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."
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