This research paper investigates how digital transformation influences the readiness and adoption of Industry 5.0 in developing economies, presenting an empirical assessment of challenges and opportunities. Industry 5.0, emphasizing human-centered automation and sustainability, redefines industrial structures, government strategies, and business models through technologies like AI, IoT, robotics, and blockchain. Using quantitative analysis, the study evaluates disparities in readiness scores across nations, highlighting critical enablers such as digital infrastructure, workforce development, and innovation ecosystems. The findings underscore significant challenges, including infrastructural deficits, skills gaps, and funding constraints, while showcasing immense opportunities for economic growth, sustainability, and innovation. The paper introduces actionable recommendations for fostering digitalization, addressing policy gaps, and prioritizing investments in education and infrastructure to accelerate the transition to Industry 5.0. By providing a comprehensive data-driven analysis, this study offers a roadmap for developing economies to navigate the fifth industrial revolution, ensuring inclusive and sustainable growth.