5G is about to bring new industrial IoT opportunities. This is why manufacturing should not ignore the impact the 5G on the industrial IoT market will have on operations.
The IoT is driving the industry, but we’ve only scratched the surface of its possible potential. 5G’s arrival will give businesses unprecedented insight into the digitization of virtually everything.
As 5G rolls out nationwide and provides more reliable connectivity, manufacturing companies that forgo adding digitization to their plants will fall behind their competitors financially. In particular, traditional manufacturers will be at a disadvantage with the rise of the smart factory, a digital production facility that improves processes through automation and self-optimization.
Some of the benefits of 5G-enabled industrial IoT include faster, more reliable data transmission, greater operational autonomy, and remote access to mission-critical activities. Some challenges may prevent companies from adopting the Industrial IoT, but the benefits promised by 5G will eventually put those concerns to rest.
5G on Industrial IoT’s Investment Opportunities
In order to determine the return on investment for industrial IoT powered by 5G, we must examine how 5G can improve manufacturing processes.
Taking advantage of ultra-low latency (i.e., the time it takes to respond to information sent), manufacturers will be able to process large volumes of rapidly changing data without interruption.
5G will allow devices to communicate wirelessly for time-sensitive operations. Workers will be able to identify problems almost immediately and stop machines before major breakdowns occur that seriously impact productivity.
Real-time data from each plant can show manufacturers which plants are operating most efficiently and provide a reference blueprint for the optimization of inefficient plants.
5G will also allow experts to conduct inspections remotely. Today, many inspections remain manual because manufacturers do not have the high-quality video or image files needed to inspect products, so the ability to make quick and informed decisions is limited.
A large-scale deployment of 5G will enable a single employee to make informed quality control decisions on a global scale without the time and travel costs. This remote access will allow for minimal downtime, especially during mission-critical operations, which will be a competitive advantage and positively impact profits.
How Dedicated Networks Can Achieve a Competitive Advantage?
Despite the many benefits 5G offers, one of the main reasons for its slow adoption is the equally slow pace at which major network operators are rolling out 5G services.
Some early adopters are not content to wait until 5G is available in their area. Instead, they are investing in building their own dedicated 5G networks because the spectrum is available to them.
Yet another factor slowing 5G adoption is the complexity of deployment. IT systems like CRM and ERP offer complete control over applications and do not require much skill to deploy.
In contrast, when manufacturers deploy the industrial IoT at scale, they will roll out functionality across many different layers, including sensors and devices, gateways and hubs, connectivity protocols, and applications.
A heterogeneous set of technical skills is required to successfully deploy the Industrial IoT across these multiple layers. Experts in hardware devices may not be experts in connectivity protocols.
Manufacturers want to deploy the Industrial IoT before 5G, but they are having a hard time finding these skill sets as they try to scale the technology across their operations.
Despite the integration and rollout challenges, the benefits of a 5G-enabled IoT will be significant for manufacturers who prioritize investing in digitization, giving them an advantage over competitors who still rely on manual processes.
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