Network equipment vendors need to evolve their role to adapt for 5G B2B market, says Strategy Analytics
In the latest report, “Network Equipment Vendor’s Role in 5G Vertical Industry Market,” Strategy Analytics points out that Network platforms and the mobile ecosystem should evolve to meet the specific requirements for B2B and industrial customers.
A consensus has developed among communications service providers (CSPs) that the B2B market is a major growth opportunity for 5G and many have been actively trialing 5G B2B services with a focus on vertical industrial applications. Telecom players need to improve their capabilities to provide better support for vertical industries. Understanding E2E vertical industrial requirements, collaboration with industrial solution providers and standardisation across multiple 5G vertical applications are all essential if telecom players are to build an ecosystem for 5G vertical industrial applications.
Sue Rudd, director of networks and service platforms at Strategy Analytic notes, “we expect to see vendors become more active in developing the 5G B2B business. They have an opportunity to build the hub platform that connects CSPs and diverse connectivity options with module suppliers, industrial device vendors, hardware providers, and industrial software applications. As the ecosystem evolves, it can create opportunities for multiple vendors’ long-term growth in ways that will benefit the entire telecom industry chain.”
Guang Yang, director, Strategy Analytics’ service provider Group adds, “there are several key factors that should help network equipment vendors to accelerate this evolution and improve their competitiveness in the 5G B2B market, such as presence in 5G B2B markets, partnership with module suppliers and industrial solution providers, and collaboration with software and cloud players. Thanks to the huge and dynamic market and E2E industry chain in China, Chinese vendors and especially Huawei, could lead the evolution process in the next 1-2 years.”