CONNECTING MANUFACTURERS WITH THE FUTURE:

How 5G is Transforming the Manufacturing Landscape

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It is a new day in modern manufacturing. Changing operational requirements are increasingly demanding data-intensive technologies. At the same time, the existing wireless network protocols are not fully suited to deliver everything the modern manufacturer needs. Increasing deployment of the fifth generation of cellular wireless technology, colloquially known as 5G, will empower manufacturers and their workers to meet this future.

5G will usher in faster speeds, greater throughput and lower latency. The network specifications also promise greater reliability, extended battery life for connected devices and support for massive device connectivity. Not only will these network characteristics combine to revamp current manufacturing activities, but 5G will also be a catalyst for innovation. 5G will empower workers across the factory floor in myriad ways, helping to support the men and women who make things in America.

The following paper presents new research exploring how manufacturers perceive 5G capabilities and their plans to fully utilize the unique potential of 5G connectivity. 5G is a key ingredient in defining the next generation of manufacturing in America. With its help, manufacturers will improve the quality of products, optimize workflow and deliver new products and services to internal constituents and external customers.

The combinatorial power of 5G and manufacturing has broad implications. Nearly all manufacturers believe 5G connectivity will be important to the overall future of their businesses. Crucially, the faster 5G technology can be deployed to manufacturing, the more competitive manufacturers feel they will be; the vast majority report the speed of 5G deployment will have a positive impact on their ability to compete globally. The rate of 5G uptake among manufacturers, and what they can accomplish with this transformative technology, could increasingly define the competitive landscape and thus manufacturing more broadly.

The combinatorial power of 5G and manufacturing has broad implications.

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91% 56% 91% 88%of manufacturers believe 5G connectivity will be important to the overall future of their business

of manufacturers report they will be testing or using 5G in some capacity within their facilities by the end of 2021

of manufacturers indicate speed of 5G deployment will have a positive impact on their ability to compete globally

of manufacturers indicate 5G connectivity will allow engineers to troubleshoot remotely

Executive Summary

Manufacturers believe 5G connectivity will be important to the overall future of their business.• Nearlyallmanufacturers(91%)believe5G

connectivitywillbeimportanttotheoverallfutureoftheirbusiness,withthree-fifths(61%)indicatingitwillbe“extremelyimportant.”

Manufacturers are beginning to test and implement 5G solutions. • Morethanhalfofmanufacturers(56%)report

theywillbetestingorusing5Ginsomecapacitywithintheirfacilitiesbytheendof2021.

• Inthelongrun,mostmanufacturersarelikelytoimplement5Gtechnologies.Onlyaverysmallpercentageofmanufacturers(2%)believetheywillneverimplement5Gsolutions.

Manufacturers believe speed of 5G deployment is important for global competitiveness.• Nineinten(91%)manufacturersindicatespeed

of5Gdeploymentwillhaveapositiveimpactontheirabilitytocompeteglobally,withnearlytwo-thirds(62%)signalingitwillhavea“strongpositiveimpact.”5Gwillhelpdefineglobalcompetitivenessinthedecadeahead.

5G can help manufacturers adapt to challenges in the aftermath of the COVID-19 pandemic.• Manufacturersoverwhelminglybelieve5G

connectivitycanhelpthemadapttochallengesrelatedtoCOVID-19.Nineintenmanufacturers(88%)indicate5Gconnectivitywillallowengineerstotroubleshootremotely.Anequivalentnumberofmanufacturers(87%)alsoreportthatremotevisibilityandmonitoringenabledby5GwillhelpthemadapttotheCOVID-19crisis.

5G will aid manufacturers with existing ways of doing business.• Nineintenmanufacturersbelievetheutilization

of5Gintheirfacilitieswillhelpwithexistingwaysofdoingbusiness(92%)andwillfurtheradvanceexistingprocesses(88%).

5G will drive new processes and create new business opportunities for manufacturers.• Thecreationofnewprocessesandbusinesses isanespeciallyimportantoutcomeof5G deployment.Beyondwhatmanufacturers arecurrentlydoingintheirfacilities,nineinten manufacturersalsoexpecttheutilizationof5Gto leadtothecreationofnewprocesses(88%)and thecreationofnewbusinesses(86%).

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5G will help transform supply chains and factory operations. • Manufacturersexpect5Gtohaveastrongimpact

onmanyfacetsoffactoryoperations.Four-fifthsofmanufacturersindicate5Gtechnologywillbeimportanttoinventorytracking(83%),facilitysecurity(81%)andwarehousingandlogistics(81%)withintheirfacilities.Furthermore,three-fourthsofmanufacturersindicate5Gwillalsobeimportanttoinspection(76%)andassembly(76%)activities,withsevenintensayingpackaging(72%)andemployeetraining(71%)effortswillbenefitfromthedeploymentof5Gtomanufacturing.

• Manufacturersalsoreport5Gwillimpactspecificapplicationsontheshopfloor,includingequipmentmonitoringandcontrol(89%),safetyproceduresthatanalyzesensordatainrealtime(87%)andemployeesafety(86%).Thevastmajorityofmanufacturersalsoreportthat5Gwillaidremoteanalyticstosupportreal-timedecisionmaking(84%),condition-basedremotemonitoringforpredictivemaintenance(84%),assettracking(83%)andpreventativemaintenance(82%).

5G will drive cost savings for manufacturers.• Nearlyallmanufacturersexpecttoseesomelevelof

costsavings(93%)asadirectimpactofconnectingtheirmachinesandequipmentwirelesslywith5G.Onaverage,manufacturersanticipateestimatedcostssavingsofroughly38%.

5G will increase machine and employee productivity.• Nearlyallmanufacturersexpecttoseesomelevelof

productivitygainsinmachines(94%)andworkers(93%)fromtheimplementationof5G.Onaverage,manufacturersanticipateestimatedequipmentproductivitywillincreasebyroughly42%andworkerproductivitywillincreaseby41%.

5G is expected to improve numerous manufacturing activities that rely on network connectivity.• Comparedtocurrentconnectivitytechnologies,two-

thirds(65%)ofmanufacturerssurveyedindicate5Gissuperiorintermsofincreasedefficiency,andmorethanhalffeel5Gwillprovideforimprovedquality

andservice(56%)andgreaterflexibility(53%).Inaddition,two-fifthsbelieve5Gwillbeadvantageousasitrelatestoenhancedsafetyandsecurity(45%)andincreasedcompetitiveness(41%),withone-thirdwhobelieveitwillprovideforshortenedleadtimes(35%)andlowercost(32%).

• Whenaskedaboutasetofmanufacturingactivities,manufacturersreportallareexpectedtobecomeeasierwith5G.Notably,reconfigurationofproductionlines,consideredtobethemostdifficultmanufacturingactivityusingcurrenttechnologies,isexpectedtoseethegreatestimprovementintermsof“ease”when5Gtechnologyisutilized.Manufacturersalsoexpecttheutilizationof5G

todriveconsiderableimprovementsin“ease”surroundingremotecontrolofequipment,utilizationofaugmentedreality/virtualreality(AR/VR)applications,utilizationofmobilerobotsandautonomousguidedvehiclesandautomation.

The number-one driver of 5G adoption for manufacturers is the ability for quality control monitoring throughout the production process.• Morethanhalfofmanufacturersalsoreport

increasingmachineproductivity(53%)willdrive5Gadoption.

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Why 5G Matters for Manufacturers

Manufacturers are consistently looking for ways to improve operational performance and build greater resilience into their processes. Onepromisingpotentialistheexpandingdeploymentof5Gconnectivityandtheensuingservicesandopportunitiesthatwillarisefrompervasiveandubiquitousconnectivity.

Itisvitaltorecognizethat5Gconnectivityisfundamentallydifferentfromitspredecessors.Whilethenamingconventionmightsuggestthat5Gissimplyalinearextensionofpreviouscellularnetworks,5Gisasignificantstepbeyond4G.Thereisacommonmisconceptionthat5Gwilldeliverbetterandfastermobilebroadbandbutlittlemore.Inreality,eachiterationofcellularnetworktechnologyhasuniquecharacteristicsandpropertiesand,asaresult,hasusheredinentirelynewusecases.Thisisespeciallytruewith5G.The2Gnetworkdeliveredmassivemobilevoicecommunication.The3Gnetworkintroducedbasicmobilebroadbandfunctionality.Andthe4Gnetworkempoweredmobilestreamingofgraphic-richcontent.Eachiterationconnectedawiderandmorediverseswathofobjectsandbroughtexponentialincreasesinmobiletrafficdata.

5Ghasuniquepropertiesandattributes,whichwilldefineitsdisruptivecharacteristics.Theseincludehighdatarates,highersystemcapacity,reducedlatencyandmassivedeviceconnectivity.Commercial5Gdeploymentwillexpandnetworkpossibilitiesbeyondanyofthepreviouscellularnetworktechnologies.5Gisatechnologicalparadigmshift,notjustanextensionofexistingtechnology.

Theuniquecharacteristicsof5Gwillhaveanoutsizedinfluenceonmanufacturingandtheindustrialeconomy.Highdatavolumeswillenableaugmentedandvirtualrealitytobedeliveredovermobilenetworks,usherin8Kvideocapabilitiesandreplacefixedbroadband,meaningmoreobjectscanbeconnectedinmoreplaces.Lowlatencyenablesmission-criticalapplications,suchasremotemining,trafficcontrol,hologramsandreal-timefactorycontrol.Massivedeviceconnectivitywillchangehowandwhatismeasuredthroughapplicationssuchassmartmeters,logisticstrackingandsmartbiometrics.Reliableandresilientcharacteristicsofthe5Gnetworkwillenabledriverlessvehicles,theabilitytocontrolmobileroboticsinrealtimeandwiderreliabilityondrones.

The5Gstandardwasdesignedwithobjectivesthatareentirelydifferentfrompreviouscellularnetworks.5Gremovesbarriersthatexistinpredecessornetworks,enablingitsabilitytodelivernewservicesnotpreviouslypossible.

5G has unique properties and attributes, which will define its disruptive characteristics. 5G is a technological paradigm shift, not just an extension of existing technology.

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What is 5G?

Nearly50yearsagoonastreetinmidtownManhattan,MotorolaengineerMartinCoopermadethefirstcellularcall.Whilethewirelessrevolutionstartedwithvoicecommunications,eachsubsequentiterationofthecellularnetworkhasrepresentedaleapforwardaswirelessnetworkshaveaccommodatedanotherdefiningtechnologicalrevolution:theriseoftheinternet.Indoingso,eachmajorwirelessgenerationsincethatcriticalphonecallhasbeendefinedbyever-improvingdatacapacityandawiderarrayofservicesthatcanbedeliveredoverthecellularnetwork:

• 1G (1979): voice calls• 2G (1991): digital voice, text messaging, dial-up data speeds• 3G (1998): email, pictures, web• 4G (2009): streaming video

5Grepresentsthefifthmajormilestoneforwirelesscommunications.Itushersinahostofcapabilitiesthatincludethefollowing:

5Gnetworkscanpeakataratethatisabout20timeshigherthanthatof4Gnetworks,withevenhigherthroughputpossibleinthefuture.

5Gnetworkscanreachupto“fivenines”(99.999%)reliability,makingthemanexcellentoptionformission-criticalapplications.

5Gnetworkscansend“roundtrip”data(senddatatoadestinationandback)inlessthan10milliseconds,anumberthatmaydroptounderfivemillisecondsinthefuture.

5Gnetworkscanseamlesslyhandoffdatatoeachotherevenwhendevicesaretravelingathundredsofmilesperhour,ensuringarobustconnectionforhigh-speedapplications.

5Gnetworkscancapturedatafromhundredsofthousandsofsensorspersquaremile.

Remotesensordevicesapplicationsconnectedvia5Glowpowercanoperatefornearlyadecadeonbatterypower.

SPEED

RELIABILITY

LATENCY

HANDOFF

CAPACITY

EFFICIENCY

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5Goffersthreemaintypesofcommunicationservicesorusecases:enhancedmobilebroadbandservices(eMBB),massivemachine-typecommunication(mMTC)andultra-reliable,low-latencycommunications(URLLC):

• eMBBimproveswhatwenormallythinkofintermsofcellularservice:fastaccesstodatafromdevicessuchassmartphones,laptopsorvehiclesforapplicationssuchasstreamingvideo.Initial5Gdeploymentshavefocusedonthisservice.

