Private 5G Network Market Trends

Growth Drivers

• Rapid expansion of Industrial IoT (IIoT): The increasing adoption of smart factories, autonomous machinery and IoT-enabled systems in logistics, energy, and manufacturing sectors has resulted in the need for ultra-reliable and low-latency networks. The private 5G network in smart manufacturing for instance helps in real-time data transfer between machines, allowing predictive maintenance and reducing downtime. Several companies are investing in developing secure 5G private solutions for industrial 4.0. For instance, In November 2024, Celona launched Aerloc, a new suite of security capabilities, providing next-generation private 5G wireless network security for Industry 4.0.
• Government support for deploying 5G networks: Governments across the globe are actively supporting private 5G networking with spectrum allocation, regulatory frameworks and financial incentives to accelerate industrial innovation and digital transformation. They are allocating specific spectrum bands for private 5G networks so that industries can deploy their networks without relying on public operators. The government in India for instance has launched a production-linked incentive (PLI) scheme for telecom and networking products to boost local manufacturing of 5G equipment and support the development of private network infrastructure.

Challenges

• High initial investments: Though 5G private networks are rapidly gaining popularity across various sectors, deploying private 5G requires significant investment in hardware, software, and spectrum licenses. In addition, it requires suitable infrastructure for smooth deployment and operations. Certain small and medium enterprises may lack sufficient funds to deploy these advanced products and services. This can limit the adoption of private 5G networks to a certain extent, hampering global private 5g network market growth during the stipulated timeframe.
• Limited spectrum availability and issues with interoperability: 5G network spectrum is uneven globally, as many countries offer limited options at high prices. In such regions with an unclear spectrum allocation, enterprises are forced to rely on public 5G networks which may compromise overall network performance. In addition, integrating private 5G with existing enterprise systems may pose significant challenges, leading to disruptions or reduced efficiency. These factors are expected to hamper overall private 5g network market growth during the forecast period.