Private 5G Network Market: Size by 2029 – A complete Global Analysis

The Growth of the Private 5G Network Market is forecasted at a CAGR of 29% during 2023-2029. A detailed description of the factors and market trends pertaining to different regions is given in detail in the report.
Private 5G Network Overview
Similar to a public 5G network, a private 5G network enables its owner to grant preferred licencing and access to its wireless spectrum. It's a wireless local area network that makes use of 5G-capable technology to build a network with specialised capacity and infrastructure to cater to the unique connection requirements of a company. Enterprises and other end users must buy spectrum from mobile network operators (MNOs), the government, or third-party spectrum suppliers in order to create a private 5G network. The report covers all such detailed analysis of the spectrum and provides an in-depth knowledge of the Private 5G network industry.

Private 5G networks are being increasingly adopted by various industries, including manufacturing, transportation, healthcare, and others, as they offer higher data transfer speeds, lower latency, and improved security compared to traditional networks. These networks would play a significant role in the development of smart factories, autonomous vehicles, and other Industry 4.0 technologies.

The Asia Pacific region is expected to have the highest CAGR during the forecast period due to the growing adoption of private 5G networks by various industries.

The Report also highlights the current industry news. For instance, Ericsson and Nokia have been selected by US-based utility company, Ameren, to deploy private 5G networks at two of its energy centers. The networks would improve the efficiency of the centers' operations, allowing them to remotely monitor and control their systems. Similarly, AT&T and Cisco have partnered to offer private 5G networks to businesses in the United States. The companies plan to provide businesses with dedicated networks that offer high data transfer speeds, low latency, and improved security.

The demand for private 5G networks is forecasted to increase as more industries adopt Industry 4.0 technologies and the need for high-speed, low-latency networks increases. However, the high cost of deployment and limited availability of spectrum may act as barriers to the growth of the market. Despite these challenges, the private 5G network market is expected to continue growing at a rapid pace in the coming years.
Private 5G Network Research Methodology
The Private 5G Network Market is projected for continued growth and innovation in the years ahead, as companies continue to innovate solutions that meet the evolving needs of businesses and consumers alike. The report analyses such innovations in technologies and there internal as well as external implication over the market and the firms.

The report has used GE-Mckinsey’s Matrix to understand the product positioning and analyse future prospects of the same. The report also includes the perceptual mapping to provide the reader a brief idea where the different product stands in accordance with customer demand and how to shift the positioning so that the Private 5G network product lands closer to the customers’ requirement. The report has conducted both primary as well as secondary research to find out the market drivers and blockers for the Private 5G Network Market

In addition to that, the report also includes the internal TWOS analysis which would map out the competitor’s major threat and opportunities and how they map out their strength and weakness to promote their opportunities and mitigate the threats. Also, PESTEL analysis is also been provided along with Porter’s 5 forces model to understand the market attractiveness.To know about the Research Methodology :- Request Free Sample Report
Private 5G Network Market Dynamics
The private 5G network market is forecasted to experience significant growth due to several market dynamics, including the adoption of Industry 4.0 and digital transformation across various industries, the need for high-speed, low-latency connectivity for mission-critical applications, and the integration of network slicing and edge computing technologies. The market is also being driven by the emergence of Open RAN and the trend towards the use of private 5G networks for indoor coverage and connectivity. The detailed overview is been thoroughly analysed in the report. Some of the overview regarding the market drivers, restraints and trends are been discussed below.
Private 5G Network Market Drivers:
The private 5G network market is experiencing significant growth due to several market drivers. One of the main drivers is the increased demand for high-speed and low-latency communication. Private 5G networks offer higher data speeds and lower latency than traditional wireless networks, making them ideal for applications that require real-time data processing and high-speed communication. According to the report, the global private 5G network market size is expected to grow from USD 7.62 billion in 2023 to USD 45.29 billion by 2029, at a Compound Annual Growth Rate (CAGR) of 29% during the forecast period.

Another major driver of the private 5G network market is the growing need for secure and reliable communication. With increasing cybersecurity threats and data breaches, organizations are increasingly looking for secure and reliable communication solutions. Private 5G networks offer enhanced security and reliability compared to public networks, as they can be customized to meet the specific needs of the organization.

