We’re living through a complex period from a social point of view and, above all, from an economic perspective. All the world’s countries are facing a moment of uncertainty in terms of crisis and recovery from the COVID-19 pandemic.

In Spain, the government is preparing to launch a number of highly ambitious schemes designed to transform the economic paradigm, firmly staking their claim on renewable energies and making connectivity the backbone of altogether more competitive, digital and adaptable industry, which will represent up to 18% of the country’s GDP within the next ten years.

The strategic features, opportunities and ways of working involved in achieving this sustainable economic model — with renewable energies and 5G taking centre stage — were recently analysed in a report from PwC and Siemens. In it, they explore the various opportunities for the Spain of tomorrow.

Within this new model, companies, operators and stakeholders in the communications and connectivity sectors alike will have an active role to play, transforming the productive and economic paradigm in line with global trends, where the majority of the country’s economy no longer depends almost entirely on vulnerable sectors, such as tourism.

The impact of the pandemic on Spanish industry

99.4% of Spain’s productive framework is made up of small and medium sized enterprises. Of those, 84% are micro-businesses. It’s precisely these organisations, with little in the way of ‘muscle’, that have suffered the greatest from the impact of the Coronavirus pandemic. Owing to their nature, these types of companies are particularly vulnerable in ecosystems that are dominated by connectivity, like our current model. Many face significant hurdles when trying to take advantage of connectivity and that final step towards their digital transition.

In a society already massively reliant on mobile devices, Cloud and Edge computing, as well as artificial intelligence (AI), to name a few, a boost in connectivity – with 5G leading the way – is a question of survival, given the victors are left significantly transformed both in their workflows and the value chain of their production processes. That’s why the public sector is so eager to promote, working closely with the private sector, Spanish industry moving into leadership positions thanks to technology and maximum possible use of renewable energy sources.

Overhauling high-value industries with the help of 5G and robotisation

One of the weaknesses of Spain’s current industrial landscape is low investment in R&D and innovation, alongside low consumption of machinery and equipment, as well as significant dependence on external suppliers. What’s more, there’s not always the greatest possible alignment between various educational sectors and the industrial exploitation of connectivity and technology.

By identifying the industrial sectors of greatest strategic value, subsequent movement towards digitalisation and technological transformation would facilitate immediate communication between robotic machinery connected through 5G technology, as well as more effective monitoring and data management in the Cloud or by using predictive algorithms to design anticipated behavioural patterns when faced with changing situations in countless productive and manufacturing sectors.

Steps towards Industry 5.0

These measures could complement one another alongside other schemes aimed at improving the country’s industrial infrastructure itself, through electrification, introducing new smart grids in industrial centres, bringing smart-buildings online, ones that are environmentally and energy-sustainable, as well as notable improvements in the dynamics around communications, transport and logistics thanks to use of drones and/or autonomous vehicles.

Achieving these long-term strategic goals, according to the report by PwC and Siemens, would have an impact of 0.11% on Spain’s GDP in 2025, then 0.36% by 2030 (around 1.3 and 4.5 billion euros respectively), increasing industry’s share of 16% to 18% of GDP by the end of the next decade. As such, it’s crucial that both interested parties and the Spanish government itself make every possible effort in working towards the same objectives, to have Spain set the standard in terms of connectivity and Industry 5.0.