Private 5G Network Market Size, Share & Trends Analysis Report By Frequency (Sub-6 GHz, mmWave), By Spectrum (Licensed, Unlicensed/Shared), By Component (Hardware, Services), By Vertical, And Segment Forecasts, 2021 - 2028

Report Overview

The global private 5G network market size was valued at USD 1,224.3 million in 2020 and is expected to witness compounded annual growth rate (CAGR) of 39.7% from 2021 to 2028. 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 & 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.

Private 5G network delivers complete end-to-end security across organizations to ensure their information and infrastructure are shielded from threats. Also, 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 2021 to 2028. 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 of 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 market growth over the forecast period.

Component Insights

In 2020, the hardware segment accounted for the largest revenue share of over 49% due to the increased deployment of core networks and backhaul and transport equipment across the globe. The hardware segment mainly encompasses three component categories, including Radio Access Network (RAN), core network, and backhaul and transports. On the other hand, the services segment includes three key services, such as installation & integration, data services, and support & maintenance. Furthermore, with a significant focus on deploying cloud-based RAN, core, and edge networks, the software segment is expected to witness huge demand in the market over the forecast period. This would help clients to minimize the overall CAPEX during the installation.

Key network providers, such as Nokia Corporation, Qualcomm Technologies, Inc., and Ericsson, are deploying the feasible equipment to support back operations in delivering high-speed bandwidth. Thus, it is estimated to see a significant gain in the market share of the core network segment by the end of 2020. Furthermore, demand for improved connectivity to connect millions of sensors at industrial premises is projected to showcase a massive adoption and installation of RAN equipment during the forecast period. Moreover, with an increasing focus to install a private 5G core network for dedicated users to manage their information securely, it is estimated to see huge growth in the installation and integration services segment from 2021 to 2028.

Frequency Insights

In 2020, the sub-6 GHz segment held the largest revenue share of over 71% and is expected to exhibit a CAGR of nearly 36% from 2021 to 2028. The sub-6 GHz frequency encompasses a low band and a mid-band of spectrum ranges mainly 6GHz and below. Recently, governments across key countries, such as China, the U.S., Japan, and South Korea, released sub-6 GHz frequencies to provide 5G services.

mmWave frequencies are high band frequencies that provide significantly high connectivity with very low latency. These frequency bands would be mainly helpful wherein ultra-reliable connectivity would be required, especially in infrastructure connectivity. In addition, few federal governments across leading countries have released mmWave frequency bands to provide private 5G services. For instance, the Federal Communication Commission (FCC) released several mmWave frequencies, including 24.25–24.45 GHz, 47.2-48.2 GHz, 24.75–25.25 GHz, and 38.6-40 GHz, among others. Also, countries, such as Russia, Japan, South Korea, and Italy, among others, have released mmWave frequencies for enhanced data services. Thus, the high focus to release mmWave frequencies by key federal governments is expected to augment the mmWave segment growth in the next seven years.

Spectrum Insights

In 2020, the unlicensed/shared segment accounted for the highest revenue share of over 72% and is projected to expand further at the fastest CAGR from 2021 to 2028. The high growth is attributed to the rising demand for high-speed private 5G networks at affordable costs. Unlicensed spectrum bandwidth is easily accessible and highly preferred during massive machine-type communications (mMTC).

A licensed spectrum is a bit costlier than an unlicensed/shared spectrum as a company needs to buy an entire license for a particular spectrum bandwidth for enhanced and secured internet connectivity. Access to a licensed spectrum can also be achieved from Communication Service Providers (CSP).

Moreover, many countries, such as the U.S. and Germany, are utilizing a licensed spectrum for industrial and mission-critical applications. Thus, rising demand for highly-secured connectivity during mission-critical applications, such as Automated Guided Vehicles (AGV), is expected to drive the licensed spectrum segment growth over the forecast period.

Vertical Insights

In 2020, the manufacturing sector held the highest revenue share of over 22% and is projected to expand further at the fastest CAGR during the forecast period. The growth is attributed to the high demand for private 5G services to provide seamless connectivity to several devices, such as Ultra-HD cameras, extended reality headsets, and AGVs. Also, the growing need to establish uninterrupted communication among machines is expected to boost the segment growth from 2021 to 2028. Private 5G network is widely preferred across various industry verticals, including manufacturing, energy and utilities, transportation & logistics, aerospace & defense, oil & gas, mining, and government & public safety.

