The global market for private 5G networks is anticipated to rise at a CAGR of 50% during the forecast period of 2024 to 2032. A private or non-private 5G network is a dedicated Local Area Network (LAN) that provides increased internet access for industrial, enterprise, and other customers. The growing network services of the next generation are anticipated to meet the demand for crucial wireless communication for industrial operations, public safety, and the connectivity of important infrastructure. Moreover, the demand for ultra-reliable, low-latency connections for Industrial Internet of Things (IIoT) applications, such as collaborative robots, industrial cameras, and industrial sensors, is the primary factor driving the global market.

Increased Application Among Industrial Giants

Many significant industrial incumbents, such as ABB Ltd., Siemens AG, and Mercedes-Benz AG, have extensively implemented sensor-based technologies and industrial robotics to achieve greater operational efficiency and productivity as Industry 4.0 has evolved. The private 5G network is essential for delivering seamless and secure internet connectivity to the previously described IIoT devices. In addition, the need for Time-Sensitive Networking (TSN) and real-time-based networking is on the rise for mission-critical applications in numerous industries, including manufacturing, oil and gas, aerospace, and transportation. In order to enable high-speed bandwidth connectivity during TSN and real-time networking across industries, it is projected that the demand for a private 5G network would increase significantly over the forecast period.

Facilitates End-to-End Security

A private 5G network provides end-to-end security for all enterprises, protecting their data and infrastructure from any threats. Additionally, it is anticipated to emerge as a critical component in situations when information secrecy is of the utmost importance. From 2023 through 2030, it is anticipated to be in great demand in government and public safety applications, as well as enterprise data storage applications. In addition, the increasing shift towards digitization in the oil and gas industry processes has increased the requirement for bandwidth that is exceptionally stable and secure. Thus, it is projected that demand for high-bandwidth private networks will increase, particularly throughout the Organization of the Petroleum Exporting Countries (OPEC).

Adverse Impact of Covid-19 to Slow down Market Expansion

It is anticipated that the Covid-19 epidemic may postpone the installation of upgraded private 5G infrastructure due to the delays caused by the need for additional trials and testing to ensure the stability and processing performance of 5G standalone networks. The ongoing pandemic has had a further impact on telecom regulatory agencies around the world, delaying their preparations for the 5G spectrum auction and negatively impacting market growth. Several governments, including those of the United States, France, Spain, and Australia, have postponed the 5G spectrum auctions on several frequencies, such as Sub-6 GHz and mmWave. In addition, nations such as China and the United States have observed a reduction in the exports of telecom equipment for 5G radios and end-user devices due to the pandemic. As a result, it is projected that this factor will restrain market growth over the projection period.

Hardware Segment Dominates the Market by Component

Due to the growing global deployment of core networks and backhaul and transport equipment, the hardware segment contributed more than 55.5% of the industry's revenue in 2023. The hardware category consists mostly of Radio Access Network (RAN), core network, and backhaul and transportation component types. The services component consists of three essential services, including installation and integration, data services, and maintenance and support. Moreover, with a considerable emphasis on implementing cloud-based RAN, core, and edge networks, the software segment is anticipated to experience strong growth over the coming years. This would aid customers in reducing their entire CAPEX during installation.

Major network providers such as Nokia Corporation, Qualcomm Technologies, Inc., and Ericsson are installing viable equipment to enable back-end operations for the delivery of high-speed bandwidth. Hence, it is anticipated that the core network segment's market share will increase significantly by the end of 2023. In addition, the desire for enhanced connectivity to connect millions of sensors in industrial facilities is anticipated to result in the widespread adoption and installation of RAN equipment during the forecast period. Moreover, with a growing emphasis on installing a private 5G core network for devoted users to securely manage their data, the installation and integration services market is projected to rise from 2023 to 2030.

Market by Frequency: sub-6 GHz Acquired Lion’s Share

In 2023, sub-6 GHz represented approximately 85.2% of the market's revenue share. The sub-6 GHz frequency covers a low band and a mid band of primarily sub-6GHz spectrum regions. Recently, governments of key nations, including China, the United States, Japan, and South Korea, released sub-6 GHz frequencies for 5G service provision. mmWave frequencies are high-band frequencies that allow extremely high connectivity with minimal delay. These frequency ranges would be most beneficial in situations when ultra-reliable connectivity is required, particularly for infrastructure connectivity.

Also, several national governments in leading nations have released mmWave frequency bands for private 5G services. The Federal Communication Commission (FCC) announced, among others, the mmWave frequencies 24.25-24.45 GHz, 47.2-48.2 GHz, 24.75-25.25 GHz, and 38.6-40 GHz. Countries including Russia, Japan, South Korea, and Italy have also released mmWave frequencies for expanded data services. As a result, the attention of important federal governments on releasing mmWave frequencies is anticipated to bolster mmWave segment growth over the next seven years.

