SNS Telecom & IT highlights strong growth trajectory for private 5G networks investments worldwide.
Private LTE networks are a well-established market and have been around for more than a decade, albeit as a niche segment of the wider cellular infrastructure sector. However, private cellular networks or NPNs (Non-Public Networks) based on 3GPP-defined 5G specifications are just on the cusp of becoming a mainstream technology, with a market potential exceeding that of private LTE. Over the last 12 months, there has been a noticeable increase in production-grade deployments of private 5G networks by household names and industrial giants such as Airbus, Aker BP, Boliden, CIL (Coal India Limited), Equinor, Etihad, Ford, Hutchison Ports, Hyundai, Jaguar Land Rover, John Deere, LG Electronics, Lufthansa, Newmont, POSCO, Tesla, Toyota, and Walmart, paving the way for Industry 4.0 and advanced application scenarios.
Compared to LTE technology, private 5G networks can address far more demanding performance requirements in terms of throughput, latency, reliability, availability, and connection density. In particular, 5G’s URLLC (Ultra-Reliable, Low-Latency Communications) and mMTC (Massive Machine-Type Communications) capabilities, along with a future-proof transition path to 6G networks in the 2030s, have positioned it as a viable alternative to physically wired connections for industrial-grade communications between machines, robots, and control systems. Furthermore, 5G’s wider coverage radius per radio node, scalability, determinism, security features, and mobility support have stirred strong interest in its potential as a replacement for interference-prone unlicensed wireless technologies in IIoT (Industrial IoT) environments, where the number of connected sensors and other endpoints is expected to increase significantly over the coming years.
As end user organizations in the United States, Canada, Germany, United Kingdom, France, China, Japan, South Korea, Taiwan, Australia, Brazil, and other countries ramp up their digitization and automation initiatives, private 5G installations have progressed to a stage where practical and tangible benefits – particularly efficiency gains, cost savings, and worker safety – are becoming increasingly evident. For instance, Tesla, LG Electronics, and Hyundai have eliminated connection-related stoppages since migrating AGV (Automated Guided Vehicle) and AMR (Autonomous Mobile Robot) communications from unlicensed Wi-Fi systems to private 5G networks at their production facilities in the United States and South Korea. The French city of Istres has reduced video surveillance camera installation costs from $34,000 to less than $6,000 per unit by replacing fiber-based connections with a private 5G network. Among other examples, China Huaneng Group relies on a tri-band (700 MHz, 2.6 GHz & 4.9 GHz) 5G-Advanced network to safely coordinate a fleet of 100 unmanned electric mining trucks at its Yimin open pit coal mine in Inner Mongolia, China.
SNS Telecom & IT’s “Private 5G Market: 2025 – 2030” report projects that annual investments in private 5G networks for vertical industries will grow at a CAGR of approximately 41% between 2025 and 2028, eventually surpassing $5 billion by the end of 2028. Although much of this growth will initially be driven by highly localized 5G networks covering geographically limited areas for Industry 4.0 applications in manufacturing and process industries, sub-1 GHz wide area critical communications networks for public safety, utility, and railway communications are anticipated to accelerate their transition from LTE, GSM-R, and other legacy narrowband technologies to 5G towards the latter half of the forecast period. For more information, please visit: https://www.snstelecom.com/private5g
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SNS Telecom & IT is a global market intelligence and consulting firm with a primary focus on the telecommunications and information technology industries. Developed by in-house subject matter experts, our market intelligence and research reports provide unique insights on both established and emerging technologies. Our areas of coverage include but are not limited to 6G, 5G, LTE, Open RAN, vRAN, small cells, mobile core, xHaul transport, network automation, mobile operator services, FWA, neutral host networks, private 4G/5G cellular networks, public safety broadband, critical communications, MCX, IIoT, V2X communications and vertical applications.
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