5G Private Network Market Overview
As per MRFR analysis, the 5G Private Network Market Size was estimated at 2.87 (USD Billion) in 2022.The 5G Private Network Market Industry is expected to grow from 3.65 (USD Billion) in 2023 to 31.4 (USD Billion) by 2032. The 5G Private Network Market CAGR (growth rate) is expected to be around 27.03% during the forecast period (2024 - 2032).
Key 5G Private Network Market Trends Highlighted
The growing demand for secure and reliable connectivity in various industry verticals is driving the adoption of 5G private networks. The deployment of these networks enables enterprises to enhance their operational efficiency, automate processes, and improve data security. Moreover, the integration of advanced technologies such as edge computing, artificial intelligence, and IoT with 5G private networks is creating new opportunities for innovation and growth.
Key market trends in the 5G private network market include the increasing deployment of hybrid networks, the adoption of network slicing for customized services, and the growing demand for managed services. Additionally, the emergence of OpenRAN (Radio Access Network) architecture is facilitating the disaggregation of network components, providing enterprises with greater flexibility and cost efficiency.
Figure1: 5G Private Network Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Private Network Market Drivers
Growth in Adoption of 5G Technology
One of the main drivers of the 5G Private Network Market Industry is the increasing adoption of 5G technology. 5G offers a number of advantages over the previous generations of mobile technology, such as faster speeds, lower latency, and higher capacity. These advantages make 5G and 5G mobile broadband, Internet of Things applications, and cloud computing ideal. As the adoption of 5G technology increases, so does the demand for 5G private networks.In addition, 5G private networks offer a number of advantages over public 5G networks, such as increased security, reliability, and control. Therefore, they are well-suited for businesses and organizations that need high-level performance and security for their mission- and business-critical applications, services or processes.
Increasing Demand for Secure and Reliable Networks
Increasing Demand for Secure and Reliable Networks One of the key drivers of the 5G Private Network Market Industry is the increasing demand for secure and reliable networks. Businesses and organizations of all sizes are becoming more and more dependent on their networks to do business. As a result, they are demanding networks that are both secure and reliable. 5G private networks have several advantages over public 5G networks in terms of security and reliability.First, 5G private networks are usually deployed on a dedicated network infrastructure, which makes them more secure than public 5G networks. Second, 5G private networks are often managed by the business or organization that owns them, which gives them more control over the network and its security. It is expected that the increasing demand for secure and reliable networks will continue to drive the growth of the 5G Private Network Market Industry.
Government Initiatives to Promote 5G Adoption
Government initiatives to promote 5G adoption are also driving the growth of the 5G Private Network Market Industry. Governments around the world are realizing the importance of 5G technology. Governments are providing financial incentives to businesses and organizations adopting 5G technology. In addition, governments are investing in R D of 5G technologies. Thus, government initiative to promote 5G adoption is expected to continue to drive the growth of the 5G Private Network Market Industry.
5G Private Network Market Segment Insights
5G Private Network Market Technology Insights
The 5G Private Network Market is segmented into Standalone 5G and Non-Standalone 5G based on Technology. Standalone 5G refers to 5G networks that are not dependent on 4G infrastructure, while Non-Standalone 5G networks rely on 4G infrastructure to provide 5G services. In 2023, the Standalone 5G segment accounted for a market revenue of USD 0.56 billion and is projected to grow at a CAGR of 28.1% to reach USD 6.35 billion by 2032. The Non-Standalone 5G segment, on the other hand, accounted for a market revenue of USD 3.09 billion in 2023 and is expected to grow at a CAGR of 26.5% to reach USD 25.05 billion by 2032.
The growth of the Standalone 5G segment is attributed to the increasing adoption of 5G Standalone networks by enterprises and industries seeking to leverage the full potential of 5G technology. These networks offer higher speeds, lower latency, and greater flexibility, enabling enterprises to implement innovative applications and services. The Non-Standalone 5G segment is also expected to grow due to the continued deployment of 5G Non-Standalone networks by mobile operators to enhance network capacity and coverage.
Figure2: 5G Private Network Market, By Technology, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Private Network Market Spectrum Band Insights
The 5G Private Network Market is segmented by spectrum band into low-band, mid-band, high-band, and mmWave. In 2023, the low-band spectrum band accounted for the largest share of the 5G private network market revenue. The low-band spectrum band is ideal for wide-area coverage and can penetrate buildings and other obstacles. The mid-band spectrum band offers a balance between coverage and capacity and is suitable for a variety of applications. The high-band spectrum band offers the highest capacity but has a shorter range and is more susceptible to interference.
The mmWave spectrum band offers the highest capacity and lowest latency but has a very short range and is easily blocked by obstacles. The market growth for each spectrum band will vary depending on the specific application and deployment scenario. For example, low-band spectrum will be more suitable for applications that require wide-area coverage, such as smart cities and agriculture. Mid-band spectrum will be more suitable for applications that require a balance between coverage and capacity, such as enterprise campuses and stadiums. High-band spectrum will be more suitable for applications that require high capacity and low latency, such as autonomous vehicles and virtual reality.mmWave spectrum will be more suitable for applications that require the highest capacity and lowest latency, such as industrial automation and medical imaging.
