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Nokia and ABI Research identify key trends in manufacturing investment to enable Industry 4.0

07/05/2020

Nokia and ABI Research identify key trends in manufacturing investment to enable Industry 4.0

Press Release

Nokia and ABI Research identify key trends in manufacturing investment to enable Industry 4.0

74% of manufacturing decision-makers surveyed plan to upgrade comms and control networks in next two years to advance digital transformation and Industry 4.0

More than 90% are investigating use of 4G/5G for their operations

84% that are considering 4G/5G will deploy their own local private wireless network in their manufacturing operations

6 May 2020

Espoo, Finland - Nokia has partnered with ABI Research, an independent research firm, to survey more than 600 manufacturing decision-makers to assess investment strategies related to 4G/LTE, 5G and Industry 4.0.1

The survey found that 74% of respondents are looking to upgrade their communications and control networks by the end of 2022 with more than 90% investigating the use of either 4G and/or 5G in their operations. Just over half of respondents (52%) believe that the latest generation of 4G/LTE and 5G will be necessary to meet their transformational goals.

The research also identified key business use cases that would drive investment in 4G or 5G. Respondents reflected the need to digitalize and improve existing infrastructure (63%), automation with robotics (51%) and achieve new levels of employee productivity (42%).

Manish Gulyani, Vice President Marketing, Nokia Enterprise said: We have reached an inflection point in Industry 4.0 transformation as the fast, secure, low latency connectivity underpinning its implementation now becomes available. This research indicates the strong marketplace appetite for industrial-grade wireless networking to capture the transformational benefits of digitalization and automation. We believe that demand, combined with easy-to-deploy private wireless solutions, will drive adoption.

The research examined near-term drivers influencing buying decisions for new industrial systems across IT (information technology) and OT (operations technology). IT drivers primarily focus on reducing downtime (53%), improving operations efficiency (42%), and enhancing security (36%). In comparison, OT drivers reflect a desire to replace aging infrastructure (43%), improve efficiency (40%) and increase capacity (38%).

Further highlights indicate:

88% of respondents stated that they were familiar with private wireless (4G/5G) networking

84% that are considering 4G/5G will deploy their own local private wireless network in their manufacturing operations

leading priority buying areas are automation and machine upgrades (47%), IIoT initiatives (41%), with cloud infrastructure following at (37%).

Ryan Martin, Principal Analyst, ABI Research said: Importantly, research findings indicate a preference for deploying private fully-owned and operated wireless networks, with manufacturers favoring in-house management to allay security concerns . It's evident that respondents are not entirely committed to Wi-Fi/WLAN and will consider latest generations of wireless technologies. As a result, 2020 is a critical year for networking suppliers to educate the market regarding the merits of 4G/LTE and 5G.

Based on this research we also observe a pan-industry need to quantify not only the potential ROI of investing in private wireless, but also to clearly indicate the cost of inaction - vendors need to make the case for investing in Industry 4.0 today to gain a clear competitive advantage over those who choose to wait.

1Note to editors

Respondent data: 602 individual respondents, with various decision-making job roles across automotive (201), consumer goods (201), and machinery (200) markets. The geographic spread of respondents was U.S. (161), Germany (100), Japan (100), China (40), India (40), Australia (40), U.K. (41), Canada (40), and France (40). The survey was completed at the end of 2019, and thus before the onset of the Covid-19 pandemic.

Resources

ABI Research: Enterprise Digital Transformation Through Industry 4.0

Nokia Manufacturing and logistics

Webinar: Where does 4G/5G private wireless fit into the manufacturer's digitalization journey?

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Researchs global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

About Nokia

We create the technology to connect the world. Only Nokia offers a comprehensive portfolio of network equipment, software, services and licensing opportunities across the globe. With our commitment to innovation, driven by the award-winning Nokia Bell Labs, we are a leader in the development and deployment of 5G networks.

Our communications service provider customers support more than 6.4 billion subscriptions with our radio networks, and our enterprise customers have deployed over 1,300 industrial networks worldwide. Adhering to the highest ethical standards, we transform how people live, work and communicate. For our latest updates, please visit us online www.nokia.com and follow us on Twitter @nokia.

Media Inquiries:

Nokia

Communications

Phone: +358 10 448 4900

Email: press.services@nokia.com

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