Next-generation 5G wireless technology promises to usher in the next industrial revolution. But for now, 5G’s industrial status in the U.K. is more evolutionary than revolutionary, limited to trials and testing.
A handful of businesses in the U.K. have become the first to embrace 5G in sectors like automotive, energy and ports. These businesses — companies ranging from automaker Ford Motor Co. to the utility Centrica PLC — are hoping to unlock the productivity and cost-efficiency perks offered by faster data-processing speeds and automation. These early industrial adopters of 5G form part of the technology's major commercial opportunity. More than 70% of mobile network operators view factories and manufacturing as a key driver of 5G enterprise uptake, according to a survey by Kagan, a media research group within S&P Global Market Intelligence.
But thus far, uptake remains slow going, according to industry experts, even as 5G equipment makers tout massive benefits from early studies.
High concept
"We are in the proof-of-concept stage," said Brian Partridge, research director for applied infrastructure and DevOps at 451 Research, a division of S&P Global Market Intelligence. "Early returns are promising, expectations are high, but it takes time to reach scale."
U.K. projects include Ford’s electric car manufacturing facility at its Dunton plant in Essex, a government-backed 5G installation delivered by network operator Vodafone Group PLC and equipment maker Ericsson. In addition, the two telecom service providers teamed up to bring 5G to utilities company Centrica's Eastington plant in County Durham in North East England.
 Inside domestic boiler maker Worcester Bosch's smart factory.Source: BT |
Ericsson, alongside U.K. telecoms incumbent BT Group, has also deployed 5G for domestic boiler maker Worcester Bosch’s factory in Worcestershire, west-central England. Rival operator Three UK is helping to upgrade the port of Felixstowe, operated by its parent CK Hutchison Holdings Ltd., in Suffolk in the east of England.
The new technology enables connected equipment to transmit more information about output rates. Ford, for instance, is using 5G to capture and share half a million pieces of data every minute as part of the intricate electric battery wielding process. The network also allows port workers to control cranes remotely using CCTV and can rapidly alert employees at Centrica’s facility of a gas leak. Advanced use cases include automated guided vehicles, simulated tasks in virtual reality, and enhanced security using biometrics.
"There is a great deal of interest in areas including mining, but more research is needed to prove its benefits," said Michele Mackenzie, an internet of things and machine-to-machine services research analyst at Analysys Mason.
Mackenzie called 5G "a nascent technology" at this point.
The de-facto setup
Despite the early developments, the commercialization of 5G in enterprise is not expected to commence until the end of this year or in early 2022, 451 Research's Partridge explained. Coronavirus has played its part, delaying the release of the latest 5G specification and prompting businesses to rethink their priorities amid factory shutdowns, he said.
As of now, larger industrial businesses in the U.K. are mainly deploying private or semi-private networks at an individual site. Whereas public 5G networks are available through network operators to the general public and small and mid-size enterprises, private networks are dedicated setups — including a core and radio access network — built on premises at a site or campus.
In the U.K., businesses can license spectrum from the communications regulator and start a tender for trial through a 5G equipment provider. Businesses can also work with a network operator that can offer a slice of its own public spectrum, hence the "semi-private" definition. The testing process is estimated to take anywhere between 18 months to two years "before a business grasps the full viability" of a 5G setup, Partridge said.
New opportunities
Telecom service providers claim many more U.K. businesses are now lining up for 5G as private trials gain traction. BT is working with a dozen industrial partners, largely through its existing enterprise relationships, on dedicated networks, according to Jeremy Spencer, the telco’s general manager for corporate propositions and marketing.
The new deployments "will start to come through around March and April," Spencer said in an interview. BT views itself as a "vendor agnostic" 5G ecosystem architect, he added. Though its current 5G kit suppliers include the "usual suspects" Nokia and Ericsson, it is "evaluating" open radio access network, or O-RAN, equipment makers, Spencer noted.
These tend to be smaller firms focused on 5G equipment that can co-exist with rival hardware and software. They mark shift from the closed architecture of current RAN setups, where the entire suite is tied to a proprietary vendor.
BT is "familiar" with U.S.-based O-RAN vendor Mavenir Inc., Spencer said, but is currently focused on creating a more "robust procurement cycle" as it starts assessing the broader pool of O-RAN suppliers, he added. Vodafone already counts Mavenir as a vendor for its public 5G network.
Meanwhile, European telecom equipment makers Ericsson and Nokia are promoting the cost-efficiencies and output perks of 5G in their conversations with clients. "We did a study for a German automaker and found that an investment in 5G would pay off 10x," Thomas Noren, Ericsson's head of dedicated networks, said in an interview.
He explained that a large part of the savings stemmed from the shift to robotics, better inventory management and the condition-based monitoring that 5G could facilitate.
Nokia is conducting proof of concepts with industrial clients in the U.K.’s food, beverage and automotive sectors, the company’s head of manufacturing and logistics, Thomas Hainzel, said in an interview.
The Finnish firm estimates that using 5G to power automated guided vehicles in industrial settings, for example, can result in an 18% reduction in transport accidents, a 30% increase in transportation capacity, and a 40% reduction in late deliveries.