The perfect pass: how digital networks are reshaping the industrial landscape.

In team sports, success is dictated by how fast and smoothly individual players can move the ball to their teammates. In a manufacturing environment, the ability for information to travel seamlessly across heterogeneous environments is equally important. In the age of Industry 4.0, connectivity is no longer a mere technical consideration—it is the backbone of modern industry. The digital transformation sweeping through these environments is not only reshaping operational efficiency but also redefining competitiveness, resilience, and innovation.

At the heart of today’s industrial transformation lies the rapid adoption of connectivity technologies, ranging from Internet of Things (IoT) devices to advanced cellular networks like 5G and dedicated industrial protocols. In 2021, almost one-third of EU enterprises—48% of large firms—were already using IoT devices or systems to monitor operations and optimize processes. This data-driven approach is propelling industries into a new era where real-time insights and automation are the norm, not the exception.

The COVID-19 pandemic further emphasized the necessity for hyper-connected industrial environments. Faced with labor shortages and disrupted supply chains, manufacturers accelerated their digital adoption in 2022, making connectivity not just an IT matter but a strategic asset critical to maintaining competitiveness and operational continuity.

Keeping your eye on the ball

IoT connectivity is revolutionizing how factories and supply chains operate. By embedding sensors into machines, products, and assets, companies collect real-time data on machine performance, inventory levels, energy usage, and environmental conditions. This flow of information, from the factory floor to the cloud, facilitates the collection and delivery of operational data to the IT systems best able to use it – and the utility of this data will only increase as AI becomes embedded into industrial processes. By transforming traditional factories into smart, responsive, and self-optimizing environments, IoT connectivity is an essential pillar of digital transformation in this sector and a critical enabler of the business outcomes that are the end goal of all such activity.

A clear example of this transformation is a global beverage manufacturer’s IoT-enabled Operations Initiative. By instrumenting facilities with IoT devices and centralizing the data on cloud platforms, the manufacturer enables live performance dashboards and mobile applications that digitize previously manual tasks. This not only accelerates decision-making but also empowers employees, as tools can be locally customized to meet the unique needs of individual plants and teams. The result is higher engagement with digital solutions and faster adoption of new technologies.

A seamless handover

Connectivity’s impact extends beyond factory walls into logistics and supply chain management. IoT sensors equipped with technologies like eSIMs support real-time asset tracking and fleet management across borders. The adoption of eSIMs—by 2023, 650 million IoT devices globally had eSIM capabilities—facilitates seamless switching between mobile networks, ensuring that critical shipments remain visible and connected from origin to destination.

This capability enables a new breed of smart supply chains where pallets and packages can autonomously report their location and condition, using cellular or even satellite links, regardless of their proximity to traditional network infrastructure. Such advances are critical for reducing theft, spoilage, and loss, as well as for automating inventory management and regulatory compliance.

Your Most Valuable Player?

A study by Accenture finds that 5G-enabled factories can enhance productivity by 20–30%, halve assembly times, extend asset lifespans by 20% through predictive maintenance, and improve defect detection rates by up to 90%. These productivity leaps are made possible by 5G’s ability to wirelessly connect a myriad of devices—robots, AR headsets, quality cameras—with guaranteed speed and low latency, far surpassing what Wi-Fi can reliably deliver in large and metal-rich industrial settings.

Private 5G networks are rapidly moving from proof-of-concept to full-scale deployment, in part because they offer manufacturers complete control over coverage, capacity, and data privacy. Unlike shared Wi-Fi, which can be unreliable and prone to interference in expansive industrial sites, private cellular networks provide dedicated bandwidth and robust security. This is especially important in industries where intellectual property, safety, and uptime are paramount. Europe is at the forefront of private 5G network deployment, with companies like ArcelorMittal and Volvo Cars leading the way.

ArcelorMittal’s “5G Steel” project, launched with Orange Business, stands as a testament to the transformative power of dedicated 5G networks. Covering sprawling steel plants in Dunkirk and Florange, this network provides seamless, high-speed connectivity across dozens of square kilometres filled with dense, metal structures. The benefits are profound: real-time control over production, autonomous vehicle operations, energy optimization, and enhanced worker safety through remote operations in hazardous zones1. 

AI: rewriting the industrial connectivity playbook.  

