Why companies across industries are deploying private 5G wireless networks
Private 5G wireless networks are a hot topic these days. Almost every week, I read new articles on the crucial role these networks are playing in digital transformation initiatives across industries.
The media’s not covering a fleeting trend. Private wireless network deployments are increasing across industries, and analysts are forecasting strong growth in the years ahead:
- In its Private LTE and 5G Networks Market Forecast 2020-25, Omdia projects that dedicated private networks will become a $5.1 billion opportunity by 2025. According to Omdia, manufacturing, energy and utilities, and transportation and logistics will generate more than 60 percent of that total revenue with manufacturing generating $1.3 billion on its own by 2025.
- In its annual Private Cellular Networks Market Forecast, Technology Business Research (TBR) expects we’ll see strong growth in private 5G networks through this decade. When LTE is included with 5G, TBR projects the private cellular networks market will exceed $12 billion in 2025, driven by enterprise and government digitalization initiatives.
Industry ecosystems provide products, solutions and support
A private wireless network enables and supports a company’s modernization and digital transformation initiatives, but it’s not the resolution to any problem on its own. The good news is, there are now ecosystems that provide the products, solutions and support companies need to put private wireless networks to work for their business.
Product and solution ecosystems are prime examples. Product choices are expanding with new devices and sensors that enable smarter, real-time operations that drive evolution to Industry 4.0. At the same time, industrial automation original equipment manufacturers (OEMs), cloud providers, machine builders, AI technology providers and network vendors are collaborating to develop new solutions, such as predictive maintenance. These solutions help industries like manufacturing achieve their digital automation goals to become a 5G smart factory of the future.
There are also now ecosystems of companies, such as local and global systems integrators, that provide professional services, consulting and technical support to help companies deploy private wireless networks throughout industrial facilities. Their expertise is essential to meet growing demand for private wireless networks, and to ensure smooth, cost-effective deployments that are optimized for the required applications.
Newly available spectrum enables broad adoption
Until fairly recently, a lack of available spectrum was a major impediment to broad adoption of private wireless networks. Now, companies have access to wireless spectrum from multiple sources:
- Governments are providing dedicated or shared spectrum specifically for enterprises to use for their own applications.
- Service providers with 4G and 5G licensed spectrum are offering private wireless networks to their enterprise customers as part of a managed service because they see it as a growth opportunity for their business.
- Unlicensed MulteFire spectrum is now available in many countries. This spectrum supports enterprise applications that are important for business operations, but are less demanding in terms of performance. Non-critical video communications on the shop floor is a good example.
Private 5G wireless networks benefit every industry
Private wireless networks are being deployed in a wide range of industries for indoor and outdoor applications. In addition to the industries listed above, companies in the mining, ports, automotive, durable goods and chemical industries are all taking advantage of private wireless networks to accelerate their digital transformation.
We recently hosted a webinar that showcases the diversity of companies adopting private wireless networks. The webinar explores the different ways some of our customers in Europe are using 4G and 5G private wireless networks to digitize and automate their operations:
- Lufthansa Technik is using 5G mobile broadband to support remote high-definition video inspections of aircraft engine repairs at its maintenance, repair and overhaul facility in Hamburg, Germany.
- Schneider Electric is using 4G and 5G spectrum provided by Orange Business Services to support an augmented reality maintenance application in France.
- BASF is working with CellNex Telecom and using licensed spectrum from Telefonica for multiple applications, including real-time guidance for vehicles in its plant, cellular IoT devices for connected workers, remote assisted maintenance and mission-critical push-to-X communications.
- Arçelik is using spectrum provided by Türk Telecom to improve the performance of autonomous mobile robots, and to improve product quality with video inspections of its dishwasher manufacturing operations.
Watch our webinar to learn more
I invite everyone to watch a replay of the webinar to get more insight into why and how these leading organizations are using a private 5G wireless network to support their evolution to Industry 4.0.
The webinar is free and available on demand: Private 5G networks—a road trip across Europe.
Discover 5G for manufacturing
To explore the benefits our industrial-grade private wireless networks, applications and expertise bring to the 5G smart factory, visit our manufacturing, supply chain and logistics website.