Furthermore, the rising adoption of Industry 4.0 technologies such as Industrial Internet of Things (IIoT), automation, and artificial intelligence is also driving the growth of the private 5G network market. Private 5G networks offer higher bandwidth, lower latency, and better coverage, making them ideal for industrial applications. For instance, in October 2020, Siemens and Qualcomm announced a collaboration to develop 5G-based technologies for industrial automation, which would enable new use cases such as predictive maintenance, autonomous logistics, and augmented reality.

Moreover, the increasing investments by governments and private players in 5G infrastructure development is expected to drive the growth of the private 5G network market. For instance, in November 2020, the US Federal Communications Commission (FCC) announced plans to auction off mid-band spectrum for 5G networks, which would provide a boost to the private 5G network market. In addition, major players such as Ericsson, Nokia, and Huawei are investing heavily in the development of 5G infrastructure, which is expected to drive the growth of the private 5G network market. India have also developed their infrastructure for the private 5G network industry.
Private 5G Network Market Restraints
One of the main restraints is the high cost of deploying and maintaining private 5G networks. Private 5G networks require significant investments in infrastructure, hardware, and software, as well as ongoing maintenance and support costs. According to the report, the cost of deploying a private 5G network can range from USD 500,000 to USD 5 million, depending on the scope and complexity of the network.

Another major restraint of the private 5G network market is the lack of skilled workforce. Private 5G networks require specialized skills and expertise to design, deploy, and manage, and there is currently a shortage of skilled professionals in this area. In 2023, 75% of organizations will face a shortage of skilled technical professionals, which could hinder the adoption and growth of private 5G networks.

Furthermore, regulatory issues and spectrum availability are also major restraints of the private 5G network market. Private 5G networks require access to licensed spectrum, which is regulated by governments and can be expensive and difficult to obtain. Moreover, different countries have different regulations and standards for 5G networks, which could create interoperability issues and hinder the growth of the market.

In addition, the COVID-19 pandemic has also had a negative impact on the private 5G network market. The pandemic has led to supply chain disruptions, reduced investments, and delayed deployments of private 5G network. The private 5G network market is forecasted to see a decline in revenues in 2020 due to the pandemic, although it is expected to recover and grow in the coming years.

Finally, competition from established wireless technologies such as Wi-Fi and LTE is also a major restraint of the private 5G network market. Wi-Fi and LTE offer similar benefits such as high data speeds and low latency, and are already established in many industries and applications, which could limit the adoption and growth of private 5G networks.
Private 5G Network Market Trend
There are several market trends that are shaping the future of the private 5G network market. One of the key trends is the adoption of Industry 4.0 and digital transformation across various industries. Private 5G networks offer high-speed, low-latency connectivity that is essential for the implementation of Industry 4.0 technologies such as robotics, automation, and artificial intelligence. This trend is forecasted to drive the demand for private 5G networks across industries such as manufacturing, logistics, healthcare, and energy.

Another trend in the private 5G network market is the integration of network slicing and edge computing technologies. Network slicing allows the creation of virtual networks with specific characteristics such as speed, latency, and bandwidth, which can be customized for different applications and services. Edge computing, on the other hand, enables data processing and analysis at the edge of the network, closer to the source of the data. The integration of these technologies with private 5G networks can enable new use cases such as autonomous vehicles, smart cities, and remote healthcare.

Also, the emergence of Open RAN (Radio Access Network) is another trend that is expected to shape the future of the private 5G network market. Open RAN is a new approach to building wireless networks that uses open interfaces and standards to enable greater flexibility, interoperability, and cost-effectiveness. This trend is expected to drive the adoption of private 5G networks, especially in industries and applications that require customized networks with specific requirements.

In addition, there is a growing trend towards the use of private 5G networks for mission-critical applications such as public safety, defence, and emergency services. Private 5G networks offer high reliability, security, and resilience, which are essential for these applications. This trend is expected to drive the demand for private 5G networks in these industries and applications.