5G Private Network Market Deployment Model Insights
The 5G Private Network Market Segmentation by Deployment Model comprises On-premise, Hosted, and Managed. Among these, the On-premise segment held the largest market share in 2023, and it is expected to continue its dominance throughout the forecast period. This growth is attributed to the increasing adoption of private networks by enterprises seeking greater control over their network infrastructure and data security. However, the Hosted segment is projected to witness the highest CAGR during the forecast period, owing to the growing popularity of cloud-based solutions and the need for flexible and scalable network infrastructure. The Managed segment is also expected to grow steadily, driven by the increasing demand for managed services from enterprises looking to outsource their network management and operations.
5G Private Network Market Vertical Industry Insights
The 5G Private Network Market is segmented into various vertical industries, including manufacturing, healthcare, transportation, retail, and energy. Each industry has unique requirements and applications for 5G private networks, driving market growth. Manufacturing: 5G enables real-time data collection, remote monitoring, and automation in manufacturing facilities. It enhances efficiency, productivity, and safety. The 5G Private Network Market in manufacturing is projected to grow significantly, reaching a valuation of USD 10.2 billion by 2026.Healthcare: 5G facilitates telemedicine, remote patient monitoring, and advanced medical imaging. It improves healthcare access, reduces costs, and enhances patient outcomes. The 5G Private Network Market in healthcare is expected to grow rapidly, reaching a valuation of USD 7.4 billion by 2026. Transportation: 5G enables connected vehicles, autonomous driving, and smart traffic management. It enhances safety, reduces congestion, and improves logistics efficiency. The 5G Private Network Market in transportation is estimated to reach a valuation of USD 6.8 billion by 2026.
Retail: 5G powers immersive shopping experiences, personalized marketing, and inventory optimization in retail stores. It enhances customer engagement, increases sales, and improves supply chain management. The 5G Private Network Market in retail is projected to grow steadily, reaching a valuation of USD 4.7 billion by 2026. Energy: 5G enables remote monitoring, predictive maintenance, and smart grid management in the energy sector. It improves efficiency, reduces downtime, and optimizes energy distribution. The 5G Private Network Market in energy is estimated to reach a valuation of USD 3.6 billion by 2026.
5G Private Network Market Application Insights
The application segment of the 5G Private Network Market is anticipated to grow significantly, with key applications including data analytics, AI/ML, IoT, cloud computing, and edge computing. These technologies are driving market growth due to their ability to improve operational efficiency, enhance decision-making, and accelerate innovation. For instance, in 2023, the data analytics segment accounted for 32% of the 5G Private Network Market revenue due to the increasing demand for data-driven insights and real-time analytics. Similarly, the AI/ML segment is projected to grow at a CAGR of 25.6% from 2023 to 2032, driven by the rising adoption of AI-powered solutions for predictive maintenance and automated decision-making. Moreover, the IoT segment is expected to contribute significantly to market growth owing to the increasing deployment of IoT devices and sensors in various industries.
5G Private Network Market Regional Insights
The 5G Private Network Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, owing to the presence of major technology providers and early adoption of 5G technology. Europe is expected to be the second-largest market, followed by APAC. APAC is expected to witness the highest growth rate during the forecast period, owing to the increasing adoption of 5G technology in emerging economies such as China and India. South America and MEA are expected to have a relatively smaller market share but are expected to witness significant growth in the coming years.
Figure3: 5G Private Network Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Private Network Market Key Players And Competitive Insights
Major players in the 5G Private Network Market are continuously investing in research and development to stay ahead of the competition. The 5G Private Network Market industry is characterized by intense competition, with leading 5G Private Network Market players adopting various strategies to gain market share. These strategies include product innovation, strategic partnerships, and acquisitions. 5G Private Network Market development is also being driven by the increasing demand for high-speed and low-latency connectivity across various industries. The 5G Private Network Market Competitive Landscape is expected to remain competitive in the future, with leading players continuing to invest in new technologies and solutions to meet the evolving needs of customers.
Among the leading players in the 5G Private Network Market, Nokia is a prominent player that offers a comprehensive portfolio of 5G private network solutions. The company focuses on providing end-to-end solutions that address the specific requirements of various industries, such as manufacturing, healthcare, and transportation. Nokia's 5G private network solutions include core network infrastructure, radio access network equipment, and value-added services. The company has a strong track record of delivering 5G private network solutions to enterprises worldwide and has partnered with leading operators and system integrators to expand its reach.
