The global private 5G network market size was estimated at USD 2.00 billion in 2023 and is projected to reach USD 36.08 billion by 2030, growing at a CAGR of 54.1% from 2024 to 2030. Private 5G networks offer businesses and governments dedicated, secure, and high-performance connectivity. This allows them to connect to more devices, improve automation, and deliver better customer experiences.
These benefits are driving the adoption of private 5G networks in various industries, including smart cities that rely on private 5G for applications such as traffic management and security, among others. Cellular technology, in the form of private 5G networks, is being used by businesses, organizations, and local governments across various industries. These industries include manufacturing, utilities, transportation, logistics, retail, agriculture, and those involved in smart city initiatives. The benefits of private 5G networks, such as ultra-fast speeds, improved security, cost efficiency, reliability, prioritized network access, and extended range compared to Wi-Fi, are driving their adoption across these industries. Thus, various benefits provided by private 5G networks are contributing to the overall market growth.
As an increasing number of devices and enterprises connect to the internet, enterprises may face low coverage and security issues due to network bottlenecks. Private 5G networks solve these issues by providing network connectivity in a dedicated space, providing enhanced security, improved connectivity, and improved automation with lower latency. These benefits can help enterprises deliver enhanced customer experience. Furthermore, private 5G networks support technologically advanced applications, including machine control systems, wireless UHD cameras, collaborative/cloud robots, and remote asset monitoring, which is driving the adoption of private 5G networks.
The rapidly growing smart cities in developed countries such as the U.S., Canada, Singapore, the UK, Germany, Italy, and France have surged the deployment of IoT devices for several applications. These applications mainly include transportation, public safety and security, and energy management, among others. To provide unified and secured connectivity for these mission-critical applications, several telecom providers are launching innovative private 5G network solutions. Continuous innovation is creating significant growth opportunities for the market.
Despite the high growth potential of the market, the deployment and implementation of a private 5G network is a tedious and highly expensive process. As the number of 5G users and network traffic increases in the near future, the need for standalone 5G infrastructure will become necessary. Building and maintaining a private 5G network can be expensive and requires significant investment in infrastructure and equipment, which is acting as a hindrance to market growth. However, key telecom operators are taking strategic initiatives and are investing in infrastructure, and research & development, which is expected to diminish this market challenge.
The industry growth stage is high, and the pace of the industry growth is accelerating. The private 5G network industry is witnessing significant transformation attributed to the emergence of cutting-edge technologies such as edge computing. The combination of private 5G and edge computing enables real-time data processing at the network's edge, fostering efficiency and enabling applications that demand low latency, such as the Industrial Internet of Things (IIoT) and autonomous systems.
The private 5G network industry is exhibiting a low level of merger and acquisition (M&A) activities among key players. Industry participants prefer organic growth strategies such as partnerships & collaborations, and product launches to expand their industry presence, leveraging technological strengths to navigate the industry landscape and maintain a competitive edge.
The private 5G network industry is heavily influenced by regulations, particularly in terms of security and compliance. Issues such as spectrum licensing, data privacy, and industry-specific regulations are shaping the security standards and operational protocols in the industry, ensuring adherence to evolving regulatory frameworks.
The private 5G network industry faces a medium threat of substitutes. Many businesses stick to traditional LTE for basic tasks due to the lower costs as compared to private 5G network costs. However, the increasing demand for high-speed, secure connectivity for critical applications like remote surgeries and autonomous cars is driving the demand for private 5G networks as the superior choice.
The private 5G network industry is facing different end-use concentrations from different end-use industries. While some sectors are embracing private 5G networks for tailored and high-bandwidth solutions, others are relying on existing infrastructure. This diversity highlights evolving preferences and applications within the dynamic industry landscape.
The hardware segment dominated the market in 2023 and accounted for a 53.88% share of the global revenue. The dominance of this segment can be attributed to the increased deployment of core networks and backhaul and transport equipment across the globe. The hardware segment is further divided into Radio Access Network (RAN), core network, and backhaul and transports. Key network providers, such as Nokia Corporation, Qualcomm Technologies, Inc., and Ericsson, are deploying feasible equipment to support back operations in delivering high-speed bandwidth, supporting the segment growth.
