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Private 5G Network Market Size, Share, Growth & Industry Analysis, By Component (Hardware, Software, Services), By Frequency (Sub-6 GHz, mmWave), By Spectrum (Licensed, Unlicensed/Shared), By Vertical (Manufacturing, Healthcare, Retail , Others), By End User, and Regional Analysis, 2024-2031
Pages: 200 | Base Year: 2023 | Release: February 2025 | Author: Versha V.
Private 5G networks refer to secure, customized wireless communication infrastructures designed for exclusive use, typically within enterprises, campuses, or industrial settings. These networks function independently from public cellular networks, granting organizations complete control over network management, security, and performance.
Private 5G technologies provide high-speed, low latency, and reliable communication, supporting diverse applications such as IoT, critical communications, and enterprise data transfer.
Businesses, organizations, and local governments across various sectors are adopting cellular technology in the form of private 5G networks. These sectors include manufacturing, transportation, logistics, utilities retail, agriculture, and those involved in smart city projects.
The global private 5G network market size was valued at USD 2060.3 million in 2023 and is projected to grow from USD 2753.6 million in 2024 to USD 32946.1 million by 2031, exhibiting a CAGR of 42.56% during the forecast period.
The increase in adoption of private 5G networks and the growing demand for secure, high-performance connectivity in industries such as manufacturing, healthcare, and logistics are driving the market.
Businesses increasingly rely on connected devices and IoT applications, requiring reliable, low-latency network infrastructure for seamless communication and data transfer, efficient operations, real-time decision-making, and the ability to support advanced technologies such as automation and Artificial Intelligence (AI).
Furthermore, the market presents significant opportunities, particularly with the growing adoption of Industry 4.0 and the digital transformation of industrial operations.
The integration of advanced technologies like connected devices, edge computing, and smart sensors demands reliable, high-performance networks, which is anticipated to fuel the market. The market provides the necessary capabilities to support these applications, especially in mission-critical environments.
Major companies operating in the private 5g network market are Telefonaktiebolaget LM Ericsson, Nokia Corporation, Huawei Technologies Co., Ltd., Samsung Electronics Co., Ltd., ZTE Corporation, Cisco Systems, Inc., NEC Corporation, Juniper Networks, Inc., Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Vodafone Group Plc, BT Group plc, Mavenir Systems, Inc., and T-Systems International GmbH.
Additionally, government initiatives promoting smart cities and industrial automation are encouraging investments in private network solutions. A notable regulatory framework supporting private 5G networks is the FCC's CBRS (Citizens Broadband Radio Service) framework in the U.S. It governs the 3.5 GHz band, which is allocated for shared use between federal incumbents, licensed operators, and general users. Furthermore, the three-tier spectrum access model ensures spectrum availability for private 5G networks while protecting incumbent users.
Market Driver
"Rising Adoption of IoT and Connected Devices Across Industries"
The rising adoption of IoT and connected devices across industries has fundamentally transformed how businesses operate by enabling real-time data collection, automation, and enhanced decision-making.
In manufacturing, IoT plays a pivotal role in enabling predictive maintenance, reducing downtime, and optimizing supply chain management through real-time monitoring and analytics. Smart factories powered by IoT integrate devices, sensors, and robotics with cloud platforms to ensure seamless data flow and operational efficiency.
Similarly, in healthcare, IoT-driven solutions like remote patient monitoring, wearable health devices, and telemedicine platforms have revolutionized patient care by enhancing accessibility and efficiency. These advancements cater to the growing demand for personalized, data-driven healthcare solutions.
Beyond manufacturing and healthcare, IoT adoption has surged in industries like logistics, retail, and energy. Connected devices facilitate smart inventory management in retail, enhance fleet tracking in logistics, and improve energy efficiency in utilities through smart grids and meters.
The integration of IoT with private 5G networks further amplifies its potential by ensuring secure, low-latency communication and scalability for mission-critical applications.
Recent innovations, such as edge computing and AI integration, are reshaping IoT's impact, allowing industries to process data closer to the source for faster decision-making and reduced bandwidth usage. As industries embrace Industry 4.0, IoT adoption is expected to continue driving operational efficiency and innovation across sectors.
Market Challenge
"High Initial Deployment Costs for Private 5G Infrastructure"
Deploying private 5G networks involves substantial initial costs, encompassing infrastructure setup, equipment procurement, and integration with existing systems. For instance, AWS Private 5G pricing indicates that the cost for 30 days per radio unit is $3,905.50, which can be adjusted based on the number of units and the commitment period.
These expenses can be significant, especially for small and medium-sized enterprises (SMEs) with limited budgets. Additionally, the complexity of integrating new 5G infrastructure with existing systems and processes can lead to increased costs and extended deployment timelines.
