Accelerating digital transformation, 5G empowers the next generation of new industrial manufacturing

[[335662]]

The COVID-19 pandemic has imposed mandatory changes in work patterns and a shift to remote work on large parts of the global economy, which has accelerated the pace of digital transformation that was already underway. Despite the uncertainty caused by the pandemic, service providers have continued to use 5G.

According to the latest Ericsson Mobility Report, commercial 5G deployment began in 2019. In 2019, there were 13 million 5G users worldwide, including 3 million in South Korea; it is expected that the number of global 5G users will reach 2.6 billion in 2025.

With the rapid development of telemedicine, ubiquitous video communications, distance education, online video, gaming and online collaboration, network infrastructure providers have been in great demand and restored investor confidence.

While the search for a vaccine has naturally boosted investor confidence in the healthcare and pharmaceutical sectors, the technology sector has emerged as one of the beneficiaries of the pandemic lockdowns and has taken on a more prominent role in the global S&P 500 index.

Social distancing and the widespread use of online tools, from video conferencing today to augmented reality (AR) and virtual reality (VR) tools in the future, will transform many workplaces, including factories and offices. The introduction of 5G technology before the global coronavirus pandemic provided manufacturers and telecom operators with the opportunity to build smart factories and truly leverage technologies such as autonomous collaborative robotics, artificial intelligence, augmented reality for troubleshooting, and the Internet of Things (IoT).

As consumer demands for everything from cars to clothing, detergents to beverages have become increasingly personalized, manufacturers are reconfiguring their older factories designed for mass production with new, wireless-enabled, sensor-driven plants and machinery to facilitate the mass customization the world now demands. In the process, manufacturers are eliminating some of the traditional cables to increase versatility on the factory floor, maximize space utilization and increase productivity.

For operators, 5G's promise to accelerate enterprise digitalization opens new revenue streams, with high growth in traditional consumer connectivity and voice businesses far behind us. In addition to energy and utilities, manufacturing represents one of the most important areas of new revenue potential for operators to address industry digitalization using 5G technology. In the future, total operator revenue from 5G commercial IoT connections in automotive, augmented reality and virtual reality, smart cities, smart homes, and digital health wearables will exceed $8 billion.

Next Generation Manufacturing

5G technology provides network features that are essential for manufacturing. Low latency and high reliability are needed to support critical applications. High bandwidth and connection density ensure ubiquitous connectivity. These are the fundamental reasons why manufacturers currently rely on fixed networks. Mobile 5G technology will provide greater flexibility, lower costs and shorter delivery times for reconfiguration, layout optimization and changes in factory floor production.

Ericsson’s market research identifies the most critical categories of manufacturing use cases that 5G will enable operators to address, including:

1. Industrial control and automation systems

Automation and control of robots and factories and smart logistics systems. Industrial automation is one of the vertical industries that can benefit from 5G, for example, including greater flexibility, reduction of cables and support for new applications. Mercedes-Benz has partnered with Deutsche Telekom and Ericsson to build the world's first 5G mobile network for automotive production at its "Factory 56" in Sindelfingen, Germany. All production systems and machines in the factory will be connected via a secure 5G connection and run at gigabit data rates and near real-time low latency, providing Mercedes-Benz with greater flexibility on the factory floor and improving production precision and efficiency.

2. Plan and design the system

Simulation of factory processes and training support. Augmented reality (AR) is used for troubleshooting to help reduce the cost of failures and reduce production downtime. For example, Ericsson is using 5G technology along with technology from Nordic-based service provider Telia to automate its manufacturing plant in Tallinn, Estonia. The deployed solutions include AR troubleshooting, quality control and testing for electronic components.

By using AR glasses or terminals, troubleshooters can overlay the manuals, instructions, and collective knowledge of all other troubleshooters, allowing them to quickly identify potential problems. Field tests have shown that the time to troubleshoot circuit boards is reduced by 50% when using AR.

3. On-site equipment

Applications for collecting and monitoring data. Enhancing connectivity and keeping workers in the loop will allow manufacturers to acquire and access large amounts of data more efficiently and at a higher speed than ever before. German electric microcar company e.GO Mobile AG, Ericsson and Vodafone Germany will enable automotive 5G manufacturing in their factory in Aachen, providing a secure and near-real-time data network throughout the production chain without the need for human intervention. In the future, autonomous forklifts and small trains will also be used to transport materials between warehouses and production workshops.

Opportunities for Service Providers

In an ever-changing environment, telecom operators need the best technology to meet their business needs. The rise of 5G will enhance many existing applications and create new applications that cannot be met by current technology. In turn, this requires the network to continue to evolve to provide low latency and high reliability, which is key to solving manufacturing applications.

By using 5G to address key challenges of digitalization in industries such as manufacturing, telecom operators can play roles beyond network developers and address new revenue streams by becoming service enablers or even service creators. The digitalization of industry-specific business processes provides telecom operators with broad opportunities to not only provide ICT services to customers, but also to leverage 5G technology to provide new strategic directions for improved efficiency and competitiveness, thereby laying the foundation for growth.

But this cannot be treated like the commoditized business of consumer voice and broadband connectivity, and new business models are needed if operators are to compete up the value chain. Success will depend on deeper and tighter partnerships, as well as significant investment in understanding enterprise needs and working closely with an ecosystem of device, platform and solution suppliers.

The time to act is now. There is no need to wait to start testing new business models, seize emerging opportunities such as IoT and generate more revenue. By experimenting and rethinking what roles to take on, operators will be able to secure the benefits of 5G. Understanding your customers and the different value chains of 5G is essential to building the business of the future.