Private 5G Market by Component (Base Station, Radio Access Network, Core Network, Antennas, Software-Defined Network, Network Management, Network Security), Spectrum (Licensed, Shared), Services, Frequency Band, Deployment Mode - Global Forecast to 2028
Updated on : Sep 12, 2024
[254 Pages Report] The global private 5G market is expected to be valued at USD 2.0 billion in 2023 and is projected to reach USD 11.8 billion by 2028; it is expected to grow at a CAGR of 42.3% from 2023 to 2028. The Private 5G market is growing due to its ability to offer secure, high-speed, and customized connectivity solutions tailored to specific industries. With advantages like low latency, improved IoT integration, and optimized operations, businesses are adopting Private 5G networks to enhance efficiency, automation, and real-time decision-making, driving growth in various sectors and enabling digital transformation.
Private 5G Market Forecast to 2028
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Private 5G Market Trends Dynamics
Driver: Increasing demand for IoT
With private 5G networks, cities can ensure reliable communication and interconnectivity between various IoT devices, enabling seamless data exchange and better decision-making to improve urban life. IoT devices play a vital role in energy management, enabling utilities and businesses to monitor and control energy consumption in real-time. For instance, private 5G networks can facilitate smart grid management, allowing utilities to efficiently balance supply and demand and integrate renewable energy sources.
Restraint: Lack of standardization
Private 5G networks, especially those deployed in shared spectrum bands, need to coexist, and manage interference with other wireless technologies effectively. Without standardized interference management guidelines, network performance and user experience can be adversely affected. Without standardized specifications, the private 5G ecosystem becomes fragmented, with various vendors offering proprietary solutions.
Opportunity: Remote monitoring and surveillance
Remote monitoring and surveillance often take place in locations with limited or no access to reliable public networks. Private 5G networks can be deployed in these areas to provide high-speed and robust connectivity, enabling continuous data transmission from remote sensors, cameras, and devices. Private 5G networks offer low-latency communication, allowing real-time data transmission from surveillance cameras, sensors, and other monitoring devices.
Challenge: Integration with Legacy Systems
Many enterprises have invested heavily in their current communication technologies, such as wired networks, Wi-Fi, and older cellular systems. When adopting private 5G networks, they need to ensure a seamless integration of the new infrastructure with their legacy systems. Legacy systems often use older communicayion protocols and technologies that may not be inherently compatible with the new 5G standard. Integration requires careful consideration of compatibility issues, ensuring that data can be exchanged between the legacy systems and the private 5G network without disruption.
Private 5g Market Ecosystem
The private 5G market is dominated by established and financially sound manufacturers with extensive experience in the industry. These companies have diversified product portfolios, cutting-edge technologies, and strong global sales and marketing networks. Leading players in the market include Huawei Technologies Co., Ltd. from China, Telefonaktiebolaget LM Ericsson from Sweden, Nokia from Finland, Samsung Electronics Co., Ltd. from South Korea, ZTE Corporation from China.
Based on deployment type, the on-premise market for private 5G to hold second highest market share during the forecast period
Certain industries, such as finance, healthcare, and government, prioritize data security and privacy. On-premise deployment allows organizations to maintain full control over their network infrastructure, data storage, and communication, reducing the exposure of sensitive information to external networks. On-premise deployment offers organizations the ability to tailor their Private 5G networks to their exact requirements. This includes optimizing network parameters, security protocols, and resource allocation to suit specific use cases and business needs. On-premise deployment allows organizations to maintain control over network upgrades, ensuring that their Private 5G networks can evolve alongside future technology advancements.
Based on frequency band, the Sub-6 GHz market for private 5G to hold second highest market share during the forecast period
The Sub-6 GHz frequency band offers better coverage and signal propagation characteristics compared to higher frequency bands (e.g., mmWave). This makes it well-suited for providing connectivity over larger areas, including outdoor spaces, campuses, and industrial sites. Industries such as manufacturing, logistics, and agriculture benefit from the extended coverage and penetration capabilities of Sub-6 GHz frequencies. These industries often require extensive IoT deployments and wireless communication for automation and remote monitoring. Regulatory authorities in many regions allocate spectrum for private and enterprise use within the Sub-6 GHz frequency band. This allocation encourages the growth of Private 5G networks and supports a diverse range of applications.
Private 5G market in Asia Pacific to hold the highest CAGR during the forecast period
Asia Pacific is a global manufacturing hub, and industries such as automotive, electronics, and textiles thrive in the region. Private 5G networks play a pivotal role in driving smart manufacturing, process optimization, and automation across these industries. The Asia Pacific region is witnessing extensive adoption of IoT devices and the development of smart cities. Private 5G networks support the massive connectivity requirements of IoT applications and enable the seamless integration of smart city technologies. Governments in the Asia Pacific region are actively promoting the adoption of advanced technologies, including 5G. Supportive policies, investments in digital infrastructure, and spectrum allocation for Private 5G networks contribute to market growth.