• mMTCbrings5Gsupportforlow-powerdevicessuchassensorsandotherintelligentdevicesthatmayneedtolastinthefieldorfactoryforyearsonasinglebatterycharge.ItbuildsonLTEstandardssupportforsuchdevices.

• URLLCisfordevicesthatneedveryresponsivedataconnections(e.g.,communicationbetweentwoautonomouscarsonahighwayseekingtoavoidacollision).URLLCissupportedby5GNR(NewRadio).ItcanthereforeachievefargreaterperformancethanLTEandiskeytorealizingthefullpotentialof5G.

5Gisalsooftenassociatedwithinitiativesthatarenotanintrinsicpartofthestandard,butwhicharehighlycomplementary.OnesuchexampleisMEC(Multi-Access,or

MobileEdgeComputing).MECisdesignedtoimproveperformanceofhigh-bandwidth,lowlatencyapplications(e.g.,sharedaugmentedrealityorcloud-basedgames).

MECallowsformoreprocessingattheedge,whichmeansreducingtheneedtomovedatafrommachinetocloudandbackintheprocessofperformingdata-heavyactivities.Inthisway,manufacturerscantakeadvantageofMECtoreducethelatencyforcertainapplicationsandcanalsoprioritizemission-criticaldata.ManufacturerswillbeusingMECtocontrolrobots,dronesandotherequipmentthatwillrequirelow-latency,high-reliability,increasedprivacyandsecurity,sotheirperformanceisn’thinderedbytheroundtriptimeittakesdatatomovefrommachinetocloud.

Asweareearlyinthe5Gtransition,wecandrawsomecomparisonswiththeearlydaysofthe4Gnetworkswehaveusedextensivelyforthepastdecade:

• Like4Gbeforeit,whichgotfasterovertheyearsasthestandardwasimproved,5Gisrollingoutinstagesandwillgetfasterinthecomingyears.Itsadvancesaredefinedby

releasescreatedbyagoverninginternationalbodyfocusedonmanytechnicaldetailscoveringtheevolutionofcellularstandards.Release15definedtheinitial5Gstandardin2019.Releases16and17,focusedonimprovingefficiencyandpowermanagementamongmanyotherthings,wereapprovedin2020,andRelease18isslatedtobeapprovedin2021.

• Also,like4G,itwilltakesometimeforcarrierstomakecoveragewidespread.WhileU.S.carriershavemadegoodprogressinbuildingouttheirnetworkssince2019,wecanexpectbothcoverageandspeedtoimprovein2021andbeyond.Evenso,5Ghasbeenadoptedmorerapidlybycarriersaroundtheworldthan4Gwas.

• TelecommunicationscompanyEricssonestimates5Gcoveragereached15%oftheglobalpopulationbytheendof2020,upfrom5%attheendof2019.Furthermore,theyestimatethiswillgrowto60%by2026,making5Gthefastestdeployedmobilecommunicationtechnologyinhistory.1

• Justas4Gnetworksrequire devicessuchassmartphones tohave4Gcapabilitiestotake fulladvantageofthenetwork’s speed,sodo5Gnetworks. In2020,almostallmajorU.S. smartphonemakersreleased atleastone5Gsmartphone.

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Otherdevicemakersalsoreleased5G-enabledlaptops,tablets,andhotspots.

5Gisnottheonlywirelessnetworktechnologythathasrecentlyseenamajorupdateorstatementofsupport,althoughtheothersarefocusedonmuchdifferentsolutionsandapplications.Theyincludethefollowing:

• Wi-Fi6e:Wi-Fi6erepresentedagenerationalleapintermsofspeedandnetworkcongestionmanagementversuspreviousgenerations.Morerecently,however,thetechnologyhasbeenextendedintoanewspectrumbandthatoffersmorecapacitythanthepreviousbandsdidcombined.WhilethisshouldresultinthebestWi-Fiperformancewehaveseentodate,Wi-Ficanbeanalternativeto5Gwhere5Gisn’tavailable.

However,itremainsfocusedonlocalnetworkingandcannotmatchtherangeordevicedensitycapacityof5G.

• Bluetooth5.2:Thelatestversionofthepopularstandardlinkingsmartphonestoheadphonesandotherperipheralswillseeimprovementsintermsofenergyconsumptionandcanbeusedforshort-rangepreciseobjectlocation.

• UWB:LikeBluetooth,ultra-widebandcanbeusedforshort-rangepreciseobjectlocation.LeadingsmartphonemakersarenowintegratingUWBintotheirsmartphones.

Theseshorter-rangetechnologiesarehighlycomplementaryto5Gandshouldbebroadlysupportedinsmartphonesandotherdevicesinthecomingyears.

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Allcellularnetworksoperateincertainpartsoftheradiowavespectrum.Ingeneral,thehigherthefrequencynumber,thefasterthemaximumdatarateisbuttheshortertherangeis.Today,4Gnetworksoperatebelow6GHz.Thenetworksofferingthebestrangeoperatein“lowbands”suchas600MHzand700MHzfrequenciesintheUnitedStates.

5Gnetworkscanalsooperateintheseranges,buttodaydeliveronlymarginallyfasterconnections.Thisisbecauseit’sbeenfarmoreeffectiveforcarrierstorollout5GusingthesamecoretechnologyusedforLTEnetworks.Infact,LTEusersbenefitfromthemoreefficientuseofnetworkcapacityenabledby5G.Overtime,carrierswillrolloutstandalonecorenetworks(5GNR)that,inadditiontoofferinggreaterspeed,willbringtremendousgains

inreliabilityandguaranteedqualityofserviceoptions.

5Gcanalsooperatein“mid-band”frequenciessuchas3.5GHzthatofferaspeedbumpwhencomparedtosomeofthelowerfrequencies;thesehavenotbeenasbroadlyavailableintheU.S.asinothercountries.Mid-bandspectrumishometoavarietyofcriticaloperations.Additionally,thefederalgovernmentauctionedoffseveralblocksofspectruminthesefrequenciesin2020soweshouldseeincreased5G-relatedactivityinthisband,(e.g.,byusingatechnologycalledCBRS(CitizensBroadbandRadioService)intendedexpresslyforprivatecellularnetworks).

Themostimpressivespeedgainstakeplaceabove24GHz.However,therangesofthese“millimeter-

wave”implementationsarelimited;theyhavebeendeployedmostlyinlargeopenspacessuchasparksandfootballstadiumsbutcanalsobeeffectiveforfactories.TheU.S.hasbeenearlytoembracethesenetworks,butmanycarriersaroundtheworldplantodeploymillimeter-wavenetworksin2021andbeyond.

Overall,5Gwillevolvetobecomemuchfasterthan4G.While4Gnetworkstopoutataboutonegigabitpersecond,5Gnetworksareexpectedtoreachupto10timesthatrate.Inadditiontospeed,5Goffersotherbenefits,includingmuchlowerlatency,thetransmissiontimebetweenwhendataissentandreceivedonthenetwork,thatmaybecomeasshortasafewmilliseconds.Asaresult,5Gwillbeakeyenablerformanufacturingandindustrialapplicationsandinnovations.

Banding Together

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5G Manufacturing Applications

Manufacturingcanoftenbealinearprocessthatrequireslongleadtimesandcarriessignificantriskofbreakdownsandwaste.Astheyfaceever-growingglobaldemandandevermoreaggressivecompetition,however,manufacturersapplysophisticatedapproachestomonitoringandimprovingtheiroperations.ThisadaptabilityisakeytenetofwhatisoftencalledManufacturing4.0orIndustry4.0.Factorsincludeavailabilityofproduction,whichcanbecompromisedbyunplanneddowntime;performance,orhowwellequipmentisworkingversusitsoptimalcapacityandproductionrate;andqualityofoutput.Astheglobalpandemicclearlydemonstrated,factoriesmustbeincreasinglyflexible,abletobereconfiguredwithdifferentproductionlinesdependingonwhatcanbesuddenshiftsindemand.

5Gcanhelprealizetheidealofamodularfactorywheremachinerycanbequicklyreconfiguredtooptimizeproduction.Itnotonlystandstoimprovetherichnessofcommunicationamongstaff,butalsokeepthemsaferasitcanfacilitatedatacollectionfroma

densepopulationofsensorsatapreviouslyimpossiblescale.Anditwillbeabletoheadoffproblemsbyenablingsystemsthatautomaticallyschedulemaintenanceororderreplacementsforconsumablesto

ensurethereisminimaldowntime.Itpavesthewayforself-configuringmanufacturinglines,proactiveequipmentmaintenancedeterminedbyanalyzingsensordataandautonomousvehiclesthatcanbeginorperhapsonedaycompleteoutboundlogistics.

Manytechnologiesneedtomaturetorealizethisvision,withkeycomponentstakingaleapforwarddueto5G.Behindthe“magic”willbebillionsofdatapointsdevelopedintosophisticateddatamodules,analyzedforoptimalefficiencyandvisualizedindynamicways.Whilemanyoftheseapplicationsrelatetoeachother,theyalsohavevalueoutsideoftheirlinkedapplication.Fiveofthekeyapplicationsaredigitaltwins,theindustrialinternetofthings,extendedreality,autonomousvehiclesandroboticsandsafetyandsecurity.Whilepartsoftheseservicescanbeenabledbyexistingcellulartechnologies,itwillrequire5Gconnectivitytodeliverthematscale.

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Foryears,movieandvideogamestudioshaveusedmotion-capturetechnologytocreatelifelikemodelsofhowactorsmove.Whatifthatkindofsensor-drivenmodelingcouldbeappliedtoanentireorganizationalprocess?Thatisthefoundationalideaofadigitaltwin,acomputermodelthatrepresentsitsphysicalcounterpartsowellthatitcanbeusedtounderstandandpredictchangeswithhowpeople,productsandprocessesinteract.

Digitaltwinscanbeusedreactivelyorproactively.Whenusedreactively,theycanbestudiedtopinpointinefficienciesthatmaybedifficulttodetectusingonlyvisualobservation.Whenusedproactively,managerscanconduct“what-if”scenariosthatcanbeanalyzedwithoutdisruptingproductionprocesses.

Digitaltwinsusuallyrequirelargedatasetstobeeffective.5Gnetworkscannotonlyfacilitatethetransmissionofthesedatasetsacrossvastdistancesatveryhighspeedsbut,withitslow-powervariants,canenablesensorsforapplicationsthatmayrequirefar-flungsensorsinremotelocationssuchasstretchesofroadsorfieldsinagricultureapplications.

DigitalTwins

A View from Manufacturing: A Conversation with Honeywell’s Chief Commercial Officer Usman Shuja

timevisibilityintotheiroperations,theycanknowhowtheirfactoriesareperforming,howtheirsupplychainsareworking,wheretherisksareandultimatelywheretheopportunitiesare.Thevisionistohaveasingleviewofenterprise-levelriskandopportunitiesandtobeabletoaddresstheseremotelyandautonomously.

Why is 5G needed to accomplish this vision?Forstaticreports,orotherinformationthatdoesnotchangeonadailyorhourlybasis,Wi-Fiorotherconnectionsmightbesufficient.Tohaveaglobal,enterprise-wideview,weneedasinglecommunicationpipethatiseverywhere.Thatiswherethepowerof5Gcomesin.It’sglobal,anditcantransportdifferenttypesofdata.Itisnotrestricted.

Thenextevolutionofthisisautonomy.5Gallowsustomakelittlethingsinthebuildings,thefacilitiesandinthesupplychainactlikeasystemofsystems.Itgivesusmuchlowergranularlevelofinsightsthanwecanachievetoday.Fortechnologytobeadopted,theROIhastomakesense,andthebusinesscasehastomakesense.ThepowerofAIand5GandIoTputtogetherissobigthatyoucannotignoreit.Moreover,intheearlymonthsofCOVID-19,manymanufacturerscouldnotevenoperatetheirfactories.So,theneedfordigitizationand5GisevenstrongerbecauseofCOVID-19.

