How 5G Release 16 Powers Industrial Manufacturing with Private Networks

3GPP Release 16 Overview

At the end of June, the 3GPP organization released the 5G Release 16 standard, the second version of 5G. While Release 15 targeted consumer markets, Release 16 extends 5G networks to vertical industries, aiming to meet industrial enterprises' needs. This article examines how the new standard can help a traditional manufacturing company, Jiangnan Leather Factory, adopt 5G.

R16 Freeze

Release 16 was finalized in June and the final report was uploaded on July 31. Compared with Release 15, which enhanced eMBB for smartphones, Release 16 adds many new technologies to satisfy vertical‑industry requirements, shifting the network focus from consumer‑oriented (to‑C) to business‑oriented (to‑B) private networks.

New Features for Vertical Industries

Enhancement of Ultra‑Reliable (UR) Low Latency Communications (URLLC)

5GS Enhanced support of Vertical and LAN Services

Cellular IoT support and evolution

Advanced V2X support

5G Location and Positioning Services

UE radio capability signalling optimization

Satellite Access in 5G

Enablers for Network Automation Architecture for 5G

Wireless and Wireline Convergence Enhancement

Mission Critical, Public Warning, Railways and Maritime

Streaming and TV

User Identities, Authentication, multi‑device

(Network) Slicing

Other cross‑TSG Release 16 Features

NR‑related Release 16 Features

Release 16 Features impacting both LTE and NR

LTE‑related Release 16 Features

1. URLLC

Sub‑millisecond latency (<1 ms) with 99.9999 % reliability enables remote medical care, industrial automation, remote education, V2X, and other latency‑critical scenarios.

2. Enhanced Support for Vertical and LAN Services

Provides timely communication and data confidentiality for enterprises.

3. 5G Location and Positioning Services

Uses the 5G network to meet positioning needs without deploying separate systems.

4. Satellite Access in 5G

Supports satellite communication for enterprises that require it.

5. (Network) Slicing

Creates end‑to‑end isolated network slices to satisfy isolation requirements of different industrial applications.

Existing Network Limitations

Traditional factories rely on unlicensed bands (Wi‑Fi, Bluetooth, RFID, industrial wireless) that suffer from unstable performance, poor mobility, limited coverage, and interference. Factory locations often have weak 4G/5G coverage, and building structures further degrade signal quality.

Private 5G Networks (SNPN) Enabled by R16

Release 16 defines Standalone Non‑Public Networks (SNPN). Factories can deploy a complete private solution—from base stations to core network—independent of the public operator. An NPN ID is broadcast with the PLMN, allowing cell selection, access control, and gateway interworking while keeping the private network isolated from the public network.

Non‑3GPP Access Integration

R16 also introduces Trusted Non‑3GPP Gateway Function (TNGF) and Non‑3GPP InterWorking Function (N3IWF), allowing Wi‑Fi or wired networks to connect to the 5G core, enabling unified authentication, billing, and mobility management for existing factory equipment.

Confidentiality and Cross‑Region Networking Needs

Manufacturers must protect trade secrets, which often require strict network isolation. Multiple production sites also need inter‑site connectivity, prompting demand for 5G private networks that can span regions while keeping data secure.

5G LAN and N19 Interface for Multi‑Campus Connectivity

R16’s 5G LAN feature allows factories to build a dedicated LAN across campuses, using the N19 interface to interconnect sites. The core network centrally controls access, authentication, billing, and mobility, while maintaining isolation from external networks.

Private Spectrum Allocation and Cost Model

In Germany, a local 5G spectrum (3.7‑3.8 GHz) was allocated for industrial use. The cost formula is: 费用 = 1000 + B * t * 5 * (6a1 + a2) where B is bandwidth (MHz), t is the lease term (years), and a1/a2 are area sizes (km²) for residential/traffic and other zones.

Adoption by Major Companies

BMW built a private 5G network in a Bavarian campus for multi‑vendor testing.

Lufthansa Technik partnered with Vodafone to create a private 5G network for remote engine monitoring and 3D cabin design.

BASF is evaluating a private 5G network for production facilities and logistics.

Volkswagen plans a private 5G network in Wolfsburg to connect thousands of robots and autonomous vehicles.

Domestic Situation in China

China has not yet allocated dedicated private‑network spectrum. Enterprises must use carrier‑owned bands (e.g., n79 4.8‑4.9 GHz) and rely on shared radio access networks or public‑network‑hosted NPN deployments.

Beyond R16

Release 16 provides the technical foundation for private 5G networks, but integrating these technologies with existing OT, IT, and CT systems to achieve real cost reductions and efficiency gains remains a significant challenge for industrial digital transformation.

References [1] 3GPP, 22.261, Summary of Rel‑16 Work Items, http://www.3gpp.org/ftp//Specs/archive/21_series/21.916/21916-050.zip [2] 杨漾，澎湃新闻，"远景能源回应前员工涉窃取商业机密：法院判定系个人行为", https://www.thepaper.cn/newsDetail_forward_8043318 [3] 蒋佩芳, 国际金融报, "翻墙进同行厂区盗拍专利产线，中电电机前董事长被扭送派出所", https://www.thepaper.cn/newsDetail_forward_7046500 [4] 薛京律师, 知乎专栏，"能否辞退进车间带手机的员工？" https://zhuanlan.zhihu.com/p/136352928 [5] 3GPP, 23.501, System architecture for the 5G System, http://www.3gpp.org/ftp//Specs/archive/23_series/23.501/23501-g51.zip [6] Jochen Homann: "Kick‑off for 5G local campus networks strengthens Germany as a location for business and investment," https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/EN/2019/20191031_LokalesBreitband.html [7] Catherine Stupp, "German Industrial Firms Plan to Build Private 5G Networks," https://www.wsj.com/articles/german-industrial-firms-plan-to-build-private-5g-networks-11586191739 [8] 5G ACIA, "5G Non‑Public Networks for Industrial Scenarios," https://www.5g-acia.org/fileadmin/5G-ACIA/Publikationen/5G-ACIA_White_Paper_5G_for_Non-Public_Networks_for_Industrial_Scenarios/WP_5G_NPN_2019_01.pdf