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Top Companies Private 5G - Key Market Players
The private 5G companies is dominated by players such as Huawei Technologies Co., Ltd. (China), Telefonaktiebolaget LM Ericsson (Sweden), Nokia (Finland), Samsung Electronics Co., Ltd. (South Korea), ZTE Corporation (China), and others.
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Report Metric |
Details |
| Estimated Value | USD 2.0 billion in 2023 |
| Projected Value | USD 11.8 billion by 2028 |
| Growth Rate | 42.3% |
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Market size available for years |
2019-2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD Million) |
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Segments covered |
By Component, By Frequency Band, By Spectrum, By Organization Size, By Deployment Type, By Use Case, and By Vertical |
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Geographies covered |
North America, Europe, Asia Pacific, and RoW |
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Companies covered |
The major market players include Huawei Technologies Co., Ltd. (China), Telefonaktiebolaget LM Ericsson (Sweden), Nokia (Finland), Samsung Electronics Co., Ltd. (South Korea), ZTE Corporation (China), NEC Corporation (Japan), Oracle (US), Cisco Systems, Inc. (US), Ciena Corporation (US), Juniper Networks, Inc. (US). (Total 25 players are profiled) |
Private 5G Market Highlights
The study categorizes the private 5G market based on the following segments:
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Segment |
Subsegment |
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By Component |
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By Use Case |
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By Frequency Band |
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By Spectrum |
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By Organization Size |
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By Deployment Type |
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By Vertical |
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By Region |
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Recent Developments
- In June 2023, Huawei announced that it will launch a complete set of 5.5G network equipment for commercial use in 2024. It is an end-to-end solution that includes comprehensive evolution and upgrades of 5.5G, F5.5G, and Net5.5G.
- In June 2023, ZTE Corporation has launched its steady core solution. The solution aims to assist operators and industry users in establishing highly reliable and resilient networks, ensuring consistently accessible services, and providing worry-free network experiences.
- In February 2023, Huawei announced the release of One 5G Full-Series Solution. The One 5G full-series solution focuses on TDD, FDD, indoor digitalization, etc. to maximize the full-band capability of a single station.
- In January 2023, Ericsson introduced the NetCloud Private Networks. the software-defined solution is a complete subscription-based offering with an initial focus on traditionally lean IT-oriented enterprises, including the logistics, light manufacturing, government, large retail, healthcare, and hospitality sectors.
- In October 2022, Oracle unveiled Oracle Network Analytics Suite. The new cloud native portfolio of analytics solutions combines network function data with machine learning and artificial intelligence to help operators make more informed, automated decisions around the performance and stability of their entire 5G network core.
- In June 2022, Ericsson has launched Ericsson Private 5G. It offers secure and simple 4G LTE and 5G Standalone (SA) connectivity primarily targeting – but not limited to – manufacturing, mining and process industry, offshore and power utilities, as well as ports and airports.
- In June 2021, NEC Corporation announced its launch of 5G xHaul transformation services with the establishment of 5G transport network Centers of Excellence (CoE) in the Europe and Middle East and Africa (EMEA) and Latin America (LATAM) regions.
Frequently Asked Questions (FAQ):
What are the major driving factors and opportunities in the private 5G market?
Some of the major driving factors for the growth of this market include Emergence of industry 4.0, Increasing demand for IoT (Internet of Things), Rising adoption of cloud computing, The increasing demand for security and privacy in enterprise networks. Moreover, The increasing demand for high-performance applications, Remote monitoring and surveillance, 5G for enterprise connectivity are some of the key opportunities for the private 5G market.
Which region will have the largest market for Private 5g market?
North America boasts a robust and diverse economy with a heavy emphasis on industries that can benefit significantly from Private 5G, such as manufacturing, logistics, healthcare, and entertainment. The region's economic strength provides companies with the financial resources to invest in and deploy Private 5G networks to improve their operations and competitiveness.
Who are the leading players in the global private 5G market?
Companies such as as Huawei Technologies Co., Ltd. (China), Telefonaktiebolaget LM Ericsson (Sweden), Nokia (Finland), Samsung Electronics Co., Ltd. (South Korea), ZTE Corporation (China) are the leading players in the market. Moreover, these companies rely on strategies that include new product launches and developments, partnerships and collaborations, and acquisitions. Such advantages give these companies an edge over other companies in the market.
What are some of the technological advancements in the private 5g market?
Network slicing is a key technology that allows for the creation of multiple virtual networks on a single physical network. This allows for different applications to have different requirements, such as bandwidth, latency, and security. Edge computing is a distributed computing paradigm that brings computing resources closer to the end user. This can improve the performance of applications that require low latency, such as real-time video streaming and industrial automation.
What is the impact of global recession on the private 5g market?
