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The emergence of enterprise 5G technology could have significant implications for how CSPs service the manufacturing sector. With 5G, CSPs can offer high-bandwidth solutions for industrial automation and IoT applications, empowering manufacturers to enhance their operational efficiency, optimize production processes, and enable real-time data analysis.
CSPs could also provide low-latency communication, enabling real-time control of machinery and robotics in manufacturing environments. With network slicing solutions, CSPs could provide dedicated virtual networks to different manufacturing applications, ensuring secure and reliable connectivity for critical processes.
Capitalizing on 5G's massive device connectivity capabilities, CSPs could cater to the vast number of IoT devices in manufacturing, such as sensors and smart machines, and offer tailored solutions for data management and analytics.
Crucially, 5G can also open up new business models leveraging CSPs, solutions providers, hardware and network vendors, and channel partners, who can all cater to the needs of manufacturers and create value.
Manufacturers are the furthest ahead in launching enterprise 5G. This should come as no surprise. Omdia, who conducted research on this topic, forecasted that manufacturing should benefit more than any other vertical from the technology.
Manufacturers stand to gain $4.6tn from 5G adoption over the term of our forecast, 5.4% of their total output. As well as being the biggest sector opportunity in absolute terms, this is the fourth-biggest as a percentage of sector output.
Omdia found that 43% of projects that have reached the deployment stage are in manufacturing - and if we include the broader "industrial" sectors such as transportation, utilities, energy, and mining, the percentage approaches 80%.
An Omdia ICT Enterprise Insights Survey asked 328 enterprises from different verticals which players they most trusted to deliver the promise of 5G.
Manufacturers were the joint most supportive vertical for the communications service provider (CSP) sector, tied with government and much more so than financial services.
A majority of manufacturing respondents expressed their trust in CSPs – this is an opportunity CSPs must not miss.
Each project needs a different set of skills to match the possibilities of technology and regulatory change to the pain points and new opportunities faced by manufacturers and to create value. Because of this, enterprises will need a diverse ecosystem of suppliers to realize the possibilities of 5G. The enterprise 5G ecosystem consists of CSPs, vendors, solution providers, and channel partners - all bring different capabilities to the table. The challenge is to combine them in order to co-create solutions that serve the needs of manufacturers.
Within this ecosystem, specialist solutions providers are the most intriguing. Often new to the market, these include providers of machine tools, automation technologies, and other vertical-specific systems.
However, even CSPs, though some are centuries old, can be considered new entrants. CSPs should treat the solution providers as key players when they build their 5G manufacturing ecosystem.
Beyond Now worked in collaboration with Omdia to create an eBook on the manufacturing opportunity in enterprise 5G for CSPs, including analysis and case studies. Download the full eBook, which is Part 2 in the Industries and enterprises are ready to reap the benefits of 5G series:
Download the eBook
Contact us today to speak or meet with one of our experts to find out more about how Beyond Now can support you through demo, proof of concept or help you develop the right business case and enable you to get up and running in weeks.
