5G in Industry: Strategic Partnerships Drive ROI and Reshape Telecommunications

The telecommunications industry stands at a pivotal inflection point as 5G infrastructure expansion in industrial sectors accelerates. For years, telecom operators have struggled to monetize 5G beyond consumer markets, but strategic partnerships with industrial firms are now unlocking tangible returns on investment (ROI). According to a Nokia-commissioned study, nearly 90% of industrial enterprises deploying private 5G networks report achieving ROI within 12 months, with 87% seeing returns in just one yearPrivate 5G in Industry 4.0 – 90% ROI in 12 months, plus security, safety, and sustainability^[1]. This shift is not merely technological but economic, as telcos pivot from connectivity providers to enablers of mission-critical industrial transformation.

The Partnership Imperative

The success of 5G in industrial settings hinges on collaboration. As PwC emphasizes, telecoms must adopt a B2B2X model—partnering with cloud providers, original equipment manufacturers (OEMs), and software developers to create tailored solutions for end customersROI or die: The 5G imperative for telecoms^[2]. For example, Ericsson's case study on 5G-enabled automation in manufacturing demonstrated EUR 27 million in annual savings for a single factory through real-time monitoring and blisk production optimizationCase study on 5G business value to industry^[3]. Such partnerships allow telcos to bundle 5G with AI-driven services, edge computing, and IoT platforms, creating value chains that extend beyond raw connectivity.

Capgemini's research underscores this trend, noting that 60% of early 5G adopters in industry report increased operational efficiencyAccelerating the 5G Industrial Revolution^[4]. These gains stem from applications like predictive maintenance, digital twins, and low-latency automation, which require not just 5G networks but integrated ecosystems. By aligning with industrial players, telcos can co-develop solutions that address specific pain points, such as safety in hazardous environments or supply chain visibility.

Financial and Sustainability Payoffs

The financial case for private 5G is compelling. A 2025 report by GlobalData, cited in a Nokia study, found that 81% of industrial enterprises reported lower setup costs for private 5G compared to traditional alternatives, with 60% saving at least 11%Private 5G in Industry 4.0 – 90% ROI in 12 months, plus security, safety, and sustainability^[1]. BASF, a chemical giant, exemplifies this trend. By deploying Nokia's private 5G network at its Antwerp facility, the company achieved ROI targets in two years while enhancing automation, worker safety, and sustainabilityPrivate 5G Edge Drives Industrial AI ROI^[5].

Sustainability is another critical driver. The same study revealed that 94% of industrial firms using private 5G reported reduced carbon emissions, with 41% cutting emissions by over 20%Private 5G in Industry 4.0 – 90% ROI in 12 months, plus security, safety, and sustainability^[1]. Predictive maintenance and connected devices minimize fuel-intensive travel and optimize energy use, aligning with global decarbonization goals. For investors, this dual focus on profitability and ESG metrics strengthens the long-term viability of 5G industrial projects.

Challenges and Future Trends

Despite these gains, challenges persist. The broader telecom sector faces stagnant revenue growth, with telco stocks up only 11% in 2025 despite a projected $1.53 trillion industry revenue2025 telecom industry outlook | Deloitte Insights^[6]. Consumer 5G adoption remains sluggish, underscoring the need for telcos to double down on industrial partnerships. Emerging trends, however, offer hope. The integration of generative AI with 5G networks is enabling hyper-personalized services, while alliances with satellite providers are expanding connectivity to remote industrial sitesWhat’s next for telecoms: 7 key trends and takeaways from MWC 2025^[7]. Programmable networks and API-driven ecosystems are further democratizing innovation, allowing third-party developers to build on 5G's real-time capabilities.

Conclusion

The convergence of 5G and industrial transformation is no longer speculative—it is delivering measurable returns. Strategic partnerships are the linchpin, enabling telcos to transition from infrastructure providers to value creators. For investors, the message is clear: industrial 5G is a high-conviction opportunity, backed by rapid ROI, sustainability synergies, and a growing ecosystem of collaborators. As the private wireless market is projected to reach $8 billion by 2027The State of 5G: Growth, Challenges, and Opportunities in 2025^[8], the time to act is now.