ABI Research: Outdoor Use Cases Drive Private Cellular
January 16, 2023
2023 kicks off, predictions abound on the technology innovations expected in
the year ahead. In its new whitepaper, 74 Technology Trends That Will—and
Will Not—Shape 2023, analysts from global technology intelligence firm ABI
Research identify 41 trends that will shape the technology market and 33
others that, although attracting vast amounts of speculation and commentary,
are less likely to move the needle over the next twelve months. In the 5G
Markets space, outdoor use cases will drive private cellular, but Private 5G
won’t take off.
“War, inflation, political upheaval, energy shortages, and the ongoing
fallout from a global pandemic are still creating a persistent sense of
uncertainty. Labor shortages, supply chain issues, falling consumer
sentiment, and rising input costs are squeezing many markets. However, the
common aspect between all of these is that technology can either be the
anchor dragging down operations or the mainsail powering companies forward.
The devil is in the detail of the how, who, what, and when of technology
investment and implementation. This whitepaper serves as a helpful blueprint
for building realistic expectations of key technology markets and
verticals,” says Stuart Carlaw, Chief Research Officer at ABI Research.
What Will Happen in 2023:
Outdoor Use Cases Will Drive Private Cellular
has started throughout 2022 already will continue and become even more
prominent in 2023. Old battle lines between Wi-Fi and, specifically, 5G are
reappearing, as the most tangible value proposition for enterprises seems to
be the fact that, in comparison to Wi-Fi, private cellular (and 5G
specifically) will be able to bring connectivity to particularly large and
remote coverage areas. A private cellular network will be able to connect
these outdoor sites (e.g., oil or gas fields, airfields of airports, or
shipping ports) much more efficiently than other wireless connectivity
technologies (e.g., legacy Wi-Fi), which creates a real value proposition
for enterprise owners and managers.
What Won’t Happen in 2023:
Private 5G Will Not Take Off
In line with critical enterprise 5G features (URLLC and Time-Sensitive
Networking (TSN)) only starting to appear in commercially available chipsets
by the end of 2023, Release 16-capable industrial-grade devices will be
available at scale by 1Q 2024. As only the large-scale availability of
Release 16-capable chipsets will drive down device costs (and ease the
Private 5G value proposition), it is expected that 5G will begin to pick up
only after the beginning of the following year.