Three significant trends are shaping the rapid evolution of the digital economy. First and foremost is the explosion in AI, and generative AI in particular. Meanwhile, 5G networks are quietly building momentum, and connected Internet of Things (IoT) devices continue to proliferate. Each of these technologies alone is transformational, but in combination they’re even more powerful. The result is intelligent connectivity, and it has the power to modernize virtually every sector.
It’s still early days for 5G
Today, it’s not uncommon to view 5G as a disappointment. After all, it hasn’t lived up to its promise to revolutionize how we work and play. But was 5G overhyped, or have we just been expecting too much too soon? To answer that, let’s consider two facts about the technology. First, in terms of 5G’s evolution, it’s still very early days. There’s still much to do to build out the infrastructure. According to the GSMA’s annual Global Mobile Economy Report, 5G connections today represent only about 20% of total connections, and they’re not expected to overtake 4G’s predominance until 2028. 5G won’t make up a majority of connections until the end of the decade but will surpass five billion connections at that time.
Second, delivering speedy connections to consumers was never the singular objective. The broader purpose of 5G is to create more a flexible, robust, and configurable communications infrastructure—exactly what IoT requires. Only 5G can provide the capacity and capability to connect millions of smart devices like sensors, cameras, and robots. It enables us to add intelligence to the myriad systems already in use—from heating and traffic management to stock and logistics. To support these connections, telecommunications service providers, specialist integrators, and individual businesses are investing in public and private 5G networks.
Industry 4.0 will need a solid data foundation
Of course, intelligent devices collect and share huge amounts of data—data that must be managed and leveraged effectively to drive decision-making. Organizations that want to unlock data-driven insights will need to build a solid data foundation to deploy data analytics and AI at significant scale. A recent survey by EY, a consultancy, found that 74% of organizations investing in 5G believe that better data governance is needed to maximize the potential of these emerging technologies.
To illustrate the central role data management will play in the emerging Industry 4.0 ecosystem, let’s look at a few emerging use cases.
Manufacturing: Adding 5G-connected cloud video sensors to manufacturing lines can increase the amount, quality, and range of process and quality control with real-time insights and alerts. In addition to relying on 5G networks and intelligent IoT devices, this also requires a data management platform that can ingest, integrate, and analyze structured and unstructured data.
Retail: With 5G’s high-density network and connected IoT visual sensors, retailers can offer smart-shopping assistants to in-store shoppers. To provide hyper-personalized recommendations, retailers need to blend customer behavior patterns and previous transaction history with real-time visual analysis of stock and location—a process that requires sophisticated AI/ML leveraging high-quality, trusted data.
In its report, EY stressed that enterprises must combine 5G, IoT, and AI to drive growth—and that data governance will be critical to creating synergy among these three “frontier” technologies. A scalable, connected data architecture is the glue that holds them together, enabling companies to unlock their combined value.
Unlocking the value of 5G with Teradata
Teradata is providing the data and analytics solutions companies need to leverage 5G, IoT, and AI to drive innovation and growth. New microservices within Teradata VantageCloud, the complete cloud analytics and data platform for AI, enable customers to load data from 5G networks that track key performance indicators (KPIs) and predictions from the 5G core network. Recently, we partnered with Telefónica and the Würth Group to create a pioneering 5G smart logistics solution to improve throughput and avoid packing errors at a logistics center. Real-time video and sensor data is collected from devices connected to a private 5G network and stored in VantageCloud. Würth can combine this data to facilitate decision-making through dashboards, providing early warning of stoppages and quality issues during packaging and dispatch.
Case studies like this demonstrate how the combination of 5G, IoT and AI, supported by a robust, connected data foundation, is already delivering value. As 5G networks expand worldwide, more and more businesses are exploring the value of public and private 5G networks as part of a wider modernization. This powerful triad has the potential to refine and industrialize many existing processes to automate, create efficiencies, and drive productivity. According to ABI Research, the total output of the AI and 5G combination is projected to reach $17.9 trillion, or 9.7% of the global GDP by 2035. This is more than China’s total GDP in 2023.
To find out how Teradata can help your organization build the modern data architecture needed to maximize the value of 5G, IoT and AI, please get in touch with your Teradata industry consultant team.