5G offers wireless communication services with reduced latency, increased connection density and improved flexibility compared to the current 4G generation.5G technology has a theoretical peak downlink speed of 20 Gbit/s (gigabits per second), which is about 20 times faster than the current generation
Competitiveness is the most important factor for manufacturers, and new process innovations must deliver the necessary gains in efficiency and profitability. These include, for example, cutting cables for continuous automation and true flexibility in robotics and warehouse transport. 5G and IoT will be the key to enhancing and enabling these advancements in manufacturing technologies.
5G networks offer manufacturers and network operators the opportunity to build smart factories and truly leverage technologies such as automation, artificial intelligence, augmented reality for problem solving, and the Internet of Things (IoT).
5G will enable operators to create new revenue streams. Along with energy and utilities, manufacturing is one of the most important sectors where 5G technologies can unlock new revenue potential for operators addressing industrial digitization. According to Ericsson’s research 5G Business Potential, the projected market size in 2026 is $113 billion, a 7% potential revenue growth from current service revenue forecasts.
In the industrial sector, 5G is often discussed in the context of private campus networks. In many industries, these networks are already in operation and offer benefits in three areas: coverage, control, and security. Consistent coverage is guaranteed across all designated premises within the private campus network. Owners have full control over all aspects of the network, including prioritization and capacity allocation, and have the ability to customize security policies. Most companies today use wired technologies such as EtherNet/IP, Profinet or Profibus, often complemented by Wi-Fi.
Everything from day-to-day activities to manufacturing and consumption is in the digital age, where intelligently automated but interconnected industrial production (also known as Industry 4.0 and smart factories) is taking place. But given the importance of this evolution, innovation is critical to successfully bringing automation across sectors.
In automation and interconnection, high-speed wireless communication plays an important role as it serves as a bridge between seamless and scalable connections and machines, sensors and users. It also connects the Internet of Things (IoT), robots, drones and autonomously guided vehicles (AGVs). Another benefit is the elimination of cables for mobility-impaired devices.
The expansion of Industry 4.0 has accelerated the demand for faster and more secure connections. 5th generation cellular networks (5G) provide the reliability and speed to connect all these devices and then fetch and analyze the data.
A new study from ABI Research, 5G for Industrial Applications, predicts widespread adoption of 5G technologies in manufacturing by 2028. The study also revealed that only the manufacturing industry will generate 25% of total revenue in the 5G global market.
5G networks are in the early stages of adoption. Based on the business applications presented in this white paper, practitioners will learn the 5G business potential, 5G challenges, drivers of change, barriers to entry, and important areas of concern regarding the adoption of 5G technologies in organizations.