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Revolutionizing Material Handling: The Impact of 5G on AGVs and AMRs in Logistics Automation


Revolutionizing Material Handling: The Impact of 5G on AGVs and AMRs in Logistics Automation

In warehouses and factories globally, the landscape of material handling is evolving with the advent of Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs). Kollmorgen, a leader in automated vehicle solutions, has been at the forefront for over 50 years, and their NDC platform, utilized by over 90 AGV and AMR manufacturers worldwide, has been instrumental in streamlining logistics automation.

The emergence of 5G technology is set to usher in a new era of connectivity and performance for AGVs and AMRs. The collaboration between Ericsson Private 5G and Kollmorgen’s NDC Solutions offers numerous advantages, enhancing the efficiency of manufacturers and warehouses.

Key Benefits of 5G for AGVs and AMRs:

1. Strong, Stable, and Secure Connectivity: Tested on Ericsson Private 5G, Kollmorgen’s NDC Solutions provide seamless and reliable coverage, ensuring uninterrupted communication for fleets of AGVs and AMRs in large facilities.

2. Built to Scale: 5G’s scalability allows factories to expand their AGV fleets without concerns about network congestion, handling a large number of devices efficiently.

3. Predictable Performance and Latency: AGVs and AMRs can communicate swiftly and efficiently, even during heavy network use, thanks to 5G’s deterministic latency, ensuring smooth and predictable operations.

4. Traffic Prioritization: Ericsson Private 5G enables prioritization of specific communication types with Quality of Service (QoS), ensuring AGVs operate without interference from lower-priority applications.

5. Faster Data Transfer: With Ericsson Private 5G, AGV fleets benefit from faster data transfer speeds, lower latency, robustness, and improved reliability, potentially enhancing task efficiency.

Future Outlook with 5G-Enabled AGVs:

1. Increased Productivity: 5G empowers AGVs and AMRs to work faster and smarter, leading to heightened productivity in material handling operations.

2. Improved Efficiency: The reliability and stability of 5G networks reduce downtime, enhancing the efficiency and cost-effectiveness of AGV operations.

3. Competitive Advantage: Staying competitive in the digital-driven economy is crucial, and 5G-powered AGVs and AMRs help businesses keep pace with technology trends, maintaining a competitive edge.

4. Better, Faster, Safer Operations: A facility controlling AGVs and AMRs using 5G achieves higher speeds and considers its environment more effectively, ensuring safer and more efficient operations.

The partnership between Ericsson and Kollmorgen, leveraging 5G technology and private networks, is reshaping the world of AGVs and AMRs in material handling. With enhanced connectivity, scalability, and predictability, these smart machines are set to perform tasks more efficiently than ever before. Embracing 5G-powered AGVs and AMRs positions manufacturers and warehouses to benefit from increased productivity, improved efficiency, and a competitive edge in the dynamic industrial landscape. As 5G technology continues to evolve, its critical role in driving innovation and transformation in material handling is undeniable.


Exploring the Growth Potential of the 5G Systems Integration Market Report, 2024 to 2034

The global 5G system integration market is anticipated to reach a valuation of US$ 15.6 billion in 2024, driven by 5G in smart cities. The trend is expected to create new opportunities for the market, leading to a projected CAGR of 28.8% between 2024 and 2034, and reaching a total valuation of approximately US$ 195.8 billion by 2034.

One of the major factors contributing to the growth of the market is the integration with legacy systems. Many industries have existing legacy systems that need to be integrated with new 5G infrastructure. System integrators play a crucial role in ensuring compatibility and smooth coexistence between legacy and modern systems.

The integration of edge computing with 5G networks for localized data processing and reduced latency creates opportunities for system integrators to design and implement solutions that leverage the capabilities of edge intelligence.

Telecom service providers undergoing digital transformation to adapt to the 5G era require system integration services to integrate new technologies, automate processes, and enhance overall operational efficiency.

System integrators can contribute to improving the overall user experience by ensuring the seamless integration of 5G networks with applications and services, optimizing performance, and minimizing disruptions.

System integration is increasingly important in vertical industries such as healthcare, manufacturing, and transportation, where 5G is utilized for industry-specific applications. Customized solutions that integrate seamlessly with existing processes are in demand.

The move towards virtualized network functions and software-defined networking architectures requires comprehensive system integration. The trend allows for greater flexibility and scalability in 5G network deployments.

Key Takeaways from the Market Study

  • Global 5G System Integration market was valued at US$ 12.3 billion by 2023-end.
  • From 2019 to 2023, the market demand expanded at a CAGR of 26.0%.
  • The market in Australia is expected to expand at a CAGR of 32.3% through 2034.
  • By vertical, the IT and Telecom segment to account for a share of 24.5% in 2024.
  • From 2024 to 2034, the 5G system integration market is expected to flourish at a CAGR of 28.8%.
  • By 2034, the market value of 5G system integration is expected to reach US$ 195.8 billion.