Ericsson is another key player in the 5G Private Network Market, offering a wide range of 5G private network solutions. The company's 5G private network portfolio includes core network infrastructure, radio access network equipment, and network management systems. Ericsson focuses on providing flexible and scalable solutions that can be tailored to meet the specific requirements of different industries. The company has a strong presence in the telecommunications industry and has deployed 5G private networks for various enterprises, including manufacturing, healthcare, and energy. Ericsson continues to invest in research and development to enhance its 5G private network offerings and maintain its competitive edge in the market.
Key Companies in the 5G Private Network Market Include
5G Private Network Market Industry Developments
The 5G private network market is projected to grow rapidly in the coming decade. This growth is driven by increasing demand for secure and reliable private wireless networks in various industry verticals such as manufacturing, healthcare, and transportation. Key industry players are investing heavily in research and development to offer innovative solutions. For instance, in 2023, Ericsson announced the launch of its 5G Private Network solution, which is designed to provide secure and reliable connectivity for various industries.
5G Private Network Market Segmentation Insights
5G Private Network Market Technology Outlook
- Standalone 5G
- Non-Standalone 5G
5G Private Network Market Spectrum Band Outlook
- Low-band
- Mid-band
- High-band
- mmWave
5G Private Network Market Deployment Model Outlook
- On-premise
- Hosted
- Managed
5G Private Network Market Vertical Industry Outlook
- Manufacturing
- Healthcare
- Transportation
- Retail
- Energy
5G Private Network Market Application Outlook
- Data Analytics
- AI/ML
- IoT
- Cloud Computing
- Edge Computing
5G Private Network Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
2.87 (USD Billion) |
| Market Size 2023 |
3.65 (USD Billion) |
| Market Size 2032 |
31.4 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
27.03% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Cisco Systems, Nokia, Samsung Electronics, Fujitsu Limited, Ericsson, Dell Technologies, Intel, Oracle, Huawei, IBM, NEC Corporation, Hewlett Packard Enterprise, Qualcomm Technologies, ZTE |
| Segments Covered |
Technology, Spectrum Band, Deployment Model, Vertical Industry, Application, Regional |
| Key Market Opportunities |
1 IoT and Smart City Development2 Industrial Automation and Efficiency3 Connected Healthcare and Telemedicine4 Logistics and Supply Chain Optimization5 Mobile Edge Computing MEC and CloudBased Services |
| Key Market Dynamics |
Increasing demand for secure and reliable connectivityGrowing adoption of Industry 40 and IoTGovernment initiatives and spectrum allocationTechnological advancements and interoperabilityPotential cost savings and efficiency gains |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The 5G Private Network Market is expected to reach USD 3.65 billion in 2023 and is projected to grow at a CAGR of 27.03% from 2024 to 2032, reaching USD 31.4 billion by 2032.
North America and Europe are expected to be the key regions driving the growth of the 5G Private Network Market. North America is expected to hold the largest market share, owing to the early adoption of 5G technology and the presence of major technology providers in the region. Europe is also expected to witness significant growth due to government initiatives and investments in 5G infrastructure.
5G Private Networks are used in various applications across industries. Major applications include smart manufacturing, smart cities, healthcare, transportation, and logistics. 5G Private Networks offer high bandwidth, low latency, and enhanced security, making them ideal for applications that require real-time data processing and reliable connectivity.
Major players in the 5G Private Network Market include Ericsson, Nokia, Huawei, Cisco Systems, and Verizon. These companies offer a range of products and services, including network infrastructure, devices, and managed services. They are investing heavily in research and development to enhance their offerings and gain market share.
Key trends in the 5G Private Network Market include the increasing adoption of cloud-based solutions, the growing demand for network slicing, and the emergence of new use cases across various industries. Additionally, government regulations and standards are playing a crucial role in shaping the market landscape.
The growth of the 5G Private Network Market is driven by several factors, including the increasing need for secure and reliable connectivity, the rising demand for bandwidth-intensive applications, and the growing adoption of IoT devices. Additionally, government initiatives and investments in 5G infrastructure are contributing to the market growth.
The 5G Private Network Market faces certain challenges, including high deployment and maintenance costs, security concerns, and a lack of skilled professionals. Additionally, the interoperability of different vendor solutions and the need for customized network solutions can pose challenges for enterprises.
Opportunities for growth in the 5G Private Network Market include the increasing demand for network slicing, the expansion of 5G coverage, and the emergence of new applications in various industries. Additionally, government initiatives and partnerships aimed at promoting 5G adoption create opportunities for market growth.
5G Private Networks offer significant benefits to businesses, including improved operational efficiency, enhanced productivity, and increased innovation. They enable real-time data processing, remote monitoring, and control, leading to better decision-making and improved business outcomes.
The future outlook for the 5G Private Network Market is positive, with continued growth expected in the coming years. The increasing adoption of 5G technology, the growing demand for bandwidth-intensive applications, and the emergence of new use cases will drive market growth. Additionally, government support and investments in 5G infrastructure will contribute to the market's expansion.
