The private 5G market, which has emerged as a cornerstone of the Industry 4.0 transformation, is currently experiencing a phase of stabilization. Despite an overall deceleration within the broader telecommunications landscape, private 5G networks persist in demonstrating considerable potential. This progress is largely fueled by a growing demand for digitalization and automation within manufacturing and process industries. Dubai-based market research firm SNS Telecom & IT has forecasted that total spending on private 4G (LTE) and 5G networks will climb to $6 billion by the conclusion of 2027. However, this projection has been adjusted downward from an earlier estimate that envisioned the market reaching $6.4 billion by 2026.
Market Growth and Adjustments
The declining indicators for the growth rate are corroborated by recent data from the Global mobile Suppliers Association (GSA). According to the GSA’s most current quarterly reports, there has been a discernible decrease in private 5G sales, comparing both quarter-on-quarter and year-on-year figures. For example, sales growth dropped from 21 percent and 45 percent at the start of 2022 and 2023, respectively, to just four percent and 20 percent by early 2024. These statistics indicate that while the expansion of existing deployments might be witnessing significant strides, the challenge lies in acquiring new customers within the market.
In its report titled ‘Highly Bespoke and Easily Scalable – Balancing Customization and Simplicity in Private 5G Networks,’ RCR Wireless News interprets these trends as signaling the market’s transition into a long-tail growth phase. This critical period is understood as the juncture where technologies begin to mature and stabilize. SNS Telecom & IT’s comprehensive database, which records over 7,300 private 4G/5G engagements across 130 countries by the end of 2024, reflects the extensive adoption and considerable market presence of these networks.
Standalone Private 5G Networks
Revised forecasts from SNS Telecom & IT now project a compound annual growth rate (CAGR) of 20 percent through to 2027. Notably, around 60 percent of the anticipated $6 billion total expenditure will be aimed at standalone private 5G networks. This focus underscores the pivotal role these networks are poised to play in advancing the Industry 4.0 movement, particularly in driving the digitalization and automation of manufacturing and process industries.
The predicted expansion of private 4G/5G networks is expected to propel their share to nearly a fifth of all mobile network infrastructure spending by 2030. This evolution positions private 4G/5G infrastructure to match the market size of public 4G/5G infrastructure by the latter part of the 2020s. Nowadays, merely a small fraction (less than a tenth) of the world’s roughly 800 public mobile operators have rolled out 5G core infrastructure for standalone 5G services. Conversely, these infrastructure services have achieved greater traction within the emerging private 5G segment, where the benefits related to performance and efficiency are more readily apparent.
Benefits and Policy Initiatives
The report highlights the myriad advantages attributable to standalone private 5G networks, with productivity and efficiency improvements ranging from 20-90 percent, cost reductions up to 40 percent, and enhancements in worker safety and accident reduction reaching 80 percent. These statistics emphasize the multifaceted and substantial benefits associated with the implementation of private 5G networks within industrial environments.
Moreover, policy initiatives in numerous countries have supported the deployment of private networks. Nations such as Australia, Bahrain, Brazil, Canada, Finland, France, Germany, Hong Kong, Ireland, Japan, the Netherlands, Norway, Poland, Spain, Slovenia, South Korea, Sweden, Switzerland, Taiwan, the UK, and the US have taken proactive steps to allocate dedicated spectrum for enterprise deployment of private 4G/5G networks. Despite these measures, large mobile network operators maintain significant influence, predominantly serving as consultants and system integrators rather than primary service providers.
Key Players and Market Dynamics
Among the emerging private 5G providers are companies such as Boldyn, American Tower, Boingo Wireless, Crown Castle, Freshwave, and Digita. Key specialist integrators instrumental to the sector’s growth include multinational firms like NTT, Kyndryl, Accenture, Capgemini, EY, Deloitte, and KPMG. Additionally, leading global technology players like AWS, Google, and Microsoft are delivering managed private 5G services, leveraging their extensive cloud and edge computing platforms.
Notably, despite Microsoft’s discontinuation of its Metaswitch experiment, the overall momentum of tech giants in this arena remains substantially unaffected. On the vendor front, traditional telecommunications infrastructure companies like Nokia, Ericsson, Samsung, and Huawei continue to hold a dominant market share within the private cellular domain. However, the market is witnessing a rise in vendor diversity. New entrants such as Celona, Baicells, Druid Software, Fujitsu, NEC Corporation, JMA Wireless, Cisco Systems, Airspan Networks, Telrad Networks, and HPE/Athonet are also making significant inroads and contributing to the sector’s evolution.
Real-World Deployments and Future Prospects
The private 5G market, which has become a key element in the Industry 4.0 transformation, is currently entering a period of stabilization. Even though the broader telecommunications sector is seeing slower growth, private 5G networks still show significant promise. This progress is driven mainly by the increasing demand for digitalization and automation in manufacturing and process industries. According to SNS Telecom & IT, a market research firm based in Dubai, total spending on private 4G (LTE) and 5G networks is predicted to rise to $6 billion by the end of 2027. This forecast was revised downward from an earlier projection, which estimated the market would reach $6.4 billion by 2026. The adjustment reflects a more cautious outlook but does not diminish the crucial role of private 5G in advancing industrial digital transformations. The market continues to benefit from innovations and investments aimed at enhancing operational efficiencies and productivity, further underscoring its importance in the evolving technological landscape.
