Huge growth expected for 5G in manufacturing

14 April 2020

The market for 5G cellular connections in manufacturing is expected to reach US$10.8 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 187%, according to global tech market advisory firm, ABI Research.

ABI Research says that 5G and edge computing ‘constitute a technological leap that heralds a significant transformation of business models for all industries, including manufacturing and associated Industry 4.0 verticals’.

“To capture this value, ecosystem stakeholders will first need to evaluate how to measure the impact of 5G and edge deployments,” said Don Alusha, senior analyst at ABI Research. The current Industry 4.0 digitalisation discourse centers around conventional financial metrics  such as return on investment (ROI) net profit, and cash flow as the yardstick to measure 5G and edge computing effectiveness. However, these metrics gauge profit and do not lend themselves to the factory floor. “Therefore, Industry 4.0 ecosystem entities must consider an alternative set of measurements that look at how 5G and edge deployments aid manufacturing establish operational rules to run a plant. They are throughput, inventory and operational expense for the incoming flow of capital, for capital located inside, and for capital going out, respectively,” explained Alusha explains.

These three measurements enable Industry 4.0 partners (e.g., ABB, Bosch, Siemens) to institute a direct connection between the 5G’s utility and what takes place on the factory floor. In turn, they will be able to use that connection to find a logical relationship between daily plant operations and the overall company’s performance. Only then, will Industry 4.0 verticals have a basis for knowing the real benefit of 5G and edge computing. “Furthermore, equally important is the ability to measure risk when looking to adopt 5G and edge technology assets. Discussions on new technology adoption have always been based on an assessment of risk and reward. If the reward is truly compelling, adopters will take the risk. 5G and edge offer unprecedented commercial opportunities, but they inherently constitute new technologies and therefore there is a risk attached,” explained Alusha.


Contact Details and Archive...

Print this page | E-mail this page