5G and manufacturing: driving the improvement of the Industry 4.0 industry chain

Mobile network operators are developing 5G connections in the UK by upgrading existing 4G infrastructure, resulting in ultra-fast connection speeds. The benefits of upgraded networks go far beyond just increased connection speeds for mobile phone customers. 5G has real potential to transform the way people live and work, with many new use cases being developed every year.

Over the summer, DLA Piper released the European Technology Index report, based on a survey of 350 senior business executives working in technology, financial services and the public sector across Europe. One in five (22%) believes that 5G has great growth potential in smart city applications, and only 3% of respondents believe that manufacturing provides large opportunities.

It’s surprising that Technology Index respondents didn’t learn more about 5G opportunities in manufacturing, as we believe this is one of the exciting areas to leverage the technology . Manufacturing should be considered one of the growth sectors for 5G investment as it has the potential to create large value, have healthy ROI and achievable benefits, thereby stimulating demand. Here are some reasons why we think this is the case.

　Significant growth potential

Analysys Mason through Ericsson and Quantum Technologies ) commissioned in November 2020 estimates that smart manufacturing driven by 5G connectivity has large growth potential in the UK compared to the use of 5G connectivity in other industries and regions. In the report, it is estimated that based on all standalone 5G deployments in factories by 2025, an additional £5.2 billion of GDP will be generated by 2025, accounting for three-quarters of the total additional economic growth expected from all 5G infrastructure deployed. .

In another study by Huawei on the impact of 5G on manufacturing, a model based on more than 100 interviews with top manufacturing executives found that 5G connectivity will not be improved by 2030. It can unlock US$740 billion in manufacturing value within the scope annually. Major countries include China, the United States, and Japan, which are manufacturing hubs.

5G in manufacturing supports use cases with real industrial benefits to stimulate demand and cover deployment costs.

Manufacturers are well-positioned to take advantage of the key capabilities provided by standalone 5G deployments (i.e., ultra-low latency and high capacity) and reap large returns from them. 5G connectivity in factoriesSex can support technologies and use cases that will revolutionize manufacturing, including automation and robotics, artificial intelligence, and augmented reality operation of equipment. Connected factories can also support greater data flow between people and machines, thereby enhancing monitoring capabilities. This reduces downtime and increases the potential for predictive maintenance - both of which increase productivity and reduce costs.

In addition to these economic and productivity advantages, the Analysys Mason Report also recognized environmental advantages. With the ability to enhance information sharing and real-time monitoring, 5G in manufacturing can reduce energy consumption and increase equipment usage efficiency, thus extending the life of equipment. This not only benefits the environment, but also reduces costs and increases productivity.

Several trials are also underway in Europe to demonstrate the real-life benefits of 5G connectivity and how use cases can be implemented. For example, Worchester Bosch is experimenting with using 5G connectivity to support the use of sensors within factories to increase factory output (through predictive maintenance and robotics), resulting in a 2% increase in factory output.

There is no escaping the fact that 5G standalone deployment will involve significant upfront investment, but it is clear that the cost can be covered by the value subsequently generated. Ericsson reports that applying the technology in factories that leverage 5G connectivity could provide factory owners with a 10 to 20 times return on investment through cost savings.

　The importance of 5G in manufacturing has been paid attention to by the British government

Considering that the UK is one of the As one of the largest manufacturing countries, the British government attaches great importance to the opportunities and importance of 5G in manufacturing. However, it also recognizes that there are barriers to off-the-shelf adoption, including a lack of understanding of the value 5G could bring. To address this, the government earlier this year committed £3.8 million of DCMS funding to the 5G ENCODE project, which involves building 5G-powered smart factories, to clearly demonstrate the benefits to others.

The manufacturing industry itself recognizes the need for a "reset" to improve competitiveness and productivity

Make UK, the representative body for British manufacturers, has recognized However, due to COVID-19, the manufacturing industry has taken a hit and will not return to pre-COVID-19 levels until 2022. In its 'Responding, Resetting and Reshaping UK Manufacturing Post-COVID-19 Report', the report states: “Manufacturers need to invest time and resources in innovation, research and development to increase the productivity of the industry and enhance our competitiveness. "For investors, now is a great opportunity to work with the industry to enable this reset with 5G. It will most likely be funded commercially by creating private networks rather than relying on public mobile networks. In addition to deploying the network, further work will be required at the factory level to upgrade the technology to take advantage of 5G. As a manufacturer, you can seek funding. support to invest in these private networks and new technologies, but it is also important for investors and telecom operators to work with manufacturers to help them understand their business opportunities and benefits, given that telecom operators are likely to continue to build private networks. There are also clear opportunities for the telecom industry to partner with investors or factory owners to build, deploy and manage standalone 5G private networks, which could represent a long-term revenue stream for development. There is growing evidence that 5G can bring benefits and returns to manufacturers, but current adoption rates remain disappointingly low. What is needed is for governments, telcos and investors to work together and work together to educate and educate manufacturers. Work with them to encourage investment in this exciting space. Once the first few early adopters prove the reality of these benefits, the floodgates will open. 5G and manufacturing: the missing link to drive Industry 4.0? )