Finally, there is a trend towards the use of private 5G networks for indoor coverage and connectivity. Private 5G networks can provide high-speed, low-latency connectivity for applications such as virtual and augmented reality, smart offices, and indoor navigation. This trend would drive the adoption of private 5G networks in indoor environments such as airports, shopping malls, and stadiums.
Private 5G Network Market Segment Analysis:
Private 5G networks are witnessing popularity due to their potential to provide secure and reliable connectivity for various domestic as well as industrial applications. Segmentation of the private 5G network market is essential to identify different market segments and their specific requirements. The Report have segmented the Private 5G Network Market into various categories. The overview of the same is been mentioned below

Industry Outlook:

The manufacturing industry is one of the largest segments for private 5G networks. The Private 5G Network finds its application in wide range including industrial automation, process optimization, and real-time monitoring of machines, equipment and many more. According to the report, the manufacturing industry is forecasted to be the largest segment for private 5G networks, accounting for 46% of the total market by 2029.

The healthcare industry is another significant segment for private 5G networks. The Private 5G Networks are used for remote patient monitoring, telemedicine, and improving the efficiency of healthcare operations. It is been forecasted that the private 5G network market in the healthcare industry is expected to grow at a CAGR of 55.4% from 2023 to 2029.

The energy and utilities industry have variety of application for private 5G networks including smart grid applications, real-time monitoring of energy consumption, and improving the efficiency of utility operations. According to the report, the private 5G network market in the energy and utilities industry is expected to grow at a CAGR of 41.3% from 2020 to 2025.

The transportation and logistics industry uses private 5G networks for real-time tracking and monitoring of vehicles, goods, and people. These networks are also used for improving the safety and efficiency of transportation operations. According to the report, the private 5G network market in the transportation and logistics industry is forecasted to grow at a CAGR of 61.5% from 2023 to 2029.

Smart city applications, public safety, and improving the efficiency of public services are some of the areas where the public sector uses the Private 5G Network thanks to the rapid penetration of the 5G technology in the world. The report forecasts that the private 5G network market in the public sector would reach 1.5 billion USD by the year 2029.

The retail industry is using private 5G networks for inventory management, logistics optimization, and improving the shopping experience for customers. These networks enable retailers to track the movement of goods in real-time, optimize stock levels, and personalize shopping experiences using augmented reality and other emerging technologies.

Another sector that uses the Private 5G network is the financial services industry. It has vast number of applications for high-frequency trading, improving transaction speeds, and enhancing security for financial transactions. These networks enable financial institutions to process large volumes of data faster and more securely, reducing transaction times and increasing operational efficiency.

Component Outlook:

In the report, the private 5G network market is segmented based on components into hardware, software, and services. The hardware segment includes radio access network, core network, and backhaul & transport. The software segment includes installation & integration, data services, and support & maintenance. The services segment includes the installation, integration, and support and maintenance of private 5G networks. The hardware segment is expected to hold the largest share of the market due to the increasing adoption of private 5G networks in industries such as manufacturing, automotive, and energy & utilities.

Frequency Outlook:

The private 5G network market is also be segmented based on frequency into sub-6 GHz and mm Wave. Sub-6 GHz frequency is expected to hold a significant share of the market due to its ability to cover larger areas and provide reliable connectivity. Mm Wave frequency, on the other hand, offers high data transfer rates and low latency, making it suitable for applications such as virtual reality and autonomous vehicles.

Spectrum Outlook:

The private 5G network market includes segmentation based upon licensed and unlicensed/shared spectrum. Licensed spectrum is expected to hold the largest share of the market due to the increasing demand for secure and reliable communication in industries such as defence and healthcare.

Regional Outlook:

The private 5G network market is also segmented based on regions into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa (MEA). North America is expected to hold the largest share of the market due to the increasing adoption of private 5G networks in industries such as healthcare and defence. Europe and Asia-Pacific are also expected to witness significant growth in the market, driven by the increasing demand for digital transformation and advancements in IoT.
Private 5G Network Market Competitive Landscape:
The market for private 5G networks is extremely competitive, with both long-standing businesses and recent newcomers vying for market dominance. Among the top suppliers of private 5G network solutions for diverse sectors are Ericsson, Nokia, Huawei, Cisco Systems, Samsung, NEC, and ZTE. These businesses provide a vast array of goods and services, including as network infrastructure, software, and expert services. Along with the market's top players, noteworthy secondary participants include Verizon Business, AT&T, Deutsche Telekom, Orange, and Telefonica.

Players heavily engage in R&D to keep ahead of the curve, which contributes to the market's fierce rivalry and high levels of innovation. In order to create cutting-edge solutions and increase their market presence, firms are collaborating and forming partnerships in the market. In the upcoming years, the market for private 5G networks is anticipated to expand rapidly owing to the factors such the expanding use of industrial automation, the rising demand for secure and dependable communication, and the requirement for high-speed connectivity in remote areas.
Private 5G Network Market Regional Insights:
The private 5G network market is experiencing significant growth worldwide, with North America, Europe and Asia-Pacific being the major regions driving the market growth. North America and Europe are currently leading the market, with increasing adoption of private 5G networks driven by the growing demand for high-speed connectivity, advancements in IoT, and the need for secure and reliable communication. The private 5G network market in North America is expected to grow at a CAGR of 29.3% from 2023 to 2029, while the market in Europe is expected to grow at a CAGR of 31.4% from 2023 to 2030.

Asia-Pacific is also expected to witness significant growth in the private 5G network market, driven by the increasing demand for digital transformation, advancements in IoT, and the need for high-speed connectivity in remote locations. The private 5G network market in the Asia-Pacific region is expected to grow at a CAGR of 35.3%. The Rest of the World is also witnessing significant growth in the adoption of private 5G networks, driven by the increasing demand for digital transformation and the need for high-speed connectivity in remote locations.
Private 5G Network Market Scope: Inquire before buying



Private 5G Network Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 7.62 Bn.


Forecast Period 2023 to 2029 CAGR:
29%
Market Size in 2029:
US $ 45.29 Bn.


 Segments Covered:
by Industry Outlook
• Manufacturing Industry
• Healthcare Industry
• Energy and Utilities
• Transport and Logistics
• Public Sector


by Component Outlook
• Hardware
• Software
• Service


by Spectrum Outlook
• Licensed Spectrum
• Unlicensed/ Shared Spectrum



Private 5G Network Market, by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
• Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina Rest of South America)
Private 5G Network Market Key Players:
• Ericsson (Sweden)
• Nokia (Finland)
• Huawei (China)
• Samsung (South Korea)
• Cisco (US)
• NEC Corporation (Japan)
• ZTE Corporation (China)
• Mavenir (US)
• CommScope (US)
• Athonet (Italy)
• Verizon (US)
• Orange (France)
• Vodafone (UK)
• Telefónica (Spain)
• Deutsche Telekom (Germany)
• AT&T (US)
• BT Group (UK)
• Reliance Jio (India)
• Bharti Airtel (India)
• Intel Corporation (US)
• Dell Technologies (US)
• Juniper Networks (US)
• HPE (US)
• IBM (US)
• Fujitsu (Japan)
• Infosys (India)

FAQs:

1. What are the growth drivers for the Private 5G Network Market?
Ans: Increased demand for high-speed and low-latency communication, Growing need for secure and reliable communication, And Rising adoption of Industry 4.0 technologies such as IIoT, automation, and artificial intelligence are amongst the top growth drivers for Private 5G Network Market.

2. What is the major restraint for the Private 5G Network Market growth?
Ans: Huge Implementation cost and lack of skilled workforce are among the major restraint for private 5G network market

3. Which region is expected to lead the global Private 5G Network Market during the forecast period?
Ans: Asia Pacific is to dominate the Private 5G network Market during the forecast period

4. What is the projected market size & growth rate of the Private 5G Network Market?
Ans: The Private 5G Network Market is forecasted to grow with a CAGR of 29% and reach to 45.29 Bn USD

5. What segments are covered in the Private 5G Network Market report?
Ans: Segmentation based upon Industry outlook, Components ad Region are some of the segments mentioned in the report