27 Aug Industrial companies and 5G: the leap they need to take
If we use common sense, one of the areas that could benefit most from the implementation of 5G is the industrial sector. However, you have to dig a little deeper to check the soundness of this assumption. While it is true that many companies and players in the telecommunications sector are working hard to standardize the 5G network, Industry 4.0 or “smart industry” has yet to give a major push.
This is despite the fact that companies in the industrial sector are eager to take the final leap in the field of connectivity. According to a study by Capgemini —Accelerating the 5G Industrial Revolution: Global Survey on 5G and the Edge in Industrial Operations— 64% of the companies surveyed plan to implement either 5G technology or cloud computing, or a combination of both, within the current year or, at the latest, within two years.
Industrial sector and 5G. Good test results, but timid adoption
This good predisposition clashes with the actual data on the development of Industry 4.0 companies. According to the aforementioned report, only three out of ten organizations are taking any steps to implement 5G connectivity technology. Either by initiating pilot tests, or with a single-node rollout of a larger network. Only 5% have migrated to full-scale 5G on a widespread basis in their infrastructure.
The situation of reluctance may change if the example of the latter “catches on”. Especially because it has been shown that technological translation has a direct impact on productivity in those companies that have already embraced both 5G and “the cloud”. Sixty-percent of organizations have seen an increase in operational efficiency and more than 40 percent say that there is a significant gain in agility.
What challenges does the 5G network pose to Industry 4.0?
Despite the fact that more and more companies in the industrial sector will progressively opt for 5G, we must not lose sight of the fact that there are several obstacles along the way that will have to be overcome for technological integration to be a massive success and prove useful. In particular:
- Integrating. Or making the technology already in use compatible and functional with the applications —of which there are several— of 5G. Although in some cases it will be a natural integration, in others it will be necessary to invest in updated technologies. Currently, the assembly time and testing phase is extended because there are no standardized solutions that allow interoperability.
- Defining the cases of use. Especially to be able to calculate the amount of investment required and the return on investment. In brownfield areas or areas with little or no 5G implementation, the calculation of the return on investment must take into account the available alternatives, in addition to wireless technology, such as fiber optic cabled solutions or other options.
- Security. The industry must pay special attention to cybersecurity management. Due to the scarcity of trusted or sufficiently qualified providers but, above all, due to the absence of internal protocols to assess risks and reduce risk exposure.
- Providers. It is also important to have an environment in which different warranty providers can coexist, due to the characteristics of the different applications, technologies and devices needed to give functional use to the 5G network. Sixty-nine percent of companies believe that identifying, managing and incorporating multiple vendors can be a significant barrier.
In any case, it is more than likely that in a short period of time —probably within the next five years at the most— the industrial sector will make that definitive “leap” that technological transition requires. The 5G network is just one of the many opportunities, a means for industry, whose goals and results can be as transformative as they have been in other fields thanks to technological integration.