“Digital twins, virtual replicas of physical objects or systems, are being used for monitoring and simulation in various industries. System integrators can help integrate digital twins with 5G networks for real time monitoring and analysis,” – says Sudip Saha the managing director and co-founder at Future Market Insights

Competitive Landscape

Recent Developments

  • In 2021, Ericsson unveiled its intelligent automation platform, a cutting-edge service management and orchestration product designed to enable intelligent automation for any mobile network. Expanding upon its existing portfolio, which includes the cloud native dual mode 5G Core and the Cloud RAN portfolio, the introduction of the Ericsson intelligent automation platform and a suite of rApps represents a strategic advancement toward building the networks of the future.
  • In the same year, NEC Corporation and its wholly owned subsidiary, Netcracker, revealed the successful deployment of their 5G Core and comprehensive Digital BSS/OSS on Amazon Web Services. The deployment is designed to effectively orchestrate and automate the delivery of 5G digital services.
telecom market

Top 5 trends transforming telecom network infrastructure market outlook

The telecom network infrastructure industry landscape is evolving rapidly as 5G deployment efforts garner momentum. Across various countries, the respective governments are focusing on advancing progress towards the commercialization of 5G services. Earlier this year in June, for instance, the Joe Biden Administration announced a US$65 billion investment for deploying highspeed universal 5G broadband infrastructure across the U.S.

The rise in IoT and connected devices is expected to provide significant growth momentum to the telecom network infrastructure industry. With a notable uptick in wireless connections, the demand for greater broadband coverage and improved cellular connectivity is increasing. To meet this demand telecom operators are upgrading their network infrastructures. Ongoing smart city developments will create additional opportunities for operators in the next few years.

The global telecom network infrastructure market size is projected to reach US$120 billion by 2027, says Global Market Insights, Inc. Highlighted below are some major factors driving the industry forward.

1. Rapid 5G deployment in Europe

As the demand for seamless broadband connectivity rises, European countries are witnessing strong collaborations among telecom operators. For example, in October last year, 5G technology company Airspan Networks had partnered with network infrastructure company Siticom GmbH to deliver 5G wireless services to automotive, healthcare, manufacturing, and other sectors in Germany. With similar efforts in other nations, Europe telecom network infrastructure industry size is estimated to be worth US$25 billion by 2027.

2. Active efforts by telecom operators

The number of internet users and wireless connections have surged exponentially over the past several years. Telecom operators are gearing up to meet the increasing demands of cellular users by continuously upgrading their network infrastructures. As a result, telecom operators hold a fair share in the telecom network infrastructure market. The deployment of 5G, which promises greater speeds, ultralow latency, and seamless connectivity, will open up new opportunities for operators worldwide.

3. Growing deployment of femtocell base stations

The need for improved indoor network coverage in urban areas is rising steadily due to the wider adoption of smart home devices. Advancements in IoT and connected devices is further making seamless coverage essential in indoor locations. Based on these factors, the demand for femtocell base stations is likely to grow at 5% CAGR in the telecom network infrastructure industry. Femtocells are deployed in areas where a backhaul can be developed without any difficulty or where a network backhaul is already present.

4. Emerging need for integration & deployment services

Integration and deployment services are in demand globally as they help maintain performance, resiliency, and availability. Moreover, these services ensure an always-on, secure, scalable, and multi-technology network across businesses. They also help enterprises gain greater RIO via network planning, optimization, and multi-vendor network integration. In 2020, integration and deployment services captured 50% of the telecom network infrastructure market share.

5. Increasing market competition

Huawei Technologies Co., Ltd., Cisco Systems, Inc., CommScope, Inc., Ciena Corporation, Inc., Ericsson, and Nokia Networks are some of the top telecom network infrastructure companies in the world. To meet the changing connectivity requirements, these companies are upgrading their RAN network offerings via partnerships and other strategies. Highlighting an instance, in March 2020, Airspan and Altiostar signed a partnership to commercialize 4G and 4G open virtualized RAN network solutions. While established companies look to boost their market presence, the emergence of new entrants in the telecom network infrastructure industry will further heat up the competition.

Source: Global Market Insights Inc.

wholesale ecosystem

North America’s Wholesale Voice Carrier Market Size to Surpass US$8 Billion by 2026

According to a recent study from market research firm Graphical Research, the North America wholesale voice carrier market size is set to register significant growth during the forecast timeframe. One of the major reasons for this is the rapid commercialization of 5G technology. This technology is being adopted at a high rate by several enterprises to leverage different wholesale voice services.