5Genablescontinuityandrichnessofdatasoyoucanmakereal-timedecisions.Richerandmorecontinuousdataprovidegreatervisibility.Whenyoucollectmachineinformationfromsensorsforexample,youmightbecollectingitformaintenance.Butthedatacanalsobeextendedfordifferentapplications,andwecanuseittobuilddifferentapplications.Wecankeepusingdatainmultipledifferentways.Thisiswhatwecallextensibility

What is Honeywell’s vision for 5G?Webelievethateveryenterpriseinthefuturewillneedenterpriseperformancemanagementcapabilities.Thismeansthereisasinglepaneofglasswhereyoucanseealloftheassets,peopleandprocessesinoneplaceandyoucanknowalloftheinterdependenciesthatexist.Webelieveyoushouldbeabletomonitorandoperateyourbusinessfromanywhereintheworld.Ifyou’reafacilitymanager,forexample,youcoulddothatsittingataStarbucks,becauseyouhaveaccesstoallrelevantdata.Youknowwhoiscomingintothefacility,whatyourmaintenanceneedsare,howmuchenergyyou’reusingandwhenyourcontractsarebeingrenewed.Youhaveallofthatinoneplace,becausesystemscantalktoeachother.

Todaycompanieshaveverylimitedvisibility,butoncetheygainreal-

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TheInternetofThingsrefersbroadlytothebillionsofsensor-drivendevicesthatwillconnecttotheglobalnetworkinthecomingyears.ManyofthesewillbepartoftheIndustrialInternetofThings(IIoT).Thesedevicedeploymentsfocusonmeasuringtheoperationofandparametersaroundmanyproduction-relatedenvironments.Thiswillincludemeasuringhowefficientlyfactorymachinesareoperatingandtheenvironmentalfactorsthatcanaffectthatoperationsuchastemperatureandhumidity.Likewise,IIoTwillalsoleadtoenergysavingsandmoreenergy-efficientoperations.

IIoTdevicescanbeacriticalcomponentindevelopingadigitaltwinapplication,buttheycanalsohavegreatvalueforotherapplications.Forexample,IIoTsensorscanbeusedtoprovidereal-timeinputtofactory-floorworkersontheoperationalhealthofmachines,helpingtoensureworkersafety.Theycanalsoreportonlonger-termpotentialchallenges,suchaswhetherapartneedstobereplacedorwhetherlubricantneedstobeorderedtoensureitsoptimaloperation.IIoT-drivendatacanevenunlocknewbusinessopportunitiesintermsofallowingprecisemonitoringofcostsformanufacturing-as-a-servicescenarios.

OneexampleofanIIoT-drivenapplicationis“track-and-trace.”IndoortrackingandtracingofassetsusuallyconsistsofscanningbarcodesorRFIDtagstodetermine

theirlocation.Inthefuture,however,thismaybeaugmentedorreplacedwithtechnologiessuchasBluetoothorUWB,resultinginastreamofreal-timedatathatcanbetransferred

amongfacilitiesvia5G.Thecasefor5Gisevengreaterforoutdoortrack-and-trace,wheretechnologiessuchasGPS,5Gand,ultimately,smartroadscandeliverreal-timeintelligenceonvariablessuchasloadoptimizationandhandoffbetweensites.

Anotherexamplerelatestoemergencystopswitches.Historically,thesehavebeenpermanentlywiredtomachines,limitingtheircontroltoonlythatmachine.Using5G,whichcanbeasreliableandresponsiveasawiredconnection,switchesmaybeabletoshutdownmultiplemachinesincaseofamalfunctionoraccident,improvingworkersafety.

Industrial Internet of Thingsofthedataset.5Gwilltakethistoalevelpreviouslyunavailabletomanufacturers.

How can 5G empower a system of systems?Todaytherearesystemsthatdonottalktoeachother.AfiresystemisseparatefromaBMSsystembecausetheyweredesignedseparately,andtheywereinstalledseparately.Buttheproblemisthatisnotthewayitshouldbeoperating.Withasystemofsystemsapproach,thesecouldtalktoeachother.Theycouldbecontextawareanddependencyaware.

Ifonecameraisbroken,orisabouttobebroken,thenitcancallontheinventorysystem,andsay,“Itlookslikethiscameraisgoingtobreak,andIneedtoeithermakearepairorIneedtoorderaparttofixit.”Thisisenabledbecauseitisawareofitsenvironment,anditcantalktoothersystemsliketheinventorymanagementsystem.So,allofthesediversesystemscancommunicateinrealtimeandactlikeonesystem.

What are some of the most promising aspects of 5G for manufacturers?LatencyandcoveragearebigissuesforIoT.Inalotofmanufacturingplants,thereisnoaccesstoconnectivity,soyoucannotimplementIoTsolutions.Speedanddependencyallowyoutogoautonomous.Autonomycannothappenwithout5G.5Galsoenablessupplychainvisibilitylikenothinghaseverdonebefore.

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Extendedreality,or“XR,”representsthesetoftechnologiesthatrunsthegamutfromvirtualreality—animmersiveexperiencethatcompletelyshutsoutthephysicalworld—toaugmentedreality,inwhichdigitalobjectsappearandcanbemanipulatedintherealworld.

XRhasmanyhorizontalbusinessapplications.Forexample,severalcompanieshavedevelopedmeetingroomcollaborationapplicationsforgeographicallydispersedteams;theseincludedigitalversionsofmanyofthetoolsusedinin-personmeetings,suchaswhiteboardsandstickynotes.Someevenallowtheinclusionoftwo-dimensionalPCscreenoutputforviewingwebpagesinavirtualenvironment.However,XRhasparticularvalueinsectorslikeconstructionandmanufacturing,whereparticipantscanseedetailed

modelsofcomplexmachinery.Manufacturerscanpresentdataandinformationaboutmachineryinspatiallyrelevantways,whichinturncanaidworkersinmaintenance,repairandtraining.

XRapplicationsareideallyexperiencedthroughaheadset.ThesehaverangedfrominexpensiveVR

productsthatworkbyputtingasmartphoneinfrontofyoureyestoadvancedsystemsthatcostthousandsofdollarsandcanmatchtheresolutionofthehumaneye.Newerproductsofferimpressiveimagequalityatlessthan$1,000.Incontrast,leading-edgeaugmentedrealityheadsetscontinuetocostthousandsofdollarsorareinlimiteddistribution.

ForbothVRandARheadsets,however,tradeoffsaffectprice,imagequality,howwideaviewonecansee(fieldofview)and,inthecaseofheadsetsnottetheredtoaPC,batterylife.Thenextfewyearsshouldseegreatstridesintheseareas.

Anemergingbreedofheadsetconnectstoasmartphoneviaacable,usingthatdeviceforprocessingandconnectivitywhileitistuckedawayinapocketastheheadsethandlesthedisplayandinput.Thisallowstheheadsetstobemuchlighter,smallerandlessexpensive.Evenso,manyXRapplicationsallowuserstoparticipatewithcurrentlyavailablesmartphonesandtablets,providingawindowintothevirtualworld,albeitonenotasimmersiveastheoneprovidedbyaheadset.

XRisalreadybeingusedinarangeoftasksrelatedtomanufacturingsuchastrainingworkersvialiveinteractionsorpreparedtutorialsandtroubleshootingproblemsremotely.Byusingaugmentedreality,thiscanoccurrightnexttothepartsofamachinethatatechnicianmustservice.Headsetscanbecombinedwithbiofeedbacksensorstodeterminehoweffectivetrainingisorhowwellatraineerespondstostressfulsituations.

Whilethecompelling3Dgraphicsofthesetechnologiesgetmostoftheattention,theabilitytolookupcontentfromadigitalservicemanualhands-freeisalsoagreatproductivityaidfacilitatedby5G,particularlyifatechnicianwishestosearchtomesoftechnicalmanualsviavoicecommands.XRcanalsoplayakeyroleinproductdevelopment,enablingengineersanddesignerstoseetheeffectsofchangingspecificationswithouthavingtobuildnewprototypesandofferingalevelofdetailedvisualizationthatcanreduceerrorsinmanufacturing.

Extended Reality

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Whilethedreamoftheself-drivingcarhasbeenwithusfordecades,thepastdecadehasseenenormousprogressasarangeofeffortshaveleveragedadvancedimagingsensors,computervisionandmachineintelligence.Thesearecombiningtomatchorexceedthejudgementandreflexesofhumans.Self-drivingcarshaveloggedmillionsofmiles.Eveninthecasewherehumandriverscontinuetooperateaccelerators,steeringwheelsandbrakes,5Gcanplayakeyrole.Itcannotonlyhelpwithtoolsthatdriversusetohavebetterunderstandingoftheirenvironment,butalsoinhelpingtokeepthemsafeandcomfortable.

Theautonomousvehicleindustryhasidentifiedfivelevelsofautonomousdriving(inadditiontoaLevel0thatincludesnoautonomy):

• Level 1:DriverAssistance,asingleautonomoussystemsuchascruisecontrol

• Level 2: PartialAutomation

• Level 3: ConditionalAutomation,inwhichthevehiclecanperformmostfunctions,buthumaninteractionisstillrequired

• Level 4: HighAutomation,inwhichthevehiclegenerallyhandlesallfunctions,buthumaninteractionisstillanoption

• Level 5: FullAutomation,inwhichthevehiclefullyhandlesalldrivingfunctionswithouthumaninterventionToday,somevehiclescanoperate

autonomousvehicletechnologyatLevel3.Butfullyautonomouscarsandtruckshaveclearcommercialapplicationsthatcanhavefar-ranging,ifsometimesindirect,benefitsformanufacturing.Forexample,autonomousvehicles

coulddeliversuppliestofactoriesanddeliverproductsfromfactoriesefficientlyandsafely.Toreachtheirfullpotential,suchvehicleswillhavetocommunicatewitheachotherandotherconnected,intelligentpartsofthetransportationgridusingtechnologiesreferencedundertheumbrellaterm“vehicle-to-everything”(V2X).

Furthermore,notallautonomousvehiclesnavigatepublicroads.5Gcanalsobeusedtoguiderobotsorforkliftsthroughfactoriesusingmanyofthesamecore-enablingtechnologiessuchasadvancedcomputervisiondestinedforpassengercars.

5Gwilldrivenext-genmobilerobots.Oneofthemainrequirementsforremote-controlledroboticsislowlatency.LTEnetworksdonotdeliverlatencylevelslowenoughtomakecontrollingrobotsatadistancefeasible.Butextremelylowlatencyisoneofthedefiningcharacteristicsof5Gnetworks.5Gwillhelpautomatedangeroustasksbyprovidingtheabilitytocontrolequipmentatadistanceinnearrealtime.

5Galsohasthepotentialtoenableadvancedautomationthroughzero-touchapproaches.Fromforkliftstodronestowarehouseshelvesthemselves,5Gwillconnectautonomousmodesoftransportation.These,inturn,willimpactawiderangeoffacilityservices.Allformsoftransportationwithinthefuturefactorycouldbeconnectedtothe5Gnetwork.

Manufacturersareincreasinglymovingfromstaticconfigurationstomoreflexibleandcustomizedproduction.5Gwillenablemanufacturerstorespondtoreal-timeupstreamanddownstreamconditionsandinturnbemoreagileduringtimesofshiftingmarketdemandanddynamics.

Autonomous Vehicles and Robotics

16

AT&T’s Director of 5G Center of Excellence Jason Inskeep

AT&T’s Director of Digital Transformation for Manufacturing & Operations David LeBlanc

Finally,5Gopensthedoortomultiplehigh-definitionvideostreamsfromfixedcamerasanddrones(likelynavigatingviathe5Gnetworkaswell)toensurethesecurityoffacilitiesormonitorforanysignsofdisruptionorfailure,particularlywhenpairedwithacomputervisionsystemthatcananalyzethisvideoanddetectaberrationsordangeroussituations.Emergingimagingsensorscancapturericherdetailsaboutascene,identifymaterialsbasedonreflectionpatternsandevencapturevideoinalmosttotaldarkness.Thesevideofeedscanprovideproofofwhatmaybeinferredviasensors.Camerascanalsohelpensurecompliancewithmaximumoccupancylawsandtoensurethatpersonnelarefollowingsafetyprotocols.

Safety & Security

View From Network Carriers: A Conversation with AT&T

changesthetraditionalparadigmaroundconnectivityandreturnoninvestment.5Gisreallyaboutimprovingproductprocessqualityandincreasingproductionvelocity,whichinturnreducesunitcosts.Manufacturersareabletoproducepartsatahigherqualityandatahighervelocity.

