Private 5G + Edge: The Fast-ROI Backbone of Industrial AI

Fresh data from Nokia and GlobalData shows that private wireless and on-premise edge are delivering rapid ROI, unlocking AI at scale, and improving security and sustainability across industrial sites.

Why Now: Reliability, Data, and Secure Automation

Industrial operations need deterministic connectivity, real-time data, and strong security to automate safely and sustainably. Private 5G paired with on-prem edge is emerging as the reference architecture because it solves reliability gaps left by WiFi and public networks in harsh, sprawling facilities. The result is faster payback and a platform for AI that can actually run in production, not just in pilots.

Key Stats: ROI, Cost Savings, AI Adoption

Across 115 organizations in manufacturing, energy, logistics, mining, and transportation, 87% of adopters reported a return on investment within one year after deploying private wireless with on-prem edge. Setup costs were lower than alternatives for 81% of respondents, with over half saving at least 11%, and 86% cut ongoing costs, with 60% saving 11% or more. Critically, 94% deployed on-prem edge alongside private wireless, and 70% are already powering AI use cases such as predictive maintenance, real-time monitoring, and digital twins. Sustainability outcomes were material: 94% reduced carbon emissions, 41% by more than 20%, and 89% lowered energy consumption.

Business Case: TCO Wins, Rapid Payback, Scalable Rollouts

The financial story is no longer theoreticalenterprises are moving past pilots and expanding to more use cases and sites while improving the total cost of ownership.

Capex/Opex Gains Drive Sub-12-Month Payback

Enterprises report lower installation costs versus alternative connectivity options, often due to fewer access points, better coverage in metal-dense environments, and simplified backhaul. Operational expenses drop as teams automate inspections, reduce truck rolls, and consolidate data processing onsite. In some cases, industrial operators have reported multimillion-dollar annual savings from fewer field visits and faster fault isolation. The cumulative impact is a majority achieving payback within 12 months, with many in under six months.

Scaling Beyond Single-Site Pilots

Early adopters are broadening the scope. In a prior wave of research, all surveyed enterprises either added new use cases at the original site or deployed private wireless in additional locations, and nearly half ran more use cases than originally planned. A large share also hit positive ROI within six months. This pattern suggests that once coverage, devices, and edge workloads are stabilized, organizations stack on new applications with minimal incremental cost, accelerating returns.

Reference Architecture: Private 5G Edge for Industrial AI

AI in plants, ports, and energy assets depends on secure, low-latency access to high-quality operational data that is processed close to where it is generated.

Private Wireless + On-Prem Edge: The Winning Stack

Private 5G (typically 3GPP 5G Standalone) provides deterministic coverage, mobility, and QoS, while the edge platform hosts AI/analytics, video pipelines, and data services with subsecond latency. This combination brings compute to the process cell, keeps sensitive data on site, and ensures resilient operations when WAN links degrade. It also enables pervasive sensor placement in hard-to-reach areas, a reliable uplink for machine vision, and time-sensitive control loops that WiFi often struggles to support at scale.

Case Studies: BASF Antwerp and Lufthansa Technik

BASF’s Antwerp complex, spanning roughly six square kilometers, deployed a Nokia private wireless network to enable automation, predictive maintenance, and connected worker capabilities. The approach improved occupational safety and operational efficiency while meeting ROI targets on an enterprise timeline. In aviation services, Lufthansa Technik used private wireless to support high-bandwidth video for virtual inspections and then layered edge compute to run analytics closer to aircraft engines, reducing the need to move server stacks and streamlining maintenance workflows. Both examples illustrate a common path: start with reliable coverage, then expand AI-enabled use cases as the edge platform matures.

Outcomes: Cybersecurity, Safety, and Sustainability Gains

Security and EHS mandates are as pivotal to business cases as throughput or latencyand the metrics are now quantifiable.

Cybersecurity as a Primary Adoption Driver

Fifty-seven percent of organizations cited cybersecurity as a core reason to deploy on-prem edge anchored by private wireless. Benefits include SIM-based identity, strong encryption, physical separation from IT networks, and the ability to align with zero-trust principles by enforcing least-privilege access and local data processing. For regulated industries and critical infrastructure, this architecture supports compliance while reducing exposure to internet-facing attack surfaces.

Connected Worker: Safety and Productivity Uplift

Most enterprises are rolling out connected worker tools such as automated alarms, geofencing, location awareness, and AI-assisted monitoring. Earlier research showed double-digit improvements in safety outcomes as robotics and remote operations removed people from hazardous tasks. These gains compound as device counts rise and workflows digitize, reducing errors and paperwork while optimizing asset utilization.

Sustainability Gains That Are Significant and Repeatable

With private wireless and edge, enterprises cut emissions and energy use by instrumenting assets, applying predictive maintenance, and shifting inspections to drones and fixed cameras. Nearly all respondents reported lower emissions, with two in five achieving reductions beyond 20%. The same data foundation improves reporting accuracy and enables real-time interventions that avoid waste, unplanned downtime, and fuel-intensive site visits.

Market Implications for Telcos, Integrators, and Enterprises

The market is set to nearly double to around $8 billion by 2027, and the winners will pair networks with outcomes, not just radios with SIMs.

Operator and Integrator Playbook

Bundle private 5G with on-prem edge, device certification, and vertical applications to deliver outcome-based SLAs anchored on uptime, latency, safety, and emissions KPIs. Build reference architectures per industrychemical, mining, logisticswith prevalidated sensors, cameras, and ISV stacks for maintenance, digital twins, and quality analytics. Offer spectrum guidance (for example, CBRS or local licenses), managed lifecycle services, and clear migration paths from pilot to multisite rollout.

Enterprise Priorities for Private 5G and Edge

Start with one or two high-ROI use cases, such as condition-based maintenance or connected worker, and deploy a converged edge platform that can scale to video analytics and AI inference. Specify 5G Standalone with deterministic QoS, plan for WiFi coexistence, and align security with zero-trust and OT standards. Instrument the site for observability, define KPIs tied to safety, throughput, and emissions, and use those metrics to guide incremental expansion across lines and locations.

What to Watch Next

Expect broader device availability and lower costs as 3GPP advances and reduced-capability 5G modules mature, making sensors and wearables more affordable. Location and positioning improvements, along with tighter integration between edge platforms and data lakes, will expand digital twin fidelity. As these capabilities converge, private wireless plus edge will shift from project to programbecoming a default layer of industrial infrastructure for AI at scale.