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2019/09/23

5G Rollout Unravels New Demand Niche in Manufacturing

  Groundworks for the implementation of the 5th generation (5G) mobil communication ystem have already been underway on a full scale.  The start of 5G services will be a huge opportuity for manufacturers and production facility providers to expand markets.  The practical use of 5G will enable smart factories, which make use of internet of things (IOT) as espoused by manufacturing equipment companies, to evolve even further.

  It has been forecasted that in 2020s, global mobile communication traffic will increase more than a thousand-fold compared in 2010.  5G is aimed to greatly increase the capacity of network systems to respond to such increasing traffic at low cost and with low power consumption.

  Research and development are being carried out, taking into account a wide range of performance properties, such as more tthan 10Gbps ultrahigh-speed communication further latency reduction, and support for connections to numerous terminals associated with the spread of IoT and internet of everything.

  Following the release of 5G specification in June 2018 by 3GPP standardization body, industry players have already embarked on full -scale investments in facilities, such as terminal devices and base stations, along with development of chipsets and related parts and components.

  

Onset of 5G Services

  In December 2018, South Korea and the United State were among the first markets to start 5G services.  Intially, users are limited  by router terminals but 5G-compatible smartphones  were out in the first half of 2019 and the number of units are expected to increase further before the year ends.  Regions such as Europe and Oceania are also expected to start 5G services in 2019.

  In Japan, pre-5G services will be provided in time with the Rugby World Cup, which will be held in September 2019.  Massive commercial 5G service deployment is also expected just before the Tokyo Summer Olympic and Paralympic Games, both will be held in 2020.

  In china, transition to commercial 5G services is planned after the conclusion of large-scale trial services, which are all scheduled to be done before the year ends.

 

Key Features, Benefits,

  A huge feature of 5G is more than 10Gbps ultrahigh-speed communication.  Its is the successor to the present LTE.  In comparing the two standards, while LTE needs up to five minutes to download a two-hour movie, 5G may be able to do it in only three seconds.

  5G allows ultralow latency, meaning it reduces delays (time lags) in communication through which terminals exchange data or commands with each other to one-thousandth of a second or less.  For exmple, 5G makes it possible to remotely monitor robots or manufacturing devices in smart factories in a more real-time manner.

  Moreover, 5G can simultaneously connect 1 million units per square kilometer, and this is 30 to 40 times the number of the current 4G services.  Multiple simultaneous connections enable all divices to be networked at the same time, making it possible to collect information simultaneously.  Therefore, 5G will propel the realization of IoT and smart factories.

  5G and 4G/LTE also differ in frequency standard, hence new communications parts will be developed, creating new demand.

 

Gradual Market Rise 

  In recent years, the smartphone market has been driven mainly by device replacements, particularly among advanced countries, and the growth rate has seen signs of slowing down.

  Japanese research firm Fuji Chimera Research Institute surmised the market penetration of 5G-compatible products will start in the first half of 2019, initially by sub-gigahertz-band products while those that support millimeter wave bands will tart from the second half of the year up to 2020.

  As production of 5G-compatible smartphone goes full swing, along with facility investments among key players for mass production, the market is definitely seen to make drastic increase in the future.