The investments made towards 5G network solutions are increasing today because of the possibility it offers to service providers to diversify their portfolio and help them grow their market share. There are several mobile operators today that are upping their investments in futuristic 5G networks to help them cater to the increasing demand for high-quality connectivity among consumers while increasing the range of their mobile data services for customers.

The growing need among service providers to opt for cost-effective wholesale voice carriers will boost the demand for voice termination services in North America. In fact, this segment held an overall share of more than 70% in the regional wholesale voice carrier market during 2019. Voice termination services are gaining tremendous momentum over traditional voice and data solutions because of the increase in demand for high-quality voice calling among consumers.

On the basis of transmission, the market share from leased network services in North America will grow at a steady rate of more than 10% CAGR through 2026. There is a sudden spike in the percentage of service providers opting for leased network infrastructure. They prefer leasing a part of the overall infrastructure so that they can set up their voice carrier facilities in emerging markets. As the telecom industry is growing, the number of service providers opting for leasing the network infrastructure from Tier-1 operators has increased as well. This helps the Tier-2 and Tier-3 network providers lower the overall network ownership cost.

VoIP (Voice over Internet Protocol) services adoption will grow at a substantial rate, capturing over 40% of wholesale voice carrier market share in North America in 2019 alone. A major reason for this is the several benefits of these services for customers across the region. They reduce the overall cost of long-distance domestic calls and the cost of international calls is lower as well. The quality of phone calls made with the help of VoIP is greater as compared to the ones made using Public Switched Telephone Network (PSTN).

Canada’s wholesale voice carrier market will expand at a greater rate during the forecast period of 2020-2026 because of the strength in demand for voice carrier services in the country. The nation is even coming up with different mechanisms to reduce the number of fraudulent calls taking place over networks, thereby providing strong protection against scammers. The demand for 5G technology services has increased by many folds in the country. The local telecom service providers are getting into partnerships with other firms to provide these high-speed services to their customers.

In February 2020, Huawei and Telus Corporation announced a partnership to launch 5G network services in Canada. This collaboration was implemented by following all the governmental protocols laid for network services and the enterprises across the country are now benefiting with the availability of high-speed internet connection.

Some of the leading companies providing wholesale voice carrier services in North America are CenturyLink Inc., BT Group PLC, Alepo, AT&T Inc., NTT Corporation, TATA Communications Ltd. among many others.



Data Center Power Market: Top Trends Propelling the Industry Demand Through 2026

According to a recent study from market research firm Graphical Research, the global data center power market size is set to register significant growth during the forecast timeframe. With the proliferation of advanced technologies such as artificial intelligence (AI), the internet of things (IoT), 5G, and cloud, the demand for data center power is likely to augment through the next five years. These advanced technologies are expected to be integrated into the systems used by manufacturing companies leading to growing pressure on the IT infrastructure.

The next-generation IT infrastructure is likely to adopt advanced power supply solutions that cope with these pressures. A growing inclination toward customized services is marking a new trend in the market, owing to which, service providers have been catering to the individual demands of the end-users.

The global data center demand has surged during the COVID-19 pandemic, with tremendous consumption of networks due to work from home requirements and higher viewership of OTT platforms. The following top seven trends are expected to accelerate the global data center power market outlook through 2026:

Emphasis toward cutting down energy consumption in America

Data centers consume more than 416 terawatts of power annually, which represents nearly 3% of the total electricity generated on a global scale. As per the Energy Technologies Area or ETA, more than 73 billion kWh were consumed by the U.S. during 2020.

This has brought into focus the need to minimize energy consumption across the region, generating demand for advanced solutions across the data center power market in North America. Power management in data centers can be achieved through the improvement of the flow of power distribution across ventilation systems, environmental control, UPS systems, and lighting.

Spiraling demand for OTT services across Canada and the U.S.

The North American data center power industry forecast is registering a high growth owing to the rising number of intelligent power managing solutions in the region. The popularity of OTT services across the US and Canada has been soaring since the outbreak of the novel coronavirus, with soaring subscriptions across platforms such as Amazon Prime Video, Disney Hotstar, and Netflix.

Additionally, data-intensive businesses have been seeking to minimize greenhouse gas emissions and the PUE ratio, at the same time boosting power efficiency. With this aim in view, several industry participants have been developing smart UPS, intelligent PDUs, as well as battery monitoring equipment.

Digitalization across the North American healthcare industry

The data center power market applications in North America are segmented into healthcare, IT & telecom, BFSI, government, manufacturing, energy, and colocation end-users. Of these, the healthcare industry has been exhibiting a key impact on the market, with a higher need for data center services.

By 2026, the healthcare application segment will see considerable revenue generation, thanks to the growing utilization of digital data and higher emphasis on government standards. Government mandates, including the HIPAA standards, are being enforced in a more stringent manner to ensure higher productivity and efficiency of the healthcare industry.

