Private 5G Network Market Size, Share & Trends Analysis Report By Component (Hardware, Services), By Frequency (Sub-6 GHz, mmWave), By Spectrum, By Vertical, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global private 5G network market size is expected to attain a market size of USD 919.7 million in 2020 and is estimated to register a compound annual growth rate (CAGR) of 37.8% from 2020 to 2027. 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, Mercedes-Benz AG, and many others have substantially deployed sensor-based technologies and industrial robotics in order 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 Industrial IoT (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 and gas, aerospace, and transportation. Thus, to provide high-speed bandwidth connectivity during TSN and real-time networking across industries, the demand for private 5G network is anticipated to witness significant growth over the forecast period.

Private 5G network is anticipated to deliver a complete end to end security across organizations to ensure their information and infrastructure are shielded from each type of threats. Also, it is expected to emerge as a crucial element, where the confidentiality of information matters the most. Therefore, it is estimated to see a massive demand for private 5G networks in government and public safety along with enterprise data storage applications from 2020 to 2027. Additionally, 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 outbreak of COVID-19 is certainly 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 with telecom regulatory authorities across the globe, postponing their plans of 5G spectrum auction, thereby adversely impacting the market growth. For instance, few key countries’ governments including U.S., France, Spain, and Australia have temporarily postponed the 5G spectrum auctions on several frequencies such as Sub-6 GHz and mmWave in their countries. Additionally, due to the COVID-19 pandemic, key countries such as China and U.S. have seen a robust decline in the exports of telecom equipment for 5G new radios and end-user devices to the global market. As a result, it is anticipated to hinder market growth over the forecast period.

Component Insights

By 2020, the hardware segment is estimated to account for a market share of more than 70.0%, attributed to the growing deployment of core network 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 and integration, data services, and support and maintenance.

With a surging need to operate their high-speed mobile network privately by companies across several industries, 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. Further, the robust 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 2027.

Vertical Insights

By 2020, the manufacturing sector is estimated to attain a market share of more than 20.0% and projected to witness a CAGR of more than 40.0% over the forecast period. The growth is attributed to the soaring demand for private 5G services to provide seamless connectivity to several devices such as Ultra-HD cameras, extended reality headsets, and AGVs. Also, the rising demand to establish uninterrupted communication among machines is further expected to boost segment growth from 2021 to 2027. Private 5G network is widely preferred across various industry verticals, including manufacturing, energy and utilities, transportation and logistics, aerospace and defense, oil and gas, mining, and government and public safety.

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

Frequency Insights

By 2020, the sub-6 GHz segment is estimated to hold a market share of nearly 80% in the global market and expected to exhibit a CAGR of nearly 36% from 2021 to 2027. The sub-6 GHz frequency encompasses 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, South Korea, and many other countries released sub-6 GHz frequencies to provide 5G services in their countries.

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. Additionally, 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, other 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 across many countries is expected to augment the mmWave segment growth in the private 5G network market in the next seven years.

Spectrum Insights

By 2020, the unlicensed/shared segment is estimated to attain a market share of 77.8% and expected to register a CAGR of around 38.0% from 2021 to 2027. The growth is attributed to the rising demand for high speed private 5G networks at affordable costs. Also, unlicensed spectrum bandwidth is easily accessible and highly preferred during massive machine-type communications (mMTC).

Licensed spectrum for private 5G network services is a bit costlier than an unlicensed/shared spectrum as a company needs to buy an entire license for a particular spectrum bandwidth for its enhanced and secured internet connectivity. Also, access to a licensed spectrum can 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, with a growing demand for highly secured connectivity during mission-critical applications such as automated guided vehicles (AGV), it is expected to see a considerable growth of the licensed spectrum segment over the forecast period.

Regional Insights

By 2020, North America is expected to attain the largest market share of more than 30.0% due to the presence of various private 5G solution providers such as Qualcomm Technologies, Inc. Additionally, the significant rise in the investments of 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 high market share. Besides, 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. Further, growing need of Ultra-reliable Bandwidth Low Latency Connectivity (URLLC) across various verticals such as public safety, oil and gas, and aerospace and defense in the region, is expected to bolster regional market growth.

In the Asia Pacific, the market is expected to witness the highest growth rate by 2027. The growth is attributed to the presence of several manufacturers, along with their significant investments towards building automated factories in the region. Additionally, huge investments to acquire a 5G spectrum in key countries such as China, Japan, South Korea, and Australia are projected to contribute to regional growth. Moreover, 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 for private 5G services across key countries in Europe such as Germany and 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 Nov 2019, Qualcomm Technologies, Inc. and Siemens have jointly established a private 5G network-based test centers in Germany by using 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. Additionally, this joint partnership will help to understand the actual industrial deployments on a next-generation private network.

Leading market players are aggressively focused on forming partnership agreements to deploy a private 5G network for specific applications. For instance, in Feb 2020, Vodafone Limited 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. Also, it allows Lufthansa Technik’s technicians to use high HD VR/AR technologies to work more accurately on the aircraft fuselages. Additionally, the private network will allow Lufthansa Technik to handle and monitor their data with extensive security. Some of the prominent players in the private 5G network market include:

• Qualcomm Technologies, Inc.

• Deutsche Telekom

• Telefonaktiebolaget LM Ericsson

• Nokia Corporation

• AT&T Inc.

• Verizon Communications

• Broadcom Inc.

• Huawei Technologies Co., Ltd

• Altiostar

• SAMSUNG

• T-Systems International GmbH

• Cisco Systems, Inc.

• Vodafone Limited

• ZTE Corporation

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 2027. 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 - 2027)

  • Hardware

    • Radio Access Network

    • Core Network

    • Backhaul & Transport Interconnecting

  • Services

    • Installation & Integration

    • Data Services

    • Support & Maintenance

• Frequency Outlook (Revenue, USD Million, 2020 - 2027)

  • Sub-6 GHz

  • mmWave

• Spectrum Outlook (Revenue, USD Million, 2020 - 2027)

  • Licensed

  • Unlicensed/Shared

• Vertical Outlook (Revenue, USD Million, 2020 - 2027)

  • Manufacturing

    • Food & Beverages

    • Automotive

    • Pharmaceuticals

    • Electrical & Electronics

    • Heavy Machinery

    • Clothing & Accessories

    • Others

  • Energy & Utilities

  • Transportation & Logistics

  • Aerospace & Defense

  • Government & Public Safety

  • Corporates/Enterprises

  • Mining

  • Healthcare

  • Oil & Gas

  • Others

• Regional Outlook (Revenue, USD Million, 2020 - 2027)

  • 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)