How do you see 5G enabling the manufacturing workforce, and where does automation fit in?Thereisalotofdiscussionaround5Gandautomation,but5Gautomationisn’tabouttargetinglaborcostreduction.5Gismoreabouttryingtomeetdemandforhigher-qualityrequirementsandhighervelocityintermsofproductionoperations.Inthisway,5Gisalignedwithwhatmanufacturersare

What are you seeing as the biggest drivers of 5G for manufacturing? Theneedfordataandoperationalvisibilityisgrowingfasterthanourcurrentmeansandabilitytoconnectusingtraditionalmethodsforconnecting.Manufacturersarehittingthesemajorwallswhereyoucan’tjustpushmoreofthesamewirelessandwiredtechnologytoenablemoredevices.5Gbringsanentirelynewwaytoconnectattheexacttimemanufacturersneednewwaystoconnecttobringthenextgenerationofservices,applicationsandproducts.

What’sbeentheimmediatedriverof5Ginmanyinstancesiscost.Obviously,therearetechnicalrunwaysthatmanufacturersareaimingtoachieve,but5Greally

17

tryingtoaccomplishandwhatthemanufacturingworkforceisworkingtoachieve.

How should manufacturers approach 5G adoption? First,manufacturersneedtogeteducatedonthebaselineconstruct.Secondly,manufacturersshouldtakeaninventoryofthethingsthatareconnectedtoday.Noticewedidn’tsay,“justfocusonthosethingsthatneedhighbandwidthorneedlowlatency.”Manufacturersshouldstartwithlookingatwhatisconnectedtodaybecausethiswillhelpthemdefineopportunitiesthatareuniquetotheirbusinessandbusinessprocesses.Thirdly,manufacturersshouldlookatthethingstheyneverthoughtwouldbepossible.

Here’sjustoneexampleofwhatwemeanbythinkingaboutwhatyouneverthoughtwaspossible.Weareworkingwithamanufacturerwhohasblockconcreteonthegroundoftheirplantandunderneathittheyhavepipesthatcarrychemicalsfromoutsidestoragefacilitiesintotheirfabricationarea.Inthepast,theydidnotusetemperaturesensingonthispartoftheiroperationsbecausetheyfearedthereturnoninvestmentwouldnotmatchthecostofgettingconnectivityintothosetunnels.

Wewereabletoworkwiththem,using5Gtogetherwithsensors,topenetratethroughtheblockconcrete.Suddenly,nowabattery-poweredsensorcantellthemtemperaturechanges,whichcanimpacttheirROImuchgreaterthantheyhadpreviouslyrealizedwithouthavingtoaddconnectivityinsidetheundergroundenvironment.Andtheyhadn’trealizeditbecausethetechnologyavailabletothemhadlimitedtheirthinkingaboutwhatwaspossible.

Manufacturersneedtotakeacatalogofalloftheprocessestheyhave

inplaceandhowthoseprocessesworktoday—andnowusethatasanopportunitytobrainstormandideatearoundopportunitiestoenablethoseprocessesindifferentways,reallyopenuptheaperturetotheartofthepossible.

Are there things manufacturers should be thinking about differently as they approach 5G as opposed to any of the connectivity technologies that have preceded it? There’salearningcurvethatmostmanufacturersaregoingthroughrightnow.Manufacturersarelearninghow5G,andmorebroadlycellularingeneral,isfundamentallydifferentthanotherconnectivitysolutions.Andmanufacturersarelearninghowtothinkdifferently.TheknowledgesetfornetworkconnectivitycapabilityhashistoricallybeenwithOEMsorwiththenetworkoperatorsforpreviousgenerationsofcellulartechnology.

Movingforwardina5Gworld,moreoftheknowledgewillneedtositwithinthemanufacturerworkingcloselywith

itsintegrationpartners.Weareseeingahostofcreativeways5Gcanbedeployedtodelivernewservices.

Are you seeing an acceleration of 5G adoption among manufacturers? Wehaveabsolutelyseenanaccelerationinthemanufacturingspacetoward5Gadoption.Inmanyinstances,theyaretakingahybridapproachtoconnectnewthings.Manufacturershavealreadyinvestedatremendousamountintotheircurrentfacilitiesandcapabilities.Manufacturersshouldn’tfeelliketheyhavetoripoutandreplacetheirexistinginfrastructure.5Gisaboutbringinginanothermeanstoconnectinordertocreateoperationalefficiencies.Leveragewhatyouhavetodayandbuildonthat.Andasmanufacturersemploy5G,theywillalsomakethoseexistingconnectionsmoreefficientbecausetheyarenotboggingdownthosehistoricconnectionswithmoredevicesandnewservicerequirements.5Gwillhelpmanufacturerstoaugmenttheiroperationsandhelpthemachievetheirdigitaltransformationgoalsandrequirements.

18

Privatenetworkshavelongbeenanoptionforcompaniesandotherorganizationsseekingtohavemorecontrolandpersonalizationoveracellularnetworkwithearlycellularnetworksservingvoiceapplicationsforpublicsafetyandrailways.Thesehavecontinuedonthroughoutsuccessivecellulargenerations.However,becauseoftheirindustrialcapabilities,5Gnetworksaredrawingstronginterestforprivatenetworkimplementations.

Thereareanumberofreasonsformanufacturerstoconsiderinstallingprivate5Gnetworksforthefactories,plantsandfacilities.Manufacturerswhohaveastrongbeliefinthebenefitsof5Gandseeitasastrategicassetthatprovidescompetitiveadvantagewillpotentiallywanttoshareinorassumecapitalexpenditurestobuildoutaprivate5Gnetwork.Private5Gnetworkswillprovidemanufacturerswithanabilitytotarget5Gdeploymenttospecificgeographicareas,particularlyoutsideofdenselypopulatedurbanareas.Moreover,private5Gnetworkscanprovideenhancedprivacy,securityandcontrolovernetworkconfiguration,includingoptionstoenhanceavailability,qualityofservice,reliabilityorlatency.

Ingeneral,companiesarepursuingtwomainkindsofapplicationsonthesenetworks:high-bandwidthapplicationsfortaskssuchasstreamingvideoandreal-time

applicationsthatrequireverylowlatency.Fortheformer,deployingLTEnetworkscanbeagreatwaytolaythefoundation,particularlyforenhancedmobilebroadbandapplicationsinadvanceofavailabilityof5Gnetworkequipmentavailability.LTEand5Garewidelyexpectedtocoexistonthesameprivatenetworksforatleastthenextfiveyears.

Indeed,greatersupportforthekindsofreal-timelowlatencyperformanceenabledby5GSA(standalone)networkscontinuestobeaddressedintheevolving5Gstandard.FurtherdetailsareexpectedtoberolledoutwiththeRelease17specificationduetobefinalizedinmid-2022.

Oneofseveraloptionsforbuildingprivate5GnetworksintheU.S.isCBRS(CitizensBroadbandRadioService),aswathofmidband

spectruminthe3.5GHzrangethattheFCChasdesignatedforsuchnetworks.JohnDeereacquiredaCBRSlicenseandwilluseittoexplorestreamliningitsmanufacturingprocessanddevelopingfarmingapplications.Itplanstodeploy5Ginthatspectrumnextyear.Whilemidbandapplicationsfunctionwellindoors,thehighspeedsandextremelylowlatencyofmillimeter-wavenetworksmakethemidealforfactoryapplicationsdemandinghighbandwidth.Alreadyin2019,Siemenshassetupaprivatestandalone5GwirelessnetworkinSiemens’AutomotiveShowroomandTestcenterinNuremberg,Germanyinthe3.7-3.8GHzband.BoschandNokiahavepartneredtodeployaprivate5GnetworkatBosch’sfactoryinStuttgart-Feuerbach,whichalsooperatesinthe3.7-3.8GHzband.

Onealternativetohavingacompletelyprivate5Gnetworkwithprivateinfrastructureistakingadvantageofnetworkslicing.Inthisscenario,companiespartnerwithacarrier,whichcancreatemultiplevirtualnetworksdedicatedtobusinessapplications.Networkslicingcanalsobecomplementarytoaprivate5Gnetworkforcompaniesthatwantmorecontroloverwide-areaapplicationswhereitwouldbelogisticallyorfinanciallychallengingtodeployprivateinfrastructure.NetworkslicingcanbeimplementedunderLTEwithaneyetowardtransitioningto5G.

Private Networks

19

As5Gnetworkscontinuetoadvance,we’veseenpilotsonbothsidesoftheAtlanticinimplementing5G-enabledfactories,ofteninpartnershipwithcarriers.

• InGermany,SiemenshaspartneredwithQualcommtodeployaprivate5GnetworkattheSiemensAutomotiveShowroomandTestCenterinNuremberg.Thiswasthefirstprivate5Gstandalone(SA)networkinarealindustrialenvironmentusingthe3.7-3.8GHzband.SinceNovember2020Siemenshasdeployeditsownin-housedevelopedprivate5GtestnetworkandisplanningtorollthisouttoitsownmanufacturinglocationsinAmbergandKarlsruhe.Inaddition,Siemensalsoplanstosetupa5GtestnetworkattheDeutscheMessefairgroundsinHannover.

• InSpain,Gestamp,amanufacturerofmajorautochassiscomponents,haspartneredwithTelefonicatodeploy5GinaBarcelonafactory.Theinitiativehasincludedconnectingroboticweldingmachinesto5Gnetworkstocaptureandprocessdatainrealtimeandfeeditintosimulationmodelsgeneratedbyadigitaltwinofthefactory.Gestampseekstoimprovetheflexibilityofitsfacilitiesinresponsetoincreasingcustomizationofcarmodelsbyitscustomers.

• InTexas,AT&TcollaboratedwithSamsungtoexplorewaystouseaprivatemillimeter-wave5GnetworkalongwithLTEandWi-Fitotrainnewworkersusingmixedreality.Samsungcanuseaugmentedreality(AR)headsetssuchasMicrosoft’sHoloLenstobringnewworkersuptospeedmorequickly.Samsungtoutstheadvantageofworkersbeingabletonavigateafactoryfloorwithoutlosingaconnectiontovideotrainingaswellastheabilitytoconnectwitharemoteexpertifworkersneedhelp;theycaninstantlysendphotosorvideosofwhattheyareseeingsincetheheadsethasanintegratedcamera.

• IntheU.K.,WorcesterBoschhasdeployed5Gtoenablepreventativemaintenanceinrealtime.The

manufacturerisusinglargenumbersofsensorsmonitoringvibration,pressureandtemperatureandusinganalyticstopredictequipmentfailures.Also,intheU.K.,FordisworkingwithVodafonetotest5Gconnectivitywithweldingmachinesonaprivatenetwork.AccordingtoFord,keycomponentsinanelectricvehiclerequireabout1,000weldsthatcangeneratehalfamilliondatapointseveryminute,agoodmatchfor5G’shigh-capacitydatacapture.

• InNorthCarolina,Corningisworkingtoexplorehowmillimeter-wave5Gcanenhancefactoryautomationandqualityassuranceatoneofthelargestfiber-opticcablemanufacturingfacilitiesintheworld.Thecompaniesaretestinghow5Gcanimprovethenavigationandfunctionalityofautonomousguidedvehicles.Inaddition,theyareexploringhow5Gcanacceleratedatacollection,enablenearreal-timemachinecommunication,andhelpwirelesslytrackmaterialswith5G-connectedcameras.

• InFrance,SchneiderElectrichaspartneredwithOrangetotrial5Gonanindoor,privatenetwork.Thegoalistohelptheconvergenceofinformationtechnologyandoperationaltechnology.Fiveindoor5GantennashavebeeninstalledataNormandyfactory,coveringnearly2,000squaremetersofproductionspace.Inadditiontoworkingwith5G-enabledtabletsandlaptops,thefactoryistestinguseofa5G-controlledtelepresencerobottoenableremotevisitsthatcanrelayhigh-qualityvideoandaudiowhilehelpingtoreducetravelcosts.

• DrishtiisworkingwithDENSO,Ford,Nissanandotheradvancedautoandnonautomanufacturerstodeploycamerasacrossmanualassemblylines.ItusesAItoanalyzecontinuousstreamsofvideo,creatingdataandinsightsthatareusedtoimproveefficiencyandreduceassemblydefects.DrishtimovesextraordinarilylargevolumesofdatawhileperformingAIinferencinginextremelyshortperiodsoftimeandbelieves5Gwillprovideagenerationalleapinspeedandcapacityforitsplantoperationsandproductivitysolutions.