Extensive adoption across European cabling infrastructure

The cabling infrastructure in European countries is slated for strong growth through the forecast timeline owing to the growing demand for reliable and effective equipment across data centers in the region. Cable management products and solutions are extensively utilized due to their simple, modular designs, and ease of installation. Leading manufacturers in the European data center power market are providing advanced cable management solutions with improved scalability, flexibility, and intelligence.

Growing requirement across Europe’s hyperscale data centers

Owing to the growing integration of advanced power storage devices across hyperscale data centers, the data center power industry share from the UPS segment accounted for a major portion of the total revenue share during 2019. Cloud service providers have particularly been expanding their presence throughout the region by developing mega data centers.

For example, in September 2020, Google LLC announced its plan to invest more than $3.3 billion towards the expansion of its data center footprint in Europe over the span of the next two years. Since hyperscale data centers involve the integration of a host of storage devices and servers, they require an uninterrupted power supply for ensuring continuous transmission and processing of data.

Growing demand for online banking across Asia

Asia Pacific has been witnessing a thriving BFSI sector seeking digital technologies, especially in the wake of the COVID-19 pandemic. Contactless payments, POS terminals, mobile wallets, and online banking, in general, are growing increasingly popular in the last few years.

For instance, in Japan, more than 24 million individuals utilized their smartphones at POS terminals to make payments during 2019. The rising concerns over data center downtime are fueling Asia Pacific data center power market forecast.

Increased internet penetration across APAC

The demand for seamless online video streaming has been escalating synchronously with the expanding internet penetration across Asian countries. The high data consumption rate by Amazon Prime Video, YouTube, and Netflix users will translate to the focus toward the development of a robust data center infrastructure. T

The rapid adoption of 5G, IoT, AI, cloud computing, and other latest technologies across numerous data center construction projects is likely to power the APAC data center power market forecast.

ABB Group, Cisco Systems, Inc., Cummins, Inc., Legrand, Black Box Corporation, Vertiv Group Co., Siemens AG, and Cyber Power Systems, Inc. are some leading data center power solutions providers in the international market.


How Will Telematics Transform the Modern Supply Chain

Today’s consumers expect goods to be delivered faster and on shorter notice than ever before. For the logistics industry, meeting these demands for greater flexibility and agility has required change, where it’s the adoption of lean logistics principles or the use of Industry 4.0 technology.

Novel telematics technology, powered by recent developments like Internet of Things (IoT) devices and artificial intelligence, are already helping the supply chain satisfy the needs of a growing and accelerating global economy.

This technology could revolutionize logistics in the near future, and here’s how.

Key Benefits and the Impact of Vehicle Telematics

One of the most significant obstacles logistics companies have faced has been the difficulty of tracking vehicle location, health and performance. New telematics technology can help businesses overcome this obstacle by vastly expanding the amount of accessible information on trucks and driver behaviors.. New telematics technology can help businesses overcome this obstacle by vastly expanding the amount of accessible information on trucks and driver behaviors.

GPS trackers can continuously track a vehicle’s location. Other telematics devices can communicate directly with internal car modules, like an engine or battery control unit. This provides a company with direct access to information on the engine health and performance of fleets.

With the speeds offered by 5G, these devices can transmit information in near real-time to the cloud, providing telematics data to the fleet owner and their business partners. The technology has a wide range of applications for logistics companies. Better knowledge of a driver’s current location and behavior can provide more accurate estimates of when a shipment will arrive.

GPS and engine data can also help businesses conform to new regulations like anti-idling laws. If a vehicle remains parked in the same place for long enough while the engine is active, the system can automatically alert the driver and log an idling event. Having a direct line to car data can also be extraordinarily helpful for technicians wanting to maximize the lifespan of fleet vehicles.

On the road, telematics systems can provide a great deal of information to drivers. Some can continuously monitor and report diagnostic trouble codes. Vehicle operators and the technician they work with can instantly know if an illuminated check engine light is caused by something like a loose gas cap or a much more serious problem.

Typically, this information is only accessible via an OBDII reader or code scanner, which may provide codes without explaining what they mean. The telematics solution makes this data more accessible and useful to non-technicians.

Early notification on potential vehicle issues can help fleet managers avoid or mitigate some of the most common maintenance issues in semitrucks and similar vehicles.

Transparency, Traceability and Data-Sharing

Telematics makes it possible to create a log of all information relevant to an order while it was in transit — where it was, what conditions it was exposed to and even the speed it was traveling while in the care of a particular driver.

As a business grows, this information can help managers coordinate an increasingly complex network of drivers, fleet headquarters and vehicles. It can also help companies improve the transparency and traceability of their logistics network.

Data gathered on drivers and shipment location can be provided to business partners, allowing them a real-time view of where critical items are while in transit. This information can also be stored for later use — like providing someone with a fuller picture of how a shipment moved from point A to point B after the fact.

