Global technology intelligence firm ABI Research recently completed its 2024 Manufacturers’ Technology Adoption & Attitudes Survey, a comprehensive survey of 461 manufacturing decision-makers across the U.S., Malaysia and Germany to uncover real-world attitudes, adoption trends and valuable insights that reflect the current technological landscape within the manufacturing industry. One of the survey's findings is that Manufacturers are overwhelmingly integrating private cellular solutions into their operations.
“Private cellular networks are rapidly becoming the backbone of manufacturers' digitization strategies, offering unparalleled control, reliability, and scalability,” states Leo Gergs, Principal Analyst at ABI Research. As manufacturers across industries increasingly look to modernize, 4G and 5G networks are at the forefront of this transformation, shaping the future of operational efficiency and connectivity.
4G is currently the more mature and widely deployed solution, with 44 percent of respondents in the early stages of rollout. “4G’s established infrastructure gives manufacturers confidence in its reliability. It’s seen as a safe and predictable investment,” Gergs points out.
However, 5G is on the horizon, poised to revolutionize the sector with its promise of lower latency, higher speeds and greater network capacity. While many manufacturers are still in the conceptual or evaluation stages, 45 percent are devising implementation strategies, and 30 percent are assessing suppliers. Gergs states, “There’s palpable anticipation around the potential of 5G to drive major innovations.”
Key regional trends are emerging, with the U.S. leading early-stage deployments of both 4G and 5G, spurred on by regulatory initiatives like the Citizens Broadband Radio Service (CBRS). Germany and Malaysia are also accelerating efforts, particularly in the planning and early rollout phases. Gergs notes, “Each region’s pace reflects its specific regulatory and economic drivers, highlighting how the availability of spectrum and labor costs shape investment decisions.”
As with any technological shift, challenges remain. Smaller manufacturers (with fewer than 1,000 employees) are still in the evaluation and proofs-of-concept stages for both 4G and 5G, underscoring the need for greater affordability and accessible case studies. Additionally, the survey reveals a skills gap in many organizations, with 24 percent of respondents neutral or unsure about device availability and 32 percent uncertain about the benefits of vendor collaboration. This uncertainty highlights a need for comprehensive market education and vendor support.
"The true promise of private cellular networks won't be realized unless manufacturers feel confident in their ability to deploy and scale these technologies," Gergs concludes. "It’s time for vendors to take the lead, not just by offering cutting-edge solutions, but by partnering closely with manufacturers, providing the training, resources and post-sales support they need to ensure success."
These findings are from ABI Research’s Industrial and Manufacturing Survey 1H 2024: Private Cellular in Manufacturing report. This report is part of the company’s Hybrid Cloud & 5G Markets research service, which includes research, data and ABI Insights.