Early Implementations

20

Currently Testing/Using

2021

2022

2023

2024

Never

Don’t Know

2025 & Beyond

2021

2022

2023

2024

Don’t Know

2025 & Beyond

25%

31%

17%

10%

5%

3%

2%

7%

37%

19%

11%

9%

12%

12%

Begin 5G Integration into Existing Operations

Have 25% of Production Capability Integrated

Perceptions & Reality of 5G Manufacturing Deployment

Begin 5G Integration into Existing Operations

Have 25% of Production Capability Integrated

We are still in the very early days of 5G deployment,especiallyasitrelatestomanufacturersimplementing5G-enabledtechnologiesandsolutions.Thefullextentof5Gcapabilitieswillberealizedoverthecomingdecadeasthenetworkcomesmorefullytofruition.Butasthisresearchreveals,manufacturersarealreadybeginningtotest5Gintheirfactoriesandfacilities.Atthepresenttime,one-quarter(25%)of

themanufacturerssurveyedreporttheyarealreadytestingorusing5Gintheirfacilities.Moreover,morethanhalfofmanufacturers(56%)reporttheywillbetestingorusing5Ginsomecapacitywithintheirfacilitiesbytheendof2021.Onlyaverysmallpercentage(2%)ofmanufacturersreporttheydonotexpecttoimplement5Gsolutions.

Manufacturersalsohaveplanstoimplement5Gacrossameaningful

portionoftheiroperations.Justundertwo-fifths(37%)estimatetheywillhaveatleast25%ofproductioncapabilitiesintegratedbytheendof2021.Thisresearchfurthersuggeststhatbytheendof2022,morethanhalfofmanufacturers(56%)anticipatehavingatleast25%oftheirproductioncapabilitiesintegratedwith5Gcapabilities.Regardlessoftheactualuptaketimeline,itisclear5Gisontheforefrontoftechnologyroadmapsformanufacturers.

Anticipated Timeline for 5G Integration2

Currently Testing/Using

2021

2022

2023

2024

Never

Don’t Know

2025 & Beyond

2021

2022

2023

2024

Don’t Know

2025 & Beyond

25%

31%

17%

10%

5%

3%

2%

7%

37%

19%

11%

9%

12%

12%

Begin 5G Integration into Existing Operations

Have 25% of Production Capability Integrated

21

Inrecentyears,wirelesstechnologieshavebeenakeyfocusformanufacturers,yettodate,therehavebeenseveralinhibitorsthathavecurtailedtheextenttowhichwirelesssolutionscanaugmentproductionandimproveoperations.Abouthalfofthemanufacturerssurveyedreportcost(51%)isthenumber-onechallengerelatedtotheimplementationofcurrent,existingoranticipatedwirelesstechnologies.Unsurprisingly,manufacturerslookcloselyatthereturnoninvestmentofwirelesssolutions,andthusfar,thathaslimitedsomeofthedeploymentofwirelesstechnologiesinfactoriesandplants.ManufacturerswillbelookingcloselyatROIwhenitcomesto5Gdeploymentaswell.

Dependabilityofwirelesstechnologiesisanotherkeychallengeformanufacturers.Some40%ofmanufacturersreportthatensuringreliabilityisakeyconcernwhendecidingtoimplementwirelesstechnologies.Thisisespeciallytrueforindoorenvironmentsthatarenotoriousforradiointerference.Aspreviouslynoted,oneofthekeyperformanceindicators(KPI)specifiedby5GisUltraReliableLowLatencyCommunication(URLLC)servicerequirements.Thistranslatesinto99.999%reliabilityand99.999%availability.5Gshouldsignificantlyhelpmitigatethischallengeformanufacturersandcouldallowmanymanufacturerstoimplementwirelesssolutionswheretheyhadpreviouslyresistedbecausetheycouldnotdeliverreliablenetworkconnections.

Anotherchallengethathasinhibitedwirelesstechnologyadoptionisinterferencefromexistingequipmentandinfrastructure.Manymanufacturershavelegacyfacilities,equipmentandprocesses,andsomemanufacturershaveseenchallengeswithhowexistingoperationscombinewithwirelesstechnologies.Forexample,whenitcomestoimplementingwirelesstechnologies,manufacturersreportchallengeswithinterferencefromfacilityelements(38%),facilitybarriers(35%),facilityenvironment(33%),integrationwithlegacysystems,processesandequipment(31%)anddensityofdevices(23%).

Manyofthesechallengescanlikewisebemitigatedby5G.Forexample,Wi-Finetworkscanexperienceinterferenceindensesettings,andfixedwiredconnectionscanbedifficulttomanageacrosslargeindustrialcomplexes.5Gisexpectedtosupportupto1millionconnecteddevicesperkilometer(0.62miles),comparedtoafewthousanddevicesperkilometerwith4G.Thiswillenablemanufacturerstodeploywirelesssolutionswhereadensityofconnectedequipmentexists.

5G Will Help Resolve Current Manufacturing Challenges Related to Wireless Technologies

Challenges Related to Implementation of Wireless Technologies3

Cost

Ensuringreliability

Interferencefromfacilityelements(i.e.,vehiclecages,ductwork,machineswithelectrostaticdischarge,etc.)

Facilitybarriers(i.e.,walls,glass,radiofrequencyinterference,etc.)

Facilityenvironments(i.e.,temperature,humidity,moisture,shock,vibration,etc.)

Legacysystems/processes/equipment

Devicedensity

Noneoftheabove

Other

38%

35%

33%

31%

23%

3%

7%

51%

40%

22

Whileconnectivityisakeyaspectofsmartfactories,ultimatelyitisdatathatwillenablethisfuture.Here,too,weseemanufacturersfaceanumberofrelatedchallenges.Manufacturersreporttheirbiggestchallengeswithrespecttofacilityanalyticsincludeeaseofintegratingdatafrommultiplesources(44%),volumeofdata(40%)andcost(39%).Thesearefollowedbyspeedofsystemsresponse(37%),integrationwithlegacysystems,processesandequipment(37%)andsecuritychallengesorconcerns(33%).5Gispurpose-builttoresolvemanyoftheseinhibitorstofullfacilityanalytics.

Factorymachinesgenerateinformationrelatedtomonitoring,maintenanceandthemanagementofproduction.Untilrecently,muchofthisinformationwentuncapturedinthenormalcourseofoperations.Historically,muchofthemonitoringonashopfloorwouldbeperformedbyworkersaspartoftheirregularbusiness.Ifmachinesneededrepair,theywouldbetakenofflineandrepaired.Managementmightlookforwaystoimproveproductionoutcomes,butmuchofthiswasdoneusingdatafrompriorweeksand

months,orintheabsenceofdata,instinctthatmightdifferfrompersontoperson.

Inrecentyearsmachineshavebeenoutfittedwithsensorsthatenablemanufacturerstoturninformationintodatabycapturingthisinformationbothdigitallyandcontinuously.Butmuchofthesedatastillresideininformationsiloswithinthefactory.Manufacturerscontinuetostrugglewithturningthesedataintoreal-timeinsightsthatwillhelpthemanticipateneedsontheshopfloor.Forexample,roughlyoneinthree(33%)manufacturersreportunexpectedbreakdownsistheirbiggestpainpointwhenitcomestoreal-timeresourcetracking.Otherpainpointsrelatedtoreal-timeassettrackingincludeidentifyingprocessinefficiencies(33%),cost(33%),humanerror(30%),inventoryestimations(28%),eliminationofredundantassets(26%)andidentifyingassetlocation(25%).

5Gwillhaveaparticularimpactontheindustrialandmanufacturingsectorbecauseitwillhelpfactoryandplantoperatorsalleviatesomeofthesepainpoints.ThiswillbeacrucialstepinusheringinaneweraofAIandmachinelearningtechniquesthatcanhelp

5G Will Enable Smart Factories & Industry 4.0

Challenges Related to Manufacturing Facility Analytics4

Easeofintegratingdatafrommultiplesources

Volumeofdata

Cost

Speedofsystemresponse

Integrationwithlegacysystems/processes/equipment

Securitychallenges/concerns

NoneofTheabove

44%

40%

39%

37%

37%

33%

9%

2%Other

23

companiesbetterascertainreal-timeknowledgeabouttheirongoingoperations.5Gisalsooptimizedtofacilitatereal-timeinformationgatheringthatcanhelpautomateprocesseswithinthemanufacturingenvironment.Inallofthesecases,itisaboutgettingtherightdatatoarriveattherighttimeandintherightplacesoitcaninfluencetherightprocess.Previousnetworksfocusedondatacentralizationinthecloud,but5Gwillenablegreatercomputecapabilitieswithinthenetwork,closertotheenduser,theendmachineandultimatelytheendprocess.

5GenablesmanufacturerstoapplyAItodatainmuchfastertimeframesbybeingabletosupportahighpopulationofendpointswithinasmallgeographicarea.Thiswillallowforprecisionanalytics,andinthecaseofcontrolimplementations,precisionmanufacturing.Betteranalyticsina5Genvironmentwillallowmanufacturerstoperformtasksatamuchmoregranularandpreciselevel.

Enablingmachinestoshareinformationandinsightsdirectlywithothermachinesontheshopfloorinrealtimewillallowmanufacturerstoautomatecertainactivitiesandfreeworkerstofocusonhigher-valuetasks.

Unexpectedbreakdowns

Identifyingprocessinefficiencies

Cost

Humanerror

Wrong/maintaininginventoryestimations

Eliminatingredundantassets

Identifyingassetlocation

Resourcewastage

Maintenanceissues

Theftoccurrences

Underutilizationoftheworkforce

Noneoftheabove

Challenges Related to Real-Time Asset/Resource Tracking5

33%33%33%

30%28%

26%25%

20%20%

18%14%

8%

24

Manufacturersseeanumberofbenefitsto5Gconnectivity.Amongthosesurveyed,nearlyhalfindicate5Gwilllikelyaidtheirmanufacturingprocessesthroughincreaseddatausage(48%)andincreasedreliability(46%).Furthermore,two-fifthsofthosesurveyedbelievetheirprocessescanbeimprovedthroughtheabilitytoconnectmoredevices(41%),reducedowntime(40%),increasesecurity(40%),increasesafety(39%)andincreasemachineproductivity(39%).

Benefits of 5G Connectivity

Ways in Which 5G Will Aid Manufacturing Processes6

Increaseddatausage

Increasedreliability

Abilitytoconnectmoredevices

Reduceddowntime

Increasedsecurity

Increasedsafety

Increasedmachineproductivity

Abilitytocapturemoredata

Reducedoverallcosts

Reduceddefects

Reducedmachinereplacementrate

Increasedvideousage

ReducedspendonMaintenanceandrepair

48%46%

41%40%40%

39%39%

36%35%

32%27%

25%22%

1%5%

Other

NoneoftheAbove

25

Thereisstrongagreementamongmanufacturersthat5Gwillhelpexistingbusinessprocessesandprocedures.Nineintenmanufacturersbelievetheutilizationof5Gintheirfacilitieswillhelpwithexistingwaysofdoingbusiness(92%)andwillfurtheradvanceexistingprocesses(88%).

Thereisalsostrongconsensusthat5Gwillempowerentirelynewwaysofdoingbusinessbyhelpingmanufacturerscreateentirelynewprocessesandprocedures.Beyondwhatmanufacturersarecurrentlydoingintheirfacilities,nineintenmanufacturersalsoexpecttheutilizationof5Gtoleadtothecreationofnewprocesses(88%)andthecreationofnewbusiness(86%).

Thecreationofnewprocessesandbusinessproceduresisanespeciallyimportantoutcomeof5Gdeploymentbecausesuggestssecond-orderbenefitsthatmightbecapturedbymanufacturers.Manufacturerspointtoseveralareaswhenaskedspecificallywhatthesenewproductsandprocessesmightbe.Theyincludedcreatingcustomersupportinfrastructureinaugmentedreality,ARtrainingtoolsforemployeesandremotemaintenancesupport.Somemanufacturersreportedtheyhope5Gwillhelpimprovefirst-timefixrates(FTFR)andcreategreaterremoteaccesstotheirservices.Manufacturersalsonotedtheyexpect5Gtousherinnewprocessesaroundfactoryautomationandcontrolsystems.Manufacturersbelieve5Gwillbeacatalystforchange.

