The hidden bottleneck: Legacy networks
Manufacturers are investing heavily in digital tools to optimize production, reduce costs, and navigate workforce challenges. According to industry reports, the manufacturing global IoT market is projected to grow from USD 116.5 billion in 2024 to over USD 674 billion by 20321, and 95% of manufacturers are investing or planning to invest in AI and machine learning within the next five years2. Despite this commitment, many organizations are not seeing the expected results.
Why? The network. Many manufacturers still rely on legacy infrastructures – Wi-Fi networks, wired connections, and outdated systems – that were not designed for modern, interconnected operations. These legacy networks often become “hidden bottlenecks,” slowing data flow, limiting device connectivity, and restricting scalability.
This situation leads to a sobering realization: “We’re further behind than we thought” when it comes to preparedness for true digital scale. Without a robust, purpose-built network foundation, the full benefits of advanced manufacturing technologies cannot be realized.
When organizational silos meet technical reality
Digital transformation requires IT and operational technology (OT) teams to collaborate in ways that legacy networks and organizational structures rarely allow. Real-time control systems demand ultra-low latency, industrial environments generate interference patterns, and security requirements become more complex as production systems connect beyond traditional boundaries.
This misalignment often leads to a sobering realization: even with AI, robotics, and IoT in place, digital transformation goals remain elusive without the proper network foundation.
The impact of legacy networks
The limitations of legacy networks manifest in multiple ways:
- Limited scalability: Traditional networks require costly upgrades to add devices or expand coverage.
- Bandwidth and performance constraints: Real-time analytics, remote diagnostics, and autonomous operations suffer delays.
- Reliability and security concerns: Outdated infrastructure increases the risk of downtime and cyber threats.
- Operational inflexibility: Rigid systems hinder the rapid deployment of new technology and process improvements.
Industrial layouts – filled with heavy machinery, electromagnetic interference, or hygienic constraints – exacerbate these challenges, making cabling upgrades costly, complex, and disruptive.
The case for a purpose-built network: Private 5G and beyond
To overcome these challenges, manufacturers need to rethink their network strategy. A modern, purpose-built network – such as private 5G – can serve as a foundational enabler of digital transformation. Here’s why:
- Enhanced scalability: Seamless expansion to connect new IoT devices, machinery, and multiple sites without extensive cabling.
- Superior performance and reliability: High throughput, ultra-low latency, and consistent connectivity support autonomous robots, AI analytics, and safety-critical systems.
- Security and control: Enterprises maintain control over operational data, reducing vulnerability to cyber threats.
- Operational flexibility: Rapid deployment of new technologies, remote diagnostics, and faster recovery from disruptions.
- Cost-effectiveness: Reduced cabling and infrastructure modifications lower total cost of ownership and accelerate ROI.
Realizing the competitive advantage
Manufacturers that strategically address their network infrastructure unlock multiple benefits:
- Fully leverage their digital investments
- Achieve greater operational agility
- Reduce downtime and increase reliability
- Scale initiatives effortlessly across multiple facilities
- Address workforce and supply chain challenges more effectively
For manufacturing leaders, it’s vital to assess your current network capabilities and consider deploying purpose-built solutions like private 5G. Doing so will not only eliminate hidden bottlenecks but also unlock new levels of efficiency, flexibility, and resilience – ensuring your manufacturing operation is truly future-ready.
Building a future-ready network
The most successful organizations approach network infrastructure as a strategic asset rather than a technical afterthought. By prioritizing modern, purpose-built solutions, manufacturers can:
- Scale digital initiatives seamlessly as business needs evolve.
- Avoid costly network overhauls that disrupt operations.
- Future-proof their facilities for emerging technologies like private 5G, real-time AI, and autonomous systems.
The choice isn’t whether to upgrade – it’s how quickly manufacturers can deploy networks capable of supporting today’s digital transformation while preparing for tomorrow’s demands.
*By Jan Diekmann, Head of Business Development, Enterprise 5G, Manufacturing, Ericsson Enterprise Wireless Solutions, and Viswanath Kolur, Head of Business Development, Enterprise 5G – Emerging Markets, Ericsson Enterprise Wireless Solutions.
1Fortune Business Insights, “IoT in Manufacturing Market Size, Share” | Industry
Report 2032
2Rockwell Automation, “Ninety-Five Percent of Manufacturers Are Investing in AI to Navigate Uncertainty and Accelerate Smart Manufacturing”
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