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Home > Ultimate Guide to 5G ROI in Industrial Automation

Ultimate Guide to 5G ROI in Industrial Automation

Private 5G networks are transforming industrial automation by offering reliable connectivity, lower costs, and faster returns on investment (ROI). Here’s what you need to know:

  • Efficiency Gains: Companies like CJ Logistics and BASF have seen productivity increase by up to 20% and downtime reduced by 30% using private 5G.
  • Cost Savings: Fewer access points mean up to 15% lower infrastructure costs compared to Wi-Fi. For example, CJ Logistics replaced 300 Wi-Fi points with just 22 5G cells.
  • Fast ROI: 87% of enterprises report ROI within 12 months, with long-term returns as high as 28× over five years.
  • Key Applications: From connecting autonomous vehicles to enabling real-time video analytics and predictive maintenance, private 5G supports critical industrial processes.
  • Scalable Solutions: Firecell offers flexible pricing, including subscription models starting at £85 per 1,000 m² per month, making 5G accessible for businesses of all sizes.

Private 5G isn’t just about better connectivity – it’s a practical solution for improving productivity, reducing costs, and achieving faster ROI. Read on to explore how it’s reshaping industrial operations.

Private 5G ROI Statistics and Benefits in Industrial Automation

Private 5G ROI Statistics and Benefits in Industrial Automation

Why Private 5G is the Future of Manufacturing | Ericsson’s Jan Diekmann on AI, Robotics & Networks

Private 5G Applications in Industrial Automation

Private 5G networks are proving their worth in industrial settings, particularly in three key areas: connecting autonomous vehicles, enabling advanced video analytics, and improving predictive maintenance. Each of these tackles challenges that older wireless systems often fail to address effectively.

Connecting AGVs and AMRs

Autonomous guided vehicles (AGVs) and autonomous mobile robots (AMRs) rely on seamless connectivity to navigate factory floors and warehouses without interruptions. Private 5G eliminates the connectivity drop-offs that Wi-Fi networks experience when devices move between access points. These "dead spots" can disrupt operations or cause navigation errors, slowing productivity.

A practical example showed how private 5G reduced infrastructure needs while boosting efficiency. This is largely due to 5G’s capacity to support over 10,000 devices per base station, compared to just a few hundred for Wi-Fi, all while maintaining sub-10ms latency – critical for real-time protocols like PROFINET.

With 5G, AGVs and AMRs can operate at speeds up to 30% faster, leading to productivity gains of up to 10% and mobility improvements of 35%. In logistics, private 5G has delivered a 20% boost in operational productivity, with some deployments achieving a return on investment (ROI) of 28 times over five years.

Real-Time Video Analytics for Operations

Private 5G isn’t just about mobility; it also revolutionises monitoring through real-time video analytics. High-definition video streams require significant uplink capacity, something public networks – designed primarily for downloads – struggle to provide. Private 5G, on the other hand, offers the bandwidth to handle multiple camera feeds simultaneously, enabling AI-driven quality control, safety monitoring, and maintenance planning.

In August 2023, Ericsson, AWS, and Hitachi America R&D showcased a smart factory setup where 5G-connected cameras inspected 24 assembly components simultaneously. This method reduced material waste and production losses compared to manual inspections. With 5G-enabled video analytics, scrap ratios in milling operations can drop by as much as 80%.

Mobility is another game-changer. Bentley Systems used 5G-connected drones to automate tower inspections, replacing human crews that typically cost between £1,600 and £4,000 per inspection. For augmented reality (AR), ThyssenKrupp paired private 5G with Microsoft HoloLens 2 glasses, allowing technicians to stream live views to remote experts who guide complex repairs. These AR applications demand motion-to-photon latency below 33ms, and private 5G delivers less than 10ms, making real-time overlays feasible.

Predictive Maintenance Through Sensor Data

Private 5G can support one million devices per square kilometre, allowing facilities to monitor not just critical machinery but also secondary equipment like pumps and conveyor rollers. This high device density, coupled with continuous data streaming, enables AI systems to identify early signs of failure that manual checks might miss.

At BASF’s Antwerp site, private 5G enabled real-time AI-driven monitoring, greatly improving maintenance efficiency. The financial benefits are clear: 87% of companies using private 5G and edge computing see ROI within 12 months, with 70% leveraging it for AI-powered predictive maintenance. Globally, predictive maintenance could unlock £110 billion in value through efficiency gains and cost reductions in manufacturing. Thanks to ultra-low latency – as low as 1 millisecond – systems can take "prescriptive" actions, such as initiating shutdowns or adjustments when anomalies are detected, preventing catastrophic failures.

How to Calculate 5G ROI: Metrics and Timelines

Metrics That Drive ROI Calculations

When it comes to calculating ROI for private 5G, six key metrics come into play: productivity gains, infrastructure savings, quality improvements, downtime reduction, operational cost cuts, and sustainability benefits.

