On September 9th, at Connected Britain 2026 in London, I moderated a panel discussion that highlighted a clear evolution in the industrial 5G market, with enterprise interest moving beyond validation toward a more disciplined assessment of where 5G drives meaningful operational performance.

As panelists discussed deployment economics, and what’s needed to achieve scalability beyond individual use cases, three key themes emerged:

#1 – The business requirement is what determines the connectivity architecture

Industrial environments have a growing range of connectivity options; therefore, the appropriate model depends on the operational characteristics of the use case.

During the panel, mobility, predictable performance, security, resilience, coverage, and low latency emerged as important factors strengthening the case for private 5G. Mike Lewis, Market Advisor at Enterprise Ireland, emphasized the importance of starting with the business context and identifying where these characteristics address a specific operational requirement. Manufacturing, transport, and logistics, where mobility and automation are premiums, can provide a stronger rationale where network performance directly affects operational processes.

At the same time, the market is moving beyond a binary distinction between public and private networks. Alessandro Bovone, Chief Information & Technology Officer at JT Global linked this evolution to the broader issue of enterprise sovereignty. In this context, sovereignty extends beyond ownership of dedicated infrastructure to encompass control over connectivity, security, resilience, data flows, and the delivery of network capabilities across enterprise operating environments.

The strategic implication is that enterprises should define the operational outcome, sovereignty requirements, and required service characteristics first, and subsequently determine whether private, public, hybrid, or multi-technology connectivity provides the appropriate architecture.

#2 – Operational outcomes are becoming the basis of the business case

Damian Cross, Head of Technology Automation at Peel Ports Group provided a strong example of how private 5G can translate network performance into measurable operational value. Under its previous Wi-Fi architecture, connectivity interruptions as equipment moved between access points could affect up to 15% of operations. The organization therefore established a private 5G proof of concept covering approximately 80 acres and initially connected four types of operational equipment with different throughput and latency requirements.

The trial separated technical validation from business-value assessment. Within two weeks, network and equipment KPIs showed that the required connectivity performance had been achieved. Over the subsequent three-month analysis period, Peel Ports identified that, under its previous Wi-Fi environment, approximately 49% of equipment movements were unproductive. Improved connectivity then supported its “global pooling” operating model, enabling container movements to be assigned dynamically to reduce unnecessary travel and improve equipment productivity.

The infrastructure economics were also significant. Peel Ports reported that nearly 80 Wi-Fi access points could be replaced by four 5G radios across the operational environment, with a payback period of less than eight months. Once the network was established, it also supported additional applications including body-worn cameras, mobile CCTV, IoT devices, AI-enabled video analytics, and safety-related alerts.

For IDC, the Peel Ports example reinforces an important principle. The return on private 5G should not be assessed primarily through network metrics. It should be evaluated through the operational KPIs that the network enables. These can include equipment productivity, unproductive movement, process availability, downtime, safety, asset utilization, automation efficiency, and ultimately financial return.

For technology suppliers and service providers, this raises the commercial expectation. Connectivity capability needs to be translated into demonstrable operational and financial outcomes.

#3 – Scaling requires assurance, integration, and commercial flexibility

The discussion also highlighted why successful pilots do not automatically translate into large-scale deployments.

  • Technical assurance is becoming increasingly important. Enterprises need evidence that network performance can be sustained under real operating conditions, particularly where 5G supports operational technology or critical processes.
  • Legacy OT integration remains a material barrier. Industrial equipment was not necessarily designed for native 5G connectivity. Retrofitting machinery, integrating gateways, managing devices, and connecting existing applications can therefore represent a substantial part of the deployment effort and economics.
  • Commercial models need to reduce the risk of adoption. The growing interest in network-as-a-service, subscription-based, and lower-CapEx approaches that allow enterprises to begin with anchor use cases, demonstrate value, and subsequently expand.
  • Partnerships are equally important, particularly where delivering an end-to-end industrial solution requires connectivity, integration, devices, applications, and operational expertise from multiple ecosystem participants.

The industrial 5G market is entering a more mature phase in which technical capability alone will not determine adoption.

The panel discussion pointed to several requirements for broader scale including clearly defined business intent, measurable operational outcomes, technical assurance, suitable spectrum, integration with the existing operational environment, sovereignty requirements, and commercial models capable of supporting expansion.

