Produced by Reuters Plus for
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
Industrial innovation won't happen without AI, cloud and mobile
The convergence of artificial intelligence (AI), distributed cloud computing, and advanced 5G mobile networks is reshaping industries at a rapid pace. With digitalization accelerating, the next wave of industrial innovation is now being unlocked, in ways that will redefine everywhere from factory floors to farmers’ fields, along with operating theatres, sports venues and much more.
In an era where AI is reshaping the art of the possible and distributed cloud computing is transforming data access, the role of advanced connectivity has never been more critical. With their enhanced speed, reliability, and scalability, 5G networks serve as a vital backbone for this evolution and are helping to drive a digital transformation in which companies can operate smarter, faster, and more efficiently than ever before.
It’s been five years since the world’s first commercial 5G services were launched by South Korean and American carriers. Others quickly followed and there are now more than 340 networks up and running around the world.
In some places, the technology is now ubiquitous. China and India lead the way with 95% coverage, followed by North America with 90% and Europe with 80%[1]. The rollout hasn’t been seamless though, and there is a perception that the benefits have been oversold and under-delivered. This is largely because many 5G networks do not use the 5G Standalone infrastructure needed to deliver on the full promise of the technology. For now, 5G-connected cars and laptops, as well as new disruptive use cases like surgery supported by augmented reality (AR) remain inaccessible to all but a few.
5G Standalone subscriptions are growing fast, however, and are forecast to reach 3.6 billion by 2030, accounting for almost 60% of all users[2]. With that comes the promise of more use cases and a period of significant technological innovation.
China & India
95%
North America
90%
Europe
80%
The first five years of 5G have been dominated by the need to build coverage and capacity. It is now time for the next phase, where transformational services can be developed and rolled out.
5G’s greater capacity means the strongest new use case for the technology is Fixed Wireless Access (FWA), which is increasingly seen as a viable alternative to wired broadband connections such as fiber, cable and DSL, particularly in areas where fiber rollout is impractical. The uptake in the United States has been particularly strong.
“
Sports and music venues in the United States were early to embrace 5G, and fans now expect their smartphones to work flawlessly there, not least so they can share their experiences or make a payment.
Over the coming years, far more capabilities will be unlocked which will enable richer user experiences, taking advantage of wider trends in which the world is becoming increasingly electrified, automated, and digitalized.
Underlying these shifts are three interdependent technologies: AI, cloud computing and mobile networks.
AI can enable greater productivity and efficiency and is now front and center in national strategies for industrial competitiveness. It is supported by cloud data centers that take on the AI workload and, as a result, investments in cloud infrastructure to carry AI workloads are also ramping up across the world.
5G networks are essential to connect these two together, linking AI-powered devices and AI applications to the cloud. The reliable and secure connectivity that mobile networks provide is needed wherever private and public sector enterprises operate.
Investments in 5G infrastructure have created a foundation for both existing and new AI workloads and Ericsson has also joined with global telecom operators to launch Aduna, which provides a standardized platform to foster collaboration and enhance user experiences. It gives application developers access to insights and capabilities that previously only existed within mobile networks.
In short, AI needs data for learning, and data needs compute power, underpinned by cloud, for processing. This compute requires connectivity for data exchange and real-time interactions. The combination of AI, cloud and 5G networks, therefore, offers a platform for innovation that can redefine industries worldwide.
Industrial innovation
On the eve of the pandemic, Ericsson opened a new 5G smart factory in the US to produce equipment for 5G networks[5]. In addition, the factory pushes the envelope on smart manufacturing and how to use private 5G networks to enhance productivity. It has been recognized by the World Economic Forum with the award of its “Global Lighthouse” designation, in recognition of the deployment of next-generation technology at the site[6].
Ericsson has also collaborated with Fujitsu to provide Jaguar Land Rover with a private 5G network at its plant in Solihull, England, which has enabled it to significantly reduce downtime and means it can make changes to the Range Rover production line in seconds rather than weeks[7]. When factory downtime can cost as much as $50,000 per minute, the value of available, reliable, and secure wireless connectivity becomes clear.
Even the oldest industrial sites can be brought up to date. Ericsson worked with Vodafone to deploy a 5G Standalone mobile private network at CIMPOR's cement factory in Alhandra, Portugal, the oldest continuously operating cement plant in the world. The project involved, among other elements, installing sensors to monitor machine health, the use of 5G-linked drones to carry out inspections and creating a ‘digital twin’ of the factory.
To make the most of the opportunities, the superior capabilities of 5G must be scaled up across all sectors of the economy, alongside the creation of an increasingly collaborative and open ecosystem among industry players.
The path then opens for both new use cases and improvements to existing ones. The smart glasses collaboration between Ray-Ban and Facebook-owner Meta is a perfect example. They allow users to take photos and videos, ask questions of the Meta AI assistant and receive real-time information and recommendations. The next step could be proactively capturing and analyzing images as users move around and anticipating what questions users might ask.
LIMITLESS CONNECTIVITY
References
[1] https://www.ericsson.com/en/reports-and-papers/mobility-report/dataforecasts/network-coverage
[2] https://www.ericsson.com/en/reports-and-papers/mobility-report/dataforecasts/fwa-outlook
[3] https://www.ericsson.com/en/reports-and-papers/mobility-report/articles/network-slicing-real-scenarios-tmobile
[4] https://www.ericsson.com/en/press-releases/3/2024/consumerlab-5g-elevates-connectivity-experiences
[5] https://www.ericsson.com/en/press-releases/3/2023/port-of-tyne-goes-live-with-uks-first-site-wide-private-network-deployment
[6] https://www.ericsson.com/en/blog/2024/10/unlocking-the-promise-of-smart-factories-advanced-analytics-powered-by-5g
[7] https://www.ericsson.com/en/cases/2020/accelerate-factory-automation-with-5g-urllc
Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
From coverage to capability
Emergency services, for example, can access priority slices to ensure instant communications even at times of heavy network traffic. All mission-critical segments (public safety, emergency services, utilities, rail, defense and digital airspace) are now adopting mobile technologies driven by digital transformation needs.
Network slicing is still in the early stages of commercialization, but its potential has already been clearly demonstrated. For example, T-Mobile has used it to ensure connectivity for point-of-sale terminals and ticket screening at major events in the United States, as well as to provide greater security and control for enterprise customers, and to support emergency services with lower latency and faster speeds, even in times of extreme congestion[3].
Real-world impact
The enhanced experiences 5G provides are driving greater satisfaction. With full-fledged 5G (standalone), operators have a significant opportunity to meet rising user expectations and capitalize on premium services for both consumers and enterprises.[4]
Jasmeet Sethi Head of Ericsson ConsumerLab
Global 5G coverage
The road ahead for 5G
There are plenty of other potential uses that are being explored. From factories to healthcare, transport to farming, there are innumerable incentives for communications service providers to invest in the networks of the future and should put them in a better position to make a healthy return on their cost of capital.
With smart collaboration, 5G can now start to deliver on its promise of transforming industries, driving sustainable growth and creating a more connected, vibrant future.
“
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
Produced by Reuters Plus for
Another key opportunity for 5G is network slicing, in which operators can create multiple virtual networks (or slices) using the same infrastructure, like individual lanes on a motorway. Each slice can be tailored to meet the needs of different devices, applications, or enterprises, based on characteristics such as speed, latency, reliability, and security.
Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
Ready to capture the next wave of mobile?
Find out more here
