KPMG: unlocking the value of 5G in manufacturing
5G holds the potential to unlock previously unthought of opportunities for mobile network operators (MNOs). However, many MNOs are concerned about making a profitable return on the significant investments required to create the new networks.
Most of the new value created via 5G will go to service platforms - up to 95% - rather than the telcos paying the money. As a result, the operator’s focus must zone in on their enterprise divisions. Enterprises may be unlikely to pay more for the higher speeds 5G will introduce but will invest to dramatically improve productivity, safety, security and efficiency.
KPMG estimated that around US$4.3bn in value is waiting to be unlocked through use cases over the next seven years globally. KPMG’s research found the manufacturing industry will be the first to significantly unlock the value of 5G, amounting to around 5% of a typical manufacturer’s annual revenue. With manufacturing consisting of 11% of the UK’s Gross Value Added (GVA), this could be significant, not just for individual businesses but for the national economy in total.
As a result of 5G, KPMG anticipates that there will be a more dynamic, self-regulating and self-adjusting process that will translate into agility, speed and higher productivity. Smart sensors, enabled by 5G, will further accelerate automated processes, and allow machines to update themselves and initiate a new process when there is demand. These smart sensors will be able to assess the quality of components that are being manufactured in real time, reducing re-working requirements. Through a combination of AI-based planning, edge computing, high bandwidth with low latency, connected machines, AR-enabled workers and integrated logistics, 5G has the potential to transform the way manufacturers work.
In KPMG’s article ‘’, , comments: “5G and the Fourth Industrial Revolution hold the potential to revolutionise the manufacturing process. Our conversations with clients highlight the need for C-suite manufacturers to take an informed, strategic approach, mapping out a clear journey towards transformation that will make the most of these innovative technologies and drive lasting performance improvement.”
Siemens: Providing the First Industrial 5G Router
Across a number of industry sectors, there’s a growing need for both local wireless connectivity and remote access to machines and plants. In both of these cases, communication is, more often than not, over a long distance. Public wireless data networks can be used to enable this connectivity, both nationally and internationally, which makes the new 5G network mainframe an absolutely vital element of remote access and remote servicing solutions as we move into the interconnected age.
Siemens Enables 5G IIoT
The eagerly awaited Scalance MUM856-1, Siemens’ very first industrial 5G router, is officially available to organisations. The device has the ability to connect all local industrial applications to the public 5G, 4G (LTE), and 3G (UMTS) mobile wireless networks ─ allowing companies to embrace the long-awaited Industrial Internet of Things (IIoT).
The router can be used to remotely monitor and service plants, machines, as well as control elements and other industrial devices via a public 5G network ─ flexibly and with high data rates. Something that has been in incredibly high demand after being teased by the leading network providers for years.
Scalance MUM856-1 at a Glance
- Scalance MUM856-1 connects local industrial applications to public 5G, 4G, and 3G mobile wireless networks
- The router supports future-oriented applications such as remote access via public 5G networks or the connection of mobile devices such as automated guided vehicles in industry
- A robust version in IP65 housing for use outside the control cabinet
- Prototypes of Siemens 5G infrastructure for private networks already in use at several sites
“To ensure the powerful connection of Ethernet-based subnetworks and automation devices, the Scalance MUM856-1 supports Release 15 of the 5G standard. The device offers high bandwidths of up to 1000 Mbps for the downlink and up to 500 Mbps for the uplink – providing high data rates for data-intensive applications such as the remote implementation of firmware updates. Thanks to IPv6 support, the devices can also be implemented in modern communication networks.
Various security functions are included to monitor data traffic and protect against unauthorised access: for example, an integrated firewall and authentication of communication devices and encryption of data transmission via VPN. If there is no available 5G network, the device switches automatically to 4G or 3G networks. The first release version of the router has an EU radio license; other versions with different licenses are in preparation. With the Sinema Remote Connect management platform for VPN connections, users can access remote plants or machines easily and securely – even if they are integrated in other networks. The software also offers easy management and autoconfiguration of the devices,” Siemens said.
Preparing for a 5G-oriented Future
Siemens has announced that the new router can also be integrated into private 5G networks. This means that the Scalance MUM856-1 is, essentially, future-proofed when it comes to 5G adaptability; it supports future-oriented applications, including ‘mobile robots in manufacturing, autonomous vehicles in logistics or augmented reality applications for service technicians.’
And, for use on sites where conditions are a little harsher, Siemens has given the router robust IP65 housing ─ it’s “dust tight”, waterproof, and immersion-proofed.
The first release version of the router has an EU radio license; other versions with different licenses are in preparation. “With the Sinema Remote Connect management platform for VPN connections, users can access remote plants or machines easily and securely – even if they are integrated in other networks. The software also offers easy management and auto-configuration of the devices,” Siemens added.