Private 5G Network Market size is projected to reach USD 47 Billion by the end of 2036, growing at a CAGR of 40% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the private 5G network was USD 2 Billion. The market expansion is due to the growing number of web users, expanding speculations, improvements to the innovation framework, and cheaper information plans.
Moreover, with innovation entering, the number of gadgets being utilized has expanded, which increases the number of associated gadgets and the request for moo inactivity and higher transfer speed systems that can be given by private 5G networks. The number of internet users worldwide reached 5.35 billion in January 2024, accounting for 66.2 percent of the global population.
In addition to these, factors that are believed to fuel the market growth of private 5G network include recent developments. For instance, Ericsson's Cradlepoint announced the introduction of a subscription-based NetCloud Private Networks solution that will supplement Ericsson's Private 5G solution, which is mainly intended for industrial uses where latency, high dependability, low and business-critical capabilities are crucial.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
40% |
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Base Year Market Size (2023) |
USD 2 Billion |
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Forecast Year Market Size (2036) |
USD 47 Billion |
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Regional Scope |
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Vertical (Manufacturing, Energy & Utilities, Transportation & Logistics, Aerospace & Defense, Government & Public Safety, Corporates/Enterprises, Mining, Healthcare, Oil & Gas)
The manufacturing segment in the private 5G network market is estimated to gain a revenue share of about 40% by the end of the year 2036. The segment growth can be a result of the growing demand for private 5G services to provide seamless connectivity with several devices, e.g., ultraHD cameras, extended reality headsets, and audio guidance vehicles.
In addition, the growth of this segment is expected on account of the increasing need for continuous communication between machines. In different sectors, such as manufacturing, energy and utilities, transport and logistics, aerospace and defense, oil and gas, mining, or government and public safety, there is a strong preference for the deployment of a personal 5G network. Private 5G reduces data transfer times between machines and robots by 90%, translating to near-instantaneous communication with an increase of 20% in production speed.
Component (Hardware, Software)
The hardware segment in the private 5G network market is slated to garner a notable share shortly. In particular, this is due to the widespread deployment of core networks, backhaul, and transport equipment worldwide. The deployment of advanced equipment to support efficient operation and deliver high-speed bandwidth is driving the growth of this segment by key network providers such as Nokia Corporation, Qualcomm Technologies, Inc., and Ericsson.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Frequency |
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Vertical |
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North American Market Statistics
The private 5G network market in North America is anticipated to hold a share of about 35% by the end of 2036. Market growth in the region is expected on account of the presence of major solution providers like Qualcomm Technologies, Inc. and significant investments from some of the largest telecommunications companies, including AT&T and Verizon Communications, as they deploy their private 5G network infrastructure.
For instance, the new RAN Automation Platform for Qualcomm Private Networks was introduced by Qualcomm Technologies, Inc. to enable private networks to realize the full promise of 5G by simplifying and expediting the planning and provisioning of automated RAN operations and to provide complete, pre-integrated 5G private network solutions that are prepared for use cases relevant to particular industry verticals.
Additionally, market growth in North America is also impelled by the increasing demand for bandwidth with low latency connectivity within sectors such as public safety, oil and gas, and airspace security.
APAC Market Analysis
The Asia Pacific region will also encounter tremendous growth for the private 5G network market during the forecast period and will hold the second position, credited to the presence of manufacturers and their investments in automated production in the region. Significant investments to acquire the 5G spectrum are being made by key countries in the region, such as China, Japan, South Korea, and Australia, contributing to market growth.
Large-scale adoption of IoT technology and the development of intelligent cities are underway in the Asia-Pacific region. Massive connectivity needs for loT are supported by private 5G network applications and enable a seamless integration of smart city technologies.
Furthermore, the adoption of advanced technologies, including 5G, is being actively encouraged by governments in the Asia-Pacific region. According to the forecast, by the end of 2030, 5G penetration will reach 41 percent, up from 4 percent at the end of 2022.
Author Credits: Abhishek Verma, Hetal Singh
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