What is the impact of 5G on the IIoT?
5G is about to bring the new Industrial Internet of Things (IIoT) opportunities. This is why the manufacturing industry should not ignore the impact of 5G on operations.
The Internet of Things is driving the development of the industry, but we have only touched the surface of its possible potential. The advent of 5G will give enterprises unprecedented insight into the digitization of almost everything.
As 5G rolls out across the country and provides more reliable connections, manufacturing companies that give up adding digitization in their factories will lag behind their competitors financially. Especially with the rise of smart factories—digital production facilities that improve processes through automation and self-optimization, traditional manufacturers will be at a disadvantage.
Some of the benefits of the 5G-enabled Industrial Internet of Things include faster and more reliable data transmission, greater operational autonomy, and remote access to mission-critical activities. Some challenges may hinder companies from adopting the Industrial Internet of Things, but the promised benefits of 5G will ultimately allay these concerns.
Investment Opportunities
According to data from IHS Markit, by 2035, 5G will achieve a global economic output value of USD 13.2 trillion. Through 5G’s promise of ultra-low latency, ultra-high reliability, and ultra-high-speed connectivity, the manufacturing industry will gain considerable value.
However, a report by Bain & Company shows that manufacturers are slow to implement the Industrial Internet of Things, which makes it difficult for them to see the impact of the technology on revenue. In order to determine the return on investment of the Industrial Internet of Things driven by 5G, we must study how 5G can improve the manufacturing process.
With ultra-low latency (that is, it takes time to respond to sent information), manufacturers can process large amounts of rapidly changing data without interruption. 5G will allow devices to communicate wirelessly for time-sensitive operations.
Workers can spot problems almost immediately and stop the machine before a major failure that seriously affects productivity occurs. In addition, real-time data from each factory can show manufacturers which factories are operating most efficiently and provide a blueprint for the optimization of energy-inefficient factories.
5G will also allow experts to conduct inspections remotely. Today, many inspections are still manual, because manufacturers do not have the high-quality video or image files required to inspect the products, so the ability to make quick and informed decisions is limited.
After the large-scale deployment of 5G, a single employee can make smart quality control decisions on a global scale without spending time and travel expenses. This remote access will allow minimal downtime, especially during mission-critical operations, which will be a competitive advantage and have a positive impact on profits.
How private networks can achieve a competitive advantage
Despite the many benefits that 5G has brought, one of the main reasons for its slow adoption is that major network operators are also slow to launch 5G services. However, some early adopters are not content to wait until 5G is available in their area. Instead, they invest in building their own dedicated 5G network because the spectrum is available to them.
According to IEEE, one benefit of dedicated 5G networks is the ability to implement organization-specific security policies, rather than relying on security measures set by operators. Another advantage is that the private network can be used by manufacturing plants in remote areas. These benefits are driving the adoption of 5G in manufacturing, which has traditionally been slower in technology adoption compared to other industries.
However, another factor slowing 5G adoption is the complexity of deployment. IT systems like CRM and ERP provide complete control of the application, and not many skills are required for deployment. In contrast, when manufacturers deploy the Industrial Internet of Things on a large scale, they will roll out features across multiple different layers, including sensors and devices, gateways and hubs, connection protocols, and applications.
To successfully deploy the Industrial Internet of Things on these multiple layers, heterogeneous technical skills are required. Experts in hardware devices may not be experts in connection protocols. Manufacturers want to deploy the Industrial Internet of Things before 5G, but they struggle to find these skill sets when they try to expand the technology throughout their operations.
Although the Industrial Internet of Things is facing challenges in integration and promotion, for those manufacturers who prioritize investment in digitalization, the benefits of supporting 5G’s Industrial Internet of Things will be huge, making them more advantageous over competitors who still rely on manual processes.
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