Private 5G Network Industry Overview
The global private 5G network market size is expected to reach USD 36.08 billion by 2030, according to a new study by Grand View Research, Inc. It is expected to expand at a CAGR of 47.5% from 2022 to 2030. Significantly growing demand for ultra-reliable low-latency connectivity with an extremely secure network across several mission-critical applications, such as public safety, is expected to boost the deployment of private 5G networks during the forecast period. Moreover, a wide range of industries, including manufacturing, oil and gas, mining, and energy and utility, are investing a massive amount in deploying private 5G telecom services to enhance their overall productivity and operational efficiency. As a result, it is expected to foster market growth from 2022 to 2030.
Private 5G Network Market Segmentation
Grand View Research has segmented the global private 5G network market report based on component, frequency, spectrum, vertical, and region:
Based on the Components Insights, the market is segmented into Hardware, Software, and Services.
- The hardware segment accounted for the largest revenue share of over 55.0% 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.
- The services segment includes three key services, such as installation and integration, data services, and support and maintenance. Furthermore, with a significant focus on deploying cloud-based RAN, core, and edge networks
- The software segment is expected to witness high demand in the market over the forecast period. This would help clients to minimize the overall CAPEX during the installation.
Based on the Frequency Insights, the market is segmented into Sub-6 GHz, and mmWave.
- The sub-6 GHz segment held the largest revenue share of over 85.0%. 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.
- 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.
Based on the Spectrum Insights, the market is segmented into Licensed, and Unlicensed/Shared.
- The unlicensed/shared segment accounted for the largest revenue share of over 70.0% and is projected to expand at the fastest CAGR from 2022 to 2030. The high growth is attributed to the rising demand for high-speed private 5G networks at affordable costs.
- 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).
Based on the Vertical Insights, the market is segmented into Manufacturing/Factories, Energy & Utilities, Transportation & Logistics, Defense, Enterprises & Campus, Mining, Healthcare/Hospitals, Oil & Gas, Retail, Agriculture, Smart Cities, and Others
- The manufacturing/factories segment held the largest revenue share of over 15.0% and is projected to expand 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.
- The energy and 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 and logistics segment over the forecast period.
Private 5G Network Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & 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.
Some prominent players in the global private 5G network market include:
- Telefonaktiebolaget LM Ericsson
- Nokia Corp.
- ZTE Corp.
- Deutsche Telekom
- Juniper Networks
- AT&T Inc.
- Verizon Communications
- Huawei Technologies Co., Ltd.
- BT Group
- T-Systems International GmbH
- Cisco Systems, Inc.
- Vodafone Ltd.
Order a free sample PDF of the Private 5G Network Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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