Some companies are adopting neutral host network sharing models, which can reduce deployment costs. This approach allows multiple operators to share infrastructure, thereby lowering individual investment requirements.
Furthermore, outsourcing private 5G as a service enables businesses to avoid large initial costs and focus on core activities, with providers managing network deployment and maintenance. These strategies offer viable alternatives to traditional deployment models, making private 5G networks more accessible to a broader range of enterprises.
Market Trend
"Collaborations Between Telecom Operators and Enterprises for 5G Rollouts"
Collaborations between telecom operators and enterprises are pivotal for the successful rollout of 5G networks, enabling the development of tailored solutions that meet specific business requirements.
Telecom operators bring extensive network infrastructure and technical expertise, while enterprises offer insights into industry-specific needs and use cases. This synergy facilitates the creation of customized 5G services, such as private networks, that enhance operational efficiency and support digital transformation initiatives.
| Segmentation | Details |
| By Component | Hardware (Radio Access Network, Core Network, Backhaul & Transport), Software, Services (Installation & Integration, Data Services, Support & Maintenance) |
| By Frequency | Sub-6 GHz, mmWave |
| By Spectrum | Licensed, Unlicensed/Shared |
| By Vertical | Manufacturing, Healthcare, Transportation and Logistics, Energy and Utilities, Retail, Others |
| By Region | North America: U.S., Canada, Mexico |
| Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe | |
| Asia Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia Pacific | |
| Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa | |
| South America: Brazil, Argentina, Rest of South America |
Market Segmentation
Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
North America accounted for 41.34% share of the private 5G network market, which was valued at USD 851.7 million in 2023. The market in the region is also projected to grow at a significant CAGR of 42.94% in the coming years. The market’s dominant share is attributed to the presence of various private 5G solution providers present in the region.
Heavy investments in deploying private 5G network infrastructure are fueling the overall market growth in the region. Beyond industrial applications, private 5G is gaining traction in smart cities and educational institutions across North America.
For example, universities are deploying private 5G to enable advanced research and improve campus connectivity, while municipalities use it for smart traffic management, efficient energy grids, and enhanced public safety, driving adoption in non-industrial sectors.
Europe is emerging as a significant player in the private 5G network industry with USD 626.0 million market value in 2023, driven by strong government support and strategic investments in advanced digital infrastructure.
Initiatives such as the European Union’s (EU) “Digital Europe Programme” and funding under the “Recovery and Resilience Facility” are accelerating the adoption of private 5G across industries. Countries like Germany, the UK, and France are leading the charge, with a focus on industrial automation, smart manufacturing, and logistics.
Additionally, Europe’s emphasis on sustainability is fostering the integration of private 5G in green energy projects, such as smart grids and renewable energy management systems.
The region also benefits from the presence of key telecom operators and technology providers, including Nokia, Ericsson, and Deutsche Telekom, which are driving innovation and deployment of tailored 5G solutions. Europe's automotive sector is a standout, with private 5G networks enabling advancements in autonomous driving, connected vehicle systems, and smart traffic solutions.
Moreover, the region’s push for secure and localized data processing aligns with the deployment of private 5G networks, especially in sectors like healthcare and public safety. This focus on digital sovereignty and advanced applications positions Europe as a key growth hub in the private 5G landscape.
The private 5G network market is highly competitive, with both established companies and newer entrants vying for market leadership. Key providers of private 5G network solutions across various industries include Ericsson, Huawei, Nokia, Cisco Systems, NEC, Samsung and ZTE.
These companies offer a wide range of products and services, such as network infrastructure, software, and consulting services. Alongside the top players, notable secondary participants include Verizon Business, AT&T, Deutsche Telekom, Orange, and Telefonica. These players invest heavily in R&D, fueling intense competition and fostering innovation in the market.
Companies are increasingly forming collaborations and partnerships to develop advanced solutions and strengthen their market positions. The private 5G network industry is expected to grow rapidly in the coming years, driven by factors such as the rising adoption of industrial automation, increasing demand for secure and reliable communication, and need for high-speed connectivity in remote areas.
The market is also registering the rise of niche players and startups specializing in private 5G solutions for specific industries or regions. Companies like Mavenir, Rakuten Symphony, and Parallel Wireless are gaining traction by offering open RAN and software-defined solutions that reduce deployment costs and increase flexibility.
These players are challenging traditional market leaders by focusing on affordability and scalability, appealing to small and medium-sized enterprises (SMEs) looking to adopt private 5G.
Recent Developments (M&A/Partnerships/Agreements/New Product Launch)