In other cases, IoT can also help provide businesses with more information about how goods are shipped. IoT temperature sensors can supplement an existing telematics solution to provide real-time updates on the temp inside a vehicle.

This information can enable drivers to take quick action if storage temperatures move out of a safe range during transportation. Stored data from a particular shipment can also resolve conflicts if a product spoils while in transit. Temperature information can determine exactly when an item spoiled and more accurately pinpoint who may have been at fault. This technology can reduce the scale of recalls and prevent them from happening in the first place.

Similar devices measuring in-vehicle conditions like humidity and vibration can provide additional information to drivers and managers. This data can help them optimize storage and transportation conditions — reducing the risk that packages are damaged while in transit or sent at suboptimal conditions.

Optimizing Processes With Telematics Data

The data gathered by telematics devices can have value long after the moment in which it was generated. The rise of artificial intelligence and big data analytics means the massive amount of information produced by telematics systems can be analyzed to uncover insights that may have been impossible to find with conventional analytic approaches. This includes moment-to-moment information on driver behavior, location and engine performance.

For example, real-time information on driver routes and vehicle health can be used to create route optimization algorithms that use traffic data and driver behavior information to plan the fastest way to a destination. It could also be used to determine roadways that minimize gas consumption.

Data from deliveries can also be aggregated and used to create new planning algorithms in the long run. They can help companies develop more accurate estimates of how long a particular delivery will take based on available information like drivers available, driving behavior, traffic and weather conditions.

These improved estimates can ensure on-time deliveries and reduce the risk that a company commits to orders they cannot fill in a timely fashion.

Telematics Paves the Way for a More Efficient Supply Chain

Novel telematics technology, assisted by innovations in IoT and AI, greatly increases the amount of data that logistics companies have access to. A business can plug directly into their fleet vehicles with the right solution, allowing them access to truck health and sensor data.

Other telematics devices, like GPS trackers and temperature sensors, can provide additional information on the location of a shipment or the environmental conditions it may be in.

This information will allow businesses across the sector uncover new insights and develop algorithms that can optimize route planning and fleet management.

Enterprise Networking

Enterprise Networking Market: Top Trends Reinforcing the Industry Forecast through 2024

According to a recent study from market research firm Graphical Research, the global enterprise networking market size is poised to expand at a substantial CAGR during the forecast period. The outbreak of the COVID-19 pandemic has been shaping the field of networking in various ways, including the emergence of completely remote offices and the development of advanced software solutions for better communication. Consequently, the demand for networking solutions across enterprises and businesses is slated to spiral throughout the world.

The top seven trends powering the enterprise networking industry outlook are as follows:

Expanding Demand for High-Speed Switches in North America

In terms of product, the North American enterprise networking market outlook has been bifurcated into network security, routers, switches, network management, and wireless. The demand for high-speed ethernet switches has been escalating in recent times in accordance with the growing utilization of network virtualization solutions.

During 2017, the market share from the switching segment accounted for more than 25% of the total regional industry. The forthcoming years are poised for considerable growth as the transformation of the enterprise network needs amid the pandemic has led to a higher preference for high-speed ethernet switches. With the proliferation of the 5G network, the demand will propagate further across the region.

North American Enterprises to Recalibrate their Cloud Strategies

Numerous businesses across the world, including those in North America, have been focusing on the recalibration of their cloud strategies as the workplace scenarios have been transforming due to the pandemic. In this scenario, virtual desktops, collaboration, and mobility are embracing the cloud deployment model for enabling a secure and distributed workforce.

The cloud model is increasingly being leveraged not just as an application destination but as a new enterprise management tool because it offers network insights efficiently. It ensures quick access to the latest features as well. This move toward the cloud deployment model is more than likely to stay afloat in the post-pandemic times.

Introduction of Native Cloud Management Platforms in Canada

By 2024, Canada is likely to emerge as one of the leading regional markets of the North American enterprise networking market. Advancing at a 6% CAGR, the regional segment has been registering a remarkable uptick in the volume of cloud service adoption by enterprises.

With the Canadian government utilizing cloud technology for responding to the growing necessity for IT services, private enterprises are turning to advanced cloud strategies. Numerous industry players have been expanding their product and service offerings. For instance, the cloud-based networking company, Extreme, announced the addition of a native cloud management platform located in Canada during December 2020, ensuring better data privacy and sovereignty for large enterprises.

Alarming Rise in Cyber Threats in the U.S.

The dramatic rise in the volume of cyber threats and cyber-attacks amidst the pandemic has been driving enterprises to adopt advanced networking solutions in the U.S. During 2017, the U.S. represented a staggering 70% of the total North America enterprise networking market share.

