Acceleration of 5G Standalone (5G SA) Networks in 2024
The telecommunications industry has long anticipated the significant leap towards fully realized 5G Standalone (5G SA) networks in 2024. The evolution faced hurdles in the previous year, mainly due to the intricate technical challenges of deploying and integrating new, cloud-native 5G Core technologies. However, a notable shift is expected this year, with the market poised to accelerate as the demand for novel 5G SA capabilities aligns harmoniously with the availability of network equipment and devices essential to support them.
Expansion of 5G SA Ecosystem
This transformative journey is marked by a substantial influx of new providers introducing 5G Standalone (5G SA) solutions. Over 17 network equipment manufacturers (NEMs) have joined the fray, offering a diverse range of 5G Standalone (5G SA) modems and chipsets, numbering more than 80, for end devices. Noteworthy testing activities have been witnessed, especially from clients gearing up to launch premium 5G SA services, including Voice over 5G New Radio (VoNR), network slicing, and low-latency solutions for industrial applications. The momentum indicates that more than 100 5G Standalone (5G SA) networks are anticipated to be commercially deployed by the early months of 2025.
Growing Demand for 5G SA in Key Areas
The surge in customer demand for 5G Standalone (5G SA) capabilities is prominently visible in three pivotal sectors. First, enterprise private networks are increasingly seeking 5G SA functionalities such as guaranteed throughput, low latency, and heightened security. Second, the gaming and extended reality (XR) applications are driving the need for consistent throughput and remarkably low latency. Third, government and military applications, particularly in remote areas, are necessitating secure and reliable connectivity. While the demand for 5G SA is set to expand throughout 2024, the industry anticipates a strategic and measured approach, with customers initiating smaller deployments and gradually scaling up over the coming years.
Prediction – Proliferation of Extended Reality (XR) Applications
In the forecast for 2024, the market is poised for the practical realization of extended reality (XR) applications, moving beyond experimental phases to actual market implementation. The Asia-Pacific region is anticipated to take the lead in XR deployments, propelled not only by the substantial gaming industry but also by major government initiatives focusing on military and industrial applications. The imminent release of a multitude of premium XR/AR headsets, complemented by the support of new 5G Standalone (5G SA), Wi-Fi 6, and Wi-Fi 7 capabilities, reflects a significant investment by leading consumer electronics manufacturers worldwide.
Anticipated Investments in Automation and AI by Service Providers
While 5G remains a central focus, service providers are expected to allocate resources towards digital transformation initiatives, with a particular emphasis on cloud migration programs and the transformation of Operational Support Systems (OSS). Automation will play a crucial role, with initial efforts focusing on basic machine learning (ML) applications. Notably, the focus on energy efficiency is expected to result in early wins for service providers leveraging intelligent automation in 2024, offering a pathway to substantial sustainability gains across their entire network and operational landscapes in the years that follow.
AI’s Role in Driving Data Center Evolution
The transformative power of artificial intelligence (AI) within data centers is set to take center stage in 2024. Large and medium-sized cloud service providers are intensifying their investments in graphics processing units (GPUs) and back-end infrastructure to accommodate the growing demand for large learning clusters. The emphasis on enhancing front-end inferencing and investing in faster interconnect technologies is apparent, with Ethernet expected to dominate front-end networks. The rapid adoption of 800G among Tier-1 cloud service providers signals a profound evolution in back-end network designs, with Ethernet emerging as a secure, ubiquitous, and cost-effective alternative to InfiniBand.
Rise of Network Digital Twins in Telecom
In the pursuit of end-to-end, AI-powered, self-driving networks, the telecom industry is poised to take a significant step forward in 2024 with the increasing adoption of Network Digital Twins. These digital twins are positioned to alleviate some of the most pressing operational challenges faced by service providers, primarily addressing time-consuming and error-prone manual processes associated with maintenance engineering. By maintaining highly accurate real-time digital models of networks, service providers gain the flexibility to thoroughly validate changes before implementation. Coupled with the growing integration of automation, this approach allows for quicker experimentation, evaluation, and optimization of new service deployments, all while minimizing errors and service disruptions in the live network.
Growth of Enterprise Personal Networks in 2024
The market for Enterprise Personal Networks, which witnessed gradual adoption in 2023, is poised for significant expansion in 2024. Early adopters experienced notable returns on investment within six months, particularly in use cases such as ultra-high-definition video monitoring, augmented reality, and government/military applications. The promising results have fueled a surge in demand from enterprises, as well as government and military clients. Service providers are expected to enhance Service-Level Agreement (SLA) management and monetization capabilities for Personal Networks, providing transparency into the return on investment for new use cases and ensuring long-term value.
Synergy Between Enterprise Personal Networks and Edge Computing
The anticipated growth of Enterprise Personal Networks is set to drive increased investment in Edge Computing. Recognizing the stringent requirements of enterprises for controlling security and data privacy on-site, service providers are expected to bundle Personal Network connectivity with Edge Computing offerings. This integrated approach addresses the growing demand for local application processing, especially in latency-sensitive or AI/ML-driven applications. The convergence of Enterprise Personal Networks and Edge Computing is poised to provide enterprises with comprehensive solutions, ensuring efficient and secure data processing at the network edge.
ng offerings to meet the demand for local application processing, especially for latency-sensitive or AI/ML-driven applications.
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