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Evolution of the Next-Generation Connectivity though the lense of communication

Source: Huawei (2021): 6G: The next horizon

Relevance to the Future of Logistics

5G & 6G Cellular Networks

By 2022, around one tenth of all connections worldwide used 5G technology and this is set to surpass 50% by 2030. Vast regional disparity is expected, with more than 90% adoption in North America, developed Asia Pacific, Europe, and the Gulf Cooperation Council (GCC) region, but below 20% adoption in sub-Saharan Africa.

At rollout of 5G mobile networks, expectations were high about this technology’s transformative nature, but it is questionable whether these have been met. For most use cases, better network stability and smoother data transfers were predicted along with faster data transfers, thanks to lower latency, and – for logistics – enhanced warehouse automation. 5G's low latency and high bandwidth is expected to enable advanced automation technologies to be used for picking, packing, and sorting warehouse goods.

Another example in logistics is a 5G-powered artificial intelligence (AI) warehouse management system. This leverages both 5G technology and AI solutions for robotic inventory management to provide enhanced and efficient multistory warehouse management at optimum standards. In future, there is potential to operate around the clock utilizing 5G technology and AI.

A barrier to 5G developments is the absence of universal standards across companies and countries. This makes scaling difficult and there can be high entry barriers. Also, when the required infrastructure is available, users may be deterred by high costs imposed by network operators.

While 5G rollouts are continuing, by the 2030s there will be 6G laboratory tests and early introduction. This newest technology brings the potential to move from the current ecosystem of “Connected Things” to a new ecosystem of “Connected Intelligence.” And with this, end-to-end (E2E) mobile communication systems will optimally support AI and machine learning (ML).

Satellite-Based Connectivity

The global Low Earth Orbit (LEO) satellite market was valued at just under US$ 4,190 million in 2022. With an expected compound annual growth rate of 18%, this should reach almost $11,348 million by 2028.

While costs remain relatively high, LEO satellites are cheaper than regular satellites and are gaining popularity in Internet of Things (IoT) applications as they provide extensive coverage, reduce delays, and are highly reliable. More and more providers are offering LEO satellite services.

Current applications for these satellites include disaster recovery and resilience in remote areas, providing a resilient communication infrastructure during a natural disaster or other emergencies when terrestrial networks are disrupted. Another important application is IoT and machine-to-machine (M2M) communication, as LEO satellites can provide ubiquitous, low-latency coverage.

Capabilities continue to expand. For example, in early 2024, T-Mobile announced that SpaceX launched the first set of Starlink LEO satellites with direct-to-cell capabilities, meaning communication can be supported even in cellular “dead zones.”

In logistics, maritime shipping is already benefitting from new tracking capabilities and global connectivity to smart containers. In 2023, logistics provider Maersk teamed up with Starlink to use satellite data to track container ships, optimize routes, and improve fuel efficiency, and there are plans to use this connectivity solution to digitize vessel operations.

Private Network Sharing & Slicing

Next-generation connectivity enables private network sharing and slicing, allowing a single network to be used for multiple purposes by isolating channels to guarantee security and enhanced user experience.

A great example of this is Amazon Sidewalk, designed to extend the coverage and functionality of smart home devices by pooling a small portion of users' internet bandwidth. A similar example of democratization of infrastructure is how Apple AirTags operate – they use the shared network created by all Apple users.

In the context of 5G and beyond, network slicing allows a single physical network infrastructure to be divided into multiple virtual networks, providing greater flexibility in the use and allocation of network resources. This can support a wide range of services and applications, including enhanced mobile broadband, IoT services, mission-critical communications, and industrial automation.

Here at DHL, we anticipate industrial deployments will feature more use of existing networks, infrastructure democratization, and network slicing. All this offers significant benefits for logistics operations, including customized services, quality of service, efficient resource utilization, enhanced security, and resilience.

Recent applications include the Hamburg, Bremerhaven, and Wilhelmshaven Port’s private networks, a solution providing committed network resources for the container terminal operator Eurogate’s internal data traffic. Another example is the final-mile goods tracking application used by logistics company OnAsset Intelligence, which is based on the Amazon Sidewalk mesh network.

Challenges

Challenge 1

Currently, there is a lack of global standards and little or no organizational alignment on frequencies.

Challenge 2

Regulations and inter-political realities are limiting factors for technology capabilities.

Challenge 3

Network and infrastructure security will be critically important to the development of this trend, as each connected device can act as a gateway for cybercriminals.

Challenge 4

Multiple players along the supply chain and a lack of collaboration between organizations may mean multiple tags and sensors are needed for each shipment and supply chains may need to register data through multiple communication networks.

Currently, there is a lack of global standards and little or no organizational alignment on frequencies.
Regulations and inter-political realities are limiting factors for technology capabilities.
Network and infrastructure security will be critically important to the development of this trend, as each connected device can act as a gateway for cybercriminals.
Multiple players along the supply chain and a lack of collaboration between organizations may mean multiple tags and sensors are needed for each shipment and supply chains may need to register data through multiple communication networks.

Outlook

The trend of Next-Generation Connectivity brings new ways of connecting and overcoming existing challenges, such as connectivity white spots. It also enables more communication, including M2M, with greater ease of deployment.

In the world of logistics, many connectivity technologies are already deployed today. Some are complementary but there may be many that are redundant, resulting in additional costs. Utilizing existing connectivity technologies and exploiting their convergence with automation, big data, and AI will likely increase the range of potential future use cases. With new developments, especially the launch of 6G, next-generation connectivity is capable of not just enabling the Connected Intelligence ecosystem but also allowing it to enrich all aspects of logistics operations.

This trend should be monitored to some extent with use cases in some applications that can already be addressed today.

This trend should be monitored TO SOME EXTENT,with use cases in some applications that can already be addressed today.

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Sources

  1. IEEE Spectrum (2024): The LEO Satellite Industry Needs More Engineers
  2. Statista (2024): 5G - statistics & facts
  3. Industry Analysis (2024): Global LEO Satellite Market Professional Survey by Types, Applications, and Players, with Regional Growth Rate