Clearly, cyberattacks rank as one of the fastest emerging crimes across the U.S., leading to major business disruptions. Recent surveys reveal that most enterprises are susceptible to data loss due to their poor cybersecurity practices and unprotected data. With growing concerns regarding better protection of data, the prospects for the enterprise networking industry in the U.S have improved.

Growing Adoption Across IT & Telecom in Asia

The Asia Pacific enterprise networking market size is slated to expand rapidly over the forecast years. The sector held a market share of more than 30% during 2017 and might make a significant headway by 2024. By 2024, the overall APAC industry share will have reached $20 billion.

The growth in the need for high bandwidth applications has been encouraging enterprises to switch to advanced enterprise networking solutions for addressing the current bandwidth shortage problems. As smartphones, laptops, and tablets become more commonplace with trends such as BYOD (Bring Your Own Device), the enterprises will see a higher adoption even in post-pandemic times.

Cybercriminals Capitalizing on COVID-19 fear in Japan

In Japan, cybercriminals have been capitalizing on the COVID-19-induced fear for luring victims into sophisticated traps, while hackers have been targeting victims via hoaxes and phishing emails. This will fuel the APAC enterprise networking market forecast.

As Japanese companies have been falling victim to unexpected cyberthreats and cyber-attacks, they have been striving to fortify their cybersecurity. In December 2020, the Japanese Ministry of Trade urged enterprises to exercise enhanced leadership with strengthened internal cybersecurity, as the frequency can worsen with the growth in telework.

Rising IoT devices across the Netherlands

The Netherlands enterprise network market is expected to accrue a considerable revenue by 2024, growing at a 10% CAGR through the analysis timeline. The support from government initiatives has been improving cybersecurity across enterprises.

Issues such as the rising phishing through text messaging, misuse of vulnerabilities in Dutch government’s servers, misuse of the ICT infrastructure, and large-scale distributed denial of service (DDoS) attacks are urgently being addressed by enterprises to avoid losses that can have an impact beyond the financial aspects. The considerable addition of numerous IoT devices to the technological infrastructure in the region, promoted by the deployment of LPWAN technology has also been fostering networking growth.


The American Cable Market Will Shoot Up Thanks to Infrastructure Development for Electric Vehicles

IndexBox has just published a new report: ‘U.S. – Insulated Wire And Cable – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Electric wires and cables may hit a record demand amid the infrastructure development for electric vehicles in the U.S., for which the Biden administration’s infrastructure bill will allocate $174B. The active deployment of 5G networks and the expansion in the construction sector due to the rush demand for dwellings will also continue driving the market in the medium term.

Key Trends and Insights

The insulated cable and wire market could begin a new era of growth due to the expected increase in demand for infrastructure for electric vehicles in the U.S. In March 2021, the Biden Administration unveiled a plan to stimulate the introduction of electric vehicles, providing for the installation of charging stations throughout the whole country. The plan outlines investing more than $174B in infrastructure creation and development.

The construction boom in the private low-rise building sector will further stimulate the wire market. In the context of an acute shortage of housing amid the rush demand, the intensive pace of new construction will ensure a stable need for cables for the next two years at least.

The intensive construction of a new 5G network for broadband access will be another important driver of the wire market. The development plan for this segment is described in the National Strategy for 5G Security in the U.S., adopted in 2020, which points to allocate $100B for its implementation.

Producer prices for copper wires and cables in the U.S. grew steadily over the last three quarters of last year and prices in April 2021 exceeded their April 2020 level by a rate of 1.3. In the short term, prices are expected to continue growing as demand outstrips the market supply. Production in 2020 fell by 2.7% y-o-y and has not yet fully recovered from market disruptions due to the Covid pandemic. The rise in prices for copper and PVC, raw materials for manufacturing wires and cables, also contributes to the rise in the cost for the final product.

Given the above-mentioned circumstances, the U.S. wire market is expected to post solid gains in the medium, term. Driven by strong demand in the electrocar industry, the construction and the growing telecommunications segment, the market could reach 1.8M tonnes by 2030 (IndexBox estimates).

Insulated Wire and Cable Production in the U.S.

In 2020, the amount of insulated wire and cable produced in the U.S. reduced to 731K tonnes, which is down by -2.7% compared with the year before. Overall, production recorded a perceptible downturn. The most prominent rate of growth was recorded in 2019 with an increase of 6.1% y-o-y. Wire and cable production peaked at 996K tonnes in 2012; however, from 2013 to 2020, production remained at a lower figure.

In value terms, wire and cable production dropped modestly to $9.6B in 2020. Over the period under review, production recorded a perceptible descent. The most prominent rate of growth was recorded in 2019 with an increase of 6.1% year-to-year. Wire and cable production peaked at $12.9B in 2014; however, from 2015 to 2020, production stood at a somewhat lower figure.

Insulated Wire and Cable Imports into the U.S.

