The global private 5G network market size is estimated to reach $36,08-billion by 2030, registering a compound annual growth rate (CAGR) of 54,1% from 2024 to 2030, according to a new study by Grand View Research.

Significantly growing demand for ultra-reliable low-latency connectivity with a highly 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, many industries, including manufacturing, oil & gas, mining, and energy & 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.

The private 5G network is expected to completely transform the transportation and logistics industry by providing seamless Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) connectivity. As such, the need to ensure secure, seamless, and uninterrupted connectivity with ports, vessels, and ships is estimated to drive the market.

At the same time, the continued deployment of private 5G infrastructure is estimated to improve the operational efficiencies in several Industrial IoT (IIoT) use cases. The IIoT use cases include automated guided vehicles (AGV), wireless UHD cameras, machine control systems, collaborative/cloud robots, and remote asset monitoring.

Thus, the rising need for higher and secure bandwidth to ensure reliable and unified communication between IoT devices is expected to propel the market growth over the forecast period.

Key market players are entering strategic partnerships to provide high-speed private 5G network connectivity. For instance, in February 2024, Kyndryl announced its collaboration with Hewlett Packard Enterprise (HPE).

With this partnership, the two companies envisage developing and delivering LTE and 5G private wireless services to customers worldwide. Such initiatives harness innovation and development in the market.

Due to the ongoing Covid-19 pandemic, several key countries, such as the US, France, the UK, and Australia, have temporarily postponed the 5G spectrum auctions. The pandemic has also hampered the production and supply of significant telecom equipment needed to deploy the network infrastructure. As a result, the market is anticipated to witness growth over the forecast period.

Additional highlights from the report include:

* The hardware segment dominated the market in 2023 and is expected to retain its dominance from 2024 to 2030 due to the increasing deployment of private 5G service, RAN, and backhaul and transport equipment for various mission-critical applications.

* The sub-6 GHz segment dominated the market in 2023. The segment’s dominance can be attributed to the massive allocation of sub-6 GHz frequencies by communication service providers to deliver network services.

* The unlicensed/shared segment dominated the market in 2023. With a rising need to avail affordable and highly secure bands of the frequency spectrum for Massive Machine Type Communication (mMTC), this segment is anticipated to account for a significant market share by 2030.

* The large enterprises segment dominated the market in 2023. Fuelled by the need for efficiency and innovation, large enterprises rapidly deploy private 5G networks, propelling significant segment growth. These secure, high-speed connections are unlocking new industrial applications, thus fuelling digital transformation.

* The manufacturing/factories segment dominated the market in 2023. With the growing need to provide unified connectivity with low latency to several industrial sensors, the manufacturing sector is anticipated to witness massive market growth over the forecast period.

* Asia Pacific region is expected to register the fastest CAGR from 2024 to 2030. The huge presence of manufacturers and their substantial investments in building automated factories in the region is expected to fuel the market growth. Moreover, countries such as China, South Korea, Japan, and Australia are making considerable investments to acquire the 5G spectrum, which is anticipated to support the regional market growth.

* Key market players are entering into strategic partnerships to provide their private 5G network offerings. For instance, in February 2023, Telefonaktiebolaget LM Ericsson announced its partnership with Mugler, a European telco network provider and system integrator. The partnership envisages providing private 5G networks to support adopting, using, and scaling advanced and emerging data-driven technologies powered by secure and reliable connectivity.