Aiming to improve productivity, performance, and competitiveness, more manufacturers are planning to integrate private 5G networks into their operations over the next three to five years, new research shows. Private 5G network adoption among manufacturers is expected to grow eight-fold, from 2 percent to 16 percent, according to new research from the Manufacturers Alliance.
Many manufacturers surveyed indicated they are exploring “network optionality” – meaning they will strive to find the right mix of wired, Wi-Fi and private cellular connectivity in the near future to meet their unique business objectives. The new Manufacturers Alliance study – “Connectivity A Critical Differentiator for Digital Transformation” – draws on a survey of 172 U.S.-based mid-Cap to large-Cap manufacturing companies and features interviews with executives about best practices and their use cases that call for bringing private 5G into the mix.
“Today,” the study says, “Wi-Fi is the predominant form of wireless connectivity within the factory among the manufacturers we interviewed and surveyed. (But) most manufacturers…see the writing on the wall: about half expect private 5G to have the largest impact on manufacturing connectivity in the next three to five years.”
That “impact” includes unlocking more agility in day-to-day operations, removing barriers (both physical and operational), and opening up new business models and revenue streams.
Robots, “cobots,” and more
Many manufacturers in the survey – sponsored by Verizon Business – indicate they are poised to invest in new or improved production facilities, creating an opportunity to re-evaluate their current approach to network connectivity. Thirty-six percent said they are planning or starting to build a greenfield facility, and 20 percent said they will soon entirely retrofit one or more existing facilities. Another 31 percent said they will retrofit all existing plants and/or build new facilities.
While undertaking these enhancements, manufacturers will begin to see increased operational equipment effectiveness, better automation control with AGV’s and AMR’s, high bandwidth wireless cameras, IoT sensors and massive data collection, AI and machine learning, predictive maintenance, and digital twins, the study finds.
With so much more intelligence being added to the factory every day, a more reliable form of connectivity is needed.
Executives share their experiences with private 5G
Private 5G networks provide enhanced security and more flexible, robust, low-latency connectivity that is best suited for adverse environments—both indoors and outdoors. The number of private cellular networks worldwide is expected to grow from about 4,000 in 2022 to more than 60,000 by 2028. Of those, some 55% percent will be used by manufacturing, according to Analysys Mason research.
In contrast to copper wired connections, which can be expensive and cumbersome (not to mention detrimental to the environment), private wireless is inherently mobile, cheaper to install, and easier to scale and maintain than hardwired connections.
“We are starting to put IT resources in key manufacturing facilities because there’s so much new IT gear out there nowadays, between the demand for OT security, the sensors, the IoT devices, and the new equipment – all of which are now connected to the network,” said one executive quoted in the study. “This equipment cannot have downtime.”
Innovation efforts driving 5G adoption
According to the new study, the top barrier to more adoption of innovative connectivity technologies like Industrial IoT and predictive maintenance is “inadequacy of IT infrastructure to fully operationalize the smart factory.”
Mike Weller, Practice Leader for Manufacturing at Verizon Business, said this is typical for many manufacturing companies right now. “When I’m talking to an operations or production person at a plant, I often hear, ‘I wish I could take on more. We have a lot of ideas and innovation initiatives, but we’re not sure the network can handle it.’”
But with so many manufacturers planning to retrofit or build new production facilities, now is the time to find the right mix of wired connectivity, Wi-Fi, 4G LTE, and Private 5G.
“When you look at the 20- or 30-year lifecycle of a factory, we see a lot of customers looking at the cost to wire the facility. By opting for wireless, they recognize they can take out literally tens of millions of dollars from their infrastructure cost in certain size spaces,” adds Verizon’s Weller. “This doesn’t mean that they will go 100% wireless, but it does mean that they greatly reduce the amount of investment in cabling infrastructure including the cable cost, labour, telco closets and their electronics, plus the cost of MAC (moves, adds, changes) that comes downstream. All that copper you’re not buying is going to support your ESG goals as well.”
Read more about the Manufacturers Alliance report here.
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