December 17, 2025 Case Study: 5G Cellular Router Reduces O&M Costs by 30% in AGV Networking Project at an Auto Factory

Case Study: 5G Cellular Router Reduces O&M Costs by 30% in AGV Networking Project at an Auto Factory—In-Depth Analysis and Real-World Implementation

1. Project Background: Networking Challenges Amid AGV Proliferation

In the wave of smart manufacturing, AGVs (Automated Guided Vehicles) have become the "workhorses" of auto factories. At the Shanghai plant of a leading global automaker, 106 AGVs are deployed in the final assembly workshop, handling material handling tasks for core processes such as interior trim and chassis lines. However, as the number of AGVs surged, the traditional networking solution began to expose three major pain points:

Frequent IP Conflicts: AGVs move across multiple workshops (e.g., stamping, welding, painting), where network segment conflicts cause device disconnections, averaging 5 daily faults with each repair taking 2 hours.
Poor Network Stability: Dense metal equipment in workshops creates severe electromagnetic interference, leading to a 40% signal attenuation rate for 4G networks. AGVs frequently lose positioning, disrupting production rhythms.
High O&M Costs: Manual inspections require navigating high-temperature, dusty environments, with each maintenance visit costing over ¥500. Annual O&M expenses account for 15% of total equipment investment.

With an annual production capacity of 300,000 vehicles, each hour of downtime directly costs the factory over ¥2 million. Upgrading technology to "reduce costs and boost efficiency" became an urgent priority for management.

2. Technological Breakthrough: Three Core Values of the 5G Cellular Router

2.1 NAT Translation: Ending IP Conflict Woes

Traditional solutions left AGVs vulnerable to IP conflicts during cross-workshop movement, causing communication disruptions. The project team adopted the NAT translation feature of the USR-G816 5G cellular router, using its built-in network segment isolator to map identical IP addresses to different virtual segments. For example:

Scenario Application: Between the painting workshop (192.168.1.0/24) and final assembly workshop (192.168.2.0/24), the router automatically converts an AGV’s source IP (192.168.1.100) to the target segment IP (192.168.2.100), enabling seamless switching.
Effect Verification: IP conflict rates dropped from 5 daily incidents to zero, with device uptime rising to 99.97%.

2.2 5G + Multi-Network Redundancy: Building "Always-on" Connectivity

To address electromagnetic interference, the USR-G816’s 5G full-network capability and multi-network redundancy technology proved critical:

Frequency Coverage: Supports 5G SA/NSA networking across China’s four major carriers (China Mobile, China Unicom, China Telecom, China Broadnet), including the 700MHz "golden" band for 30% better penetration.
Smart Switching: When the 5G primary link signal strength falls below -105dBm, the router automatically switches to a 4G backup network with <50ms latency, ensuring AGV positioning accuracy within <1cm.
Real-World Data: In the welding workshop with the strongest interference, 5G speeds reached 700Mbps (10x faster than 4G), with packet loss rates dropping from 12% to 0.3%.

2.3 Cloud-Based O&M: Cutting Labor Costs by 30%

The USR-G816’s remote management capabilities revolutionized O&M workflows:

Fault Alerts: Real-time monitoring of device temperature, voltage, and traffic via built-in hardware watchdogs and SNMP protocols. Alerts trigger WeChat/SMS notifications to technicians when temperatures exceed 75°C.
Remote Repairs: Technicians can upgrade firmware or adjust configurations via the USR Cloud platform without entering workshops. For example, a firmware vulnerability causing communication failures was resolved remotely in 10 minutes, avoiding downtime losses.
Cost Comparison: Traditional O&M required 4 full-time staff; with USR-G816, this dropped to 2, saving over ¥600,000 annually in labor costs.

3. Solution Implementation: From Pilot to Factory-Wide Rollout

3.1 Pilot Phase: Validating Technical Feasibility

The team selected the final assembly workshop for a pilot, deploying 20 USR-G816 routers across 5 AGV production lines. Key steps included:

Network Planning: Adopted a "5G primary link + wired backup" model, prioritizing control command transmission while limiting video traffic bandwidth to 10Mbps.
Protocol Conversion: Used the router’s built-in Modbus-to-MQTT function to upload AGV PLC data directly to the MES system, eliminating dedicated gateway costs.
Security Hardening: Configured ACL rules to restrict management interface access, enabled IPSec VPN for encrypted communication between headquarters and workshops, and achieved Level 2 compliance with China’s Cybersecurity Classification Protection 2.0 standard.

