By Cristopher Maldonado, Business Line Manager at Alcatel-Lucent Enterprise (ALE)
The growth of Private 5G adoption, predominantly in industrial and manufacturing environments, can be attributed to its ability to function as a “dedicated wireless network”, Cristopher Maldonado, Business Line Manager at Alcatel-Lucent Enterprise (ALE) told IoT Insider.
IoT Analytics forecast that the number of Private 5G connections will grow at a CAGR of 65.4%, hitting almost 107 million by 2030, an increase from 1.28 million in 2023. It noted that Public 5G will retain the majority of connections because of cost-effectiveness and accessibility, but that Private 5G will cater to niche markets like manufacturing and healthcare.
What’s driving this? According to Maldonado, “sectors like manufacturing, energy, logistics, transportation and beyond, need networks that ensure data security, low latency, high reliability, and real-time communication”.
Although 5G may have become shorthand for the more common form, Public and not Private, it’s important to understand the key differential.
One such differential of Private 5G from Public 5G can be gleaned from the name – where Public 5G is readily accessible to anyone with a device and connectivity, Private 5G is designed for a single enterprise or organisation’s use.
“A Private 5G network is restricted to a specific location or facility,” explained Maldonado. “These networks are commonly used in places with critical infrastructure or specialised needs, such as oil refineries, manufacturing plants, or airports.”
Notably, both have “core features” Maldonado said, such as deterministic connectivity and lower latency, but the key distinction is in the control. Private 5G adoption is surging in manufacturing environments in particular because it offers greater autonomy over the network, as well as security. In other words: if you solely operate the network, you don’t have to worry about outsider users gaining access, unless you permit it.
“Private 5G networks also help bridge the connectivity gap in locations where traditional options like fibre or Wi-Fi are either too costly or not practical,” added Maldonado. “For enterprises operating in remote or challenging environments, Private 5G offers a more efficient and practical solution.”
He was quick to note that Private 5G shouldn’t be viewed as a competing technology to Public 5G, but a complementary one – there to fill the gaps to meet needs Public 5G, or Wi-Fi might otherwise not be meeting.
“Wi-Fi can sometimes struggle with coverage … due to physical obstacles, interference, and congestion from numerous connected devices,” he explained.
In providing a concrete example of where Private 5G performs best, Maldonado said an automotive manufacturing plant would use it, “to connect automated guided vehicles (AGVs), robotics, and sensors across extensive production floors. This ensures precise, real time communication critical for coordination and safety.”
For logistics and warehouse operations, Private 5G networks support “everything from inventory tracking to automated sorting systems. This reduces downtime, enhances productivity, and allows for the efficient handling of massive volumes of data in real time.
“In short, Private 5G empowers industries to reliably leverage IoT, AI, and automation technologies across vast operational spaces where traditional Wi-Fi falls short.”
The future of Private 5G
ALE recently launched their own Private 5G solution, powered by Celona, an indication of the organisation’s belief in the connectivity it can provide the aforementioned use cases.
“It complements our connectivity offer by addressing coverage gaps and mobility challenges – requirements that go beyond the capabilities of conventional Wi-Fi in industrial environments and uncarpeted areas,” said Maldonado, adding that its integration with ALE’s other solutions – such as OmniSwitch LAN, OmniAccess Stellar WLAN, and OmniVista, its network management platform – is part of its wider strategic strategy to be viewed as a single provider of a wide-range of connectivity solutions to meet the rich variety of needs.
“For example, in a manufacturing environment, ALE provides OmniSwitch and Stellar Wi-Fi to ensure seamless connectivity in offices and headquarters,” he said. “In more demanding areas like factory floors and warehouses, Industrial OmniSwitch, combined with Celona’s Private 5G Access Points delivers reliable, high performance connectivity.”
Future applications for Private 5G are hoped to include critical industries like healthcare and education, driven by demands for data security.
“The coming years will be pivotal in exploring new ways to integrate these tools,” concluded Maldonado.
This article originally appeared in the April 25 magazine issue of IoT Insider.
