As 5G continues to gain momentum in APAC, opportunities for businesses to capitalize on the technology are rapidly increasing. 5G promises capabilities such as faster speeds and lower latency, making it ideal for use in a range of applications, including machine vision with AI analysis from the cloud and real-time analysis of massive IoT connections.
APAC region 5G revenues increasing
A recent report from ABI Research suggests that the APAC region is set to take advantage of these opportunities, with revenues for 5G private networks increasing from US$732 million in 2022 to US$13 billion by 2028. Similarly, 5G network slicing deployments are expected to grow from US$151 million in 2022 to over US$12 billion by 2028.
ABI also identified manufacturing as the vertical with the highest potential for 5G-to-Business applications in the region. Examples include LG Smart Park in South Korea and the Fujitsu Oyama Plant in Japan, two plants that have been leveraging 5G-equipped robotic arms to enable real-time remote control of operations.
Multiple uses of 5G technology
5G is also used to power autonomous vehicles and extended reality simulations for training and support. By collecting real-time sensor data, 5G can create virtual models of physical systems– called digital twins. This allows companies to understand their operations better so that they can optimize production processes and save money.
“5G-to-Business applications have been shown to improve productivity and reduce costs for enterprises across different verticals. 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,” said Matthias Foo, 5G Markets Industry Analyst at ABI Research.
5G network slicing
In the Asia-Pacific region, logistics is predicted to contribute the most revenue to 5G network slicing. Examples of use cases include asset tracking, autonomous and/or remote-controlled operations inspection with vision, and smart transport applications such as China’s Ningbo-Zhoushan Smart Port or Australia’s drone delivery operator Swoop Aero.
Key countries are leading the way in 5G-to-Business development in the Asia-Pacific region, but the report notes that other countries are expected to reap the benefits of 5G technology soon. For example, India is expected to become one of the world’s largest 5G markets in the coming years, especially as their CSPs deploy 5G Standalone networks and more businesses embrace the technology. “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, Vice President of Asia Pacific and Research Director for ABI Research’s 5G markets research service.