Analysys Mason says early adoption of 5G positioning is likely to come from localized private network environments
In sum – what to know:
Early adoption – Private networks in logistics, manufacturing, and healthcare are expected to lead uptake of high-precision 5G positioning.
Monetization gap – Operators face challenges in scaling services due to complex sales cycles and the need for partnerships and API ecosystems.
Accuracy limits – Improved precision, including GNSS integration, is key to unlocking advanced use cases such as navigation, drones and autonomous systems.
High-precision 5G positioning is gaining momentum across enterprise and industrial use cases, but operators still face significant challenges in scaling and monetizing these services, according to an analyst at consulting firm Analysys Mason.
In an interview with RCR Wireless News, James Kirby, senior analyst at Analysys Mason, said early adoption is likely to come from localized private network environments. “For local area positioning, private networks markets such as logistics, manufacturing, and hospitals on a local level are likely to be first,” he said, pointing to asset tracking and industrial applications as initial drivers.
Kirby also highlighted the potential to extend positioning capabilities across both local and wide-area environments. “Asset tracking on a wide area basis to a local area – using the same technology for both could be valuable,” he said, adding that navigation services and emerging applications such as drones and autonomous vehicles could follow as accuracy improves.
However, despite growing technical capabilities, monetization remains a key challenge for operators. Kirby also said that scaling location-based services requires significant commercial effort.
Accuracy has also been a limiting factor in the past. “The positioning accuracy provided in rural or even suburban areas by the network alone has not been sufficient,” Kirby said, noting that combining 5G with GNSS correction technologies could improve performance and unlock more advanced use cases.
The analyst also emphasized that operators may need to rethink their approach to capturing value. “Still, to build a successful location-based services business, substantial sales efforts are still needed,” he said, suggesting that operators could develop their own platforms and applications, such as location analytics tools.
Ericsson’s recent launch of 5G-Advanced location services reflects the industry’s push to address these challenges. The solution embeds positioning capabilities directly into the 5G Standalone core and supports high-precision indoor and outdoor use cases, targeting sectors such as manufacturing, healthcare and public safety.
As vendors continue to improve accuracy and integration, the next phase of growth for 5G positioning is likely to depend less on technology readiness and more on operators’ ability to build scalable commercial models.