The semiconductor industry is expected to face a downturn as the recession looms. Economic downturns can result in reduced investment in research and development (R&D) activities by private 5G manufacturers. This could lead to delayed or scaled-back investments in private 5G infrastructure and deployment. Organizations might prioritize essential operational expenses over technology upgrades, potentially slowing down the expansion of private 5G networks.
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The study involved four major activities in estimating the current size of the private 5G market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications; articles by recognized authors; directories; and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of major secondary sources
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SOURCE |
WEB LINK |
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Federal Communications Commission (FCC) |
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National Institute of Standards and Technology (NIST) |
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Ministry of Electronics and Information Technology (MeitY) |
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Ministry of Industry and Information Technology (MIIT) |
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Ministry of Internal Affairs and Communications (MIC) |
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the private 5G market through secondary research. Several primary interviews were conducted with experts from both demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the private 5G market and its various dependent submarkets. The key players in the market were identified through secondary research, and their market share in the respective regions was determined through primary and secondary research. This entire procedure involved the study of annual and financial reports of top players and extensive interviews with industry leaders such as chief executive officers (CEOs), vice presidents (VPs), directors, and marketing executives. All percentage shares and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Bottom-Up Approach
The bottom-up approach was used to arrive at the overall size of the private 5G market from the revenues of the key players and their shares in the market. The overall market size was calculated based on the revenues of the key players identified in the market.
- Identifying various verticals using or expected to implement private 5G
- Analyzing each vertical and use cases, along with the major related companies and private 5G providers
- Estimating the private 5G market for verticals
- Understanding the demand generated by companies operating across different end-use applications
- Tracking the ongoing and upcoming implementation of projects based on private 5G technology by vertical and forecasting the market based on these developments and other critical parameters
- Carrying out multiple discussions with the key opinion leaders to understand the type of private 5G products designed and developed vertically. This information would help analyze the breakdown of the scope of work carried out by each major company in the private 5G market
- Arriving at the market estimates by analyzing private 5G companies as per their countries, and subsequently combining this information to arrive at the market estimates by region
- Verifying and cross-checking the estimates at every level through discussions with the key opinion leaders, including CXOs, directors, and operations managers, and finally with domain experts at MarketsandMarkets
- Studying various paid and unpaid sources of information, such as annual reports, press releases, white papers, and databases
Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of the individual markets (mentioned in the market segmentation) through percentage splits from secondary and primary research.
To calculate the market size of specific segments, the most appropriate immediate parent market size has been used to implement the top-down approach. The top-down approach was implemented for the data extracted from the secondary research to validate the market size obtained.
The market share of each company was estimated to verify the revenue shares used earlier in the top-down approach. The overall parent market size and individual market sizes were determined and confirmed in this study by the data triangulation method and the validation of data through primaries. The data triangulation method used in this study is explained in the next section.
- Focusing on top-line investments and expenditures being made in the ecosystems of various verticals.
- Building and developing the information related to the market revenue generated by key private 5G manufacturers
- Conducting multiple on-field discussions with the key opinion leaders involved in the development of private 5G products in various applications
- Estimating geographic splits using secondary sources based on various factors, such as the number of players in a specific country and region, the offering of private 5G, and the level of solutions offered in end-user industries
- Impact of the recession on the steps mentioned above has also been considered
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the overall market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, the data triangulation procedure has been employed wherever applicable. The data has been triangulated by studying various factors and trends from both demand and supply sides. Along with this, the market size has been validated using top-down and bottom-up approaches.
Market Definition
Private 5G refers to a localized and dedicated 5G network that is deployed and operated by a specific organization or enterprise for its own use. Unlike public 5G networks, which are provided by telecommunication carriers and serve a broad range of users, private 5G networks are designed to cater to the specific needs of a single entity, such as a corporation, industrial facility, campus, or other large-scale operation.
Key Stakeholders
- Enterprises and Organizations
- Telecommunication Equipment Vendors
- Telecommunication Service Providers
- Network Integrators and Solution Providers
- IoT Device Manufacturers
- Industrial Automation and Robotics Companies
- Technology and Infrastructure Providers
- Government and Regulatory Bodies
- Industry Associations and Standards Organizations
- Research Institutions
- End Users and Consumers
Report Objectives
- To define, describe, and forecast the private 5G market based on component, spectrum, frequency band, organization size, deployment type, vertical, use case and region.
- To forecast the shipment data of private 5G market.
- To forecast the size of the market segments for four major regions—North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW)
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To study the complete value chain and allied industry segments and perform a value chain analysis of the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze the opportunities in the market for stakeholders and describe the competitive landscape of the market
- To analyze competitive developments such as joint ventures, collaborations, agreements, contracts, partnerships, mergers & acquisitions, product developments, and research & development (R&D) in the market
- To analyze the impact of the recession on the private 5G market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the private 5G market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the private 5G market.
Growth opportunities and latent adjacency in Private 5G Market