Productivity and throughput are often the most noticeable drivers of ROI. For example, automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) operating on 5G networks can move up to 30% faster due to seamless handovers between cells, avoiding the interruptions common with Wi-Fi. A real-world example? CJ Logistics in South Korea saw a 20% boost in scanning productivity at their Icheon City hub after implementing 5G in 2024.

Infrastructure cost displacement is another significant factor. Installing industrial Ethernet cable drops costs around £180 each. CJ Logistics managed to cover their facility using only 22 small cells, which would have required approximately 300 Wi-Fi access points, reducing infrastructure investment by 15%. Similarly, IKD, a Chinese automotive supplier, replaced six miles of cables with a 5G network, cutting cable maintenance costs to nearly zero and increasing product yield by 10%.

Quality and waste reduction is where 5G shines in precision manufacturing. Real-time video analytics and sensor data can cut scrap rates by up to 80% in milling operations while improving testing capacity by 25%.

Downtime reduction offers another measurable benefit. Newmont‘s Cadia gold-copper mine in Australia eliminated up to six hours of downtime per shift by switching from Wi-Fi to private 5G. Across industries, facilities can reduce unplanned downtime by as much as 30% through real-time monitoring and predictive maintenance.

These metrics collectively provide a solid foundation for financial projections, as shown by industry-wide data.

Industry Data and Financial Projections

Data shows that 87% of enterprises see measurable ROI within 12 months of deploying private 5G networks. This rapid payback stems from incremental improvements across multiple areas rather than one big change. For instance, Tier 1 automotive suppliers and manufacturers can realise a cumulative value of about £800 million over five years, translating to a 28-times return on investment.

Operational cost savings also play a huge role. 86% of enterprises report lower operational expenses, with 60% cutting annual OPEX by at least 11%. These savings come from reduced energy consumption (up to 20%), eliminated cable maintenance, and fewer network components needing upkeep.

When comparing total cost of ownership (TCO), 5G proves more economical. For a 23,000-square-metre warehouse, Wi-Fi costs 22% more per square metre over five years. Additionally, 81% of adopters report lower initial deployment costs than traditional alternatives, with 60% saving at least 11% on CAPEX.

"Private 5G has been a game changer for BASF Antwerp. We’re unlocking automation, strengthening occupational safety, accelerating innovation, and meeting ROI targets in just two years." – Steven Werbrouck, Expert in Network Connectivity, BASF

Sustainability is becoming a growing part of ROI calculations, too. 94% of industrial enterprises using private 5G report lower carbon emissions, and 89% see direct energy savings. These improvements not only reduce energy bills but also help meet regulatory requirements, adding another layer of financial benefit.

Expected Timeframes for ROI Achievement

Private 5G deployments generally follow a predictable timeline. The first three months focus on assessment and planning, followed by a three-month pilot phase. Initial ROI typically starts appearing between months six and twelve, with ongoing benefits extending well beyond the first year.

The speed of ROI depends on the complexity of the use case. For example, simpler applications like connected worker tools or AGV connectivity – adopted by 71% of enterprises – yield faster returns than more complex, AI-driven applications that require extensive edge computing.

In the energy sector, where deployment cycles and regulations are more demanding, ROI often takes 18-24 months. Long-term projects, such as automated valet parking in automotive manufacturing, may require a five-year amortisation period but can deliver ROI exceeding 130% over a decade.

Take John Deere‘s Davenport Works facility in the US as an example. By deploying private 5G across their 204,000-square-metre site, they reduced their reliance on wired Ethernet from 70% to 10%, cutting thousands of miles of costly cables. While the initial deployment required careful planning, the ongoing savings from reduced maintenance and greater flexibility continue to grow year after year.

For faster ROI, focus on high-impact use cases where Wi-Fi struggles – such as environments with high mobility, heavy metal interference, or large outdoor areas. Piloting 5G on a single production line before scaling up can help measure specific gains in latency and uptime, building a clear case for broader deployment. This phased approach not only fine-tunes the process but also generates early returns to fund further expansion.

Private 5G Costs and Firecell Pricing

Firecell

Upfront and Recurring 5G Network Costs

Deploying a private 5G network involves two main types of expenses: upfront capital costs (CAPEX) and ongoing operational costs (OPEX). The initial investment typically covers hardware like servers, radios, and antennas, as well as site surveys, radio planning, installation, and commissioning. On the other hand, recurring costs include software licences, network management, technical support agreements (SLAs), maintenance, and hardware warranties.

One of the key advantages of private 5G is its efficiency compared to Wi-Fi. For example, a 23,000‑m² facility might need only 20 5G radios compared to 50–80 Wi-Fi access points. This translates to lower costs for installation, labour, and maintenance. Additionally, private 5G networks require significantly less cabling – up to 20 times fewer access points compared to Wi-Fi.

