Nokia Expands Private 5G Alliances in Critical Infrastructure

- Nokia's partnership with OneLayer integrates its NetGuard security suite with OneLayer's operational technology (OT) asset protection platform to provide a zero-trust security architecture for private networks. This joint offering includes capabilities like asset discovery, micro-segmentation, geofencing, and automated incident response to protect utility endpoints and field assets. - The collaboration with E.ON aims to modernize the energy firm's mission-critical communications infrastructure, starting in Germany, by deploying next-generation IP, optical, and fixed access networks. This initiative is expected to reduce energy consumption of the network infrastructure by up to 50% while enhancing grid security and resilience to meet KRITIS (critical infrastructure) requirements. - Standardization for non-public networks (NPNs), the 3GPP term for private networks, began in Release 15 and has seen significant enhancements in subsequent releases. Releases 16, 17, and the upcoming 5G-Advanced Release 18 have introduced and will continue to enhance features crucial for industrial use cases, such as support for Time-Sensitive Networking (TSN), ultra-reliable low-latency communication (URLLC), and 5G LAN-type services. - Nokia is considered a global leader in the private wireless sector, with a market share of approximately 50% based on customer numbers. The company has secured partnerships across various industries, with manufacturing, transport and logistics, and energy and mining being the top sectors for private wireless deployments. - The private wireless market is projected to grow significantly, with some forecasts suggesting the global market will reach nearly $8 billion by 2027 at a compound annual growth rate of 23.3%. In the U.S. alone, cumulative spending on private 5G is expected to exceed $3.7 billion between 2024 and 2027. - Key competitors for Nokia in the private 5G infrastructure market include Ericsson, Huawei, Samsung, and Cisco. These companies are also focusing on providing end-to-end solutions tailored for specific verticals like manufacturing, utilities, and transportation. - Despite its market leadership, Nokia announced a strategic review of its enterprise campus edge business, which includes parts of its private wireless offerings, with decisions expected in 2026. The company insists it remains committed to the private 5G market, particularly for mission-critical sectors like utilities and defense, focusing on selling radio and core network components. - Private 5G enables critical use cases for utilities such as smart metering, grid load management, predictive maintenance, and remote monitoring and control of infrastructure like substations and pipelines. The technology's low latency and high reliability are essential for real-time data transmission and automation in geographically dispersed and often hard-to-reach locations.