Pilot Results:

  • Device uptime increased from 92% to 99.8%.
  • Average daily AGV runtime extended from 20 to 23.5 hours.
  • O&M response time shortened from 120 to 15 minutes.

3.2 Factory-Wide Rollout: Scaling Benefits

Building on pilot success, the team deployed 106 USR-G816 routers across the factory, optimizing the following:

Multi-WAN Load Balancing: Aggregated three 100Mbps broadband lines for 300Mbps total bandwidth, meeting large file transfer demands.
Edge Computing: Deployed data filtering rules at the router level to discard anomalies and upload only valid data to the cloud, reducing traffic costs by 40%.
Positioning Expansion: Added GNSS positioning for outdoor AGV path planning, enabling cross-workshop collaboration.

Factory-Wide Benefits:

  • Annual O&M costs fell from ¥1.8 million to ¥1.26 million (30% reduction).
  • Production efficiency improved by 15%, yielding an additional 45,000 vehicles annually.
  • Equipment failure rates dropped 60%, cutting spare parts inventory costs by 25%.
G816
5G/4G/3G1*WAN/LAN, 3*LANWi-Fi 4/5, Dual Band


4. Deep Dive into Customer Pain Points: Why Choose USR-G816?

4.1 Scenario Adaptability: Designed for Industrial Environments

  • Extreme Temperature Tolerance: Operates from -35°C to 75°C, suitable for high-temperature painting workshops.
  • Electromagnetic Interference Resistance: Passed IEC 61000-4-6 testing, stable in 10V/m electromagnetic fields.
  • Dust Protection: IP30 metal casing for workshop dust resistance.

4.2 Cost-Effectiveness: Significant Long-Term ROI

  • Initial Investment: USR-G816 costs 20% more per unit than traditional solutions but eliminates hidden costs like gateways and proprietary software, reducing total costs by 15%.
  • ROI Calculation: For 106 AGVs, 3-year O&M savings reach ¥5.4 million, with an 8-month payback period.

4.3 Ecosystem Compatibility: Seamless Integration with Existing Systems

  • Protocol Support: Compatible with Modbus, Profibus, OPC UA, and other industrial protocols, requiring no AGV modifications.
  • Platform Integration: Provides standard APIs for quick connection to SAP, MES, and other systems, supporting custom development.

5. Contact Us: Start Your Smart Upgrade Journey

5.1 Requirements Analysis: Define Three Core Parameters

  • Network Environment: Workshop 5G signal strength, existing bandwidth, multi-network switching needs.
  • Device Scale: Number of AGVs, data transmission frequency, positioning requirements.
  • Security Needs: Compliance certification requirements, data encryption levels, access control policies.

5.2 Customized Solution: Three Steps to Rapid Deployment

  1. Free Consultation: Submit a requirements form; the USR technical team responds within 2 hours with a scenario analysis report.
  2. Pilot Deployment: Test 1 USR-G816 sample unit free for 30 days to validate technical feasibility.
  3. Scalable Rollout: Optimize the solution based on pilot results, offering bulk purchase discounts and customization services.

5.3 Success Stories

  • Automotive Industry: A new energy vehicle manufacturer reduced AGV networking O&M costs by ¥800,000 annually using USR-G816.
  • Logistics Industry: A smart warehousing enterprise improved warehouse-to-workshop logistics efficiency by 40% with multi-network redundancy.
  • Energy Industry: An oil field enabled real-time monitoring of pumping units via 5G private networks, reducing fault diagnosis time to 10 minutes.

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6. Empowering Smart Manufacturing with Technology

In the Industry 4.0 era, AGV intelligence has become a core metric of factory competitiveness. The USR-G816 5G cellular router addresses IP conflicts, network instability, and high O&M costs through NAT translation, multi-network redundancy, and cloud-based O&M. By adopting a "scenario-driven, technology-empowered" approach, it helps enterprises build reliable, efficient IoT infrastructure.

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