collaborate at all
levels from design to manufacturing, sales and service and to
create a dynamic eco-system that supports growth of new and
innovative products and services is the result of the communication
and IT Revolution.
 Barriers of time, space and geographical locations have been
broken. There is no consideration in this new knowledge age of
one’s age and experience. A start-up can challenge a well
established enterprise; similarly a new entrant to the profession
can challenge a well established professional.
 This is bound to unleash unprecedented growth and advancement
of productive enterprises providing work opportunities to millions
of people around the world.
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Innovations – Restarting Product Life Cycle
Figure 1: Innovation Restarts the Product Life Cycle
Figure 2: Generalized Product Life Cycles – Semiconductor
Industry
Ref: http://blog.cestudios.ca/2007/07/23/restart-the-product-life-cycle/
Ref:http://strategymarketingplan.blogspot.com/2010_08_01_archive.html
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Energy Revolution on the Anvil
 Challenge of energy efficiency and low engine emissions is being
addressed by the improved fuel quality, efficient combustion systems &
catalytic convertors for vehicles powered by IC Engines.
 Power sector is also witnessing the growth of clean coal technologies
such as super critical and Integrated Gas Coal Technologies.
 Increased use of hydro and nuclear power would still be inadequate
solution to meet today’s needs.
Figure 3: Renewable
Energy Share of Global
Final Energy
Consumption 2009
Source: BP, Statistical Review of
World Energy, June 2011
 For a long time renewables were considered cost ineffective and least
efficient sources of energy for power generation. This situation is however
changing with renewables growing to 16% in the share of Global Final
Energy Consumption.
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Energy Revolution on the Anvil
 A new energy revolution is on the anvil with renewables making more
business sense and with energy entrepreneurship becoming popular both,
in households as well as in the rural sector.
 Once solar hydrogen becomes a viable business proposition there will be
a phenomenal increase in harnessing solar energy. Even without it, the
increased focus on grid as well off-grid solar photovoltaic power in US,
European Union and also in China, India and countries in South-East Asia a
major energy revolution is in the making.
 We foresee the rise of energy entrepreneurship which will involve millions
of people in the business of harnessing the available bio-energy and the
businesses generated through it for production and distribution.
Generating energy in a form which can be utilized both locally as well as
plugged in the energy grid would become a major phenomenon in
countries around the world.
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The 3rd Industrial Revolution will create small and medium
enterprises penetrating deep into the rural areas thereby
increasing the power of rural India and engaging rural people in
productively within the agro-industrial economy.
 This will also result in increased investment in agriculture
and push agricultural productivity to higher levels to justify the
return of investment. The twin gains shall be food security
through increased agricultural productivity and the rural
population enjoying a higher quality of life by being part of
agro-industrial activities.
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The Third Industrial Revolution –
Major Foot Prints
 Low Carbon Economy promoting Zero Waste
Engineering.
 Agriculture: From Green to Evergreen Revolution.
 A new paradigm for Education creating
employment and entrepreneurship for masses.
 Panchamrit of academia, R&D organizations,
Industry, government & society.
 Knowledge to prosperity through strong and
effective industry-academia partnerships.
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The Third Industrial Revolution –
Agenda for Actions
 Human intelligence, creativity and innovative genius to be
given a renewed emphasis in education at all levels.
 Engage scientists and technologists in technology
breakthroughs such as solar cells to produce electricity from
light as well heat of solar radiation, transmission of electricity
without wire, molecular manufacturing paving the way for
back to nature, creating matter from energy, etc.
 Like ICT for all make energy farming for all a phenomenon.
 Mount a major drive for energy conservation and use of
energy efficient devices at all levels.
 Think big in respect of renewable farming 50% or more of
total primary energy in India.
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Acknowledgments
The author gratefully acknowledges the inspiration provided by Mr.
Jeremy Rifkin, the originator of the concept of the 3rd Industrial
Revolution and the opportunity provided by Ms. Shobha Mishra
Ghosh of FICCI, New Delhi for the development of this White Paper.
Useful discussions that he had with the thought leaders of FICCI,
specially with Mr. Vivek Mohan of Abbott India are also gratefully
acknowledged.
The support received from Ms. Meha Joshi and Mr. Yoginder Kumar
of DTU in the preparation of the White Paper is also highly
appreciated and acknowledged.
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Thank You
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