However, specific industrial environments can impact costs. Obstacles like heavy machinery or shelving may necessitate additional access points, while simpler applications, such as barcode scanning, demand less infrastructure. More complex tasks, like real-time video analytics or augmented reality, often require a more robust setup. Professional RF planning is essential to determine the right number of access points for your specific needs.

These cost considerations set the stage for Firecell’s pricing and product offerings in private 5G solutions.

Firecell Product Range and Pricing Structure

Firecell provides customisable solutions designed to meet a variety of industrial requirements. Their offerings fall into three main categories: lab kits for testing and development, mobile "pop-up" networks for temporary setups, and scalable production networks for larger facilities.

Orion Labkit Range
This range is ideal for indoor development and testing. The Labkit 40 is priced at €11,900 (around £10,200) upfront, with a yearly fee of €5,580 (£4,800). It covers areas between 10–1,000m² and uses open-source software. For higher bandwidth and advanced features, the Labkit 100 and O‑RAN versions are available for €29,900 and €22,900 respectively, with the same annual subscription fee.

Pegasus Pop-Up Series
Designed for mobile or temporary networks, this series is suitable for spaces larger than 1,000m². The Low Power model starts at €32,900 (£28,200) upfront, with an annual fee of €5,264 (£4,500), offering coverage of 30–100 metres. The Mid Power and High Power versions extend coverage to 300–1,000 metres and 1,000–5,000 metres, with upfront costs of €37,900 and €39,900, respectively, and corresponding yearly fees.

Network as a Service (NaaS)
For facilities over 10,000m², Firecell offers a subscription-based model that eliminates upfront infrastructure costs. Under this plan, Firecell owns and finances the network assets. Customers pay a one-time starter fee of €450 (£385) per 1,000m², followed by a monthly subscription of €99 (£85) per 1,000m². This fee includes connectivity, technical support, monitoring software, hardware maintenance, and future upgrades at no additional cost.

"You pay one single monthly fee for the service level you need. No more upfront costs, pricing evolves with your business needs." – Firecell

Firecell also offers additional components such as 10 SIM cards for €120 (£103), Crosscall Core‑Z5 rugged smartphones for €790 (£677) each, and Teltonika RUTX50 5G routers for €790 each. Pre-integrated bundles can be up and running in under 12 weeks.

Strategies to Increase 5G ROI

Connecting 5G to Current IT and OT Systems

Think of private 5G as an extension of your existing LAN. This perspective helps streamline integration with current IT tools, cutting down on network silos and reducing both deployment time and management costs.

Bringing IT and OT systems together creates immense value. For instance, when data from factory-floor sensors flows directly into corporate analytics platforms, it drives the kind of data integration critical for modern industrial operations. Take Intel IT’s example: in 2024, they rolled out private 5G across five manufacturing sites to connect previously isolated systems like water and electrical infrastructure. Supporting 13 initial use cases, this initiative is expected to generate a net present value of around £35 million over five years.

"We see private 5G very much as a LAN extension, not a separate part of their networks – and therefore there is tight integration with pre-existing Cisco networking." – Paul Bloudoff, Senior Director: 5G Strategic Client Enablement, NTT Data

The ability to support multiple applications simultaneously is a major driver for ROI. Instead of dedicating a network to just one use case, private 5G can power AGVs, handheld scanners, predictive maintenance sensors, and video analytics all at once. Around 60% of operational private networks already support two or more applications. Additionally, 5G’s efficiency means it needs five to 20 times fewer access points than Wi-Fi, slashing both CAPEX and ongoing maintenance costs. This unified approach not only saves money but also sets the stage for future network growth.

Expanding 5G Networks as Operations Grow

Building integration is just the start – scaling your network strategically can further boost ROI. Many successful 5G rollouts begin with high-priority applications, such as mobile assets like AGVs and AMRs, before expanding into areas like warehouses, loading docks, or transit hubs. Using preconfigured, standardised solutions for geographic expansion also helps avoid the headaches of overly customised setups.

A great example is CJ Logistics in South Korea. In 2024, they installed a private 5G network at their Icheon City hub, replacing roughly 300 Wi-Fi access points with just 22 small cells. This move saved 15% on infrastructure costs and supported over 100 handheld scanners and a fleet of AGVs. The result? A 20% boost in scanning productivity thanks to reduced latency.

For phased expansions, Firecell’s Network as a Service (NaaS) model is worth noting. Their scalable, pay-as-you-grow subscription plan offers transparent monthly pricing – approximately £85 per 1,000 m² for indoor, single-building deployments. This fee covers connectivity, technical support, monitoring software, and hardware maintenance, making it easier to grow your network alongside your operations.

