Unlocking the promise of smart factories: Harnessing Industrial IoT with private 5G connectivity

At the heart of the Industry 4.0 and smart manufacturing lies the Industrial Internet of Things (IIoT), enabling manufacturers to seamlessly connect machines, sensors, and other devices for real-time data collection and the digitalization of every aspect of production. These insights help manufacturers optimize processes, significantly boosting efficiency, productivity and cost savings. Statista projects the global IIoT market will soar to approximately USD 3.3 trillion by 2030, underscoring its rapid industry adoption. 

However, the transformative power of IIoT hinges on seamless data flow which requires state of the art connectivity. The full potential of an automated, data-driven and highly productive smart factory can only be realized through the incorporation of advanced connectivity platforms, like private 5G networks. 

Limited connectivity hampers IIoT growth  

While IIoT holds tremendous potential for manufacturers, it’s far more complex than the customer-focused IoT. Unlike smart homes with only a few connected devices, IIoT involves a dense network of sensors and other equipment that require precise control over complex  processes. This level of sophistication demands not only the collection of vast amounts of data but also its near-instantaneous analysis and application.  

Traditional wired and wireless networks, along with existing data infrastructure, often fall short of what IIoT deployments need.  In addition to the physical limitations of being tethered to cables, wired solutions are more challenging to scale to the necessary number of devices, creating network bottlenecks. Wi-Fi and older generations of cellular networks struggle to meet the capacity required by IIoT, leading to performance and even security issues.

Additionally, legacy systems often result in data that cannot be analyzed or trusted with the same level of accuracy. As factories increasingly adopt automation and generative industrial AI, outdated, incomplete or inconsistent data simply won’t suffice.   

Powering next-gen Industrial IoT

Explore how manufacturers connect machines, sensors and devices with real-time data collection

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IIoT is key to unlocking the smart factory potential 

Data-driven decision making is the lifeblood of a smart factory. The data generated by IIoT can identify trends, predict equipment failures and adjust processes and schedules without disrupting operations. Over time, this information can enhance product design, performance and user experience across the entire product design life cycle. 

Other benefits of IIoT include enhanced operational visibility and reduced labor costs by automating tasks, allowing workers to focus on higher-value activities. 

One of standout features of private 5G cellular networks is the ability to support large ecosystems of IIoT connected devices. With its dedicated bandwidth, 5G serves as the backbone for IIoT, enabling the seamless connection of numerous devices across facilities. This connectivity allows for the real-time collection, analysis and application of data, realizing the vision of full automation and industrial AI.  

Because private 5G networks are tailored to the specific needs of an organization, they offer greater control, security and customization for IIoT deployment. These networks not only provide better performance and security for today but are also better prepared for future growth, integrating and scaling cutting-edge technologies like edge computing, machine learning and industrial generative AI. 

IIoT in action  

Private 5G networks are empowering IIoT use cases that weren’t possible with previous generations of connectivity solutions. Examples include: 

• Predictive maintenance through real-time sensor data: Real-time data from sensors enable a shift from reactive to proactive maintenance, minimizing downtime and disruptions and extending equipment lifespan while reducing costs. At Toyota Material Handling’s 200,000 square-foot warehouse, a private 5G network has been in operation since November 2023, ensuring uninterrupted connectivity and zero disruptions. 
• Inventory optimization with real-time tracking: Streamlined, centralized and automated management of inventory helps companies prevent stockouts and production delays, while collected data enhances long-term logistics. Ericsson’s 5G private networks enabled CJ Logistics in South Korea to achieve a 20% boost in productivity and a 15% reduction in CAPEX compared to Wi-Fi across its entire operation. 
• Connected worker with augmented reality (AR) glasses and other connected worker technologies leverage 5G’s low latency to provide real-time data, improving worker training, safety and maintenance. Companies like Hyperbat are seeing widespread benefits across multiple aspects of their organization, including enhanced training, improved safety and more efficient maintenance through remote expert assistance.  
  
  

To read the full paper and learn how private 5G can help manufacturers maximize their IIoT investment, read here.