Only a third of manufacturing companies have adopted IoT, and reservations can be addressed by 5G, writes Kristian Torode, Director and Co-Founder of Crystaline
IoT technologies allow manufacturers to link up devices across a factory floor, significantly speeding up processes and improving efficiencies.
Whether using digital twins to streamline and sync up operations, or real-time monitoring to allow for a rapid response to issues, factories that adopt modern production techniques could see major developments in the quality and productivity of manufacturing.
Yet, despite the potential improvements, some manufacturers are showing a reluctance to upgrade their current systems.
In a recent survey from The Productivity Institute, only around a third (35%) of manufacturing companies in the sample had adopted IoT. If we compare this to other industries covered in the survey, it is higher than the IoT uptake in the services sector (22%), but lower than in utilities and extractive (57%) and construction (39%).
The IIoT market is booming, and its potential benefits are huge, so why aren’t more manufacturers adopting the technologies? 5G could offer the solution to some of the reservations.
Potential concerns about IoT for manufacturers
One common concern about IoT is how widespread the disruption can be when connectivity issues occur. The more devices that are dependent on the Internet, the bigger the potential issues when connection drops.
Combined with this, cybersecurity worries will likely hold some back from adopting IoT technologies. A cyber attack can be catastrophic to manufacturers at the best of times, let alone when an entire factory is interconnected.
As such, it is understandable that some manufacturers are reluctant to implement changes and increase their reliance on the internet, especially given the costs involved to upgrade software and equipment.
How can 5G address concerns with IoT?
Due to features such as high capacity and fast speed, 5G is excellent for IoT applications and can address many of the common worries.
Starting with connectivity concerns, the high reliability and low latency of 5G can give businesses confidence that any delays with IoT systems should be minimal. While factories will generally place greater demands on the Internet than an average workplace, industrial use was factored into the design of 5G, so it is geared up for the intensity of manufacturing.
You may have come across massive machine-type connections (mMTC), which refer to 5G’s capabilities to support a huge number of IoT devices. For manufacturers, this can be incredibly effective to allow each step of the production process to be digitally interconnected. As well as the production line, it can also help with transport and logistics, allowing businesses to monitor and manage fleets in real-time.
Alongside this, if security concerns are preventing some manufacturers from adopting IoT, these issues can similarly be improved by 5G.
A key feature of 5G is end-to-end encryption, offering tighter cyber security. It also allows for network slicing, limiting the risk of a cyber attack extending across an entire IoT network.
Combined with the benefits of 5G, IIoT technologies open new opportunities for manufacturers, such as automation, real-time monitoring and advanced data insights. Such features allow factories to operate more quickly, efficiently and cheaply.
This leads us to another potential barrier for IIoT adoption: cost.
Of course, if manufacturers need to invest in new programmes and equipment to adopt IoT technologies, 5G is not going to solve this issue. What it can offer, though, is the opportunity for industrial businesses to save money in the long run through increased efficiency and productivity.
The low latency of 5G minimises the risk of potential delays, while the efficiency and productivity of IoT technologies mean that products can be created more quickly and accurately. Overall, this can boost a factory’s output and reduce manufacturing costs.
Businesses that avoid adopting the latest technologies risk being outperformed by competitors who are more willing and able to keep up with modern industry demands. With 5G alleviating many of the common concerns associated with IIoT, manufacturers can upgrade with confidence and access incredible new opportunities for growth.

Kristian Torode is the Director and Co-Founder of Crystaline, a solutions provider offering expert advice on mobile, voice, data and unified communication services. With over 25 years of experience in telecommunications and business development, Kristian provides tailored guidance to clients based on extensive industry knowledge.
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