Maintaining Network Security and Uptime

While integration and scalability are key, ensuring uninterrupted connectivity is equally critical for sustaining ROI. Private 5G’s use of licensed or dedicated industrial spectrum guarantees stable performance, even in challenging environments filled with steel and concrete – areas where Wi-Fi often falls short. This reliability directly supports consistent productivity and minimises downtime.

Security is another cornerstone of private 5G. Features like SIM or eSIM authentication replace password-based access, while on-premises data traffic ensures IT teams maintain complete control over data sovereignty. BASF Antwerp provides a compelling example: in September 2025, they highlighted their private 5G network as transformative for their six-square-kilometre facility in Belgium. The network’s real-time monitoring and predictive maintenance capabilities have enhanced safety and are on track to meet ROI targets within two years.

Predictive maintenance itself is a standout application. With 5G-enabled sensors continuously monitoring equipment, potential failures are flagged before they cause disruptions. This proactive approach significantly reduces unplanned downtime, one of the top contributors to ROI. In fact, 87% of industrial enterprises using private wireless and on-premise edge solutions reported seeing a return on investment within a year, with 57% citing improved cybersecurity as a key factor.

Conclusion: 5G ROI in Industrial Automation

The numbers speak for themselves: private 5G is proving to be a financial game changer in industrial automation. A whopping 87% of industrial enterprises report measurable ROI within just 12 months of deployment, with 81% highlighting lower setup costs compared to traditional options. For Tier 1 automotive suppliers, the returns are even more striking – 28× over five years.

These financial gains are rooted in practical, operational improvements. For instance, real-time connectivity allows automated guided vehicles (AGVs) to work up to 30% faster, while predictive maintenance minimises expensive downtime. These advantages aren’t theoretical; they’re being realised in real-world deployments.

"Private 5G has been a game changer for BASF Antwerp. We’re unlocking automation, strengthening occupational safety, accelerating innovation, and meeting ROI targets in just two years."
– Steven Werbrouck, Expert Network Connectivity, BASF

Firecell is helping businesses tap into this potential with tailored solutions that remove hefty upfront investments. Their Network as a Service model, priced at approximately £85 per 1,000 m² per month, covers everything from connectivity and support to monitoring and maintenance. This subscription model ensures that networks can scale effortlessly as operations expand. To make the transition even smoother, Firecell’s Orion Labkit offers a chance to test private 5G solutions in areas up to 1,000 m² before committing to a full rollout. This approach not only saves money upfront but also sets the stage for long-term growth.

The question for industrial leaders isn’t whether private 5G can deliver results – it’s whether delaying its adoption risks falling behind competitors who are already reaping its benefits.

FAQs

How does private 5G boost the performance of autonomous vehicles in industrial environments?

Private 5G transforms how autonomous vehicles perform in industrial settings by offering high bandwidth, ultra-low latency, and reliable connectivity. These capabilities are essential for real-time communication, allowing vehicles like Automated Guided Vehicles (AGVs) to operate with improved precision, safety, and overall efficiency.

With private 5G, communication between vehicles, machines, sensors, and control systems becomes seamless. This reduces delays and interruptions, ensuring operations run smoothly and are well-coordinated. Furthermore, it provides a secure and unified communication framework that simplifies processes, cuts down operational expenses, and reduces downtime. The result? A safer and more efficient environment for autonomous vehicles to navigate even the most complex industrial landscapes.

Private 5G delivers the dependable and scalable connectivity needed to optimise the performance of autonomous vehicles, setting the stage for smarter and more efficient industrial automation.

What are the main cost benefits of private 5G compared to traditional Wi-Fi in industrial automation?

Private 5G offers a clear edge over traditional Wi-Fi in industrial automation, especially when it comes to cost efficiency. With ultra-reliable connectivity boasting up to 99.999% uptime, it significantly minimises downtime. This not only reduces operational disruptions but also cuts down on associated costs, ensuring smooth performance even in the most challenging environments.

What’s more, private 5G excels in handling massive device connectivity and providing real-time control. This capability allows businesses to fine-tune their operations, improve overall efficiency, and see tangible productivity improvements. These advantages often translate into a quick return on investment, with many companies recouping costs in under a year.

How soon can businesses see a return on investment after implementing private 5G networks?

Most businesses can typically see a return on investment (ROI) within just 12 months of implementing private 5G networks. This quick turnaround is largely due to improvements in productivity, lower operational costs, and streamlined efficiency in industrial processes.

Private 5G networks empower industries like manufacturing and logistics with tools such as autonomous robots, real-time monitoring, and seamless communication. These technologies not only enhance performance but also integrate smoothly with existing systems, making private 5G a smart choice for businesses aiming to modernise their operations and remain competitive in an ever-changing market.

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