The services segment is projected to witness significant growth from 2024 to 2030. The services segment is further segregated into installation & integration, data services, and support & maintenance. With an increasing focus on installing a private 5G core network for dedicated users to manage their information securely, the services segment is estimated to see huge growth in the installation and integration services segment during the forecast period.
The Sub-6 GHz segment dominated the market in 2023. Sub-6 GHz offers a lower frequency range of around 1 GHz to 6 GHz and is limited in terms of speed. However, it offers larger coverage, which makes it more suitable for real-world implementation, especially in private 5G networks where enterprises are looking for coverage over a large area. Moreover, the sub-6 GHz spectrum has already been used for previous generation networks, making it a more accessible and cost-effective option to be used by 5G, contributing to the overall segment’s growth.
The mmWave segment is projected to witness significant growth during the forecast period. 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. In addition, countries such as Japan, South Korea, and Italy have released mmWave frequencies for enhanced data services. Thus, the high focus on releasing mmWave frequencies by key federal governments is expected to augment the mmWave segment growth in the next seven years.
The unlicensed/shared segment dominated the market in 2023 and is expected to grow at the highest CAGR during the forecast period. An unlicensed spectrum does not require enterprises to acquire the license of an entire spectrum; it is cost-effective and time-efficient. Unlicensed spectrum bandwidth is easily accessible and highly preferred during massive machine-type communications (mMTC), such as IoT device connectivity in smart cities, stadiums, and machine-to-machine connectivity. The rising demand for high-speed, cost-effective, and time-efficient private 5G networks is contributing to the segment’s growth.
The licensed segment is expected to register a significant CAGR from 2024 to 2030. 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 be achieved from Communication Service Providers (CSP). Despite the higher costs, many countries, such as the U.S. and Germany, are utilizing a licensed spectrum for industrial and mission-critical applications. Thus, the rising demand for highly secured connectivity during mission-critical applications, such as automated guided vehicles (AGV), is expected to drive the licensed spectrum segment’s growth over the forecast period.
The large enterprises segment dominated the market in 2023 and is expected to grow at the fastest CAGR during the forecast period. Private 5G networks are revolutionizing the operations of large enterprises across the globe by enhancing security, increasing efficiency, and fostering scalable innovation. Private 5G offers superior network service and enhanced customer experience and supports a large number of complex use cases that Wi-Fi cannot support. Large enterprises that have data-intensive processes for use cases, such as industrial automation, smart energy/utilities, and remote healthcare, among others, are adopting private 5G networks, thus driving the segment’s growth.
The small & medium enterprises segment is expected to grow significantly during the forecast period. Due to the higher costs and deployment complexities of private 5G networks, its adoption has been slower among small & medium enterprises. However, with the latest versions of the Open-Radio Access Network (ORAN) technology specifications and the launch of ORAN-compliant silicon chipsets, these barriers of cost and complexity are starting to diminish for small & medium enterprises (SMEs). As technology evolves and the market matures, the adoption of private 5G networks is expected to rise among small & medium enterprises.
The manufacturing/factories segment dominated the market in 2023 and is expected to grow at the fastest CAGR from 2024 to 2030. 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 Automated Guided Vehicle Systems (AGVs). In addition, the growing need to establish uninterrupted communication among machines is expected to boost the segment’s growth.
Transportation & logistics is expected to grow significantly during the forecast period. Private 5G networks are expected to help trucking companies, warehouse operators, courier companies, railway companies, port authorities, and other transportation & logistics companies to track the location and condition of their assets. Ultra-high speed, higher bandwidth, real-time data collection, and cloud-native architecture are some of the key features of a private 5G network, which are driving its adoption by transportation and logistics companies.
