Rising costs, supply chain uncertainty, and the shifting political landscape are just a few issues keeping manufacturers awake at night. According to Deloitte’s 2025 Smart Manufacturing and Operating Survey, 92% of respondents believe smart manufacturing will be the main driver of competitiveness over the next three years. Additionally, 85% believe that smart manufacturing processes will transform how products are made, improve agility, and help attract new talent.
As industrial enterprises continue their digital transformation, attracting talent and training existing workers to help them adapt to new tools and technologies are becoming priorities. While some manufacturers have already started connecting their operations, the transition to a smart factory won’t be enabled by connecting machines, assets, and sensors alone.
They should take a holistic approach when selecting a digital platform, leveraging an open application ecosystem and ensuring that it not only supports their immediate priority use cases but also provides flexibility and scalability to meet future needs.
Beyond Connectivity
Wireless connectivity is vital even as manufacturers begin connecting assets. Wi-Fi is great for non-mission-critical application support, but even Wi-Fi 6 or 7 cannot close the connectivity gaps around a plant which, for example, is filled with metal structures. With private wireless, manufacturers will benefit from greater reach, performance, scalability, control, and the flexibility to support all services cost-effectively, even as more assets and people are connected.
Autonomous mobile robots (AMRs) are an example of the need for critical control. They must experience continuous pervasive real-time connectivity across the factory floor to receive and execute scheduling instructions and immediately respond to re-routing requests for safe, productive operations. Robust connectivity is required to facilitate an uninterrupted data flow between these and other connected assets, including conveyor systems, vision inspection cameras, real-time monitoring sensors and robotic arms for predictive maintenance, indoor tracking and positioning, remote production line or lone worker monitoring in a smart factory.
5G private wireless provides this, with not only pervasive connectivity and low latency but also the inherent scalability and security to support the focus and pace of each manufacturer’s digitalization journeys.
Connecting people and assets is a great starting point for the smart factory. However, manufacturers must be able to make the operational (OT) data they gain from doing this available to teams across the business, allowing workers to make better decisions about customer needs, product and quality management, future technical implementation, and more.
For example, with real-time visibility into inventory levels, production status, and supplier data, procurement teams can be alerted when a critical component is unavailable from a supplier. They can use this information to alert teams to adjust production schedules, to reallocate materials, or more rapidly source a component from an alternative provider to reduce the risk of downtime.
AI’s effectiveness in industrial settings depends on high-quality, real-time data, which is increasingly supported by on-premise edge technology and private wireless networks. As more assets connect, the industrial edge becomes vital for managing applications, providing centralized visibility, and processing data locally. This data is then sent to centralized lakes, enabling AI and analytics tools to generate insights that enhance efficiency, safety, and sustainability, while reducing downtime, cutting costs, and driving innovation.
The Complex Connected Smart Factory Ecosystem
Infrastructure, software and connectivity providers, device manufacturers, network operators, cloud hyperscalers, systems integrators, and regulatory bodies are among those that must play a part in the smart factory ecosystem. Each brings essential capabilities to the table: the devices to connect people and assets; the software that enables the new Industry 4.0 capabilities such as predictive maintenance or automation; the expertise to design and manage the network, ensuring it aligns with the manufacturer’s goals; and the regulatory framework to maintain security and quality. Collaboration between these players and the seamless integration of technology are vital to providing benefits beyond connectivity and enabling the true smart factory.
The connected 5G ecosystem in practice
Digitalization remains a priority for millions of manufacturing plants globally. The process often begins by connecting workers through ruggedized industrial devices—such as tablets, smartphones, or smart helmets—that support hands-free communication even in noisy environments or while wearing PPE. Wearables can track vital signs, detect hazards like gas leaks or rising temperatures, and potentially save lives.
While Wi-Fi alone can be unreliable, 5G private wireless ensures constant connectivity, enabling real-time access to data, instructions, and team communication. Advanced software solutions—like push-to-X communication, geofencing, and object recognition—further enhance safety by enabling situational awareness, enforcing PPE compliance, and triggering alerts for unauthorized zone access.
A seamless flow of operational data can be leveraged by a mix of smart factory use cases, including predictive maintenance, optimizing productivity, or maintaining regulatory compliance. Geofencing, for example, can also be used for tool management, alerting workers when a tool is incorrectly placed to ensure the right ones are used, maintaining product quality, worker productivity, safety, and regulatory compliance. Worker training can be augmented using AI, virtual reality applications, and OT data.
Remote monitoring using connected cameras and object recognition software can also be implemented to identify quality issues at the production line and alert maintenance teams, before those issues can significantly impact costs. Using operational data in this way won’t just improve productivity and reduce costs but will also help to reduce the energy spikes associated with malfunctioning equipment, with this data feeding into sustainability reports and supporting broader carbon reduction and efficiency goals.
How to implement the smart factory ecosystem
The case for 5G private wireless in smart factories is strong, with implementation shaped by each manufacturer’s goals and use cases. Success depends on the digitalization platform and the strength of the ecosystem behind it. Partnering with providers that collaborate across system integrators, device makers, application vendors, and regulators offers flexibility and speed. A robust digital backbone—powered by 5G and an ecosystem-neutral industrial edge—enables rapid integration of third-party solutions, turning OT data into actionable insights that drive safety, productivity, sustainability, and long-term competitiveness.
To learn more, visit www.nokia.com.