5G Will Help Extend Existing Processes & Drive Entirely New Products and Processes

Helpexistingwaysofdoingbusiness

Leadtothecreationofnewprocesses

Advanceexistingprocesses

Leadtothecreationofnewbusiness

Agreement with Statements7

92%

Utilization of 5G in manufacturing will…

PERCENT

% Top 2 Box

6033422

88%

88%

86%

5831822

5236732

51351122

StronglyDisagree(1) (2) (3) (4) StronglyAgree(5)

26

Manufacturersexpect5Gtohaveastrongimpactonmyriadfacetsoffactoryoperations.Four-fifthsofmanufacturersindicate5Gtechnologywillbeimportanttoinventorytracking(83%),facilitysecurity(81%)andwarehousingandlogistics(81%)withintheirfacilities.Withthehelpof5G,manufacturersandlogisticserviceproviderswillbeabletoprovidereal-timeupdatestodownstreamcustomersandupstreamsuppliers.Thiswillallowmanufacturerstostreamlinebothinboundandoutboundlogistics

andinturnmanufacturerswillhavegreaterassurancethatshipmentshavebeenreceivedanddelivered.Theywillbeabletoexpeditedeliveringandreceivinggoodsandwillbeabletosynchronizeinformationacrossthesupplychainmoreclosely.

Manufacturerswillalsobeabletounderstandpotentialshippingdelaysinrealtime,communicateinformationtosupplychainpartnersandadjustasneeded.TogetherwithAI,theywillbeabletooptimize

fleetroutesandrelatedlogisticalservicesandimprovewarehousemanagement.

Furthermore,three-fourthsofmanufacturersindicate5Gwillalsobeimportanttoinspection(76%)andassembly(76%)activities,whilesevenintenbelievepackaging(72%)andemployeetraining(71%)effortswillbenefitfromthedeploymentof5G.Ultimately,manyofthesebenefitswillhelplowerthecostofoperationswhileatthesametimeimprovingproductionefficiency.

5G Will Transform Supply Chains & Factory Operations

Inventorytracking

Facilitysecurity

Warehousingandlogistics

Inspection

Assembly

Packaging

Employeetraining

Importance of 5G Technology to General Operations8

83%

81%

% Top 2 Box

49321154

44371046

48281249

34421249

343815211

38331487

4736558

81%

76%

76%

72%

71%

NotatallImportant(1) (2) (3) (4) ExtremelyImportant(5)

PERCENT

27

Whenaskedhowimportant5Gconnectivitywillbetospecificoperationalproceduresandprocesses,manufacturersindicateequipmentmonitoringandcontrol(89%),safetyproceduresthat

analyzesensordatainrealtime(87%)andemployeesafety(86%)willbenefitmostfromthetechnology.Thevastmajorityofmanufacturersalsoreportthat5Gwillaidremoteanalyticstosupportreal-time

decisionmaking(84%),condition-basedremotemonitoringforpredictivemaintenance(84%),assettracking(83%)andpreventativemaintenance(82%).5Gwillimprovedatadecision-making.

Importance of 5G Technology to Operational Procedures/Processes9

89%87%86%

84%84%83%

82%79%

78%78%77%

77%76%75%

72%

% Top 2 Box

3

2

1

2

3

2

2

3

5

5

5

3

4

5

3

7

8

11

12

10

13

16

16

16

14

13

16

15

14

21

44

40

36

33

36

41

43

37

31

32

30

41

44

35

33

46

47

50

50

48

42

39

42

47

46

47

36

32

40

39

1

4

3

2

3

2

2

1

3

5

4

5

6

4

NotatallImportant(1) (2) (3) (4) ExtremelyImportant(5)

PERCENTEquipmentmonitoringandcontrol

Safetyproceduresthatanalyzesensordatainrealtimeemployeesafety

Employeesafety

Remoteanalyticstosupportreal-timedecisionmaking

Condition-basedremotemonitoringforpredictivemaintenance

Assettracking

Preventativemaintenance

Anomalydetection

Remotestartandstop(control)offactoryequipment

Augmentedrealitytrainingandsimulationexercisesforyourfactoryworkforce

Mobilerobotsandautonomousguidedvehicles(AGV)

Videosurveillance

Employeetraining

Augmentedrealityapplicationsforworkersonthefactoryfloor

Reconfigurationofproductionlines

28

Whenaskedtowhatextentvalue-addedserviceswillbeaidedby5G,manufacturersindicateprocesscontrol(89%),inspectionandqualityassurance(86%)willseethegreatestimpact.Manufacturersalsonote

componentmanagement(82%),automatedstorageandretrievalsystem(81%),quick-turnmanufacturing(81%),testing(81%)andmaterialhandling(80%)willallbenefitfrom5G.

Impact of 5G on Value-Added Services10

89%

86%

82%

81%

81%

81%

80%

77%

73%

73%

72%

69%

% Top 2 Box

3

3

2

3

2

3

4

4

3

3

2

3

6

8

12

13

14

15

15

17

19

17

21

13

36

35

44

39

46

48

32

39

43

40

39

37

54

51

38

41

35

32

45

34

31

32

30

44

2

3

4

3

4

3

4

6

5

8

8

4

NotatallImpactful(1) (2) (3) (4) ExtremelyImpactful(5)

PERCENT

Processcontrol

Inspection/qualityassurance

Componentmanagement

AutomatedstorageandretrievalsystemAS/RS

Quick-turnmanufacturing

Testing

Materialhandling

Inventorycontrol/consignmentinventory

Certification

Assembly

Billofmaterialsanalysis

Packaging

29

Whenaskedtowhatextentvalue-addedserviceswillbeaidedby5G,manufacturersindicateprocesscontrol(89%),inspectionandqualityassurance(86%)andcomponentmanagement(82%)willseethegreatestimpact,alongwithautomatedstorageandretrievalsystem(81%),quick-turnmanufacturing(81%),testing(81%)andmaterialhandling(80%).

Deploymentof5Gtomanufacturingisexpectedtohaveastrongpositiveimpactacrossallmanufacturingenvironments.Specifically,morethanfour-fifthsofmanufacturerssurveyedbelieve5Gconnectivityinmanufacturingwillbehighlyimpactfultodiscreteorbatchprocesses(85%),repetitiveorcontinuousprocesses(83%)andjobshop(81%).

% Top 2 Box

Impact of 5G on Manufacturing Environments11

85%

83%

% Top 2 Box

NotatallImpactful(1) (2) (3) (4) ExtremelyImpactful(5)

PERCENTDiscrete or batch processes (i.e.,highlydiverselinethatcancoverarangeofafewsetupsandchangeoverstofrequentsetupsandchangeovers)

Repetitive or continuous process (i.e.,dedicatedproductionlinesthatturnoutthesameitemwithlittleset-uporchangeoveractivity)

Job shop(i.e.,productionareainplaceofproductionline;typicallymoveontodifferentjobswheneachjobiscomplete)

3

3

3

9

9

11

39

41

37

45

41

44

4

6

6 81%

30

Nearlyallmanufacturersexpecttoseesomelevelofcostsavings(93%)asadirectimpactofconnectingtheirmachinesandequipmentwirelesslywith5G,alongwithincreasedmachineproductivity(94%)andincreasedworkforceproductivity(93%).Whileone-fifth(22%)expecttoseecostsavingsof60%ormore,roughlyone-thirdanticipateincreasedmachine(32%)andincreasedworkforce(29%)productivityof60%ormore.Notably,veryfewdonotbelievetheywillexperienceanycostsavings(7%),increasedmachineproductivity(6%)orincreasedworkforceproductivity(7%)asaresultof5Gdeployment.Onaverage,manufacturersbelieve5Gcanhelplowercostsbyanestimatedaverageof38%,whileincreasingmachineproductivitybyanestimated42%andworkforceproductivityby41%.Bottomline,5Gwillhavesignificantimpactonprofitabilityandproductivityindustrywide.

5G Will Drive Cost Savings & Increase Machine & Employee Productivity

Anticipated Impact of 5G12

CostSavings

IncreasedMachineProductivity

IncreasedWorkforceProductivity

100%

80%-99%

60%-79%

40%-59%

20%-39%

1%-19%

0% 7% 6% 7%

23%

22%

24%

17%

5% 4%8%

20%

16%

19%

26% 20%

26%

17%

14%

13%

2%

31

Increasedefficiency

Improvedqualityandservice

Greaterflexibility

Enhancedsafetyandsecurity

Increasedcompetitiveness

Shorterleadtimesforfactoryfloorproductionreconfiguration,layoutchangesandalterations

Lowercost

Perceived & Expected Advantages of 5G Technology Versus Current TechnologiesManufacturersexpect5Gconnectivitytoprovidemanyadvantagesovercurrenttechnologiesbeingutilizedwithinmanufacturingenvironments.Already,two-thirds(65%)ofmanufacturersindicate5Gissuperiorintermsofincreasedefficiency,whilemorethanhalffeel5Gwillprovideforimprovedqualityandservice(56%)andgreaterflexibility(53%).Inaddition,two-fifthsbelieve5Gwillbeadvantageousasitrelatestoenhancedsafetyandsecurity(45%)andincreasedcompetitiveness(41%),andone-thirdbelieveitwillprovideforshortenedleadtimes(35%)andlowercost(32%).

Itisimportanttorememberthattheseareearlyimpressionsofatechnologythathasn’tyetbeenfullydeployed.5Gisstillaverynewtechnologyformanycompaniesandthemajorityofmanufacturersarejustnowbeginningtotestandimplementit.Withnewtechnologies,thebenefitsanduse-casescenariosbecomeapparentaftercompaniesgainexposuretoandexperiencewiththem.Currentmanufacturersmaynotbefullyawarehowmuch5Gcandoforthembecausetheydonotyethave

directexperiencewithit.Manufacturersshouldbegintestingandimplementing5Gtechnologiesinordertorealizethepotentialbenefitsthatcanberealized

aboveandbeyondexistingtechnologies.Asnotedearlier,nearlyallmanufacturers(91%)believe5Gconnectivitywillbeimportanttotheoverallfutureoftheirbusiness,andthree-fifths(61%)indicatingitwillbe“extremelyimportant.”

Advantages of 5G Over Current Technology13

Other

Noneoftheabove 6%

1%

65%56%

53%45%

41%35%

32%

32

Whenaskedabouteaseofusingcurrentfixedor4Gnetworkconnectionstoperformmanufacturing-relatedactivities,real-timecommunicationbetweenequipmentandremotemonitoringareperceivedtobeeasiest,while,conversely,reconfigurationof

productionlinesandutilizationofmobilerobotsandautonomousguidedvehicles(AGVs)areconsideredtobethemostdifficult.Thisprovidesimportantinsightsintohow5Gtechnologiesmightbeemployedbymanufacturers.

Ease of Performing Activities Using Wired, Wi-Fi or 4G Connections14

3

1

2

3

2

4

8

3

2

6

2

10

12

17

18

18

16

13

13

15

17

21

44

40

47

39

40

41

38

38

40

39

35

34

34

27

33

32

31

33

33

30

29

29

10

13

7

7

8

8

9

14

13

10

13

ExtremelyDifficult(1) (2) (3) (4) ExtremelyEasy(5)

PERCENT

Real-timecommunicationbetweenequipment

Remotemonitoring

Assettrackingandmanagement

Remoteanalytics

Digitaltraceability

Automation

Utilizationofaugmentedreality/virtualrealityapplications

Remotecontrolofequipment

Predictivemaintenance

Utilizationofmobilerobotsandautonomousguidedvehicles(AGV)

Reconfigurationofproductionlines

% Top 2 Box

78%

75%

74%

72%

72%

72%

71%

70%

70%

68%

63%

33

Manufacturersanticipatethedeploymentof5Ginmanufacturingenvironmentswillmakemanyactivitiesassociatedwithmanufacturingeasier.Notably,reconfigurationofproductionlines,consideredtobethemostdifficultmanufacturingactivityusingcurrenttechnologies,isexpectedtoseethegreatestimprovementintermsof“ease”when5Gtechnologyisutilized.Manufacturersalsoexpecttheutilizationof5Gtodriveconsiderableimprovementsin“ease”surroundingremotecontrolofequipment,utilization

ofaugmentedreality/virtualrealityapplications,utilizationofmobilerobotsandAGVsandautomation,whichwilldynamicallyreshapethewaymanufacturersoperateinthefuture.Astheaccompanyingcharthighlights,theeaseofperformingnumerousmanufacturingtasksisexpectedtoimprovewith5G.Notably,someofthemostdifficulttaskstoperforminmanufacturingenvironmentsusingtoday’savailabletechnologiesareexpectedtoseethegreatestincreaseineaseofperformancewhencoupledwith5G.

