Key Reasons Why UWB Will Be Recognized as Mainstream Technology for Manufacturing Market in Four Years
By Milan Šimek | January 9th, 2024 | 6 min read
Ultra-Wideband, once a mere trend for tech enthusiasts, is now at a breakthrough point. The commercial sector stands on the verge of mass UWB adoption, actively evaluating and embracing this technology. Soon, it will become ubiquitous in the industrial sector. Here’s why.
Drawing Parallels: How Adoption of UWB Outpaces the Rapid Rise of Wi-Fi
It took 23 years before the commercial sector started fully adopting Wi-Fi technology. In 1985, the FCC made a pivotal move by opening an unlicensed band. However, it wasn’t until 1999 that a significant milestone was reached in the journey towards widespread Wi-Fi adoption. This breakthrough occurred when Apple integrated Wi-Fi into their iBook laptops — the initial but still quite wary step towards mass adoption. The major breaking point was reached when Wi-Fi got into smartphones around 2008 (the fact that it matches the launch of iPhones is no coincidence). Since then, we have witnessed a massive spread of Wi-Fi — I wouldn’t hesitate to call it a revolution of sorts.
Twenty years ago in 2004, I worked in my family’s business (while completing my master’s degree in wireless technologies), managing a network of warehouses for truck spare parts. I saw a lot of warehouses and manufacturing plants back then — with Wi-Fi being an emerging technology, operating in niche commercial markets. When I founded Sewio 10 years later in 2014, I saw that Wi-Fi coverage in manufacturing facilities and warehouses had grown immensely. It was clear that Wi-Fi was on its way to becoming a ubiquitous mainstream technology — nowadays, Wi-Fi is firmly established as a must-have technology in manufacturing and warehouse operations, with dozens of applications being dependent on Wi-Fi infrastructure.
Based on my close observation of trends in manufacturing and warehousing, I can’t help but notice Ultra-Wideband (UWB) Real-Time Location Services (RTLS) following the same pattern as Wi-Fi all those years ago. Thanks to rapid advancements in technology, it took only 16 years for UWB chips to be integrated into smartphones, compared to the 23 years it took for Wi-Fi. This indicates that not only have we reached a significant breakthrough with UWB, but its adoption rate is also surpassing that of Wi-Fi.
History of UWB and Wi-Fi Technology Adoption into Consumer Electronics
Ultra-Wideband as the Next Big Thing in Commercial Segment
At the moment, market awareness of UWB RTLS industrial applications is not high so its potential has not been fully unlocked. UWB chips in smartphones are now used to locate misplaced devices (with only half-an-inch deviation) and to speed up inter-device communication (AirDrop between two Apple devices becomes much faster with UWB).
It’s only a matter of time before the commercial sector seizes all the opportunities the UWB technology offers (and even innovates new applications). UWB chips are getting integrated into cars — unlocking your car with your phone or watch is no longer just a futuristic fantasy. In general, tracking and wayfinding via UWB (like with AirTag) will become more effective, quicker, and much more precise.
The Next Breakthrough Point: Standardization
The initial adoption of UWB technology by the commercial sector is critical, not only because it leads to widespread usage among the general public. An important byproduct of this commercial proliferation is the standardization of the technology.
Any new technology needs to shake off the stigma of “too much novelty” at some point. Breakthrough technologies are usually eagerly accepted by the early adopters while the majority is more wary, waiting to see whether this is just a fleeting trend or a thing to commit to. Especially large companies may be wary, as implementation of any new technology comes at a cost — requiring careful planning and significant investment in equipment.
That’s why standards play an important role. A new technology without unified (preferably international) standards is perceived as an uncertain investment by the more cautious. No standardization bears the risk of both vendor lock (one giant vendor who has no competition) and incompatibility (more vendors not cooperating with each other). That’s why technology standards are the cornerstone of the technology becoming widespread.
During the last four years, we went from one existing standard for UWB (IEEE 802.15.4z) to four specific standards — Fira for phones, Car Connectivity for cars, and omlox for industry. We at Sewio are active supporters of omlox standardization activities and develop products according to the recent standard requirements.
As a tech optimist, I believe enabling RTLS in manufacturing facilities and warehouses could very soon look like this: A UWB infrastructure (receiver on the ceiling) is deployed within the factory. The facility owner then combines UWB tags of various brands and vendors to maximize the number of applications using the same UWB infrastructure. The same way as all Wi-Fi-operated devices function within the Wi-Fi infrastructure. And we in Sewio are and will continue to be the most trusted partner providing reliable and precise UWB infrastructure enabling various location-based applications under one roof.
The Market Potential of UWB Real-Time Location Services
Sewio’s been in the business for almost 10 years now and we’ve observed a steady growth in UWB technology adoption in the industrial segment. The demand for UWB has increased at least ten times over the last five years, and renowned market analysts are predicting even faster growth in the future. Currently, UWB RTLS is in the Early Market phase. However, I am confident that, also thanks to Sewio’s dedication and contribution to the support and development of this technology, UWB RTLS will cross the chasm within the next four years, advancing in 2028 into the early majority stage. At that point, it will be recognized as a mainstream technology, much like Wi-Fi is today.
UWB Technology Adoption Entering the Mainstream Market
According to industry analysts, RTLS are going to bring the most benefits to the asset tracking use case — with estimated market prospects climbing up to $25 billion by 2030. The healthcare and manufacturing sectors in particular recognize the significant potential of UWB (Ultra-Wideband) technology, viewing it as mission-critical for their operations. In manufacturing, RTLS can help eliminate time losses caused by searching for work orders and increase operation efficiency by providing real-time data on WIP (Work-In-Progress) status thus reducing management decision tact. RTLS also remarkably boost the utilization of material handling units (MHU) and reduce internal supply chain delays. In healthcare, precise & quick location of assets (medical devices) and people (medical staff) may literally save lives. For both segments, reducing the time investment is mission mission-critical must-have criterium.
Sewio’s Vision: From Early Innovations to the Global Proliferation of Smart Manufacturing
With the ongoing process of automation trends in dynamic manufacturing, I believe RTLS is essential for the execution of digitization strategies as part of smart manufacturing initiatives.
Over the years, we have witnessed that manufacturers who adopt UWB technology early gained a significant competitive advantage. Yes, deploying UWB infrastructure entails a certain level of effort and investment — including site surveys, workshops, blueprint development, and infrastructure installation, all of which come at a cost. However, it’s important to view this as a long-term strategic investment essential for staying ahead of the competition.
I’m glad to say that Sewio has already covered an incredible area of 2.5 million square meters of industrial shop floors with UWB technology. Our technology is aiding well-established brands across Europe, America, and Asia, demonstrating its global impact.
Selected Brands That Have Adopted Sewio’s UWB Technology
At the Sewio Summit in September 2023 in Prague, I made a bold declaration: I committed not just to doubling or tripling this number, but to expanding the area covered by our UWB technology to 10 million square meters by 2028. This ambitious goal underscores our dedication to supporting UWB RTLS technology to cross the market chasm in the next four years.
I view Sewio as a trailblazer, an evangelist if you will, in the realm of UWB-based real-time location services. However, pioneering this technology is not a journey we undertake alone. Our partners and business associates are invaluable in this endeavor, contributing significantly to our progress.
I was both surprised and thrilled to see that my speech resonated so well with the audience of Sewio Summit (mostly composed of our business partners and customers). At the conference, I even had people coming to me, expressing their desire to be a part of the emerging UWB & RTLS community. People want to contribute. To be at the eye of the hurricane.
Are you interested in becoming a part of this dynamic community as well? Join us in this exciting journey of innovation.