The closing perspectives from the panel captured many of these priorities through a concise set of themes: outcomes, scalability, spectrum, transformation, intent, and assurance.

I see the next stage of industrial 5G will therefore be determined by the industry’s ability to translate successful implementations into repeatable, scalable, and commercially sustainable operating models.

Turning insight into action

For enterprises: Industrial 5G’s next phase is about measurable outcomes, not connectivity specs. If you’re planning a scaled deployment, whether you’re still building the business case, tackling legacy OT integration, or expanding beyond initial pilots, the operational context matters as much as the technology. We can help you define what success looks like and chart a path that’s right for your organisation.

For service providers and technology suppliers: This market shift toward outcomes-driven procurement is reshaping commercial expectations. Positioning your solution through operational KPIs rather than network performance alone is becoming the competitive imperative. Understanding how enterprises evaluate business value, structure commercial flexibility, and manage technical assurance can help you build stronger customer relationships and win larger deployments.

Want to discuss how this applies to your business? Contact our experts or get in touch directly.

Masarra Mohamed

Masarra Mohamed - Senior Research Analyst, Communications Platform as a Service

Masarra Mohamed is an expert in digital infrastructure, cloud, AI, and communications platform-as-a-service (CPaaS). She leads IDC’s global CPaaS research and advisory practice, shaping the firm’s perspective on API-driven communications, customer engagement platforms, and their convergence with contact centre and…

IT services buyers across the Middle East, Turkey and Africa (META region) are making big decisions right now about their technology partners. Their business models are under pressure to transform, their technology budgets are flowing toward AI and automation, and IT services vendor partnerships are being evaluated through a new lens. That lens is AI capability and it matters more than track record, security expertise, or cloud skills.

Here’s the problem: the IT services partners they’re evaluating are weakest on exactly this criterion.

AI capability gap: why IT services partners are falling behind

New research across the META region shows a sharp disconnect. When services buyers rank what matters most in choosing a partner for 2026 and beyond, AI and agentic AI capabilities land at the top. Ahead of innovation track record. Ahead of security credentials. Ahead of cloud-native skills.

When those same buyers score their current partners on that same criterion, the numbers drop significantly. Satisfaction gaps open up precisely where buyers have their highest expectations.

This isn’t a positioning problem. It isn’t a pricing problem. It’s a capability gap, and it’s affecting vendor retention and deal size over the next 18 months.

Why IT services buyers demand change in 2026

73% of organisations across the META region believe their business needs to reinvent within five years just to survive. That reinvention is already happening. Application modernisation, multicloud strategy, and AI/ML deployment are topping investment roadmaps through 2027.

Budgets are flowing. 56% of organisations across the META region are planning to increase IT services spending in 2026 versus 2025. That figure rises to 79% when we look ahead to 2027. As that investment accelerates, vendor conversations are shifting. Buyers used to ask ‘should we adopt AI?’ Now they ask ‘which partner has the depth and track record to execute this?’

What META services buyers are asking their IT services partners

When services vendors sit down with buyers across the region, three questions keep coming up.

The first is straightforward: where does your AI capability actually stand? Buyers are committing real budgets to public cloud, on-premises infrastructure, and AI/ML systems. They need confidence that their partner has the maturity and the delivery history to handle work at scale. When capability gaps exist, they show up fast under budget pressure.

The second question is about delivery models. Most vendors remain primarily human-centric in how they deliver services, while a few are experimenting with fully automated alternatives that remove humans entirely from the value chain. Vendors who can articulate a more nuanced approach to this tension are winning conversations.

The third question cuts deeper: are you helping us think, or are you executing for us? Technology consulting firms have already claimed 37% of business strategy conversations across the region (IDC EMEA IT Services 2026). If your firm competes primarily on delivery execution, that advisory seat gets harder to claim as months pass.

How IT services vendors are closing the AI capability gap

The pattern across the region is clear. Vendors who invest in AI capability first are seeing stronger client retention and larger deal sizes. Vendors who can explain how they layer AI into delivery while keeping human expertise in control are more credible to risk-averse buyers making large bets. And vendors who’ve moved from execution conversations to strategy conversations with their clients are building stickier partnerships.

Making these shifts takes work. It means restructuring how engagements are staffed, how delivery is orchestrated, and how partnerships develop over time. But the vendors doing this now are securing better positioning with their largest META clients.

