Annual spending on private 5G networks is projected to reach US$5 billion by 2028, driven by the demand for ultra-low latency in critical sectors, according to SNS Telecom & IT. These networks offer a viable alternative to wired systems for manufacturing, mining, and logistics operations.
The shift toward private wireless connectivity responds to global demand for operational efficiency and supply chain resilience. Accelerated capital recovery metrics support the financial viability of these deployments.
“The adoption of private wireless networks is not a passing trend. The massification of 5G networks will not only increase productivity and reduce costs, but it will also redefine the way companies operate, collaborate, and compete,” said Héctor Tamayo, Regional Product Leader, OSC Top Solutions Group.
Technical Limitations of Traditional Connectivity
Industrial environments have historically relied on Wi-Fi or wired connections, which pose critical limitations in mobility, frequency interference, and insufficient capacity for advanced applications. In today’s industrial landscape, digitization has shifted from an option to a necessity for technical competitiveness.
According to GlobalData, 93% of companies implementing private networks recover their investment in less than a year. Benefits include a 10% productivity increase, reduced emissions, and improved collaborative workflows. Private networks remain independent and controlled by the organization, allowing for tailored configurations to ensure security, reliability, and high performance.
Private 5G networks surpass previous technologies, such as private LTE, in speed and reliability. Operational flexibility is a key advantage—for example, reconfiguring a wired production line can take up to seven days, whereas private 5G networks reduce this process to a few hours.
The SNS Telecom & IT report projects that annual spending will reach US$5 billion by 2028, driven by industries supporting mission-critical applications, including:
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Autonomous transport and mobile robots
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Remote-operated machinery
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High-definition video transmission for real-time analytics
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IoT sensors for energy consumption optimization
In Latin America, OSC Top Solutions Group, alongside Nokia, is a leading provider of private 5G networks. Their comprehensive model covers design, installation, and continuous management, ensuring assets such as geolocation systems, intelligent alarms, and real-time analytics perform reliably in complex environments.
Private 5G networks also enhance worker safety through connected devices that improve emergency response times, particularly in mining and hydrocarbons sectors in Nuevo León and other industrial hubs. Additionally, these networks support corporate environmental objectives by optimizing resource use through IoT solutions.