On-premise edge and private 5G key to industrial AI and security

Investing in industrial tech pays off fast, with 87% of companies adopting on-premise edge and private 5G networks seeing a ROI (Return on Investment) in one year.

New research – a third joint effort between Nokia and GlobalData – makes it clear that private wireless and edge computing are now the go-to tools for building the smart, secure, and efficient factories and facilities of the future.

The ‘2025 Industrial Digitalization Report’ gathered insights from 115 organisations across the UK, US, Germany, Japan, and Australia. It found that for most, the financial case is a slam dunk.

68 percent of firms got their money back in less than six months. One IT Director from the North American oil and gas sector even claimed to have “realised cost savings through reduced truck rolls amounting to $5 million per year.”

These quick returns come from big savings on both setup and running costs. The survey revealed that 81 percent of industrial companies found their initial on-premise edge computing and private 5G setup was cheaper than other options, with over half saving at least 11 percent. On top of that, 86 percent saw their day-to-day operational costs drop, with 60 percent reporting savings of at least 11 percent.

David de Lancellotti, VP of Enterprise Campus Edge Sales at Nokia, said: “GlobalData forecasts the global private wireless network market will nearly double to $8 billion by 2027. This reflects the growing demand as industries face mounting pressure to modernise in line with global sustainability and efficiency goals.

“Nokia and Global Data’s latest research helps leaders build strong business cases for digitalisation by showing how private wireless and on-premise edge not only reduce costs but also accelerate scalable transformation with measurable improvements in worker safety, productivity, security, and environmental impact.”

But this isn’t just about saving money. The real story is that industrial companies are often forced to invest in on-premise edge computing and private 5G networks because nothing else works. In tough environments like a factory or a massive port, Wi-Fi just can’t provide the steady connection needed. As one Head of IT at a European nuclear power plant bluntly put it, “You need to be able to really trust the network. 98 percent, 99 percent is not good enough.”

This reliable connection is breathing new life into how industries use artificial intelligence. AI needs a constant stream of high-quality, real-time data to work its magic, and private wireless is the perfect pipeline. It’s allowing companies to place sensors in hard-to-reach spots, feeding data to AI systems in 70 percent of the businesses surveyed.

The adoption of AI is powering everything from predictive maintenance to creating digital twins of entire operations. It’s no surprise that 94% of industrial companies have deployed on-premise edge computing tech alongside their private wireless networks to make it all happen.

Of course, with more connected devices comes the worry of cyberattacks, which was a top priority for 57% of organisations. Private wireless networks are built with security in mind, offering strong encryption and a physical separation from other networks. When combined with edge computing that keeps sensitive data on-site, it creates a powerful security shield.

The chemical giant BASF is a perfect example of this in action. Their six-square-kilometre plant in Antwerp needed a high-performance connection that public 5G just couldn’t deliver. By installing a Nokia private wireless network, they were able to advance their digital transformation efforts.

Steven Werbrouck, Expert Network Connectivity at BASF, said: “Private 5G has been a gamechanger for BASF Antwerp. We’re unlocking automation, strengthening occupational safety, accelerating innovation, and meeting ROI targets in just two years. We have become a frontrunner for the wider group with learnings that will deliver value at multiple BASF group locations.” 

This new tech is also making a real difference for the planet. Of the companies tracking their environmental impact, 94 percent reported a drop in carbon emissions, with 41 percent cutting them by more than 20 percent. These green credentials come from being more efficient, using things like drones for inspections to cut down on fuel-guzzling vehicle trips.

Gary Barton, Research Director at GlobalData, commented: “Industrial enterprises are turning to private wireless and on-premise edge to drive innovation and industrial transformation. These deployments are delivering a clear return on investment and enabling use cases that would not otherwise have been possible.

“Private wireless and edge have helped enterprises to improve worker safety, support sustainability, and create a delivery platform for AI-powered solutions such as process automation and predictive maintenance.”

The takeaway from the report is crystal clear: private wireless and edge computing are now proven investments that solve real-world industrial problems. It’s boosting efficiency, creating new ways to make money, and making workplaces safer.

For any industrial company looking to get ahead, the advice from one pharma operations lead is simple and direct: “Do it! That is my advice for everyone.”

See also: Telcos pivot to services amid private 5G boom

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Tags: 5G, ai, artificial intelligence, automation, connectivity, digital twins, edge computing, iiot, Iot, networks, nokia, on-premise, private 5g, private networks, report, research, study, sustainability, telecoms