A private 5G network is one that allows the owner to provide priority access or licensing for its wireless spectrum. These are networks that do not share traffic with other nearby cellular networks. Private 5G network adoption is gaining traction around the world as regulators allocate more spectrums to businesses so that they can build and maintain their own private 5G networks. A business can use private 5G to build private cellular networks to take advantage of 5G's technological benefits while maintaining the security and device controls of a private network. This is revolutionary for businesses, particularly for manufacturers that need 5G capabilities to execute disruptive applications like digital transformation, smart factories, and the internet of things (IoT). Private 5G networks can provide several benefits for modern businesses, including algorithmic upgrades to production processes, predictive maintenance of machinery, and real-time contact with autonomous delivery vehicles. Although widespread adoption of 5G is still years away, several businesses have begun to roll out use cases that can yield considerable ROI by upgrading private networking infrastructure.

Market Growth Drivers

• Increasing implementation of 5G network across several industries
• Growing deployment of next gen 5G networks in smart cities infrastructure
• Rising penetration of IoT applications in 5G
• Growing need for effective and secure LTE networks

Market Restraints

• The high upfront costs
• COVID-19 impact

Market Opportunities

• Increasing demand from private networks
• Surge in government funding for 5G infrastructure

Report Coverage: 

Market Dynamics

A dedicated network can be built using 5G technologies to provide unified connectivity, optimized services, and secure communication. Over the next few years, 5G will most likely coexist with cellular and Wi-Fi connectivity to provide users with a more powerful communication device. However, because of its superior flexibility and reliability, 5G will unquestionably become the primary network option in the long run.

The increasing application of IoT technology in almost every connected infrastructure is a core factor responsible for the increase of private 5G network. The rise of the Internet of Things (IoT) and connected assets is causing an increasing number of businesses to embrace the opportunities that private 5G networks can provide. This is due to the fact that the primary core characteristics of a 5G network are data rate, security, virtualization, latency, and reliability. 5G networks are the ideal solution for mobile communications where performance, mobility, range, and security requirements surpass the capabilities of current (WLAN) networks.

In addition, the growing need for secure and effective internet networks have prompted the key players to focus more development in the 5G network, thereby driving the private 5G network industry. For instance, end-user of private 5G network provides option of customizing their security settings to meet their specific business requirements. IoT devices, 5G/LTE network, systems, and software are examples of critical areas that must be secured.

Market Segmentation

The global private 5G network market is segmented based on component, frequency, spectrum, vertical, and geography.

Market By Component

• Hardware
  • Core Network
  • Radio Access Network
  • Backhaul & Transport

• Software
• Services
  • Data Services
  • Installation & Integration
  • Support & Maintenance

Among the components, hardware segment dominated the largest market share in 2021 on account of the rising deployment of core networks and backhaul & transport networks. New secure 5G telecom hardware in conjunction with software algorithms provides greater data security than existing software solutions and telecommunication infrastructure. On the other hand, the software segment is likely to achieve the fastest growth rate during the forecast period 2022 – 2030. Services with its sub-segments – data services, support & maintenance, and installation & integration is also expected to grow with a noteworthy CAGR in the coming years.

Market By Frequency

• Sub-6 GHz
• mmWave

mmWave refers to radio bands with higher frequencies ranging from 24GHz to 40GHz, while Sub-6GHz refers to low and mid-frequency bands with frequencies less than 6GHz. Low-frequency bands are less than 1GHz, while mid-frequency bands range from 3.4 GHz to 6 GHz and are not classified as "mmWave." mmWave 5G networks are extremely fast, but they also have a very short range. To use mmWave technology, a user must be within a block of a 5G tower, which is not possible in suburban or rural areas. mmWave spectrum is also obscured and blocked by walls, doors, windows, and trees further restraining its available range, and it is expensive for carriers to deploy because it requires so many towers for coverage.

Market By Spectrum

• Licensed
• Unlicensed/Shared

In 2021, the unlicensed/shared spectrum occupied the leading market share and is anticipated to continue its trend during the forecast period 2022 – 2030. The high growth in the segment is ascribed to its easy accessibility and affordable cost. Moreover, the unlicensed/shared spectrum bandwidth segment is highly preferred during massive machine-type communications (mMTC). However, in the coming time the demand for licensed spectrum will also be witnessed as they are much safer, reliable, and widely adopted during mission-critical applications such as automated guided vehicles (AGCs).

Market By Vertical

• Manufacturing/Factories
  • Automotive
  • Clothing & Accessories
  • Food & Beverages
  • Electrical & Electronics
  • Heavy Machinery
  • Pharmaceuticals
  • Others
• Enterprises & Campus
• Mining
• Defense
• Retail
• Healthcare/Hospitals
• Agriculture
• Transportation & Logistics
• Oil & Gas
• Energy & Utilities
• Smart Cities
• Others

Based on vertical, the manufacturing/factories segment generated the maximum market share in 2021. Manufacturing has a lot of potential to be altered by 5G network adoption. 5G can speed up processes, reduce latency, enable automation, and facilitate the adoption of artificial intelligence (AI), robots, and augmented reality in a sector that is heavily reliant on the quality of connections between technologies and machines (AR). In addition, the smart factory's connected gadgets are likely to grow in number over time, creating thousands of petabytes of data. Thus, the segment is witnessing an impressive growth.

Private 5G Network Market Regional Overview

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Brazil
• Mexico
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Middle East & Africa

• South Africa
• GCC
• Rest of the Middle East & Africa

The increasing investments by the key service providers in the North America region, fuels the regional market growth

In 2021, the North America region accumulated a considerable amount of share in the regional market and is gaining traction in the coming years due to the increasing investment in the implementation of private 5G networks by key service providers such as Verizon Communications and AT&T Inc. Meanwhile, the Asia-Pacific region is expected to register the fastest growth rate in the coming years due to the presence of numerous manufacturing units, industries, and increasing planning for smart cities.

Competitive Landscape

Some of the top vendors offered in the professional report include AT&T Inc., BT Group, Cisco Systems, Inc., Deutsche Telekom, Huawei Technologies Co., Ltd., Juniper Networks, Nokia Corp., Samsung, Telefonaktiebolaget LM Ericsson, T-Systems International GmbH, Verizon Communications, Vodafone Ltd., and ZTE Corp.