The successful implementation of Human–Robot Collaboration (HRC) has become a prominent feature of smart manufacturing environments. Key industrial requirements, such as flexibility, efficiency, collaboration, consistency, and sustainability, present pressing HRC needs in the manufacturing sector. This paper provides a systemic review and an in-depth discussion of the key technologies currently being employed in smart manufacturing with HRC systems. The work presented here focuses on the design of HRC systems, with particular attention given to the various levels of Human–Robot Interaction (HRI) observed in the industry. The paper also examines the key technologies being implemented in smart manufacturing, including Artificial Intelligence (AI), Collaborative Robots (Cobots), Augmented Reality (AR), and Digital Twin (DT), and discusses their applications in HRC systems. The benefits and practical instances of deploying these technologies are showcased, emphasizing the substantial prospects for growth and improvement in sectors such as automotive and food. However, the paper also addresses the limitations of HRC utilization and implementation and provides some insights into how the design of these systems should be approached in future work and research. Overall, this paper provides new insights into the current state of HRC in smart manufacturing and serves as a useful resource for those interested in the ongoing development of HRC systems in the industry.

Industry 4.0, also termed smart manufacturing, has revolutionized the industrial world with cutting-edge technologies such as collaborative robots and artificial intelligence etc. Productivity and efficiency are two key factors that determine the success level of manufacturing. Therefore, many manufacturers have become so eager to adopt adaptive, intuitive, collaborative and smart techniques to improve the production lines, including key manufacturing machines and equipment. Therefore, robotic systems are playing an increasingly vital role in many industrial sectors, as they decrease the need for human labour and increase automation level. In addition, material waste can be also reduced since robots provide stability and accuracy during work. In turn, production times are reduced as well. Consequently, smart manufacturing areas need more advanced, flexible, and smart robotic systems to respond to market size changes and customization processes. As a result, currently, great research efforts are made to enrich the interactions between humans and robots in the work environment. This paper presents an overview of Human-Robot Collaboration (HRC) systems being employed in smart manufacturing to exploit the benefits of human experience and the capabilities of robotic systems. The research gaps, challenges and future work directions on HRC are highlighted and analyzed towards smart manufacturing.