Smart Factory Upgrades: 5G, Cybersecurity, and Human‑Centric Automation Lead the Charge

Following the economic turbulence of 2020, smart factories must demonstrate real innovation to justify upgrade investments, even as factory‑floor access remains limited.

Paul Miller, principal analyst at Forrester, emphasizes that manufacturers are now more strategic about maximizing value from every upgrade, and stresses the importance of 'augmenting the engineer'.

IT leaders often focus on greenfield deployments, but Miller points out that 80%‑90% of assets in typical manufacturing environments are brownfield, with many pieces of equipment up to 30 years old. 'There’s a requirement to connect those as well,' he says.

Miller advises that smart manufacturers should prioritize where to place sensors, rather than outfitting every machine. He cites New York‑based Augury, which retrofits sensors capable of measuring vibrations, temperature, and noise—allowing brownfield sites to modernize without a complete overhaul.

'Vendors are working out where to put those sensors to deliver maximum value and enable a phased upgrade,' Miller adds.

The economic downturn forced many vendors to reassess timelines, but the demand for smart‑factory upgrades has not waned. Miller notes that investment will increase far beyond the original roadmaps.

Previously loosely defined pilots have been halted, while tightly scoped pilots that solve real problems are being fast‑tracked. 'Overall investment remains roughly as projected, but it’s now laser-focused on tangible outcomes,' he explains.

Connecting assets tops the agenda. Bosch and Siemens offer devices that are IoT‑ready and can be integrated into existing networks.

While 5G is a major talking point, Miller reminds manufacturers that a range of connectivity options—fiber, Wi‑Fi, Bluetooth, and wired Ethernet—can meet their needs. 'You don’t have to rely solely on 5G,' he says.

Hybrid 'edge‑cloud' architectures are becoming the preferred model: cloud processing provides global visibility across multiple plants, while edge computing handles latency‑sensitive tasks locally.

Cybersecurity remains a top concern. Vendors must protect assets while delivering value, balancing openness with risk mitigation.

Limited factory‑floor access has accelerated the adoption of augmented reality (AR). AR enables field‑service engineers to guide on‑site workers remotely, or even enable workers to perform maintenance with real‑time visual assistance.

Post‑pandemic, manufacturers are focusing on discrete problems and leveraging remote assistance and IoT to solve them.

Miller highlights a shift toward integrating automation and Industry 4.0 technologies into human workflows. 'We must augment the engineer, not replace them,' he urges. 'Workers possess deep expertise; technology should enhance, not diminish, their roles.'

He cautions that discussions around robotics can frighten workers, but reassures that automation is intended to complement, not supplant, human labor.