Several governments & public safety organizations are adopting a private 5G network for various applications owing to quick communication with first responders during emergencies. Moreover, the demand is expected to rise across enterprises/corporates due to an increasing need to manage their data at their premises, securely. Furthermore, the energy & utility sector is anticipated to showcase significant growth in the adoption of a secured private network to get high-speed internet connectivity during energy generation and distribution applications. The need to provide improved connectivity to ships and containers/vessels for remote monitoring is expected to fuel the adoption of a private 5G network in the transportation & logistics segment over the forecast period.

Regional Insights

In 2020, North America captured the largest market share of more than 31% due to the presence of various private 5G solution providers, such as Qualcomm Technologies, Inc. In addition, the significant rise in the investments for deploying private 5G network infrastructure by key service providers, such as AT&T Inc. and Verizon Communications, is expected to assist North America to gain a high market share. Moreover, the robust deployment of numerous industrial sensors by leading automakers, such as Ford Motor Company and General Motors Company, is estimated to create significant market opportunities in the region. The growing need for Ultra-reliable Bandwidth Low Latency Connectivity (URLLC) across various verticals, such as public safety, oil & gas, and aerospace & defense, in the region, is expected to bolster regional market growth.

Asia Pacific is expected to be the fastest-growing regional market from 2021 to 2028. The growth is attributed to the presence of several manufacturers, along with their significant investments in building automated factories in the region. In addition, huge investments to acquire a 5G spectrum in key countries, such as China, Japan, South Korea, and Australia, are projected to contribute to the regional market growth. A robust transition towards building autonomous industries by leading industrial players, such as Siemens AG, ABB Ltd., and Mercedes Benz, is anticipated to increase the adoption of private 5G services across key countries in Europe, such as Germany and the U.K.

Key Companies & Market Share Insights

Key market players are strategically building partnerships with industrial manufacturers to establish a private 5G network-based test center to test several industrial automated devices on a private 5G network. For instance, in November 2019, Qualcomm Technologies, Inc. and Siemens have jointly established private 5G network-based test centers in Germany by using a 3.7-3.8 GHz band. In this strategic partnership, Qualcomm Technologies, Inc. set up a 5G core network and RAN along with industrial test devices. In contrast, Siemens delivered the actual industrial setup, such as Simatic control systems and IO devices.

Moreover, this joint partnership 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. For instance, in Feb 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. Some of the prominent players in the global private 5G network market include:

• Telefonaktiebolaget LM Ericsson

• Nokia Corp.

• Huawei Technologies Co., Ltd.

• Samsung

• ZTE Corp.

• Deutsche Telekom

• Juniper Networks

• AT&T Inc.

• Verizon Communications

• Altiostar

• Mavenir

• BT Group

• T-Systems International GmbH

• Cisco Systems, Inc.

• Vodafone Ltd.

Private 5G Network Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2028. For the purpose of this study, Grand View Research has segmented the global private 5G network market report based on component, frequency, spectrum, vertical, and region:

• Component Outlook (Revenue, USD Million, 2020 - 2028)

  • Hardware

    • Radio Access

    • Core

    • Backhaul & Transport

  • Software

  • Services

    • Installation & Integration

    • Data Services

    • Support & Maintenance

• Frequency Outlook (Revenue, USD Million, 2020 - 2028)

  • Sub-6 GHz

  • mmWave

• Spectrum Outlook (Revenue, USD Million, 2020 - 2028)

  • Licensed

  • Unlicensed/Shared

• Vertical Outlook (Revenue, USD Million, 2020 - 2028)

  • Manufacturing

    • Food & Beverages

    • Automotive

    • Pharmaceuticals

    • Electrical & Electronics

    • Heavy Machinery

    • Clothing & Accessories

    • Others

  • Energy & Utilities

  • Transportation & Logistics

  • Defense

  • Enterprises & Campus

  • Mining

  • Healthcare/Hospitals

  • Oil & Gas

  • Retail

  • Agriculture

  • Smart Cities

  • Others

• Regional Outlook (Revenue, USD Million, 2020 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • South America

    • Brazil

  • Middle East & Africa (MEA)