Private Wireless Adoption Drives Cost Reductions and Returns on Investment

Strategic Insights -

Nokia's recent survey on private wireless adoption provides valuable insights into the impact of this technology on enterprise operations. The survey, conducted with 79 multinational companies across the manufacturing, energy, and transportation sectors, reveals significant cost savings and returns on investment (ROI) for early adopters. Over 79 percent of respondents expect to see a ROI within six months, with more than half experiencing cost reductions since introducing the technology. These findings highlight the potential of private wireless to drive enterprise digitalization and achieve cybersecurity, cost, efficiency, and sustainability goals.

Key Takeaways:

  • More than 50 percent of surveyed enterprises have seen total cost of ownership (TCO) reductions of six percent or more from their investments in private wireless digitalization solutions.
  • 29 percent of respondents have experienced a more than 10 percent reduction in TCO.
  • Respondents have seen significant improvements in internal metrics, including:

+ Reduced downtime: over 10 percent improvement

+ Energy consumption: over 10 percent improvement

+ Many respondents saw more than 20 percent improvement in internal metrics.

  • The ability to offer private wireless 'as a service' provides flexibility for enterprises to scale up capabilities as needed.
  • 47 percent of respondents prefer a subscription-based solution as their preferred pricing model.
  • 79 percent of respondents prefer an integrated or hybrid approach to digitalization solutions, citing simplified management, lower TCO, and increased ROI as top reasons.
  • Many respondents aim to work with market leaders and ecosystem managers that offer industry-leading capabilities.

Statistics:

  • More than 50 percent of surveyed enterprises have seen TCO reductions of six percent or more.
  • 29 percent of respondents have experienced a more than 10 percent reduction in TCO.
  • 80 percent of respondents had deployed or were planning to deploy industrial edge solutions to benefit from low latency on-premises data processing for Industry 4.0 mission-critical use cases and data sovereignty and security reasons.

Sources:

  • Nokia press release on private wireless adoption (no specific date mentioned)
  • GlobalData report on private wireless digitalization solutions (no specific date mentioned)