The Industrial Revolution began in 18th century England and was driven by new technologies like the steam engine. James Watt significantly improved the steam engine, making it more powerful and efficient. This allowed factories to mechanize production using steam power instead of human or animal labor. The textile industry was an early adopter of these new machines. The Industrial Revolution transformed the economy and society, leading to urbanization, a rise of capitalism, and a new social class system divided between industrial capitalists and workers.