Challenges Persist for Industrial 5G Despite Growing Adoption

5G Despite Growing Adoption

At Hannover Messe 2025, industry leaders and telecom operators declared the era of proof-of-concept (PoC) for industrial 5G deployments over. However, concerns over cost, business cases, device availability, and education continue to hinder widespread adoption.

During two sessions at the event’s dedicated 5G and industrial wireless stage, experts presented examples of successful deployments in sectors ranging from wastewater treatment to steel manufacturing. While progress has been made, significant hurdles remain in achieving mass adoption of 5G across industries.

Cost and Complexity Concerns

Andreas Mueller, Chair of the 5G Alliance for Connected Industries and Automation (5G-ACIA) and Bosch 6G Director, highlighted perceived complexity and cost as major deterrents. “Industries may think the technology is expensive, but they need to compare it to the value it delivers,” he said, noting that calculating return on investment (ROI) for industrial 5G is not always straightforward.

Mueller also pointed to a lack of awareness, particularly among mid-sized enterprises, regarding the benefits of 5G. He stressed the need for continued education and the promotion of success stories to encourage adoption.

Despite these challenges, Mueller remained optimistic, citing an expanding device ecosystem and enhanced feature support as signs of steady improvement.

Economic Pressures and Device Limitations

Siemens’ Director of Industrial Wireless, Daniel Mai, reinforced the sentiment that 5G is a proven technology, stating that most customers are considering its adoption. However, he acknowledged that current economic conditions have delayed some planned projects.

Mai identified industries operating over large spaces and brownfield sites as particularly promising for 5G due to the high cost of traditional wiring. While many historical barriers have been addressed, he noted a persistent issue with the third-party device ecosystem, as many industrial devices still lack built-in 5G interfaces due to cost constraints.

Additionally, spectrum availability remains a challenge. “It’s a puzzle globally, making it difficult for suppliers,” Mai said.

Internal Roadblocks and Budget Constraints

Experts at the event also pointed to internal company dynamics as a roadblock. Ericsson’s VP of Private Network Sales for EMEA, Duncan Hawkins, noted that responsibility and budget allocation for 5G deployments remain unclear in many organizations, as both operational technology (OT) and IT teams are affected.

“There are two different parts of an organization that may not have worked together before,” Hawkins explained. He emphasized the need to “break the budget cycle” by educating stakeholders on the benefits of 5G, which could unlock necessary funding.

Driving Industrial Transformation

Despite ongoing challenges, industry players see strong potential for 5G in priority areas such as automation, safety, and sustainability. ABB’s Global Product Manager for Connectivity, Juha Mirsch, emphasized the role of 5G in addressing climate change and workforce demographic shifts. “Energy transition and efficiency are common targets, and we need technology to drive those,” he said.

Mirsch also pointed to 5G’s role in enhancing worker safety through advanced applications.

Expanding Use Cases and Adoption Trends

Vodafone Business Germany’s Divisional Head, Marcus Hacke, stressed that there is no single use case driving adoption, but rather a variety of applications that enhance 5G’s viability.

In the U.S., Verizon Business VP of 5G Solution Sales, Robb Juliano, reported a strong shift from trials to full-scale deployments. “In 2022 and 2023, we saw many PoCs and trials, but in 2024, we didn’t sell a single trial—they were all full production deployments,” he said.

As industrial 5G continues to evolve, the focus remains on overcoming remaining barriers to unlock its full potential in manufacturing and beyond.