Industrial production holds great importance for modern society, and its historical development has been marked by significant social, economic, and technological changes. Technology has advanced significantly today, and the introduction of new technologies and machinery has completely transformed the system and method of production. Digitalization has had a significant impact on today's industry and has also led to major changes in business operations, providing new opportunities for revenue generation and value creation. Production today is more efficient, effective, and faster compared to before, all thanks to technological advancements and manufacturing processes. Industry 4.0 represents the fourth industrial revolution, which began in the early 21st century. The concept of Industry 4.0 is revealed through smart factories and machines that go beyond industrial solutions. The introduction of new technological systems in production has completely changed the industrial landscape. Automation of processes and the application of smart systems in manufacturing improve resource efficiency and utilization, resulting in increased production and reduced production costs. It is important to emphasize the key technology trends in Industry 4.0, which are described in detail in the paper. The paper also provides a closer description of industrial production in the Republic of Croatia, the prerequisites for its implementation, as well as the potential for the introduction and application of Industry 4.0 in Croatia.