Mercedes-Benz and Telefónica Deutschland to set up the world’s first 5G network for automobile production

Mercedes-Benz Cars, in association with telecommunications company Telefónica Deutschland and network supplier Ericsson, is setting up the world’s first 5G network for automobile production in its Factory 56 in Sindelfingen, Germany. This is the first time the 5G mobile communications standard is being implemented into the running production. The 5G technology can rapidly process huge data sets. The 5G standard allows fast data transmission rates, with extremely low latency and a high level of reliability. Mercedes-Benz Cars is planning to implement such innovation in its other plants as well.

The state-of-the-art own 5G network at the Mercedes-Benz plant will help the company optimize the existing production processes in its plant with the help of new features, including data linking and product tracking on the assembly line. These production processes can be optimized and made more robust with a separate own network and, if needed, can be adapted at short notice to prevailing market requirements. Mercedes-Benz’s Factory 56 is the world’s most modern car manufacturing facility. It uses intelligent and digitalized technologies to harness the full potential of Industry 4.0. Machines and systems. Factory 56 is equipped with several 5G small-cell indoor antennas and a central 5G hub in order to reach the full capability of 5G.

MarketsandMarkets™ View Point:

Akshit Atreya – Analyst : Automotive & Transportation, at MarketsandMarkets™, shares his Point of View as mentioned below:

According to MarketsandMarkets™ analysis, using 5G technology for automobile production has the potential to transform the traditional production system and can help in optimizing the production process. 5G network in the automobile industry can serve a wide range of applications as diverse as automotive communications, infotainment, and connectivity services. This technology has raised the speed standards as well. A powerful 5G network can respond in real time and can empower the user to make better decisions during the production process. The adoption of 5G technology for production process not only optimizes the production process but also secures sensitive production data to be shared with the third parties. The development of own infrastructure plays an important role in the smart manufacturing process. It can help in optimizing assembly line, product tracking, data linking, and syncing production systems and machines together to enhance the efficiency and precision of the production process.

5G Network for Automobile Production

Impact on Top Competitors:

The pioneer application of 5G network technology for production by Mercedes-Benz will have a high impact on the competition. In August 2018, Audi announced its plan to launch 5G technology for automobile production. Audi signed a Memorandum of Understanding (MoU) with Ericsson to run field tests in a technical center of the “Audi Production Lab” in Gaimersheim, Germany. These two companies are exploring the opportunity of 5G as a future-proof communication technology that can fulfil the high demands of automotive production.


The introduction of 5G connectivity will create a positive impact in the industry with more car manufacturers to adapt this technology for vehicle production. The 5G network can process an enormous amount of data quickly. Thus, it is recommended that companies invest more in this technology to fully utilize the potential of the 5G connectivity. Also, in the coming era of self-driving cars, electrification, connectivity, and V2X, enormous amounts of data would be generated within a short span of time, and a safe, reliable, and high-speed connectivity standard such as 5G is of paramount importance.

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