Artificial Intelligence is reshaping manufacturing, but its impact relies on a solid foundation of connectivity. Reliable LAN networks and integrated digital infrastructure form the backbone that allows machines, sensors, and enterprise systems to share data in real time. With this baseline in place, AI can unlock powerful use cases: predicting and reducing downtime through advanced maintenance analytics, optimizing production flows by balancing demand and capacity, and enabling automation that adapts dynamically to changing conditions. Connectivity provides the nervous system—AI adds the intelligence—together creating smart operations that are more resilient, efficient, and responsive. 

Volvo Cars is building advanced factories with comprehensive 5G and industrial Ethernet integration, supporting not just the automation of production lines but also future-proofing for innovations like vehicle-to-infrastructure communications. These investments ensure that industrial environments can adapt to evolving market demands and technological possibilities.

Not the only game in town

While 5G is often hailed as the ultimate industrial connectivity solution, the reality is more nuanced. The optimal technology depends on the specific use case, as illustrated by Volvo Group’s decision at its Lyon, France, facility. Instead of deploying 5G, Volvo opted for a private LoRaWAN network to control autonomous guided vehicles inside the factory2. Since the vehicles only needed to transmit small telemetry packets and the existing Wi-Fi spectrum was saturated, LoRaWAN’s long-range, interference-resistant technology provided a cost-effective and efficient alternative, dramatically reducing production delays and improving fleet efficiency.

This example highlights a key principle: connectivity must be tailored to the application. While “boring” technologies like LoRaWAN or Wi-Fi 6 may be sufficient for certain scenarios, others demand the high throughput, low latency, and reliability that only 5G or specialized industrial Ethernet can provide. Increasingly, industrial sites are adopting hybrid approaches, combining wired LAN, Wi-Fi, 5G, and low-power networks to ensure that every device, vehicle, or machine is connected in the most suitable and cost-effective way.

Connectivity – a critical part of your game plan

The convergence of IoT, 5G, eSIM, and other connectivity technologies is reshaping industrial strategy. Connectivity is no longer just about enabling IT systems—it is critical for operational resilience, supply chain transparency, workforce empowerment, and even environmental sustainability. Connected systems help companies anticipate machine failures, reduce unplanned downtime, optimize energy use, and respond quickly to market shifts.

Moreover, the ability to gather and analyze real-time data on operations enables continuous improvement and innovation. Companies can experiment with new processes, test automation scenarios, and rapidly scale successful initiatives across their networks.

As the industrial landscape becomes more volatile and complex, resilient operations are a strategic necessity. Digital connectivity helps companies weather disruptions, whether from pandemics, geopolitical shifts, or supply chain shocks, by providing the agility to pivot resources, reroute shipments, or shift production with minimal delay. 

 

Use case	Best-fit connectivity	Why it fits	Notes/risk flags
AMRs/AGVs in dense metal halls	Private 4G/5G or   Wi-Fi 6/7	Supports, mobility, roaming, and deterministic coverage.	Site survey critical; handover tuning
Machine vision QC	Industrial Ethernet, Wi-Fi 6/7 (short range)	Very high throughput, low jitter	Shielding/EMI; backup path
Condition monitoring (battery sensors)	LoRaWAN / BLE / NB-IoT	Low data rate, long battery life.	Potential Issues with interference; challenges around gateways & backhaul.
Worker AR & voice	Private 5G or  Wi-Fi 6/7	Latency + uplink	Device availability, EHS rules
Yard/port asset tracking	LTE-M / NB-IoT / 5G + eSIM, Satellite NTN	Cross-border resilience	Roaming profiles, total cost of ownership.
Remote brownfield retrofits	LPWAN + cellular backhaul	Fast scale, low CapEx	Data quality, battery management

 

Not a useful squad player, but the star of the team

In sum, connectivity is the foundation upon which the modern industrial enterprise is built. From real-time data collection and automation to supply chain transformation and strategic resilience, digital networks are at the heart of our industrial renaissance. Whether through IoT, 5G, LoRaWAN, or hybrid approaches, the right connectivity enables smarter, safer, and more competitive industrial environments.

The importance of robust, flexible, and secure connectivity will only grow as industries continue their digital evolution. Those who embrace these technologies will shape the factories, supply chains, and economies of the future—proving that, in Industry 4.0, connectivity isn’t just a squad player to be rotated in and out of the side but the star around which the team should be built. 

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