Global Private 5G Network Market Overview
Various countries across the globe are providing licensed millimeter-wave 5G spectrum to private companies. Wi-Fi hotspots are overburdened and unable to scale to meet the increasingly rising demand for faster bandwidth and data speeds. Various carriers, network equipment suppliers, governments, and the entire ecosystem is working hard to address complex technical, regulatory, and service obstacles to implement networks. The aim is to operate in modern and demanding high-frequency spectrums, in a variety of implementation environments, and serve billions of users, to deliver the promise of 5G at affordable rates.
As per the report of Polaris Market Research, the global private 5G network market size is estimated to cross $13.92 billion by 2028, expanding at a healthy CAGR. 5G will change the way cars are designed, serviced, and passengers ride in them, as well as business models, as more and more leaders offer driving-as-a-service, ushering in a new type of subscription economy. Enhanced sensors such as automotive radars and cameras using AI can help save lives by giving vehicles the vision and intelligence they need to function autonomously.
Global Private 5G Network Market Drivers
The global private 5G network provides several advantages, including network flexibility, ultra-connectivity, high bandwidth links, artificial intelligence-driven application support, easy and efficient operation, and service efficiency maintenance, among others, propelling the global private 5G network market size. The growing requirement for faster bandwidth connectivity during end-to-end security across industries, including aerospace, manufacturing, public safety, government, and transportation, is expected to spur new market development.
On the other side, the rise in cost required during construction and maintenance of 5G networks may pose a challenge for the growth of the private 5G network sector. Furthermore, the growing threat of cyber-attacks such as Denial of Service (DoS) attacks, malware distribution, mobile identity theft, and DNS spoofing attacks is stifling global private 5G network market growth.
COVID-19 Impact on Global Private 5G Network Market
Due to the disturbances in trials and testing needed to validate the reliability and processing capacity of 5G standalone networks, the outbreak of COVID-19 is likely to delay the introduction of enhanced private 5G infrastructure. The current pandemic has also made an effect on telecom regulatory authorities around the world, causing them to postpone their plans for a 5G spectrum auction, reducing market growth. Furthermore, amid the COVID-19 pandemic, leading economies such as the United States and China witnessed significant drop in telecom equipment shipments for 5G end-user devices to the global market. As a consequence, it is predicted to have a negative effect.
The demand will be driven by new private 5G network deployments as well as network infrastructure improvements. However, the continuing effects of the COVID-19 pandemic as well as the slow rollout of 5G, are expected to stifle overall market growth for a while. Furthermore, small and medium businesses in low-income areas and on the outskirts of the United States are unable to make the large capital investments needed to create a stable private communication infrastructure. As a result, the global private 5G network market’s steady growth is expected to be hampered by the lack of constructive responses from such firms.
Global Private 5G Network Market Segmentation
The global private 5G network market is segmented based on component, spectrum, frequency, vertical, and region. This segmentation will help market players to understand the overall market dynamics.
Segmentation Based on Components
Based on component type, the global private 5G network market is divided into hardware and services. The hardware is projected to emerge as the major segment accounting for high market share, owing to increasing deployment activities of core network and transport equipment worldwide. The segment primarily includes core networks, component categories, and radio access networks.
Segmentation Based on Vertical
Based on vertical, the global private 5G network market is classified into manufacturing, Oil & Gas, Aerospace & Defense, Corporates/Enterprises, Healthcare, Energy & Utilities, and Government & Public Safety. The manufacturing segment has dominated the market and is anticipated to continue this trend in the coming years. Several leading manufacturing firms are focusing on the complete automation and incorporation of advanced technologies such as digital twins and IIoT through the implementation of private 5G networks.
Segmentation Based on Frequency
Based on frequency, the global private 5G network market is bifurcated into Sub-6 GHz and mmWave. Based on frequency, the sub-6 GHz frequency is accounted for the largest revenue share of the private 5G network market and is expected to add more value to it as a result of less penetration losses and higher signal data rates compared to mm-wave.
Segmentation Based on Spectrum
Based on the spectrum, the global private 5G network market is classified into licensed and Unlicensed/Shared. The licensed spectrum segment is expected to expand significantly due to the rising demand for highly secure connectivity in mission-critical applications such as automated guided vehicles (AGV).
Regional Developments for Global Private 5G Network Market
In terms of regional outlook, the global private 5G network market is segmented across Latin America, North America, Asia Pacific, Europe, and Middle East & Africa. The North America private 5G network market is expected to continue rising at a rapid pace. In North America, the U.S. market is expected to expand at the highest CAGR, owing to the introduction of Citizens Broadband Radio Systems (CBRS).
For new business and industry verticals, private LTE is an appealing choice. Private LTE is being adopted by businesses and industry verticals because it can provide secure connectivity and mobility for general wireless communication and industrial IoT applications. In the Asia Pacific private 5G network market, companies are looking to start investing in R&D activities. The markets in the Middle East and Africa, as well as South America, are expected to develop moderately.
Leading Players in Global Private 5G Network Market
Companies prefer private networks over public networks for a variety of reasons including network stability, low latencies, ultra-high speeds, improved security, and the ability to easily configure and update the network. End-users with legacy private network networks can purchase 5G software stacks directly from software providers or system integrators and install them into their existing servers. This allows clients to turn their current network into a private 5G network at a lower cost.
Huge investments in 5G implementation and the acquisition of new private 5G setups from different industries such as manufacturing, healthcare, logistics, and others offer market players a competitive advantage. In the United States, network operators such as AT&T, T-Mobile, and Verizon have considerable clout in the LTE connectivity business. Siemens is establishing a private 5G campus network with an emphasis on industrial use in one of Hanover’s exhibition halls as one of the main exhibitors at the HANNOVER MESSE. Exhibitors can use the network during trade shows, and businesses can use it for experiments and field trials outside of trade show hours.
Global Private 5G Network Market Potential Opportunities
Local area networks that use 5G technology as their networking tool to create private networks are known as private 5G networks. Local 5G networks, also known as Mobile Private Networks (MPNs), have unified networking with a variety of benefits and tailored services. These networks are expected to become one of the most popular options shortly. They’d have next-generation networking for business applications such as connected factories, self-driving cars, smart retail, and rural broadband.
Some of the Major Things Covered in the Global Private 5G Network Market
- What is private 5G network?
- What is private 5G network market size?
- What is private 5G network market growth rate?
- What are the key factors driving the private 5G network market?
- What are the restraining factors for the private 5G network market?
- Which segment accounted for the largest private 5G network market share?
- Who are the key players in private 5G network market?
- What are the latest developments in private 5G network market?
- What does the future hold for private 5G network market?