Nokia Report: Proven ROI for Industry 4.0
The convergence of private wireless, edge computing and AI has reached a critical tipping point for industrial operators. Findings from the Nokia 2025 Industrial Digitalisation Report, developed with GlobalData, reveal that the technologies have moved from niche concepts to a foundational platform for Industry 4.0, delivering a rapid and multifaceted return on investment (ROI).
The report presents a robust case for adoption, showing how an integrated architecture of private wireless and on-premise edge computing drives financial returns, operational excellence, enhanced safety and sustainability.
For organisations in the telecommunications sector and beyond, the insights signal a mature market where the business case for industrial digitalisation is no longer theoretical but proven and repeatable.
The unbeatable business case: Rapid ROI and lower TCO
A primary barrier to adopting capital-intensive technology is the business case. The report confronts a challenge head-on, leading with a compelling financial narrative centred on rapid returns and a favourable Total Cost of Ownership (TCO).
The headline metric is striking: an overwhelming 87% of industrial enterprises achieve a positive ROI within a single year of deploying private wireless and on-premise edge.
A significant portion of these companies see returns even faster, substantiating the investment as a short-term operational gain rather than a long-term strategic cost.
- Lower initial costs: 81% of organisations reported that setup costs for their private wireless and edge solution were lower than alternatives like large-scale industrial Wi-Fi or extensive wired Ethernet. The technology is proving to be a more cost-competitive choice for large or complex operational environments such as ports, mines and sprawling factory campuses.
- Lower operational costs: 86% of companies experienced lower ongoing operational expenditure. The savings come from simplified network management and, more importantly, from the efficiency gains of the applications the network enables. Use cases like drone-based inspections reduce fuel and labour costs, while predictive maintenance minimises expensive unplanned downtime.
Crucially, these findings are consistent with previous years, establishing a credible trend. The data demonstrates that the financial benefits are a predictable outcome as the technology moves into the mainstream, transforming the investment proposition from a high-risk venture into a de-risked, proven strategy.
A new architectural standard for industrial AI
Beyond immediate financial returns, the report identifies a new architectural standard for industrial digitalisation built on the symbiotic relationship between private wireless and on-premise edge computing. A remarkable 94% of surveyed enterprises deploy on-premise edge technology alongside their private wireless networks.
Sophisticated adopters view these two technologies as a single, integrated solution stack. Private wireless (4G/LTE or 5G) provides the deterministic, reliable and secure communication layer needed for Operational Technology (OT), collecting vast amounts of data from sensors, vehicles and workers.
On-premise edge computing processes that data in real time, placing compute resources physically close to the source to eliminate the latency and cost of sending everything to a centralised cloud.
The primary driver for adopting the integrated architecture is the enabling of AI. A full 70% of the surveyed enterprises already use a foundational layer to support AI-driven applications. The network and edge are the means to an end and that end is AI-powered transformation.
- Predictive maintenance: Analysing real-time data from machinery to predict failures before they happen, reducing downtime.
- Digital twins: Creating high-fidelity virtual models of physical assets and production lines to simulate and optimise operations.
- AI-assisted monitoring: Using computer vision to monitor hazardous areas for safety compliance and automate quality control.
Driving sustainability and enhancing worker safety
Modern industrial enterprises are judged on metrics that extend beyond the bottom line, including environmental impact and worker safety. The report makes a compelling case that private wireless and edge deployments deliver substantial benefits across these domains.
A near-universal 94% of enterprises reported a reduction in their carbon emissions, directly linking digitalisation investments to achieving corporate Environmental, Social and Governance (ESG) goals.
The technology enables specific use cases that drive sustainability, such as optimising logistics to reduce fuel consumption or using predictive maintenance to fix inefficient, energy-wasting equipment.
The focus of industrial connectivity has further evolved beyond machines to include people. 71% of companies are actively deploying "connected worker" tools over their private networks.
Solutions include automated alarms triggered by gas-leak sensors, AI-assisted video monitoring of dangerous areas and geofencing to prevent workers from entering restricted zones.
Supporting the advanced applications is a robust security posture. A majority of respondents, 57%, identified cybersecurity as a primary reason for choosing an industrial edge platform powered by a private wireless network.
In high-stakes OT environments where a cyberattack can cause physical disruption and threaten human life, the network must be completely trustworthy.
