Private 5G networks on the verge of mainstream adoption

Private 5G networks are on the verge of mainstream adoption, with annual spending projected to reach US$5 billion by 2028, according to a new research report from SNS Telecom & IT.

Private LTE networks have been around for more than a decade, albeit as a niche segment of the wider cellular infrastructure segment. 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, Coal India Limited (CIL), 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 futureproof 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 Industrial IoT environments, where the number of connected sensors and other endpoints is expected to increase significantly over the coming years.

As end-user organisations in the United States, Canada, Germany, United Kingdom, France, China, Japan, South Korea, Taiwan, Australia, Brazil and other countries ramp up their digitisation 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 US$34,000 to less than US$6000 per unit by replacing fibre-based connections with a private 5G network. Among other examples, China Huaneng Group relies on a tri-band (700 MHz, 2.6 GHz and 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.

The report ‘Private 5G Market: 2025 – 2030 – Opportunities, Challenges, Strategies & Forecasts’ 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 US$5 billion by the end of 2028. Although much of this growth will initially be driven by highly localised 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, visit www.snstelecom.com/private5g.

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