In 2020, purchases abroad of insulated wire and cable decreased by -28.1% to 1M tonnes, falling for the second consecutive year after three years of growth. In value terms, wire and cable imports shrank to $18.4B in 2020. The total import value increased at an average annual rate of +2.7% over the period from 2012 to 2020.

In 2020, Mexico (417K tonnes) constituted the largest supplier of wire and cable to the U.S., accounting for a 41% share of total imports. Moreover, wire and cable imports from Mexico exceeded the figures recorded by the second-largest supplier, China (148K tonnes), threefold. Viet Nam (65K tonnes) ranked third in terms of total imports with a 6.3% share.

In value terms, Mexico ($9.4B) constituted the largest supplier of wire and cable to the U.S., comprising 51% of total imports. The second position in the ranking was occupied by China ($2.9B), with a 16% share of total imports. It was followed by Viet Nam, with a 6.1% share.

In 2020, the average wire and cable import price amounted to $17,883 per tonne, increasing by 23% against the previous year. Over the last eight years, it increased at an average annual rate of +3.0%.

Source: IndexBox Platform

Optical Fiber Cables

The Transition to 5G to Boost Demand for Optical Fiber

IndexBox has just published a new report: ‘World – Optical Fiber Cables – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

As countries implement 5G networks, the increased demand is predicted to significantly drive the market for optical fiber to reach 1.5M tonnes by 2030. This new generation of mobile broadband will require building dense networks of base stations connected by optical fiber cables.  In the near future, the U.S., China, Japan and the EU should become the most lucrative markets for sales and distribution of fiber optics.

Key Trends and Insights

The optical fiber market faces a new era of development as 5G networks are implemented all over. The next-generation network will require a significantly larger amount of fiber optic base stations because it uses a high-frequency signal that cannot cover large distances. There is no alternative to optical fiber, as it is the only effective cable material that provides the necessary high data transfer rates. As a consequence, the demand for optical fiber is expected to sky-rocket and the global optical fiber market could reach 1.5M tonnes by 2030.

The U.S., China and Japan demonstrate the highest potential for consumption of optical fiber due to their emphasis on developing infrastructure for fifth-generation networks. The U.S. in all likelihood may become the largest consumer of optical fiber due to the size of its territory. Saudia Arabia, the EU and Australia are also actively implementing 5G technology.

Currently, China has installed approx. 70% of the world’s base stations, making it the largest consumer of the optical fiber at 135K tonnes in 2020 and leading all other countries with its rate for implementing 5G. According to the 14th Five-Year Plan (2021-2025), the number of 5G base stations in China will double by 2022 and by 2023 the total will surpass 5.1M.

The U.S. comes in second for consumption with 125K tonnes in 2020. The Biden administration has announced that it will allocate $100B to develop the infrastructure for broadband access within its eight-year plan. This should accelerate the expansion of the country’s 5G network coverage.

The Japanese government declared that implementing 5G is one of the government’s highest priorities while Japanese telecom companies plan to invest more than $14B into infrastructure for 5G networks, including base stations, server equipment and optical fiber.

Optical fiber is the ideal material that can achieve the high performance claimed by 5G, as it provides over 1K times as much bandwidth as a copper link. The lack of alternatives and overall demand for optical fiber will make this segment of the cable industry more and more attractive for investment.

Global Optical Fiber Cable Consumption

In 2020, the global optical fiber cables market decreased by -3.9% to $13.7B for the first time since 2017, thus ending a two-year rising trend. In general, consumption, however, continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2018 with an increase of 9.7% year-to-year. Over the period under review, the global market reached the peak level at $14.4B in 2012; however, from 2013 to 2020, consumption failed to regain momentum.

The countries with the highest volumes of optical fiber cables consumption in 2020 were China (135K tonnes), the U.S. (125K tonnes) and Mexico (61K tonnes), together comprising 31% of global consumption.

In value terms, the U.S. ($2.3B), China ($1.4B) and France ($788M) were the countries with the highest levels of market value in 2020, together accounting for 33% of the global market.

The countries with the highest levels of optical fiber cables per capita consumption in 2020 were France (625 kg per 1000 persons), Turkey (486 kg per 1000 persons) and Mexico (453 kg per 1000 persons).

Global Optical Fiber Exports

For the ninth year in a row, the global market recorded growth in overseas shipments of optical fiber cables, which increased by 6.7% to 596K tonnes in 2020. In value terms, optical fiber cables exports contracted to $6.8B (IndexBox estimates) in 2020.

China dominates optical fiber cable export structure, resulting in 344K tonnes, which was near 58% of total exports in 2020. Mexico (46K tonnes) ranks second in terms of total exports with a 7.7% share, followed by the U.S. (6.7%). The following exporters – Poland (13K tonnes), Spain (12K tonnes), South Korea (12K tonnes), Germany (12K tonnes) and Romania (11K tonnes) – each amounted to a 10% share of total exports.

