Industrial 5G market research from the Capgemini Research Institute found that industrial companies want to take advantage of 5G and some will seek licenses to give themselves more control over their initiatives.
The firm interviewed more than 800 industrial company executives and 150 telecom executives in 12 countries. Key findings are that 5G is an enabler of digital transformation and 65% of companies plan to use it within two years. The firm also found that 33% of companies intend to apply for private licenses, including 47% of larger companies.
Industrial 5G Market Research
The breakdowns: Seventy-four percent of companies with annual revenues of $10 billion expect to use 5G within two years. That portion drops to 57% in the $500 million to $1 billion annual revenue range. In the U.S. 68% of respondents expect to start using 5G within two years.
“As a solution provider and a manufacturer, we are monitoring the 5G landscape closely and we believe there are multiple benefits to holding our own license,” Gunther May, Head of Technology and Innovation, Business Unit Automation and Electrification at Bosch Rexroth AG said in a press release. “It would allow us to be in full control of our 5G strategy by giving us the freedom to either deploy the network alone or with a telecom operator.”
5G is seen as second only to cloud computing (75% versus 84%) as an enabler of digital transformation, according to the Capgemini research. The immediate drivers for adoption will be the benefits to security (54%) and operational efficiency/cost savings (52%).
Researchers also found that 72% of manufacturers say they will pay a premium for enhanced mobile broadband speeds and increased capacity, yet only 54% of telecom operators think there is demand for a premium offering.