How telcos and industrial companies stand to benefit.
By Capgemini Research Institute, download the full report here
“Industrial companies have a significant and immediate appetite for 5G, but not all features will materialize within the timeframes they want”Capgemini Research Institute
The promise of 5G is enticing. Faster connectivity, great reliability and security, lower latency, and network slicing – 5G is attracting significant interest in the industrial world.
According to the Capgemini Research Institute report Making the great leap forward in 5G industrial operations, two-thirds of companies want to implement 5G for industrial operations within two years of the network’s availability, but telco players may need up to three years to roll out all 5G features. Patience will be needed before all of these next-generation options are available.
Boasting features such as faster connectivity, greater reliability and security, lower latency, and network slicing, 5G have gained a lot of attention in the industrial world:
• In August 2018, Audi started testing 5G as a solution for robotic motion control use cases. The trial s ongoing, the 5G results thus far have been “very satisfying,” according to Henning Löser, the head of Audi’s Production Lab.
• Matthias Fankhänel, the head of Global Engineering and Maintenance at BASF, believes that 5G networks offer the best means to meet their data transfer and connectivity plans. “In the future, when we use 20 or more vehicles, we’ll only manage the massive data transfer with 5G technology,” he says. Experts believe that 5G has the potential to solve many of the connectivity issues faced in a range of industries,
To understand the transformative potential of this technology in manufacturing and asset-intensive industries, the comprehensive research focusing on industrial operations rather than on consumer applications As well as conducting one-on-one interviews with more than 20 industry and telecom executives, surveyed were:
• Around 800 manufacturing and asset-intensive companies across the world, assessing their willingness to adopt 5G and the use cases where they believe 5G can add maximum value. (In In this report, it refers to these companies as“industrial companies.”)
• Some 150 telecom executives, to build an understanding of their 5G readiness. The aim of this research is twofold. First, to help industrial companies identify the high-potential use cases for 5G and the optimum 5G adoption path to deliver on its potential. Second, to give telecom operators a comprehensive and nuanced understanding of the 5G expectations of industrial companies and how to meet those demands.
The report looks at four areas:
1. Industrial companies’ appetite for speedy 5G adoption and the factors driving this interest
2. Why potential delays in 5G deployment are leading these companies to consider applying for 5G licenses and how that might affect telecom players
3. The potential manufacturing use cases that 5G offers
4. Key recommendations for industrial companies as well as telecom player
One-third of industrial companies would consider applying for 5G licenses:
• This interest in private licenses is more prominent among large organizations – 47% of these bigger organizations are planning to have a dedicated/private network and would consider applying for a private license.
• Interest is fueled by the belief that private networks will offer more autonomy and security and that telecom operators will be too slow.
• In spite of this interest from industrial companies, not all countries will offer a regulatory environment (e.g., spectrum policy) in which this is possible.
• Telcos still have a role to play in building and operating such dedicated 5G networks.
Executive summary – key takeaways 5G offers exciting use case potential:
• Key use cases that draw on 5G range from real-time analytics based on edge computing to video surveillance of remote production lines. Both industrial companies and telecom players need a clearly defined implementation roadmap:
• For industrial companies, this ranges from identifying the connectivity requirements for critical use cases to adjusting the connectivity roadmap as 5G evolves.
• For telco operators, this ranges from educating companies on the unique features of 5G to deploying solutions for the industrial campus.
• Telcos also need to collaborate closely with industrial companies to create a win-win business model by understanding connectivity pain points in industrial operations and adjusting the priorities of the 5G network’ and services rollout.
download the full report here