In value terms, the largest optical fiber cables supplying countries worldwide were China ($2B), the U.S. ($1B) and Mexico ($702M), with a combined 55% share of global exports. These countries were followed by Poland, Germany, South Korea, Romania and Spain, which together accounted for a further 14%.

In 2020, the average optical fiber cables export price amounted to $11,350 per tonne, which is down by -16.8% against the previous year. From 2012 to 2020, the most notable rate of growth in terms of prices was attained by the UK, while the other global leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform

industry logistics

What’s In the Future for the Logistics Industry?

Without a doubt, technology has significantly turned the world into an online village. With just one click of a button, it is possible to shop for anything online and have it delivered to your doorstep.

While goods still need to be moved the same distance to reach a consumer, the logistics industry can benefit from adopting new-age logistics technology. From late to missed deliveries and even damaged goods on transit, numerous problems in the logistics industry continue to affect the delivery of goods negatively.

With technology, it is possible to streamline the delivery of goods. Technology adaptation in logistics can guarantee faster delivery processes, better handling of goods on transit, and reduced cost of operations for logistics companies.

Challenges facing the logistic industry that can be solved with technology

Planning logistics. Whether local or international, shipping can be time-consuming and comes with an increased risk of damage to goods. Many challenges affect the logistics industries. By analyzing these challenges, it is possible to determine which processes are worth automating.

A shift in customer desires

Every day, the demand for goods and services changes with top companies willing to pay top dollar for these numbers. Shifting customer desires influenced by reliable products recommendations affect the types of products on demand and the number of orders on these goods. Having this information can help companies reduce waste and dead stock. These changes can take place quickly, making it almost impossible to predict change in patterns.

Analytical technology can make it easier for a company to analyze trends and possible changes even before they happen.

Timely deliveries

One of the most significant problems for logistics companies is ensuring they meet customer delivery expectations. Natural factors, as well as management issues, influence how fast goods get to a consumer. Timelines are essential, especially for time-sensitive goods like perishable products. Technology can make it easier to speed up delivery queueing, thus ensuring timely deliveries for all orders based on time of ordering.


While on transit, the safety of goods and products has always been a great source of concern for the logistics industry. However, security issues in warehousing can also have a negative impact on delivery. Loss or damage of goods leads to lost sales or higher refund rates. With adaptations of logistics technology, goods tracking while on transit and in the warehouse can significantly enhance security and reduce revenue loss.

Poor infrastructure

While it is easy for logistics companies to invest in bigger shipping containers, ensuring the goods get to the recipient in good shape is still a tall order, especially in developing nations where suitable infrastructure is not always available.

Future Trends in the Logistics Industry

As the logistics industry continues to grapple with the issues above, the only way to overcome them is by focusing on adapting trends set to shape the industry in the future. Adaptation of technology is the only way to address the issues affecting the industry by automating most of the processes for better service delivery.

Some of the trends expected to take place in the logistics industry include:

Increased Adoption of Transportation Management System (TMS)

While transport management systems are not new in the logistics industry, they are used mainly by big logistics companies because of the high cost of setting up. However, with the wider availability of cloud-based management solutions, TMS and SaaS applications are slowly becoming more common even in small and medium-size logistics companies. This way, they even the playing field so that small companies can compete for a larger market share.

Availability of Autonomous Vehicles and Drones

As technology giants like Apple and Google play with the idea of developing self-driven cars, Amazon hopes to use drones to deliver product orders to their customers. Tens of logistics companies hope to be the first to use technologically advanced delivery systems.

Autonomous vehicle and drone technology will streamline the delivery process while minimizing human contact with products. The use of self-driven vehicles is expected to help in cutting fuel costs while reducing labor costs.

Growth in the adaptation of Internet of Things (IoT)

Smart devices that use IoT are becoming increasingly common in most households, and now this technology can be used in the logistics industry. The Internet of things can make warehouse management and stock management more manageable. With the Internet of Things, it is easier for a company to know when they are running low on stock and the best time to replenish.

IoT can also be used to track goods on transit without necessarily having to be there during the loading process. It also makes it possible to know and when the goods reach the consumer in real-time. This can go a long way in reducing over or under-ordering or manufacturing.

Tracking using E-logging gadgets

While drone technology may change how goods are delivered, not everything can be delivered using a drone. Therefore, there will still be a need for truck delivery vehicles. The use of E-logging gadgets can improve accuracy and shipping time while improving security by logging the delivery routes.


Advancements in technology will undoubtedly change how logistics companies operate while giving room for better competition, even for smaller companies. While it may affect the human component of the business, the improved accuracy, faster delivery and better handling of goods will be an added benefit to the consumer and the industry.