Mobile Service Providers Need to Provide Innovative Solutions to be Part of the Smart Manufacturing Sector

Despite high ambitions for the smart manufacturing sector, mobile service providers are forecasted to have only a short-term opportunity in manufacturing by 2022. According to a recent ABI Research report, the market is expected to grow by USD 2.6 billion in the time period till 2022, with the mobile service providers playing only as the secondary players in this market.

According to Pablo Tomasi Senior Analyst at ABI Research, the manufacturing market has grown without MSPs (mobile service providers) so far, and if they don't play their cards right, it will continue to do so. UnTelco – the need for MSPs to think and act beyond their traditional boundaries – in manufacturing is about entering a well-entrenched sector developing new market strategies and partnerships. MSPs have a chance to enter the smart manufacturing market building from the ground up, gaining trust as partners, and proving that the value of their offering is beyond what is currently delivered in the market.

5G is a promise, but alone is not enough and with doubts on what business model will support it, 5G's ability to integrate with legacy technologies, and the actual results delivered in harsh factory environments, there is much uncertainty about whether 5G will be a game-changer for MSPs in manufacturing.

Mobile service providers must understand their competitive position in the market, be patient, prepare for a long journey, and align their ambitions with what the sector wants. Partnering with market leaders will be essential - the recently announced partnership between Orange and Siemens is an example of what should be a growing trend. 5G will not be in the factory for few years, and to be successful, a wider alignment between industrial vendors and MSPs is essential. Even the private LTE solutions currently available are only at a very early stage in manufacturing and still lack success stories which are needed to prove their value in the market.

These findings are from ABI Research's UnTelco in Manufacturing: Telco Opportunities and Market Activities report. The report is part of the company's Telco Cloud Platforms & Digital Transformation research service, which includes research, data, and Executive Foresights.