Portuguese industry is living a decisive moment, driven by ecological, digital, and geopolitical transitions that are redefining production paradigms. Today, the question is no longer whether digitalisation and sustainability are necessary, but how — and how fast — companies, clusters, and the innovation ecosystem will implement them.
 

Portugal has talent, world-class R&D centres, and a resilient SME network: the foundations are in place. The real challenge, however, lies in scaling digitalisation and sustainability simultaneously, ensuring both progress in an integrated and strategic way.

Challenges and Opportunities of Industry 5.0

Globally, the most competitive economies are already embracing the dual transition (digital and green), inspired by the European concept of Industry 5.0. This new approach transforms the old logic of Industry 4.0, focused on automation, into a sustainable, human-centred, and purpose-driven industry. Portugal is following this trend but still faces a significant gap in adopting advanced digital and computational technologies, as well as in developing technical skills at the required scale. Digital technologies have ceased to be mere tools: they are now engines of structural transformation, capable of driving productivity, sustainability, and competitiveness at the same time.

Among the main trends shaping this transformation are:

• Digital–green convergence (dual transition): IoT sensors and digital platforms enable the optimisation of energy consumption, predictive maintenance, and waste reduction, creating synergies between operational efficiency and emissions reduction;
• Artificial Intelligence and advanced industrial data analytics, which enhance quality control, logistics optimisation, and environmental impact reduction when integrated with lifecycle data;
• Cyber-physical systems and predictive maintenance, which extend equipment lifespan and enable circular business models such as product-as-a-service;
• Data platforms, interoperability and cybersecurity, which support collaborative ecosystems and more resilient value chains;
• Technologies for circularity include digital twins for regenerative design, blockchain for materials traceability, and additive manufacturing for repairability and waste reduction.

Key Actions for Companies

• Start with pilot projects that deliver economic and environmental return.
• Transition to circular business models (product-as-a-service);
• Invest in industrial data platforms and digital governance.
• Combine public funding, ESG strategies and technology partnerships;
• Measure impact using energy, carbon and circularity KPIs.

The digital and sustainable transition of Portuguese industry depends mainly on human capital. It is skills that will make the difference and determine a company’s capacity to adapt and innovate.
Key areas include data engineering, AI applied to industry, and cybersecurity, which serves as the backbone of digitalisation. Alongside these, ecodesign and product lifecycle management are increasingly relevant, ensuring sustainability is embedded from conception to end-of-use.

There is also a growing demand for hybrid profiles that combine technical expertise with strong business vision, as well as for leaders with digital literacy and ESG awareness who can guide teams and organisations through the dual transition.

The Role of R&D Institutions

This is where the role of research and development institutions, such as the CCG/ZGDV Institute, becomes particularly relevant. They act as a bridge between science and industry, supporting companies through technological solutions, knowledge transfer, and specialised capacity building by means of:

• Applied technology transfer: solution prototyping (process simulation, digital twins, industrial data analysis) that shortens the time from concept to commercial product or service;
• Skills development and experimentation environments: training, workshops, living labs, and joint projects that allow SMEs to test without risk and train their teams;
• Support for internationalisation and funding opportunities: helping companies access European programmes and transnational consortia;
• Facilitation of standards adoption and best practices: interoperability, cybersecurity, and methodologies for assessing circularity and sustainability.

Portugal has today the right conditions to turn its industrial base into a true competitive advantage. The question is no longer to automate, but to rethink processes, generate sustainable value, and compete in a world where innovation also means preservation.

To achieve this ambition, companies must combine technological investment with talent development and strengthen partnerships with R&D centres such as the CCG/ZGDV Institute, which plays a decisive role in accelerating the practical application of innovative solutions. Delaying this transition will cost more than investing in it today. The competitiveness of the future will be written by those who digitalise with green vision and skilled hands.

Opinion article by Valdemar Sousa, Science and Business Manager for Industry at the CCG/ZGDV Institute