The global private 5G network market size is anticipated to reach USD 41.02 billion by 2030, advancing at a substantial CAGR of 49.0% from 2022 to 2030. Private (non-public) 5G network is considered to be a dedicated LAN (Local Area Network) delivering enhanced and more efficient internet connectivity for end-users that include enterprise and industrial sectors, among others. 5G has unsurprisingly been one of the fastest-growing spaces in the telecommunication segment in recent years, with service providers in developed and developing economies keen to provide their services in this regard. 5G has been noted to offer several advantages over 4G LTE, which is still widely used globally, such as lower latency, quicker data transmission, as well as allowing seamless connection to more edge devices.
The rapid developments made in the context of Industry 4.0 have meant that there is an ever-increasing focus on enhancing operational productivity and efficiency, through the implementation of industrial robotics and sensor-based technology. With private 5G networks performing a major role in offering secure and seamless connectivity to IIoT devices, and the demand for real-time networking becoming more apparent across industries, the market is expected to showcase justifiably strong growth during the forecast period.
The many use cases of private 5G networks explain the advancements being made in the industry in recent years. In the manufacturing segment, it can be used to power AGVs, robots, VR remote devices, and scanners, while also driving closed-loop manufacturing, which helps in improving the accuracy and quality of the parts produced. In warehousing and logistics, private 5G can offer support to autonomous guided vehicles, and aid in tracking the inventory and assets in real-time, while also aiding in other areas such as predictive analytics, and facility and environmental control. Furthermore, governments as well as public safety establishments have been adopting this network as a means to establish quick communication during emergency situations with first responders.
The COVID-19 pandemic has resulted in the delayed implementation of advanced private 5G network infrastructure, on account of the significant disruptions in testing and trials regarding the processing performance and stability of standalone networks. Additionally, plans for spectrum auctions took a hit during the pandemic period, with telecom regulatory authorities being forced to postpone such programs; furthermore, there has been a decline with regard to 5G telecom exports during this period, which again hampered market growth. However, the resumption of auctions as well as the re-establishment of the supply chain is expected to bring the market up to speed in a short period of time.
Private 5G Network Market Report Key Takeaways
- The requirement for 5G services across the globe has become more pronounced over the past few years, as a solution in industrial operations, along with infrastructure connectivity and public safety areas, for vital wireless communications. This is expected to be one of the primary factors for the industry's advancement
- With regards to component, the hardware segment dominated the private 5G network industry with more than 55.0% of the revenue share, aided by the rapid pace of deployment of components such as core network and radio access network (RAN), as well as backhaul and transport
- In terms of frequency, the sub-6 GHz segment accounted for the highest market share exceeding 85.0%. The growth of this segment, which accounts for a range of low- and mid-band spectrums that are 6 GHz and below, has been helped by governments across leading nations like Japan, China, and the United States, releasing sub-6 GHz frequencies for 5G services
- The global market consists of licensed and unlicensed/shared spectrum segments, of which the latter accounted for more than 70%, with the dominance being attributed to the growing demand for affordable, high-speed private 5G networks
- Based on verticals, the energy and utilities segment is expected to advance at a significant pace during the projection period, owing to the fast-growing demand for the secured private network in this sector for the availability of high-speed internet connectivity in energy generation & distribution applications
- The Asia Pacific region is anticipated to advance at the fastest CAGR during the forecast period, eventually becoming a significant contributor to the overall market revenue. The promising growth can be credited to the availability of various manufacturers in the region, along with large-scale investments being made for acquiring 5G spectrum in economies including Japan, China, and Australia
- Companies have been involved in developing strategies such as mergers, acquisitions, partnerships, and geographical expansions, as a means to drive their growth. For instance, Qualcomm Technologies and Microsoft, in February 2022, collaborated for delivering a chip-to-cloud solution, touted to be an industry-first, for implementing private 5G networks more effectively on a global level
Private 5G Network Market Segments
- Private 5G Network Component Outlook (Revenue, USD Million, 2020 - 2030)
- Hardware
- Radio Access Network
- Core Network
- Backhaul & Transport
- Software
- Services
- Installation & Integration
- Data Services
- Support & Maintenance
- Private 5G Network Frequency Outlook (Revenue, USD Million, 2020 - 2030)
- Private 5G Network Spectrum Outlook (Revenue, USD Million, 2020 - 2030)
- Licensed
- Unlicensed/Shared
- Private 5G Network Vertical Outlook (Revenue, USD Million, 2020 - 2030)
- Manufacturing/Factories
- Food & Beverages
- Automotive
- Pharmaceuticals
- Electrical & Electronics
- Heavy Machinery
- Clothing & Accessories
- Others
- Energy & Utilities
- Transportation & Logistics
- Defense
- Enterprises & Campus
- Mining
- Healthcare/Hospitals
- Oil & Gas
- Retail
- Agriculture
- Smart Cities
- Others
- Private 5G Network Regional Outlook (Revenue, USD Million, 2020 - 2030)
- North America
- Europe
- U.K.
- Germany
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- South America
- Middle East & Africa (MEA)
- List of Key Players in the Private 5G Network Market
- Telefonaktiebolaget LM Ericsson
- Nokia Corp.
- Samsung
- ZTE Corp.
- Deutsche Telekom
- Juniper Networks
- AT&T Inc.
- Verizon Communications
- Altiostar
- Huawei Technologies Co., Ltd.
- Mavenir
- BT Group
- T-Systems International GmbH
- Cisco Systems, Inc.
- Vodafone Ltd.