% Top 2 Box

Ease of Performing Activities: Wired, Wi-Fi or 4G Connections vs. 5G Connections15

Wired,Wi-Fi,or4GConnections 5GConnections

81%

63%

81%

68%

80%

70%

84%

70%

85%

71%

83%

72%

85%

72%

82%

74%

83%

75%

83%

78%

84%

72%

% Pt. Difference between Wired/Wi-Fi/4G and 5G:

+18 pts. +13 pts. +10 pts. +14 pts. +14 pts. +11 pts. +12 pts. +13 pts. +8 pts. +8 pts. +5 pts.Reconfig-urationofproduction

lines

Utilizationofmobilerobotsandautono-mousguidedvehicles(AGV)

Predictivemaintenance

Remotecontrolofequipment

Utilizationofaugmentedreality/virtualrealityappli-cations

Remoteanalytics

Digitaltrace-ability

Automation Assettrackingandmanage-

ment

Remotemonitoring

Real-timecommunica-tionbetweenequipment

34

Cost

Securityconcerns

Legacysystems/processes/equipment

Accesstotechnology

Skillsgap

Leadershipbuy-in

Other

Noneoftheabove

Theabilityforqualitycontrolmonitoringthroughouttheproductionprocess

Increasingmachineproductivity

Loweringdefectiveoutput

Real-timeadjustmenttomaintaincyclespeeds

Increasingflexibilityandfactory-lineconfigurations

Reducingemployeeaccidents

Extendingassetlifethroughreal-timemaintenanceandadjustment

Reducingunplannedmachinedowntimefromunexpectedmachinebreakdown

LoweringstafftrainingcostsNoneoftheabove

Drivers and Barriers to 5G Adoption & ImplementationDriversof5Gadoptionarewideandvaried;however,tworisetothetopamongmanufacturersasbeingprimarydrivers:abilityforqualitycontrolmonitoringthroughouttheproductionprocess(61%)andincreasingmachineproductivity

(53%).Additionaldriversincludeloweringdefectiveoutput(41%),abilitytomakereal-timeadjustmentstomaintaincyclespeeds(37%),increasingflexibilityandfactory-lineconfigurations(37%),reducingemployeeaccidents(36%),and

extendingassetlifethroughreal-timemaintenanceandadjustments(36%).Manufacturersalsonotethatreducingunplannedmachinedowntimefromunexpectedbreakdowns(33%)andloweringstafftrainingcosts(27%)willhelpdrive5Gadoption.

Consistentwithcostbeingnamedasthetopchallengeassociatedwiththeimplementationofcurrent,existingoranticipatedwirelesstechnologies,costisalsocitedastheprimarybarrierto5Gadoptionandimplementationwithhalf(50%)ofmanufacturersindicatingitmightpreventdeploymenttotheirfactoriesandfacilities.Additionalbarriersincludesecurityconcerns(40%),integrationwithlegacysystems,processesandequipment(40%)andaccesstothetechnologyitself(32%).

Drivers of 5G Adoption16

Barriers to 5G Adoption and Implementation17

61%53%

41%37%37%

36%36%

33%27%

3%

50%

11%4%

40%

22%25%

32%40%

35

Extremelyimportant

Somewhatimportant

Strongpositiveimpact

Slightpositiveimpact

Looking Toward the Future

Nearlyallmanufacturers(91%)believe5Gconnectivitywillbeimportanttotheoverallfutureoftheirbusiness,withmorethanthree-fifths(61%)indicatingitwillbe“extremelyimportant.”

Thefaster5Gtechnologycanbedeployedtomanufacturing,themorecompetitivemanufacturersfeeltheywillbe.Morethannineinten(92%)manufacturersindicatespeedof5Gdeploymentwillhaveapositiveimpactontheirabilitytocompeteglobally,withnearlytwo-thirds(62%)signalingitwillhavea“strongpositiveimpact.”

Barriers to 5G Adoption and Implementation17

Importance of 5G Technology to Overall Future of Business18

Impact of Speed of 5G Deployment to Manufacturing on Ability to Compete Globally19

61%

30%

Noimpact

Slightnegativeimpact

Neitherimportantnornotimportant

Notveryimportant

Notatallimportant

Strongnegativeimpact

9%

0%

5%

3%

1%

0%

62%

30%

91% T2B

92% T2B

36

How 5G Can Help Manufacturing Adapt in the Covid-19 EraItisnosurprisethatCOVID-19hasimpactednearlyeveryindustryworldwide,withmanufacturingbeingparticularlyhardhitintheearlymonthsofthepandemic.Changesinconsumerbehavior,lockdownsthatderailedglobalsupplychainsandpublicmeasurestostopthespreadofthevirusthatnecessitatedchangesinoperations,amongavarietyofotherfactors,broughtmanymanufacturingfacilitiestoastandstillatdifferentpointsthroughout2020.Astheworldcontinuestograpplewiththepandemic,manufacturersarelefttryingtofigureouthowtooperateinthe“newnormal.”

Manufacturingactivitieslikenewproductintroductions(NPI)wereespeciallyimpactedbythepandemic.Tomaintainwhat

hasoftenbecomeatightdesignandproductioncycleformanycompanies,NPIsoftenrequireengineerstobephysicallyinfactoriesatdifferentpointsthroughouttheprocesssotheycantroubleshoottoolingissuesinrealtimeandensureproductiontiminggoalsaremet.Intoday’sglobaleconomy,thiscanoftennecessitateinternationaltravel,andthatofcoursewascurtailedbythespreadofthevirus.

Manufacturersbelieve5GconnectivitycouldhelpthemadapttochallengeslikethosecreatedbyCOVID-19.Forexample,nineintenmanufacturers(88%)believe5Gcouldenableengineerstotroubleshootremotely.Thiscapabilitycouldenableengineerstoremotelymanagesomeofthe

taskstheyhavehistoricallyhadtomanageonsite.Manufacturersalsoreportthat5Gcouldenableremotevisibilityandmonitoring(87%),whichcouldagainhelpthemmanagefacilitiesandprocesseswhenphysicalpresenceisrestricted.

Manufacturersseeotherpossible5GbenefitstohelpthemadapttoCOVID-19dynamics.Thevastmajorityofmanufacturersbelieve5Gwouldhelpthroughitsabilitytoenablenewapplications(82%),increaseautomation(80%),enableutilizationofAR/VRapplications(80%),enableutilizationofmobilerobotsandAGVs(79%),redesignfactoryspacesandmachines(79%),createlineofsightintooperationsremotely(77%)anddecentralizedecisionmaking(76%).

37

Empowering the Manufacturing Workforce with 5GFactoriesofthefuturewillrequireemployeestoworkinclosecollaborationwithcomplexmachines.Inthesedynamicenvironments,real-timeinformationwillbeparamount.Forexample,knowingthepreciselocationof

eachworkerandeverymachinewillhelpincreaseproductivity,safetyandsecurity.Thisresearchhasrevealedanumberofwaysthat5Gwillempowerworkerswiththeinformationtheyneedtomoreeffectivelyandsafely

performtheirjobs.5Gwillalsoimproveemployeetrainingtoreadytomorrow’sworkforce.5Gisakeyenablingtechnologyforthefutureofmanufacturing,butitwillrequireastrongworkforcetotransformmanufacturingfully.

Ways in Which 5G Connectivity Could Help in Adapting to Challenges Related to COVID-1920

88%

87%

82%

80%

80%

79%

79%

77%

76%

% Top 2 Box

44

54

51

44

43

40

39

43

32

44

33

30

36

37

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34

44

8

7

10

14

13

13

15

14

13

2

4

5

2

3

3

2

4

6

NotatHelpful(1) (2) (3) (4) ExtremelyHelpful(5)

PERCENT

3

3

3

4

5

5

4

5

5

Allowingengineerstotroubleshootremotely

Enablingremotevisibilityandmonitoring

Enablingnewapplications

Increasingautomation

Enablingutilizationofaugmentedreality/virtualrealityapplications

Enablingutilizationofmobilerobotsandautonomousguidedvehicles(AGV)

Redesigningfactoryspacesandmachines

Allowingclientstoseeoperationsremotely

Decentralizationofdecisionmaking

38

5Gwillhelpprovideworkerswiththeinformationtheyneedtoperformtheirjobs.Forexample,thevastmajorityofmanufacturersreport5Gwillaidremoteanalyticsthatwillinturnsupportreal-timedecisionmaking.Accesstoreal-timedatawillallowworkerstomakebetterinformeddecisionsthroughouttheirshiftsandwillhelpmanufacturers

improveimportantoperationalandqualityprocessesthatwilldrivestrongerperformancemetricsforthingslikeinventoryturns,productionoutputandqualitystandards.5Gwillenablemanufacturerstocollectdatafromexistingsystemsthataredispersedacrossthecompany,givingworkersaccesstocontext-awareinformationandkeepingworkerscontinuouslyintheloopwhethertheyareonsiteoroffsite.

Real-Time Decision Making

A View from Manufacturing: A Conversation with John Deere first-ever CTO Jahmy Hindman

abilitytoredeploythosedevices.Theadditionaldatathatisgeneratedwillmakeusmoreknowledgeableaboutourmanufacturingprocessandenableustoidentifyopportunitiestoimproveproductqualityandremovemanufacturinginefficiencies.

Theotherdirectionthatisinterestingishow5Gimpactsourendproductsandouragriculturalcustomers.Thisbringstotheforefronttheneedforrural5Gas

theoperationsofourcustomersareoftenrural,butthelatestprecisionagriculturetechnologiesdependoncommunicationnetworksthatenablehighdatabandwidthtransfertobestoptimizetheagriculturalprocessandinformtime-sensitivedecisionsbythefarmers.

How do you think other manufacturers should approach 5G?Everymanufacturerisdifferent.Mycounselwouldbetounderstandthetechnicalbenefitsof5G(i.e.,latency,bandwidth,transmissiondistance)andevaluatewhereinyourbusinessthesedisruptionscouldpotentiallyaddvalue.Ingeneral,thereare

Why is 5G important for manufacturers like John Deere?Thebenefitsoflowerlatencyandincreasedbandwidthenableadditionalapplicationsformanufacturers.Forexample,lowerlatencyopensupthepotentialforadditionalwirelessreal-timecontrolapplicationsinmanufacturingenvironments.ThiscomeswithoutasmuchinfrastructureaswouldberequiredwithanethernetandWi-Finetworkanditremainsflexible.Forexample,IoTdevicescanbemovedaroundamanufacturingenvironmentwhilestillremainingconnected.

What will John Deere accomplish with 5G?WehopetoincreaseourfootprintofIoTdevicesinthemanufacturingenvironmentandenablegreaterflexibilityinour

39

Workerswillalsorealizeimprovedefficiencybyusing5G-enabledtools.Forexample,workerscanuse5G-enabledARfortroubleshootingwhenhumaninterventionisrequired.5Gwillalsohelpengineersandotheremployeestroubleshootremotely.

Mostmanufacturersbelieve5Gwillbevitalforemployeesafety.Asalreadynoted,real-timedataandconnectivitywillenablequickerresponsetimes.5Gwillalsoenablesafetysystemsthatrelyonreal-timesensordataandsystemsthatrelyonrichmedialikestreamingvideo.Workerswillbeabletocontrolequipmentfromafar,especiallyimportantinunstableordangerous

environments.Lowlatencywillenableworkerstoworkincloseproximitywithothermachines.5Gwillenhancethesafetyaroundindividualequipmentandmorebroadlyacrossentirefacilities.

Worker Safety & Securityopportunitiesthatarecreatedbythetechnologytoautomatemoreoperationsformanufacturers,whichdrivesconsistencyinprocessandimprovesqualityoutcomes.

