Industrial – used as a collective term for logistics, manufacturing, warehousing and other industrial uses - is a sector that can be truly transformed through the adoption of 5G.
Cathy Fearnhead
partner - Adddleshaw Goddard
Cathy is co-head of the firm's logistics sector group and advises developers and investors on the development, pre-letting and funding of a range of asset classes including logistics, offices and student accommodation.
Smart warehouses - smart sensors communicating with each other can cut energy product and waste

Digital twins - manufacturing failures can be slashed through real-time virtual modelling capabilities

Automation - the supply chain can be automated, speeding up deliveries

Monitoring and benchmarking - movements of goods can be tracked to monitor a range of factors from freshness of goods to the environmental impact of the supply chain
Main impacts of 5G on Logistics
5G will primarily benefit the industrial sector in three areas:
  • Making warehouses super-efficient through smart sensors, cutting energy and product waste
  • Ending manufacturing failures with ‘digital twin’ real-time virtual modelling capabilities from various locations will empower more effective strategic decisions
  • Completely automating the supply chain, speeding up deliveries
All in all, it is estimated 5G will lead to:
  • An additional £2bn in the value of UK manufacturing by 2025
  • 83% growth in the logistics sector’s economic productivity by 2035 on 2013 levels
  • An average annual 10% growth in e-commerce trade by 2021, swelling the value of the sector to £48bn
  • Anticipated large-scale job losses in the haulier sector thanks to autonomous vehicles. Low-end projections estimate 1.7 million jobs will be lost from 2.5 million in UK haulage and logistics.
  • Manufacturers may struggle to justify the high capital outlay of 5G infrastructure, as it is uncommon for R&D expenditure in sector to cover connectivity infrastructure. Many firms in the sector could become laggards.
The reason for this is that the biggest step-change from 5G is the sheer number of things that can talk to each other, at once, over the cellular network - hence the much-discussed internet of things (IoT). Understanding when complex machines are about to break and the remotely fixing them, or know when the air gets too dry to store food are two examples of what millions of sensors and smart analytics can crunch out.
1.  Can you describe what Savari does?
A. “Savari is a 360 degrees software supplier for the automotive industry. We do that by bringing the information from infrastructure, other cars and pedestrians into the vehicle. One of the things we have recognised that many technology suppliers in smart cities are systems integrators. We focus on data exchange and data research”
2. How is 5G going to affect cities?
A. “It is clear that wireless infrastructure assets need to be shared between cities and mobile operators. It is becoming apparent Cellular V2X is making a key impact in forging these partnerships. AT&T, Verizon has taken aggressive steps to address the same issue.”
3. What vehicles do you focus on supporting software to?
A. “We supply software for any type of car. The only condition we have is that the car needs to have a certain level of connectivity. As long as we can connect to their vehicle, we can provide our technology to them. Our software can run in the car, as well as in the Cloud. Essentially, it is a data exchange between cars. You can use the data exchange directly or use the Cloud as a gateway so that the data exchange can happen seamlessly.“
4. How does Savari currently use 4G?
A. “Today we leverage any 4G infrastructures from the car to the Cloud to make sure that any vehicle can exchange data. We achieve this by standardising what data is being sent from the vehicle.”
Ravi Puvvala,
Founder and CEO, a creator of software and hardware sensor solutions for OEM car manufacturers, cellular infrastructure, smart cities, and pedestrians
Talks about whether 5G will be a game changer or just a gradual evolution.
5. How will Savari use 5G, and how will it affect your product?
A. “Today’s 4G network is good enough for notification messages on mobility. When we see the road is in a slippery condition, a lot of the vehicles can detect that information and notify another vehicle that is going to pass through that same zone.  “4G’s network is extremely relevant in order to geotag any known events that need to be relayed to other vehicles. When it comes to safety we definitely require lower latencies and better infrastructure, and that is where V2X integrated with 4G/5G is coming into play.”
6. How will 5G change what Savari’s software can do?
A. “Our company focuses on data exchange.  We look at two key attributes: low latency and high bandwidth. The low latency allows us to build data analytics and safety applications. High bandwidth allows us to exchange more sensor data information between vehicles. “We are also looking at 5G V2X to provide key applications like remote-operated driving and real-time emergency alerts as a mechanism to increase the proliferation of cellular network integration with vehicles.”
7. How could it potentially add new areas of expansion?
A. “5G is both a marketing and technical tool. From a business perspective we will focus a lot of aspects of 5G features inside the 4G network and that’s pretty helpful for us. “We are quite excited about the upcoming trends, and how fast the network rollout is going to happen. This is the reason why we are one of the first software companies that has actually become a member of the 5G automotive association, which is making a lot of progress in terms of defining the use cases of how 5G is going to help the automotive industry.”
8. What do you want to see coming out of 5G?
A. Faster rollout of 5G infrastructure will be very helpful for the automotive industry. Every car is offloading terabytes of data, and we need this type of network to acquire data from the car to the infrastructure in a more efficient way.
9. How difficult do you think the rollout of 5G is going to be?
A. My understanding is that it is not difficult, because a lot of the 5G rollout is going to be a software upgrade. Many big operators in North America are focusing on deployment in the medium metropolitan cities. I think 2019 and 2020 will see the rollout of 5G in major cities. In the years after that you will see 5G penetrate the rest of the country.
10. What are your concerns from the rollout of 5G?
A. Speaking as a consumer, I am happy right now with 4G in terms of speed and what I am able to get for what I am trying to do. I think that 5G is more focused towards industrial customers, and I am more concerned about the scalability of the business models for automotive in 5G.
11. What is the coolest new technology you have seen coming out of 5G?
A. There are many applications - when I was at the Mobile World Congress in Barcelona there was someone who was demonstrating remote surgery, so a doctor can perform surgery through the Cloud using a 5G connection. They could get high definition video and it is as good as someone actually being in the room. There are a lot of very specific applications that are being demonstrated.  However, in terms of something being more practical and needed, the most exciting part for me is the human driving the vehicle behind the 5G Cloud. In the next generation of robo-taxis, humans can operate them and control the cab from a call-centre. 
©2019 Addleshaw Goddard LLP