The telecommunications industry is entering a transformative period, with 4G and 5G private network infrastructure expected to generate significant financial growth. The latest analysis by SNS Telecom & IT projects that global revenue from these networks will reach $6 billion by 2027, doubling the amount recorded in 2023. Despite this optimistic outlook, this projection represents a slight downgrade from a 2023 forecast, which estimated revenue at $6.4 billion by 2026. Nonetheless, the anticipated compound annual growth rate (CAGR) of approximately 20% between 2024 and 2027 underscores the robust investment and development in this sector.
A substantial portion of these investments, around 60% or $3.5 billion, is predicted to come from standalone 5G private networks. These networks are instrumental for the advancements of Industry 4.0 projects, which encompass business digitization and manufacturing automation. The emergence of private networks marks a significant opportunity within a challenging telecommunications landscape, characterized by reduced spending on public network infrastructure and hurdles in monetizing 5G investments. Private LTE and 5G networks are poised to match the market size of public mobile operator infrastructure by the late 2020s, reflecting their growing prominence.
By 2030, SNS Telecom foresees that private networks could account for 20% of mobile operator network infrastructure spending. This shift indicates not only the rising importance of private networks but also their potential to cultivate a substantial parallel ecosystem alongside traditional public networks. The implications of this growth stretch far beyond financial projections; private network advancements could reshape industry dynamics, fostering enhanced connectivity and operational efficiency for businesses globally. The analysis concluded that the unprecedented growth of private networks significantly impacted the telecommunications industry, setting the stage for innovative developments and opportunities in the decade ahead.