These questions – where’s your AI capability, how do you want to deliver, can you help us think – are the ones IT services buyers across the META region are asking right now. On October 6, IDC analysts Matt Wilkins and Eric Samuel are bringing these questions directly to IT services partners and technology leaders across the EMEA region. Join us for the live webinar and bring your questions.

Eric Samuel

Eric Samuel - Associate Research Director, Services

Eric Samuel leads IDC’s Middle East and Africa IT Services Strategies program, delivering market intelligence, competitive analysis, and strategic guidance that help IT services providers strengthen their position and accelerate growth across the region. His recent work has focused on:…

Between 2023 and August 2025, European IT services buyers fundamentally reordered their priorities. AI capabilities jumped from sixth place to first. Digital expertise became foundational rather than leading. The shift wasn’t gradual. It signaled a market that had moved into new territory.

IDC’s survey of 700 European organisations in August 2025 captured this reordering of service provider selection criteria. When compared with the same evaluation criteria from 2023, the changes were clear. European firms were demanding AI capabilities as a core competency.

AI capabilities ranked sixth in 2023. By August 2025, they ranked first.

Three years ago, when European IT services buyers were asked what mattered most in selecting a strategic services partner, AI and generative AI capabilities ranked sixth on their priority list. By August 2025, they had moved to the top. This reflected a real shift in how European organisations had come to think about the value their partners could deliver.

Most organisations had experimented with AI tools by 2025. Many had run pilots. Few had successfully redesigned core processes to use AI at scale, which is where they needed their services partners to step in and help them navigate that gap. The implication for services providers was that AI competency could not be a future roadmap item. Buyers expected to see real AI capabilities embedded across the services portfolio, and for EMEA services providers, this had become a baseline expectation, not differentiation.

The third leading criterion in the August 2025 survey revealed something practical about buyer psychology: European organisations needed their IT services partners to act as trusted advisors on what was coming next. Firms often have limited internal bandwidth to stay informed about emerging technologies, to evaluate competing options, and to understand which trends genuinely mattered for their industry versus which were hype. They needed technology partners who could close that gap.

The buyer conversation had fundamentally shifted. They weren’t just asking “Can you build this?” They were asking “What should we build? What’s the market doing? What’s coming next, and what does it mean for our business?” Services vendors who could articulate a credible point of view on technology strategy, backed by real market insight, and more importantly, experience, had a competitive advantage.

Industry expertise and innovation rounded out the top selection criteria

The August 2025 survey showed industry expertise and a proven track record of helping clients innovate completed the top five selection criteria for European services buyers. These weren’t new requirements, but by 2025, their context had shifted. What counted as innovative five years earlier often didn’t anymore. Industry expertise that was purely historical wasn’t sufficient either.

European buyers were looking for services partners who combined deep industry knowledge with current thinking about how that domain was being reshaped by AI, regulatory change, and competitive disruption. For services vendors, the implication was clear: industry specialists needed to understand how AI was changing their sector, which business processes were good candidates for AI-led transformation, and why generic industry knowledge wasn’t a sufficient competitive base anymore.

What’s changed since then

The shift between 2023 and August 2025 was clear, but the services market doesn’t stand still. The real question is what happened in the 12 months that followed. Did European IT services buyers continue to demand more from their providers? Did AI capabilities stay at the top of the evaluation criteria, or have buyer priorities shifted further? Have services vendors made the repositioning moves that seemed necessary in late 2025? Have new evaluation criteria emerged? And critically: how have these changing priorities affected actual vendor selection decisions across EMEA?

These aren’t abstract questions. For services vendors, the answers determine whether your current positioning is ahead of the market or reacting to it. For services buyers, they determine how you should be evaluating partners right now.

On 6 October, IDC is presenting updated research that answers these questions with fresh data on how EMEA services buyer requirements have evolved. If you’re involved in selecting IT services partners, or if you’re positioning your services business to win in both today’s and tomorrow’s market, this is when you’ll get the insights you need.

This blog draws on IDC’s EMEA IT Services Survey conducted in August 2025 (n=700, Europe).

Matthew Wilkins

Matthew Wilkins - Research Director, European Services

Matthew Wilkins is a research director in IDC's Global Services Insights research team. Based in London, Matthew leads IDC's European Services research program, focusing on the trends and market dynamics impacting professional service providers in Europe, including the disruption and…