TLDR: New research from Nokia and GlobalData highlights that private 5G networks and on-premise edge computing are critical for the successful implementation of industrial AI and enhanced security in Industry 4.0. The ‘2025 Industrial Digitalization Report’ reveals that 87% of companies adopting these technologies see a return on investment within a year, with significant cost reductions and improvements in productivity, worker safety, and environmental sustainability. These solutions are proving indispensable for real-time data processing, advanced automation, and robust cybersecurity in demanding industrial environments.
A recent ‘2025 Industrial Digitalization Report,’ a collaborative effort between Nokia and GlobalData, underscores the pivotal role of private 5G networks and on-premise edge computing in advancing Industry 4.0. The report, which gathered insights from 115 organizations across the UK, US, Germany, Japan, and Australia, demonstrates that these technologies are not merely beneficial but often essential for modern industrial operations.
The financial case for adopting these solutions is compelling. The survey found that a remarkable 87% of companies implementing on-premise edge and private 5G networks achieved a return on investment (ROI) within just one year. Furthermore, 68% of these firms recouped their investment in less than six months. These rapid returns are driven by substantial savings in both setup and operational costs. Specifically, 81% of industrial companies reported that their initial on-premise edge computing and private 5G setup was more cost-effective than alternative options, with over half realizing savings of at least 11%. Daily operational costs also saw a significant reduction, with 86% of businesses experiencing a drop, and 60% reporting savings of 11% or more.
David de Lancellotti, VP of Enterprise Campus Edge Sales at Nokia, noted the expanding market, stating, “GlobalData forecasts the global private wireless network market will nearly double to $8 billion by 2027.” He emphasized that this growth reflects the increasing pressure on industries to modernize in line with global sustainability and efficiency objectives. “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,” de Lancellotti added.
Beyond financial gains, the integration of private 5G and edge computing addresses fundamental connectivity challenges in industrial settings. Traditional Wi-Fi often falls short in harsh environments like factories or large ports, where a consistently reliable connection is paramount. As one Head of IT at a European nuclear power plant articulated, “You need to be able to really trust the network. 98 percent, 99 percent is not good enough.” This unwavering reliability is crucial for powering artificial intelligence applications, which demand a constant stream of high-quality, real-time data. The report indicates that 70% of surveyed businesses are leveraging private wireless networks to place sensors in hard-to-reach areas, feeding data directly to AI systems. The widespread adoption of AI is enabling advancements from predictive maintenance to the creation of comprehensive digital twins of entire operations. Consequently, 94% of industrial companies have deployed on-premise edge computing alongside their private wireless networks to facilitate these capabilities.
Security is another critical driver, with 57% of organizations prioritizing protection against cyberattacks. Private wireless networks offer inherent security advantages, including robust encryption and physical isolation from public networks. When combined with edge computing, which keeps sensitive data processed and stored on-site, a formidable security shield is created. The chemical giant BASF exemplifies this, having deployed a Nokia private wireless network at its six-square-kilometre plant in Antwerp to achieve high-performance connectivity that public 5G could not provide. Steven Werbrouck, Expert Network Connectivity at BASF, commented, “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.”
The environmental benefits are also significant. Among companies tracking their ecological footprint, 94% reported a reduction in carbon emissions, with 41% achieving cuts exceeding 20%. These improvements stem from increased efficiency, such as using drones for inspections, thereby reducing fuel consumption from traditional vehicle trips.
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Gary Barton, Research Director at GlobalData, concluded, “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.” He further stated that “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 overarching message from the report is clear: private wireless and edge computing are proven investments that effectively solve real-world industrial challenges, enhancing efficiency, fostering new revenue streams, and improving workplace safety. A pharma operations lead succinctly advised, “Do it! That is my advice for everyone.”
