The adoption of 5G in the transport and logistics industry could add £217 billion in gross value to the global economy in 2030, according to an STL Partners report.
The STL '5G's impact on transport and logistics' report, commissioned by Chinese communications company Huawei, outlines how 5G can help the transport and logistics industry to overcome its challenges and enable its future transformation.
STL is a research company that helps businesses within the telecoms and related industries to innovate.
The report highlights three use cases that are expected to bring significant value to the transport and logistics industry:
- Real-time routing and optimisation: Sensors collect data throughout the supply chain to improve visibility and optimise processes through real-time dynamic routing and scheduling;
- Automated last 100 yards delivery: Using drones or automated delivery vehicles for the last ‘hundred yards’ of delivery, where the delivery van acts as a mobile final distribution point;
- Connected traffic infrastructure: Smart sensors or cameras are integrated into traffic infrastructure to collect data about oncoming traffic and trigger real-time actions such as rerouting vehicles or changing traffic lights.
STL said the benefits from these use cases include fewer traffic jams, more efficient supply chains, decreased fuel consumption and fewer road accidents.
The company acknolwedges there will be challenges to adopting these use cases.
The report said: "The transport and logistics industry must work together with telecoms operators and solution providers to build an understanding of 5G and how it will integrate with other technologies, and input into the development of 5G standards and regulation so the technology is developed to meet their needs.
"The role of governments will also be essential, due to their role in funding for 5G infrastructure that can benefit wider society."
Huawei’s 5G technology was banned by the UK government in July following a technical review by the National Cyber Security Centre in response to US sanctions.
The Chinese company denies the claims that its technology poses a security risk.
It is expected that the UK’s 5G infrastructure roll-out will be delayed by two to three years as a result of the UK ban and the order to remove all Huawei kit from the UK’s telecoms infrastructure by 2027.
At the time Digital Secretary Oliver Dowden said: "5G will be transformative for our country, but only if we have confidence in the security and resilience of the infrastructure it is built upon.
"Following US sanctions against Huawei and updated technical advice from our cyber experts, the Government has decided it is necessary to ban Huawei from our 5G networks."
"No new kit is to be added from January 2021, and UK 5G networks will be Huawei free by the end of 2027. This decisive move provides the industry with the clarity and certainty it needs to get on with delivering 5G across the UK.
"By the time of the next election we will have implemented in law an irreversible path for the complete removal of Huawei equipment from our 5G networks."