Skip to main content

5G Network Technologies Transform Industrial Markets

Expect to see and hear more commentary about fifth-generation (5G) wireless communication related national leadership policies in 2019. Physical industries are rapidly transforming on an unprecedented scale with digitization becoming a critical priority that fuels the Global Networked Economy.

As an example, end-to-end 5G network slicing is promised to be a growing part of that transformation but mobile telecom service providers must change all aspects of their business before they address it.

5G Infrastructure Market Development

ABI Research has forecast that network slicing stands to create approximately $66 billion in value for enterprise industry verticals -- including manufacturing, logistics, and transportation -- by 2026.

5G network slicing has become the focus of much attention in part due to its intrinsic ability to afford flexibility and dedicated resources tuned to different industrial use cases. Legacy networks and wired technology dominate in the fragmented industrial environment of today, a rigid arrangement that is not conducive to high productivity levels.

"Industrial segments such as manufacturing, logistics, and automotive are pursuing digitalization and automation with vitality and substantial investments. 5G network slicing aims to serve as a stepping stone to drive productivity growth and enable the high-performance connectivity that underpins the dynamic, secure, and reliable interconnection of industrial systems and machinery," said Don Alusha, senior analyst at ABI Research.

Despite illustrating substantial growth in the coming years and reaching $66 billion by 2026, network slicing revenues will be a mere 6 percent of total mobile communication service provider consumer revenues during the same year.

Making this a much bigger opportunity and one that provides major growth prospects will require mobile service providers stepping out of their comfort zone: they will need to radically improve their marketing messages to enterprise verticals, they will need to change their terminology and language to their B2B clients, the will need to invest in Proof of Concepts in previously unexplored areas, they will need to engage in new brand partnerships and finally, they will need to invest in creating customized solutions for enterprise verticals.

Outlook for 5G Network Applications Growth

The adoption of 5G network slicing for manufacturing alone is expected to create a $32 billion of value, at a CAGR of 96 percent through 2026. The second biggest revenue opportunity lies in the logistics sector, where the market is projected to increase from $65 million in 2019 to $20 billion in 2026, at a CAGR of 127 percent.

"Our projections point to a healthy growth outlook but except for Telefonica, BT, and Deutsche Telekom, there is not much market activity of substance. The MSP ecosystem extends beyond this trio of operators, so we anticipate the wider community to start addressing enterprise verticals and entering an exploration phase in the coming years," Alusha concluded.

Popular posts from this blog

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe