Private 5G Market Size, Share, Opportunities, And Trends By Component (RAN, 5G Core, Transport, Edge Server), By Application (Industrial Equipment, AGVs, Security, Others), By Band (Sub-6 GHz, MmWave), By Industrial Vertical (Manufacturing, Oil & Mining, Logistics/Warehouses, Healthcare, Others), And By Geography - Forecasts From 2023 To 2028

The global private 5G market is projected to grow at a CAGR of 30.41% to reach US$11.554 billion by 2028, from US$2.349 billion in 2022.

GROWTH DRIVERS

• Growing need for 5G URLLC

The emergence of the 5G System as a valuable tool for various industries has created a new requirement for improved reliability and reduced latency to coexist. Industrial automation stands as a crucial application for the features of Ultra-Reliable Low-Latency Communication (URLLC). URLLC offers exceptionally reliable network connections and extremely low packet transmission delays, with latency as low as 1 millisecond. These two attributes establish URLLC as a primary use case for 5G technology.

For instance:

• In October 2021, Ericsson introduced Time-Critical Communication to enhance 5G for real-time experiences. This end-to-end solution ensures consistent low latency and high reliability for time-sensitive applications in various sectors. Ericsson's Time-Critical Communication toolbox addresses network delays and interruptions by combining the 3GPP URLLC standard with Ericsson innovations to reduce latency effectively.
• In August 2023, VDN Technologies unveiled a dependable and secure end-to-end 5G Enterprise solution that's ready for deployment. This solution is powered by open standards-based architectures (ORAN) capable of supporting URLLC and eMMB, making it suitable for high-density indoor environments. The Private 5G solution includes VVDN's in-house designed ORAN Radio Units, customized CU/DU, and 5G Core components.

Demand for unlicensed/shared spectrum for 5G

Access to shared and unlicensed spectrum is fueling the need for affordable high-speed private 5G networks. Unlicensed spectrum, known for its accessibility, is especially favored for massive machine-type communications (mMTC). This access expands 5G in various ways, increasing capacity, utilizing spectrum more efficiently, and enabling new deployment possibilities. Notably, private LTE and 5G networks within shared spectrum bands are gaining popularity.

• In April 2023, Amazon acknowledged NTIA's efforts in shaping the National Spectrum Strategy. Amazon focuses on enhancing in-home connectivity through products and services like eero, improving critical technologies such as Wi-Fi that operate on unlicensed spectrum bands like 2.4 GHz, 5 GHz, and 6 GHz.
• In November 2021, Amazon Web Services (AWS) introduced AWS Private 5G for enterprise customers, leveraging the CBRS band and collaborating with spectrum licensees to deliver Integrated Private Wireless services on AWS.

Remarkable Increase in IoT deployment  

The private 5G network is crucial for ensuring uninterrupted and secure internet connectivity for the IIoT devices mentioned above. Furthermore, the global market is predominantly influenced by the increasing demand for Industrial Internet of Things (IIoT) applications. Based on the information provided by Ericsson, it has been reported that the count of IoT 5G connection networks worldwide has currently achieved a count of 1.6 billion. and subsequently escalating. These statistics underline the robust growth in 5G network investments across various global regions, highlighting the dynamic evolution of 5G technology.

EMERGING OPPORTUNITIES IN THE PRIVATE 5G MARKET

• 5G mmWave

5G mmWave holds significant potential in various applications. It is particularly well-suited for scenarios where ultra-low latency and higher speeds are necessary but within relatively short distances. The market is categorized by sub-6 GHz and mmWave bands. When transitioning to higher bandwidth for 5G deployment, changes occur in antenna structure, technology, and component choices. The significance of 5G mmWave is particularly fascinating in fields like FWA, technology advancement, Industry 4.0, and smart vehicles due to its exceptional high-performance capabilities and a range of new use cases. The strong commitment of key government authorities to release mmWave frequencies is anticipated to boost the growth of the mmWave segment.

For instance, in 2022, Several governments in prominent countries have allocated mmWave frequency bands for private 5G services. As an example, the Federal Communications Commission (FCC) has made available various mmWave frequencies, such as, 71-76 GHz, 81-86 GHz, and 92-95 GHz (70/80/90 GHz) among others.

GEOGRAPHICAL PRESENCE

• In April 2022, Cellnex and SEGULA Technologies formed a partnership to extend Private 5G Network capabilities into the Automotive Industry. This collaboration entails Cellnex setting up a Private 5G Network at the testing facility in Rodgau-Dudenhofen, Germany. This network offers high mobility, ultra-low latency, a dedicated spectrum, robust security, and data confidentiality, benefiting SEGULA Technologies' automotive clients.
• In June 2021, NEC Corporation introduced 5G xHaul transformation services by establishing Centers of Excellence (CoE) for 5G transport networks in Europe, the Middle East, Africa (EMEA), and Latin America (LATAM).

MAJOR PLAYERS IN THE MARKET

There are a number of leading companies on the market, such as Qualcomm, Amazon, and Ericsson, among others. The product offerings of the major corporations include the following:

Private 5G Market Scope:

SEGMENTATION

The Global 5G Private Network Market has been analyzed through the following segments:

• By Component
  • RAN
  • 5G Core
  • Transport
  • Edge Server
• By Application
  • Industrial Equipment
  • AGVs
  • Security
  • Others
• By Band
  • Sub-6 GHz
  • MmWave
• By Industrial Vertical
  • Manufacturing
  • Oil & Mining
  • Logistics/Warehouses
  • Healthcare
  • Others
• By Geography
  • Americas
    • United States
    • Others
  • EMEA
    • Germany
    • UK
    • Others
  • APAC
    • China
    • Japan
    • South Korea
    • Others