Enterprise 5G networking has shown relatively slow growth since inception, with complications emerging from a cost and unfamiliarity perspective. This is to be expected, given the long legacy of Wi-Fi as the enterprise connectivity solution, and little current market education.
However, with the emergence of smaller, multi-domain players, the continuing openness to innovation of mobile network operators, as well as the forging of partnerships across verticals, the advent of 5G-as-a-service (5GaaS) has come, promising strong growth potential, making digestible the advantages the technology has to offer.
The enterprise-telco gap
2025 will become a critical year for 5GaaS – ABI Research forecasts that the 5GaaS market will grow to reach $6.1 billion in 2030, at a compound annual growth rate (CAGR) of 76%. The largest share of the revenue will come from Infrastructure-as-a-Service (IaaS). As it is traditionally the most expensive component of building up enterprise networks, IaaS gives businesses the opportunity to harness private 5G at a more accessible rate.
Unlike costly, capital expenditure (CAPEX)-intensive Enterprise 5G solutions of the past, 5GaaS enables firms to move connectivity costs to operational expenditure (OPEX), through paying in monthly sums, with some vendors offering pay-per-use solutions. Vendors are bullish on this new model – in 2024 alone, players such Boldyn Networks, Celona, and NTT are among the firms that have announced or expanded their end-to-end 5GaaS solutions, continuing to further simplify and build out their offerings through user-friendly software interfaces, and device partnerships.
This is another reason why 5GaaS is slated to grow – the aaS model is also more conducive to use case bundling, in which management, connectivity, and domain- or application-specific devices are bundled into an easy-to-implement package.
Uncertain market conditions
Given recessionary headwinds and global geopolitical uncertainties, firms cannot afford to sink capital into non-core activities and services. Dynamic, on-demand solutions are likely to become essential in this climate, given the fiscal restrictions imposed by the market.
5GaaS is also complementary as a connectivity solution to cloud, and partnerships between hyperscalers and 5G providers for end-to-end data management solutions will further drive adoption of enterprise cellular. Additionally, in mission-critical AI and automation cases that require low latency and high bandwidth, such as automated guided vehicles, 5GaaS offers high-speed connectivity and robust handovers, at a fraction of the cost of implementing infrastructure and network services from scratch.
As-a-Service also allows firms to reduce time-to-market, which is especially true in more compact, transient offerings such as T-Mobile, Nokia, and Ericsson’s. Plug and play solutions, with very minimal setup time ensures that innovation is accelerated, freeing up labor, time and expenditure to focus on profit-making activities. By and large, as enterprises face increasing pressure to optimize costs and remain agile in uncertain market conditions, 5GaaS offers a compelling solution by providing scalable, flexible, and cost-effective connectivity.
The shift from capital-heavy investments to operational expenditure enables enterprises to access high-performance networks without the financial burden of traditional infrastructure. As partnerships in the space multiply, and innovations are continually released into the market, 5GaaS is poised to transform enterprise connectivity, driving efficiencies, accelerating digital transformation, and enabling rapid deployment of mission-critical applications. This business model will play a primary role in shaping the future of enterprise operations.