What are some of the cutting-edge things Deere is doing on this front?Wehaveleasedourown5GspectrumthroughthemostrecentFCCCBRSauction.Ourintentisto

createourownprivate5Gnetworkinsomeofourlargestmanufacturinglocationsanddeploy5GcapableIoTdevicesatscaleintheseenvironmentstoimproveourprocesscontrolandreal-timedecision-makingcapabilityinmanufacturingprocesses.

Partnerships are a big component of early 5G deployment. Why is this important for manufacturers?Thetechnologychangesquickly,andthereisvalueassociatedwithpartnershipsthatallowmanufacturerstostayontheforefronttotakeadvantageofthelatesttechnology.

Worker Training & Performance

A2018studyfromTheManufacturingInstituteandDeloittefoundthatmanufacturerswouldneedtofillanestimated4.6millionmanufacturingjobsthrough2028.Akeyaspectoffillingtheseopenpositionswillbetrainingworkerstoperformincreasinglycomplextasks.Aspreviouslynoted,5GwillenableXRapplicationsthatwillimprovethespeedandeffectivenessoftraining.Some71%ofmanufacturersreport5Gwillaidinemployeetraining.

5G-enabledXRtrainingisespeciallywellsuitedforpreparingemployeesforhigh-stresssituationslike

emergenciesorsafety-sensitivetaskswherethewrongactionscanleadtoinjuryorharm.WhileXRtrainingisbeingusedinsomecasesbycompaniestoday,thefullpotentialofthesetoolswillonlybeachievedwiththehelpof5G.

Nearlyallmanufacturersexpecttoseesomelevelofworkerproductivitygainsbecauseoftheuseof5G.Interestingly,manufacturersexpectcomparableproductivitygainsforbothmachinesandworkersfrom5G,meaningworkerswillcontinuetoplayaninvaluableroleinmanufacturing.

40

Final Thoughts: Stepping Up to 5G

Ascompellingas5G’sbenefitsformanufacturersare,eachcompanywillneedtodecidewhere,whenorwhethertheydeploy5G.Theleadingconcerninmovingtoamobilewirelessnetworklike5Gissecurity.Asaninherentlymobiletechnology,5Gexpandsthefootprintforapotentialcyberattack.Otherfactorsthatincreasesecurityrisksincludethenetworks’inherentrelianceonsoftwareandpotentialforpoorlyimplementedconfigurationsgiventhelackofspecialistexpertiseinthemarket.

Astimegoeson,however,morebestpracticeswillbeestablished.5Gultimatelyimprovesontoday’swirelesssecurityprotocolsandincludesimprovementsforbothrecognizingandlimitingthedamagefrombreaches.Wirelesscarriersandothercompanieshelpingmanufacturerstoimplement5Gtechnologiesareworkingtodevelopnewsecuritysolutionstostayaheadofthreatsthatwillariseasaresultofwide5Gdeployment.5Gwillutilize256-bitencryption,asignificantimprovementfromthecurrent128-bitencryption.5Gwillalsouseencryptedidentity,insteadofusingpermanentID,whichwillhelptokeepbothidentityandlocationprivateandsecure.5Gwillalsouseflexiblesoftwarethatdoesn’trelyonasinglecompany.Datawillberoutedthroughvirtualizednetworknodes,whichwillfurtherreducerelianceonasinglecompany.Thiswillallowvulnerabilitiestobe

41

patchedmorequicklyandproblemstobeisolatedandfixed.

Companiesalsoneedtoconsiderusagescenarios.While5Giscapableofpoweringnewclassesofapplications,itmayalsosimplyfunctionasamorereliableenablerofvoicetelephonyinsomesettings;inothers,itmayreplacewiredorwirelesslocalnetworks.

Indeed,somemanufacturershaveequippedtheirfacilitieswithfiberorLTE;thesemayberecent

investmentsthatcompaniesarereluctanttoquicklyabandon.Thisisparticularlytruegiventhat5Gisanewtechnologythatwillseeastrongercoverage,improvingperformanceandflexibility-enhancingfeaturesaddedinthecomingyears.Theseimprovementswillhelpmanufacturersgainconfidenceandexperienceinitscapabilities,particularlyascosts

forinfrastructureandclientdevicescomedownwithscale.Ultimately,however,5Goffersmoreflexibilityinconfiguringfactorymachinerythanfiberwhileofferingbetterspeed,capacity,latencyand,ofcourse,betterfutureproofingthanLTE.

5Gwillenablethefutureofconnectedmanufacturing.Itwillbecometheunderlyingfabricofanetworkofconnectedintelligentsensorsandwill,inturn,providemanufacturingwithunprecedentedaccesstoinformationandasource

ofnewinsights.5GwillunlocknewusesofARandVRtechnologies,AIapplications,predictivemaintenanceandintelligent,autonomousandsemi-autonomousrobotics.5Gwillalsoempowerautonomousmobilitythatwilltransformmanufacturingfacilities.5Gisneededtofullyscaletheseinnovationsoverentiremanufacturingfacilitiesandenterprise-widesystems.

42

Methodology

Thiswhitepaperrepresentsthefindingsofanonlinequantitativesurveyfieldedamongn=105manufacturersbetweenOct.14andNov.20,2020.Amixedapproachtosamplingwasusedinthefieldingofthisstudy,withrespondentsbeingsourcedfromboththeNationalAssociationofManufacturersmembershipdatabase(n=18)andaproprietaryresearchpanel(n=87).Thesampleconsistedofthoseinleadershippositionsacrossawidevarietyofindustrialclassifications.

SAMPLE SOURCEMembership 17%Panel 83%

JOB TITLEExecutive/C-Level 46%Senior-LevelDirector/Manager 31%Director/Manager 22%TeamLead 1%

NUMBER OF EMPLOYEESFewerthan10 2%10–24 3%25–49 4%50–99 9%100–249 14%250–499 10%500–999 17%1,000–2,499 20%2,500–4,999 8%5,000ormore 15%

NUMBER OF EMPLOYEESLessthan$5million 9%

$5millionto<$10million 7%

$10millionto<$25million 11%

$25millionto<$50million 11%

$50millionto<$100million 8%

$100millionto<$250million 9%

$250millionto<$500million 13%

$500millionto<$1billion 10%

INDUSTRIAL CLASSIFICATIONElectricalEquipment,ApplianceandComponentManufacturing 17%

ComputerandElectronicProducts 14%Machinery 12%FabricatedMetalProducts 11%FoodManufacturing 11%ApparelManufacturing 8%PlasticsandRubberProducts 6%Chemicals 3%FurnitureandRelatedProducts 3%PrimaryMetals 3%Non-MetallicMineralProducts 2%PaperandPaperProducts 2%TransportationEquipment 2%BeverageandTobaccoProducts 1%PetroleumandCoalProducts 1%PrintingandRelatedSupportActivities 1%TextileMillsandTextileProductMills 1%Other 4%

43

INDUSTRIAL CLASSIFICATIONElectricalEquipment,ApplianceandComponentManufacturing 17%

ComputerandElectronicProducts 14%Machinery 12%FabricatedMetalProducts 11%FoodManufacturing 11%ApparelManufacturing 8%PlasticsandRubberProducts 6%Chemicals 3%FurnitureandRelatedProducts 3%PrimaryMetals 3%Non-MetallicMineralProducts 2%PaperandPaperProducts 2%TransportationEquipment 2%BeverageandTobaccoProducts 1%PetroleumandCoalProducts 1%PrintingandRelatedSupportActivities 1%TextileMillsandTextileProductMills 1%Other 4%

1 https://www.ericsson.com/4adc87/assets/local/mobility-report/documents/2020/november-2020-ericsson-mobility-report.pdf

2 Base:TotalResponding(n=105),Q26.Whendoyouexpecttobegin5Gintegrationintoyourexistingoperations? Base:ManufacturersCurrentlyIntegratingorPlanningtoIntegrate5G(n=100),Q27.Whendoyouexpecttohave25%ofyourproductioncapability integratedwith5G?

3 Base:TotalResponding(n=103),Q28.Next,whatareyourcompany’sbiggestpainpointsrelatedtotheimplementationofcurrent,existing,oranticipated wirelesstechnologies?Pleaseselectallthatapply.

4 Base:TotalResponding(n=104),Q29.Whatareyourcompany’sbiggestpainpointsrelatedtomanufacturingfacilityanalytics?Pleaseselectallthatapply.5 Base:TotalResponding(n=101),Q30.Whatareyourcompany’sbiggestpainpointsrelatedtoreal-timeasset/resourcetracking?Pleaseselectallthatapply.

6 Base:Totalresponding(n=105),Q19.Which,ifany,ofthefollowing5Gbenefitswillaidyourmanufacturingprocesses?Pleaseselectallthatapply.

7 Base:Totalresponding(n=103-104),Q14.Pleaseindicateyourlevelofagreementwitheachofthefollowingstatements.

8 Base:Totalresponding(n=103-104),Q6.Thinkingaboutyourbusiness,howimportantwill5Gconnectivitybetoeachofthefollowing:

9 Base:Totalresponding(n=103-105),Q10.Again,thinkingaboutyourfactoriesandfacilitiesoverthenext10years,howimportantwill5Gbeforeachof thefollowing:

10 Base:Totalresponding(n=101-104),Q24.Towhatextentdoyouthinkeachofthefollowingvalue-addedserviceswillbeaidedby5G?

11 Base:Totalresponding(n=104),Q17.Next,towhatdegreewill5Gimpacteachofthefollowingmanufacturingenvironments?

12 Base:Totalresponding(n=98),Q21.Next,whatdoyouestimatethecostsavingswouldbefromconnectingequipmentwirelesslywith5Gversus connectingwithphysicalwires?Q22.Howmuchmoreproductivewouldyourmachinerybeifitwereallconnectedvia5G?Q23.Andhowmuchmore productivewouldyourworkersbeifyourequipmentwereconnectedvia5G?

13 Base:Totalresponding(n=103),Q18.Whatdoyouforeseeasthegreatestadvantagesof5Gversusthatofcurrenttechnologies?Pleaseselectallthatapply.

14 Base:Totalresponding(n=102-104),Q15.Howeasyordifficultarethefollowingactivitiesusingwired,Wi-Fior4Gconnections?

15 Base:Totalresponding(n=102-104),Q15.Howeasyordifficultarethefollowingactivitiesusingwired,Wi-Fior4Gconnections?Q16.Howeasyordifficultdo youbelievethefollowingactivitieswillbeusing5Gconnections?

16 Base:Totalresponding(n=105),Q20.Which,ifany,ofthefollowingwouldleadyoutoprioritize5Gadoptioninyourbusiness?Pleaseselectallthatapply.

17 Base:Totalresponding(n=103),Q32.Specificallyrelatedto5Gtechnologies,whatdoyouperceivetobetheprimarybarrier(s)thatmightprevent5Gadoption andimplementationinyourfactoriesandfacilities?Pleaseselectallthatapply.

18 Base:Totalresponding(n=105),Q8.Thinkingaboutyourfactoriesandfacilitiesoverthenext10years,howimportantwill5Gconnectivitybetotheoverall futureofyourbusiness?

20 Base:Totalresponding(n=104-105),Q33.Towhatextentdoyouthink5GconnectivityinyourfacilitiescouldhelpwithadaptingtoissuesrelatedtoCOVID-19?

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Footnotes

“Connecting Manufacturers with the Future: How 5G Is Transforming the Manufacturing Landscape” is a digital publication of The Manufacturing Institute. All rights reserved.

The contents of this report consist of insights and analyses developed by MI staff and Dr. Shawn DuBravac of Avrio Institute, working on the MI’s behalf. All listed companies and product names are the trademarks or registered trademarks of their respective companies.

This report is not for sale or redistribution. The use of this report or its content for publicity or advertising, or for any commercial or income-generating purpose, is strictly prohibited. No elements of this report, in part or in whole, may be used to promote any specific individual, entity or product, in any manner without the consent of the MI. The use of this report and its content for informational purposes and for the inclusion of brief quotes is encouraged. The content must not be changed, and full acknowledgement of the source must be clearly stated.

This report was made possible through the financial support of Qualcomm Technologies, Inc. Shawn DuBravac and MI staff are exclusively responsible for this report and all the analysis and content contained herein. The analysis and metrics developed during this research represent the independent views of Shawn DuBravac and MI staff and are intended to contribute to the conversation on the role of 5G and manufacturing.TheManufacturingInstitute.org