Analysts at ABI Research have predicted that the manufacturing industry will widely adopt the new 5G technology. According to their research, by 2028, manufacturing 25% of the total revenue in manufacturing will come from ultra low latency 5G use cases.
The introduction and popularity of smart factories, which use Internet of Things, sensors and automation, has increased the demand for faster and more reliable connectivity. Because of the importance of real-time data sharing, systems simply cannot capture and sort the data coming from devices in smart factories without the speed of 5G.
Perfect technological fit
Analyst Leo Gergs understands that both manufacturers and 5G providers need to take steps in order to fulfil 25% of use cases by 2028.
"The capacity to establish a massive wireless sensor network or implement AR/VR applications for predictive monitoring makes 5G's wireless connectivity capabilities a perfect technological fit for growth in manufacturing. Therefore, it is critical for all parties involved to understand how to optimize 5G for their business strategies," Gergs said.
"To lower entry barriers for 5G deployment and attract potential implementers, network operators need to move away from business models purely relying on selling connectivity," he continued. "To give manufacturers a flavor of 5G on the factory floor, they should develop more creative business and spectrum licensing models and use these as a foundation to start developing attractive pricing models for additional network capabilities (such as network slicing, a particularly high bandwidth, or particularly low latency).”
The research report suggests that businesses will need to devote time and money to implement 5G systems in their factories, but reiterates that it will play an incredibly important role in manufacturing, and should simplify and speed up multiple processes.