Each year, there are a selection of new technologies that are expected to be the NBT – “next big thing.” As we prepare to enter 2024, I expect that private cellular networks will see a sharp uptick in adoption as the next generation of enterprise connectivity. Companies only adopt new technology when it solves an operational or financial problem, and private cellular networks address both. With this in mind, here are some predictions for the most pressing 2024 business needs that private cellular networks are poised to satisfy.
Security concerns increase
Sometimes, cyber security feels like a bad superhero movie – villains are everywhere and they seem to be multiplying. The list of bad actors is long: nation-states looking to disrupt businesses and steal their secrets; private crime organizations looking for ransom opportunities; and even ideological individuals targeting specific industries. At the same time, the world seems to be moving towards more armed conflicts. All of these threats are driving companies to pivot from public communication infrastructures to private networks, where they can have full access control. Sharing may be caring, but it also presents higher risk for business-critical systems. As security becomes an even bigger issue for enterprises, most companies want their own network.
Data becomes more valuable
We have heard for years that data is the new oil, but how much data does one really need? Consider that the original ChatGPT-3 model sourced ONLY 570 gigabytes of text! Most companies probably do not need this much information to successfully leverage AI, but the ability to securely collect, process, and store operational data will become competitive in the future. The fact is that existing connectivity technologies are not architected to collect this much data, and even if they could, it would be prohibitively expensive to transmit all of this information over a public network. As businesses will undoubtedly need to securely process huge swaths of data for Machine Learning or AI applications, private cellular technology is far and away the most cost-effective option.
Automation surges as hiring gets harder
The U.S. unemployment rate remains under four percent, and labor experts are telling us that we are at the beginning of a decline in the number of working-age individuals. In parallel, the U.S. is at the beginning of what is expected to be the largest increase of manufacturing capability since the second World War. Manufacturing and inventory management activities are about to grow in a way that we have not seen in generations. The main question for businesses in these industries is who will do the work? A variety of technologies that automate functions, as well as make employees more efficient, will be required by these burgeoning enterprises. Private cellular networks are the only technology that can securely power automation with low latency and a high throughput. It will become a critical tool in these industries.
Coverage is King
All of us are accustomed to seeing a variety of macro and micro cell phone tower sites. While I always appreciate good coverage at home and in the car, covering industrial buildings or agricultural operations is a different matter. Most of these structures are metal and often block public cellular networks. When running autonomous guided vehicles, and even modern forklifts, connectivity needs to be reliable in every corner of the facility for efficiency and safety. Autonomous vehicles of many types simply stop moving without 100% coverage. WiFi is great for carpeted office areas, but it does not work well in big open spaces and industrial settings. Since more equipment than ever needs to be always connected, private cellular is the best option.
Cost controls increase
Rumors about a recession impacted spending and hiring this year, and increased inflation is driving careful thinking around spending and investment in 2024. Companies are dealing with an actual cost of capital for the first time in a decade. All of this will drive more attention on ROI. Since the average cost per square foot to cover industrial and outdoor areas with private cellular is less than half of the cost of WiFi, expect a much higher adoption rate for private cellular solutions.
Conclusion
The new year promises to bring exciting new capabilities and tools that can truly transform efficiency and profitability—but these tools also present their own set of obstacles. As enterprises continue to adopt automation and AI-based applications to drive productivity and revenue, they will need reliable, low latency networks that are flexible and cost-efficient. Private cellular is an ideal solution for these challenges, and should see accelerated adoption rates over the course of the year.
