5G ready to replace manufacturing

5G super-fast connections and Wi-Fi and 4G LTE support not only higher bandwidth, but also better connectivity, lower latency and thousands of devices in one place, all of which are attractive manufacturing facilities, but if this is the case, experts say it will become the standard before.

According to Gartner, smart factories are prime opportunities for 5G. While some use cases can be achieved with existing 4G LTE, many require less latency and greater reliability for 5G.

"There is a significant and immediate appetite for 5G for industrial companies," says Sachin Lulla, global digital strategy and change leader at Earnox & Young. "A new wave of hyper-connectivity is set to redefine the enterprise." Manufacturing 5G is expected to lead to value creation from investments, followed by fuel and utilities, healthcare, the public sector and transportation.

5G ready to replace manufacturing

Today, the lack of reliable, low latency and high-bandwidth connectivity has hampered the adoption of cutting-edge technology that requires that kind of support, he said. "What's going to change with 5G - bringing inter-connectivity to machines, materials and people, unlocking millions of dollars' worth." This value comes from increased productivity, reduced inventory, better timing, worker safety and an agile supply chain.

According to a recent survey Ernst & Young conducted in the U.K., 10% of companies are already allocating money for 5G, and 50% of enterprises plan to upgrade to 5G in the next two years.

Automakers like 5G

Audi, for example, has already started testing 5G for robotic motion control, he said. Nokia's 5G Oulu factory is using 5G for in-factory connectivity, a combination of edge computing and cloud computing, and IoT analytics. According to Lulla, that's already resulted in 30% to 50% time savings in product delivery.

BMW Brilliance Automotive in China is working to enable full 5G wireless coverage at all of its plants, and it’s not only China’s auto segment that’s embracing the technology. “China seems to be winning the race with huge investments and early adoption of 5G into its industries,” said Lulla.

According to a study by IHS Markit released this month, 5G will generate $13.2 trillion in new business by 2035. The highest impact will be in manufacturing, with almost $4.7 trillion in new economic activity, which includes the value of 5G-ready equipment that manufacturers will sell to other companies.

Automakers like 5G

For example, Audi has already begun testing 5G for robotic motion control. Nokia's 5G Olu Factory is using 5G for a combination of in-factory connectivity, edge computing and cloud computing and IoT analytics. According to Lullah, saving up to 30% to 50% of time on pre-production delivery.

BMW Deepti Automotive in China is working to enable full 5G wireless coverage across all of its plants and is not the only Chinese auto sector adopting the technology. “China is winning the race by investing heavily in its industries and embracing 5G early,” Lulla said.

Not only do manufacturers benefit from improvements in internal capacity, but manufacturers also benefit from 5G sector growth in other ways. According to an IHS market study released earlier this month, 5G earns $ 13.2 trillion in new business by 20G. Manufacturers have the biggest impact, with about 7 4.7 trillion new economic activity, including the value of 5G-ready equipment, which manufacturers sell to other companies.

5G costs and challenges

Industrial roll-out of 5G is not easy, especially at first. According to a recent Ernst & Young survey, companies' biggest concern about this is security, as devices connected to 5G can dramatically expand the network-attack surface. According to the report, 40% of respondents stated that cyber security was one of their top three concerns, followed by technology immaturity (34%) and lack of business v alue (32%).

In addition, there are cost issues. "For internal deployment, the enterprise backend system requires a significant upgrade," said Constellation Research analyst Holster Mueller. "Most manufacturing sites don't even have Wi-Fi."

Authenticity and reliability

5G is more attractive as devices and features. Today, only the initial 5G feature set is available, there are few devices on the market and public 5G cellular networks are beginning to appear.

Forrester research analyst Dan Beeler said the 5G option is also becoming more attractive, as standards evolve and technologies become available. Today, only the initial 5G feature set is available, there are few devices on the market and public 5G cellular networks are beginning to appear.

“There are two key features that are not yet available in 5G,” says Beeler. "The first is very low latency and the second is likely to connect to thousands of devices in a small geographical area - up to a million sensors per square kilometer. These two aspects are very interesting for manufacturers."