North America dominated the private 5G network market and accounted for a 31.64% share in 2023. The regional market’s dominant share can be attributed to the presence of various private 5G solution providers present in the region including Qualcomm Technologies, Inc., AT&T Inc., and Verizon Communications, among other players. These players are investing heavily in deploying private 5G network infrastructure, fueling the overall market’s growth in the region.
The private 5G network market in the U.S. is expected to grow at a significant CAGR of 56.2% from 2024 to 2030. In January 2023, Verizon Business commissioned its wireless private 5G network at The Smart Factory of Deloitte @ Wichita, a new Industry 4.0 immersive experience center. Initiatives driven by an inclination towards smart manufacturing and Industry 4.0 are contributing to the U.S. market’s growth.
Canada private 5G network market is expected to grow at a significant CAGR from 2024 to 2030. Benefits provided by private 5G networks, such as accessibility, reliability, quality of service, and security, are driving consumers in Canada to adopt them, contributing to the market’s growth.
The private 5G network market in Europe is expected to grow at a significant CAGR from 2024 to 2030. This market is experiencing rapid growth, driven by demand for secure, high-speed connectivity for applications such as industrial applications, smart cities, and IoT solutions.
UK private 5G network market is expected to grow at a significant CAGR from 2024 to 2030. In December 2022, the UK government announced an investment worth GBP 110 million in R&D initiatives focusing on telecom security, 5G, and 6G. Such favorable government initiatives are propelling the market’s growth in the UK.
The private 5G network market in Germany is expected to grow at a significant CAGR from 2024 to 2030. This growth can be attributed to favorable government initiatives that are driving innovation, investment, and integration of private 5G networks among various industry verticals.
The private 5G network Asia Pacific market is expected to register the highest CAGR from 2024 to 2030.The growth is attributed to the presence of several manufacturers, along with their significant investments in building automated factories in the region. In addition, massive investments to acquire a 5G spectrum for providing private 5G networks in India, China, Japan, South Korea, and Australia, are projected to contribute to the regional market growth.
China private 5G network market is expected to grow at a significant CAGR from 2024 to 2030. According to GSMA’s ‘Mobile Economy China 2024’ report, more than half of the Chinese mobiles will be 5G by the end of 2024. This growing demand for 5G networks is creating significant growth opportunities for the market in China.
The private 5G network market in India is anticipated to grow at a significant CAGR from 2024 to 2030. The adoption of private 5G networks in the Indian market has been comparatively slower; however, it is expected to gain traction over the coming years owing to its higher coverage, lower latency, and reliability.
Japan private 5G network market is expected to grow at a significant CAGR from 2024 to 2030. Key telecom operators in Japan are entering into strategic initiatives to provide private 5G networks to enterprise customers across the country, thus fueling the market’s growth.
The private 5G network market in MEA is anticipated to grow at a significant CAGR from 2024 to 2030. The growing investment in 5G networks in the Middle Eastern region is creating significant growth opportunities for the MEA market.
Some of the established players operating in the market include TELEFONAKTIEBOLAGET LM ERICSSON, HUAWEI TECHNOLOGIES CO., LTD., Deutsche Telekom, Nokia Corporation, Samsung Electronics Co., Ltd., and Cisco Systems, Inc. among others.
Telefonaktiebolaget LM Ericsson provides information and communication technology (ICT) services, including 5G and IoT-powered networks, managed services, digital services, and others to service providers across the globe. These services form the operating segments of the company and are based on the company’s customer needs. The company is taking strategic initiatives regarding new product deployments and geographical expansion of its facilities across the globe.
Nokia Corporation is a mobile and fixed network infrastructure provider that combines software, hardware, and services. The company is also engaged in the deployment of 5G networks. The company operates through three reportable segments: networks, Nokia software, and Nokia technologies. Through the Nokia Software segment, the company focuses on 5G, digital, automation, and portfolio integration platforms. Nokia Corporation is among the leading players with a vast product portfolio and strong global presence.
The following are the leading companies in the private 5G network market. These companies collectively hold the largest market share and dictate industry trends.
