Private 5G networks will provide next-generation connectivity for use cases that require low latency and higher throughput. Private 5G networks use 5G non-standalone and standalone architecture using a license and unlicensed spectrums, specifically designed for highly mission-critical business applications. 5G networks will use a network slicing technique that helps enterprises to effectively manage resources.
As per MarketsandMarkets analysis, the global 5G Enterprise market was valued at USD 1.2 billion in 2020 and is expected to reach USD 10.9 billion by 2027; it is projected to grow at a CAGR of 31.8% during the forecast period. The emergence of Industry 4.0 paving the way for mMTC, development of smart infrastructure, and the delivery of differentiated 5G services using network slicing technique are the major factors driving the global 5G enterprise market.
According to Sachin Garg, Associate Vice President, Semiconductor and Electronics at MarketsandMarkets, “Private networks for the public safety segment and essential industrial applications are built to ensure continuity of services even during unpredictable and undesirable events. Additionally, they ensure that critical civil functions and business processes have access to high-quality communication, even when parts of the system fail due to external factors. Private networks utilize network isolation, data protection, and device/user authentication to protect critical assets. Enterprises can also control retention and data sovereignty to ensure the safety of sensitive information stored on-premises.”
5G for enterprise
Automation and digitalization address critical requirements of many companies and allow them to increase output, reduce operational costs, and gain more profit. Businesses are in direct need of having a strong network that can support their digital transformation journey. Technological advancements and the evolving ecosystem have further paved the way for the emergence of new business applications across different sectors.
Industry 4.0, Intelligent Process Automation (IPA), robotics, process automation, automated guided vehicles (AGVs), autonomous vehicles, remote site monitoring, smart cities, and drone surveillance are among a few crucial technologies adopted in industrial and government sectors. These technologies demand network connectivity that offers high bandwidth, low latency, and higher security. Network slicing fulfils all these requirements and supports next-generation applications. It also enables service providers to deliver dedicated, secure, reliable, and scalable network services independently.
Low latency a major driver for 5G adoption in enterprises
Ultra-low latency is one of the major factors driving the demand for 5G services. The ultra-low latency of 5G is almost 50 times lower than the current 4G network. The 5G technology is expected to provide a latency of 1 millisecond, whereas in 4G, the latency rate is 50 milliseconds. Because of this, 5G services would be high in demand for industrial applications, autonomous vehicles, remote surgery, and connected cities as these applications and connections need faster and reliable network services.
Manufacturing to hold a major share in 5G enterprise market
Manufacturers are on the cliff of an industry-wide digital transformation, driven by the need to boost productivity, optimize operational efficiency, and increase visibility across factory floor and supply chain operations. IIoT, AI, and agile infrastructure are the key components, while 5G will be the core technology for digital transformation. The higher bandwidth, lower latency, and massive machine-type communications (mMTC) offered by 5G will enable several innovative industrial applications, such as robotics, big data analytics, IIoT, and AR/VR in engineering and design, along with new ways to provide remote support and training.
AR/VR to be one of the fastest-growing applications in the 5G enterprise market
One of the most important 5G applications in manufacturing is the adoption of AR and VR in remote support and training. The mixed reality offers more efficient learning with virtual experience instead of lecture-based training. It also provides more accurate views and information for an issue in remote support such as regular maintenance, remote repairs, or minor component replacements. The sessions can also be saved for future reference if the same problem happens again.
Video analytics a major application in 5G enterprise
Video analytics can be used in various applications, including access control, traffic management, fire detection, public safety. These videos are captured using outdoor cameras, cameras mounted on drones or vehicles. These cameras assist security operators in identifying intruders, tracking the behavior of suspicious people, and detecting anomalies in behavior, movement, and environment. In case of any dubious behavior, the video is transferred to the security central station. For video analytics applications, the 5G network not only offers faster connectivity but also low latency, thereby making the surveillance system more efficient and reducing the workload on the security and management staff. 5G technology can be leveraged in AI-powered solutions for face or object recognition, asset management, and image processing applications due to its high bandwidth, high speed, low latency, and secure network connectivity.
