In 2024, many leading automakers switched from traditional WiFi networks to private 5G to power their facilities.
It’s interesting to see big names like Toyota, Tesla, BMW, and Volkswagen opting for private 5G for their manufacturing facilities. In this article, we’ll explore the key differences between private 5G and WiFi and why the automotive industry increasingly leans towards 5G for its operations.
The Challenges of WiFi in Automotive Manufacturing
For years, WiFi has been the backbone of wireless connectivity in manufacturing plants. It’s widely available, cost-effective, and easy to deploy.
However, as automotive factories have grown more complex and adopted technologies like IoT devices, autonomous guided vehicles (AGVs), and robotic systems, the limitations of WiFi have become glaringly apparent.
1. Limited Coverage and Reliability
WiFi networks are designed for localized connectivity and often struggle in large-scale facilities like automotive plants.
Dead zones, signal interference, and inconsistent coverage can disrupt critical operations, leading to inefficiencies and downtime.
2. Scalability Issues
As automakers deploy thousands of connected devices across their facilities, WiFi networks can become congested.
The limited bandwidth of WiFi struggles to handle the data traffic from a high density of devices, resulting in slower performance and dropped connections.
3. Security Concerns
WiFi networks are more vulnerable to cyberattacks due to their open and shared nature. This poses a significant risk for automakers handling sensitive intellectual property and customer data.
4. Latency and Real-Time Communication Challenges
Modern automotive operations require real-time communication between machines and systems. WiFi’s higher latency often falls short when precise, instantaneous responses are needed, such as in the operation of robots or AGVs.
The Rise of Private 5G and Why Automakers Are Switching Now
Private 5G networks are purpose-built for the high-performance demands of industrial environments. Unlike WiFi, which was designed for general-purpose use, private 5G offers dedicated connectivity with unparalleled speed, reliability, and scalability.
Here’s how private 5G addresses the challenges faced by WiFi:
1. Superior Coverage and Reliability
Private 5G networks provide seamless, facility-wide coverage. Unlike WiFi, 5G signals can penetrate obstacles like walls and machinery, ensuring consistent connectivity even in hard-to-reach areas.
This eliminates dead zones and ensures uninterrupted operations. Another reason why private 5G is getting adopted widely is that it can spread radio waves over a significantly larger radius.
To match that level with WiFi, companies would need a lot more budget, wiring, and maintenance which is truly a hassle.
2. Scalability For The IoT Era
Private 5G can handle an immense number of connected devices simultaneously—up to a million per square kilometer. This makes it ideal for factories with thousands of IoT sensors, AGVs, and robotic systems.
The network can support high data traffic without compromising performance.
3. Ultra-Low Latency
With latency as low as 1 millisecond, private 5G enables real-time communication, which is critical for precision-driven tasks.
Whether it’s coordinating robotic arms on an assembly line or ensuring AGVs operate seamlessly, private 5G ensures instantaneous responses.
4. Enhanced Security
Private 5G networks come with advanced encryption, authentication protocols, and the ability to isolate the network from public access. This gives automakers complete control over their data, significantly reducing the risk of cyberattacks.
5. Downtime Reduction
By providing robust and reliable connectivity, private 5G minimizes network-related downtime.
This means fewer disruptions, smoother operations, and higher productivity—a crucial advantage in the competitive automotive industry.
6. Future-Proof Connectivity
Private 5G supports emerging technologies like edge computing, AI, and digital twins.
This makes it a future-ready solution, allowing manufacturers to seamlessly adopt innovations without worrying about connectivity limitations.
7. Sustainability Support
Private 5G enables energy-efficient operations by optimizing processes through IoT-enabled monitoring and control.
This aligns with automakers’ sustainability goals and reduces operational costs.
Conclusive Thoughts – The Future is Private 5G
The demands of modern automotive manufacturing have outgrown the capabilities of WiFi.
With its superior reliability, scalability, and security, private 5G is not just an upgrade—it’s a necessity for automakers looking to stay competitive in 2025 and beyond.
That’s why leading automotive manufacturers like Toyota, BMW, Tesla, and Volkswagen made the switch, and many others are planning to do the same soon. From improving real-time communication to future-proofing operations, private 5G is setting the stage for the next era of manufacturing innovation.
If you’re ready to explore how private 5G can transform your manufacturing operations, contact us today. Let’s build the future together.