In March 2024, SoftBank Corp. announced the service launch of its Private 5G (dedicated type). This service allows local governments, organizations, and other enterprises to build 5G customized networks on their premises with a dedicated base station. The service is optimal for customers who require low latency and advanced network solutions, making it suitable for smart factory applications.
In December 2023, Telefonaktiebolaget LM Ericsson announced its partnership with Orange. The collaboration aims to offer B2B customers the opportunity to deploy their own private 5G network.
In September 2023, Deutsche Telekom announced the launch of its new private 5G network solution, the ‘Campus Network Smart.’ The solution, launched in partnership with Microsoft Corporation, is part of Deutsche Telekom’s strong 5G private network portfolio. The Campus Network Smart solution is cloud-based, scalable, and incorporates a pay-as-you-grow model.
Report Attribute |
Details |
Market size value in 2024 |
USD 2.69 billion |
Revenue forecast in 2030 |
USD 36.08 billion |
Growth rate |
CAGR of 54.1% from 2024 to 2030 |
Actual data |
2020 - 2023 |
Forecast period |
2024 - 2030 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2024 to 2030 |
Report coverage |
Revenue forecast, company market share, competitive landscape, growth factors, and trends |
Segments covered |
Component, frequency, spectrum, enterprise size, vertical, region |
Regional scope |
North America; Europe; Asia Pacific; South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; UK; Germany; Italy; China; India; Japan; South Korea; Australia; Brazil; Kingdom of Saudi Arabia (KSA); UAE; South Africa |
Key companies profiled |
Telefonaktiebolaget LM Ericsson; Nokia Corporation; Samsung Electronics Co., Ltd.; ZTE Corporation; Deutsche Telekom Group; AT&T Inc.; Juniper Networks, Inc.; Verizon Communications, Inc.; Altiostar; HUAWEI TECHNOLOGIES CO., LTD.; Mavenir; T-Systems International GmbH; Cisco Systems, Inc.; Vodafone Group Plc: BT Group |
Customization scope |
Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2030. For this study, Grand View Research has segmented the global private 5G network market based on component, frequency, spectrum, enterprise size, vertical, and region:
Component Outlook (Revenue, USD Million, 2020 - 2030)
Hardware
Radio Access Network
Core Network
Backhaul & Transport
Software
Services
Installation & Integration
Data Services
Support & Maintenance
Frequency Outlook (Revenue, USD Million, 2020 - 2030)
Sub-6 GHz
mmWave
Spectrum Outlook (Revenue, USD Million, 2020 - 2030)
Licensed
Unlicensed/Shared
Enterprise Size Outlook (Revenue, USD Million, 2020 - 2030)
Small & Medium Enterprises
Large Enterprises
Vertical Outlook (Revenue, USD Million, 2020 - 2030)
Manufacturing/Factories
Automotive
Electrical & Electronics
Food & Beverages
Pharmaceuticals
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 - 2030)
North America
U.S.
Canada
Mexico
Europe
UK
Germany
Italy
Asia Pacific
China
India
Japan
South Korea
Australia
South America
Brazil
Middle East & Africa (MEA)
Kingdom of Saudi Arabia (KSA)
UAE
South Africa
b. The global private 5G network market size was valued at USD 2.00 billion in 2023 and is expected to reach USD 2.69 billion in 2024.
b. The global private 5G network market is expected to grow at a compound annual growth rate of 54.1% from 2024 to 2030 to reach USD 36.08 billion by 2030.
b. The hardware segment accounted for the largest revenue share of over 53.9% in 2023 in the private 5G network market due to the increased deployment of core networks and backhaul and transport equipment across the globe.
b. In 2023, the sub-6 GHz frequency segment held the largest revenue share of over 80.0% in the private 5G network market and is expected to exhibit a CAGR of nearly 50.1% from 2024 to 2030.
b. The unlicensed/shared spectrum accounted for the highest revenue share of over 70.8% in the private 5G network market in 2023 and is projected to expand further at the fastest CAGR from 2024 to 2030.
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