Investing in industrial technology delivers rapid returns: 87% of organisations that adopt on-premise edge computing and private 5G networks report achieving a return on investment within one year.
New research, the third collaborative report by Nokia and GlobalData, shows private wireless and edge computing have become essential tools for building smarter, more secure, and more efficient factories and industrial sites.
The “2025 Industrial Digitalization Report” surveyed 115 organisations across the UK, US, Germany, Japan, and Australia and found a strong financial case for these technologies. Most respondents reported rapid payback and significant cost reductions.
Sixty-eight percent of companies recouped their investments in less than six months. One IT director in North America’s oil and gas sector reported annual cost savings of $5 million through reduced truck rolls.
These quick returns stem from lower deployment and operating costs. Eighty-one percent of industrial firms said their initial on-premise edge and private 5G deployment was less expensive than alternative options, and more than half reported cost reductions of at least 11%. Additionally, 86% saw a decrease in ongoing operational expenses, with 60% achieving savings of 11% or more.
David de Lancellotti, VP of Enterprise Campus Edge Sales at Nokia, noted that GlobalData forecasts the global private wireless network market will nearly double to $8 billion by 2027. This growth reflects rising demand as industries work to modernise and meet global sustainability and efficiency targets.
He added that the research helps business leaders build compelling digitalisation cases by demonstrating how private wireless and on-premise edge reduce costs and accelerate scalable transformation while delivering measurable improvements in worker safety, productivity, security, and environmental performance.
Beyond cost savings, many industrial companies adopt these technologies because other wireless solutions simply cannot meet their needs. In challenging environments—such as factories or large ports—Wi‑Fi often fails to provide the reliable connectivity required. A Head of IT at a European nuclear power plant emphasised the importance of trust in the network, saying, “98 percent, 99 percent is not good enough.”
Reliable connectivity is also unlocking new uses for artificial intelligence. AI requires continuous, high-quality real-time data, and private wireless networks provide the dependable pipeline needed. Seventy percent of businesses in the survey feed sensor data into AI systems, enabling advanced analytics and automation.
AI is being applied to use cases such as predictive maintenance and digital twins that model entire operations. It is therefore unsurprising that 94% of industrial organisations have deployed on-premise edge computing alongside private wireless networks to support these applications.
With greater device connectivity comes increased cybersecurity focus; 57% of organisations identified cyber threats as a top priority. Private wireless networks, designed with security in mind, offer robust encryption and logical separation from public networks. When combined with edge computing that keeps sensitive data on-site, they form a strong defence against cyber risks.
BASF’s six-square-kilometre Antwerp plant provides a practical example. Public 5G could not meet the site’s performance needs, so BASF deployed a private wireless network to advance its digital transformation efforts.
Steven Werbrouck, Expert Network Connectivity at BASF, said private 5G has been transformative for the Antwerp site—enabling automation, improving occupational safety, accelerating innovation, and meeting ROI targets within two years. He added that lessons learned there will deliver value across multiple BASF facilities.
The environmental benefits are notable as well. Among companies tracking environmental impact, 94% reported reductions in carbon emissions, and 41% achieved cuts greater than 20%. Efficiency gains—such as using drones for inspections to reduce vehicle use—contribute to these improvements.
Gary Barton, Research Director at GlobalData, observed that industrial enterprises are adopting private wireless and on-premise edge to drive innovation and transformation. These deployments deliver clear ROI and enable use cases that would otherwise be impractical, improving worker safety, supporting sustainability goals, and providing a platform for AI-powered solutions like process automation and predictive maintenance.
The report’s conclusion is clear: private wireless and edge computing are proven, practical investments that address real industrial challenges. They improve efficiency, create new revenue opportunities, and enhance workplace safety—making them a compelling choice for any industrial organisation seeking to modernise.
One pharmaceutical operations lead summed up the message succinctly: “Do it! That is my advice for everyone.”
See also: Telcos pivot to services amid private 5G boom
Want to experience the full spectrum of enterprise technology innovation? Attend TechEx in Amsterdam, California, or London to explore AI, big data, cybersecurity, IoT, digital transformation, intelligent automation, edge computing, and data centres. The event brings together industry leaders to share real-world use cases and practical insights.
TechHQ is produced by TechForge Media. Explore other enterprise technology events and webinars organised by the publisher.