 Industry 4.0, also known as the industrial Internet of Things, IOT, is a revolutionary concept that uses smart sensors to generate data and improve product quality, flexibility, and productivity. Smart sensors have evolved significantly since their introduction in the late 18th century, culminating in today's Sensor 4.0 technology. This paper reviews the evolution of sensor technology over the past two centuries, highlights the potential of smart sensors and data evaluation, and discusses success requirements for future developments. Additionally, it explores magnetic sensor technologies, which allow self-test and self-calibration and can contribute to many applications due to their wide spectrum of measured quantities. The paper also examines condition monitoring as a primary paradigm for introducing smart sensors and data analysis into manufacturing processes. This article was authored by Ashutza, Ashutza, and Helwig, and others.