ABI Research noted that revenues from 5G network slicing deployments in APAC will grow from $151 million in 2022 to $12 billion by 2028
The deployment of 5G private networks in Asia Pacific is expected to reach revenues of $13 billion in 2028, up from $732 million in 2022, according to a new report from ABI Research.
The firm also anticipates that revenues from 5G network slicing deployments in the region will grow from $151 million this year to $12 billion by 2028.
ABI noted that the capabilities of 5G are starting to enable a range of applications, such as machine vision with artificial intelligence (AI) analysis from the cloud and real-time analysis of massive Internet of Things (IoT) connections.
“5G-to-Business applications have been shown to improve productivity and reduce costs for enterprises across different verticals,” said Matthias Foo, 5G markets industry analyst at ABI Research. “Beyond that, 5G enterprise deployments were also shown to reduce power consumption by improving equipment efficiency through data analytics and workplace safety with machine vision and AI.”
Within the private 5G cellular space, manufacturing is projected to be the vertical with the highest revenue potential for 5G-to-business applications in the Asia-Pacific region, according to the research firm. Key use cases utilize the capabilities of 5G to enable real-time robotic control for remote-controlled operations, autonomous vehicle operations, extended reality technology for training and support applications, and the collection of a large amount of sensor data for developing digital twins. Some relevant case examples include South Korea’s LG Smart Park and Japan’s Fujitsu Oyama Plant, ABI Research said.
Meanwhile, in the 5G network slicing domain, the logistics vertical is forecast to be the highest contributor to revenue. Key use cases for 5G adoption, the firm said, include vision-based inspections for autonomous and/or remote-controlled operations, asset tracking, and smart transport applications, as illustrated by China’s Ningbo-Zhoushan Smart Port and Australia’s drone delivery operator Swoop Aero.
While the 5G-to-business market in Asia-Pacific is currently driven by several key countries, there continues to be a large opportunity for 5G-to-business growth in the region as more countries, like India, begin to roll out their 5G networks and more telecom operators deploy 5G Standalone networks, the report added. “While the economic outlook in many regions has become more uncertain, 5G cellular coverage and innovations continue. Those firms and countries implementing 5G-to-business applications are most likely to secure first mover advantages,” said Jake Saunders, VP of Asia Pacific and Research Director for ABI Research’s 5G markets research service.
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