How much is the Private 5G Network market worth?

The global private 5G network market size was valued at USD 1.38 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 47.5% from 2022 to 2030. A private or non-public 5G network is a dedicated Local Area Network (LAN) that delivers enhanced internet connectivity to industrial, enterprise, and other customers. The evolving next-generation network services are expected to address the need for critical wireless communication for industrial operations, public safety, and critical infrastructure connectivity. Moreover, the global market is primarily driven by the growing need for ultra-reliable low-latency connectivity for Industrial Internet of Things (IIoT) applications, including collaborative robots, industrial cameras, and industrial sensors.

With the evolution of industry 4.0, various key industrial incumbents such as ABB Ltd., Siemens AG, and Mercedes-Benz AG have substantially deployed sensor-based technologies and industrial robotics to achieve superior operational efficiency and productivity. The private 5G network plays a vital role in providing seamless and secure internet connectivity to the above-mentioned IIoT devices. Moreover, the demand for Time-Sensitive Networking (TSN) and real-time-based networking is rapidly increasing for several mission-critical applications across many industries, including manufacturing, oil and gas, aerospace, and transportation. Thus, to provide high-speed bandwidth connectivity during TSN and real-time networking across industries, the demand for a private 5G network is anticipated to witness significant growth over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Global Private 5G Network market

A private 5G network delivers complete end-to-end security across organizations to ensure their information and infrastructure are shielded from threats. Additionally, it is expected to emerge as a crucial element, where the confidentiality of information matters the most. Therefore, it is estimated to have a high demand in government and public safety along with enterprise data storage applications from 2022 to 2030. In addition, the rapid shift towards digitalization in the oil and gas industry processes has raised the need for extremely reliable and secure bandwidth capacity. As a result, it is anticipated to trigger the demand for high bandwidth private networks, especially across the Organization of the Petroleum Exporting Countries (OPEC).

The Covid-19 pandemic is expected to delay the implementation of enhanced private 5G infrastructure owing to the disruptions in further trials and testing required for verifying the stability and processing performance of 5G standalone networks. The ongoing pandemic has had an additional impact on telecom regulatory authorities across the globe, postponing their plans for the 5G spectrum auction, thereby adversely affecting the market growth. For instance, a few key countries’ governments including the U.S., France, Spain, and Australia have temporarily postponed the 5G spectrum auctions on several frequencies, such as Sub-6 GHz and mmWave. Moreover, due to the pandemic, countries such as China and the U.S. have seen a decline in the exports of telecom equipment for 5G radios and end-user devices. As a result, it is anticipated to hinder the market growth over the forecast period.

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Private 5G Network Market Segmentation

Grand View Research has segmented the global private 5G network market based on component, frequency, spectrum, vertical, and region:

Private 5G Network Component Outlook (Revenue, USD Million, 2020 - 2030)

• Hardware

o   Radio Access Network

o   Core Network

o   Backhaul & Transport

• Software
• Services

o   Installation & Integration

o   Data Services

o   Support & Maintenance

Private 5G Network Frequency Outlook (Revenue, USD Million, 2020 - 2030)

• Sub-6 GHz
• mmWave

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

o   Food & Beverages

o   Automotive

o   Pharmaceuticals

o   Electrical & Electronics

o   Heavy Machinery

o   Clothing & Accessories

o   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

o   U.S.

o   Canada

o   Mexico

• Europe

o   U.K.

o   Germany

o   Italy

o   Russia

• Asia Pacific

o   China

o   India

o   Japan

o   South Korea

o   Australia

• South America

o   Brazil

• Middle East & Africa (MEA)

 Market Share Insights

February 2022 - Qualcomm Technologies, Inc. collaborated with Microsoft Corporation to deliver the chip to cloud solutions for the effective implementation of a private 5G network globally. Moreover, this collaboration will help understand the actual industrial deployments on a next-generation private network. Leading market players are focusing on forming partnership agreements to deploy a private 5G network for specific applications. 

February 2020 - Vodafone Ltd. made a partnership with Lufthansa Technik to establish a private 5G network campus at Hamburg Airport, Germany. This strategic partnership will help Lufthansa Technik to customize the network configuration as per their needs.

Key Companies profiled:

Some prominent players in the global Private 5G Network market include

• 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.

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