The Unlicensed/Shared Segment Dominates the Market by Spectrum

The unlicensed/shared segment accounted for over 70.0% of the market's revenue in 2023 and is predicted to grow at the highest CAGR during the forecast period 2024 to 2032. The rapid expansion is attributable to the increased demand for affordable, high-speed private 5G networks. Unlicensed spectrum bandwidth is readily available and favored for huge machine-to-machine communications (mMTC).

A licensed spectrum is slightly more expensive than an unlicensed/shared spectrum because a corporation must purchase a whole license for a specific frequency bandwidth in order to improve and secure internet connectivity. Communication Service Providers may also provide access to licensed spectrum (CSP). In addition, many nations, like the United States and Germany, use licensed spectrum for industrial and mission-critical applications. Hence, the increasing demand for a highly secure connection in mission-critical applications, such as Autonomous Guided Vehicles (AGV), is anticipated to drive the licensed spectrum segment over the projection period.

Manufacturing Topped the List Among Verticals Segment

In 2023, the manufacturing/factories segment held the biggest revenue share, exceeding 15%, and is anticipated to grow at the highest CAGR throughout the forecast period. The expansion can be ascribed to the increased demand for private 5G services that allow seamless communication to multiple devices, including Ultra-HD cameras, extended reality headsets, and AGVs. In addition, the rising demand for uninterrupted machine-to-machine communication is anticipated to drive the segment's growth from 2023 to 2030. Several industry verticals, including manufacturing, energy and utilities, transportation and logistics, aerospace and defense, oil and gas, mining, and government and public safety, choose private 5G networks.

Many governments and public safety organizations are deploying a private 5G network for a variety of applications to facilitate rapid communication with emergency responders. In addition, demand is anticipated to increase as the requirement for organizations and corporations to securely manage their data on-premises grows. In addition, the energy and utility sector is predicted to experience a substantial increase in the adoption of a private, encrypted network to obtain high-speed internet connectivity for energy-generating and distribution applications. Over the projection period, the necessity to improve connectivity to ships and containers/vessels for remote monitoring is anticipated to drive the adoption of a private 5G network in the transportation and logistics sector.

North America Remains as the Global Leader

Due to the presence of numerous private 5G solution providers, such as Qualcomm Technologies, Inc., North America captured the greatest revenue share in 2023, more than 25%. In addition, the substantial increase in investments for establishing private 5G network infrastructure by major service providers, such as AT&T Inc. and Verizon Communications, is anticipated to aid North America in gaining a substantial market share. In addition, the robust deployment of multiple industrial sensors by prominent automakers such as Ford Motor Company and General Motors Corporation is anticipated to generate substantial growth prospects in the region. The increasing need for Ultra-reliable Bandwidth Low Latency Connectivity (URLLC) across many verticals, including public safety, oil and gas, and aerospace and defense, in the region, is anticipated to fuel regional market expansion.

From 2023 to 2031, Asia-Pacific is anticipated to be the fastest-growing regional market. The expansion can be ascribed to the presence of numerous businesses and their substantial investments in developing automated factories in the region. In addition, substantial expenditures to acquire 5G spectrum in important nations such as China, Japan, South Korea, and Australia are anticipated to help the growth of the regional market. Leading industrial companies, including Siemens AG, ABB Ltd., and Mercedes Benz, are expected to make a robust shift toward constructing autonomous industries, which is projected to accelerate the adoption of private 5G services in important European nations, such as Germany and the United Kingdom.

Strategic Collaborations to Enhance Market Share Among Competitors

Leading market participants are proactively forming alliances with industrial manufacturers to develop a test center utilizing a private 5G network to test a variety of automated industrial devices. In February 2023, for instance, Qualcomm Technologies, Inc. worked with Microsoft Corporation to supply chip-to-cloud solutions for the effective global deployment of a private 5G network.

Moreover, this collaboration will aid in the comprehension of actual industrial deployments on a private network of the next generation. Principal market participants are emphasizing the formation of cooperation agreements for the deployment of a private 5G network for specific applications. For example, Vodafone Ltd. partnered with Lufthansa Technik in February 2020 to create a private 5G network campus at Hamburg Airport in Germany. This strategic alliance will allow Lufthansa Technik to tailor the network design to suit specific requirements. Among the foremost participants in the global private 5G network market are Telefonaktiebolaget LM Ericsson, Nokia Corporation, Samsung, ZTE Corp., Deutsche Telekom, Juniper Networks, AT&T Inc, and Other Notable Players.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Private 5G Networks market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Private 5G Networks market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Private 5G Networks market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Private 5G Networks market?
• Which is the largest regional market for Private 5G Networks market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Private 5G Networks market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Private 5G Networks market worldwide?