Private 5G Networks Opportunities, Challenges, Strategies & Forecasts 2024-2030 - ResearchAndMarkets.com

The "Private 5G Networks: 2024-2030 - Opportunities, Challenges, Strategies & Forecasts" report from SNS Telecom & IT has been added to ResearchAndMarkets.com's offering.

Annual investments in private 5G networks for vertical industries will grow at a CAGR of approximately 42% between 2024 and 2027, eventually accounting for nearly $3.5 Billion by the end of 2027.

The report presents an in-depth assessment of the private 5G network market, including the value chain, market drivers, barriers to uptake, enabling technologies, operational and business models, vertical industries, application scenarios, key trends, future roadmap, standardization, spectrum availability and allocation, regulatory landscape, case studies, ecosystem player profiles and strategies. The report also presents global and regional market size forecasts from 2024 to 2030. The forecasts cover three infrastructure submarkets, 16 vertical industries and five regional markets.

The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report, as well as a database of over 7,000 global private cellular engagements - including more than 2,200 private 5G installations - as of Q2'2024.

Although much of this growth will 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, utilities and railway communications are also anticipated to begin their transition from LTE, GSM-R and other legacy narrowband technologies to 5G towards the latter half of the forecast period, as 5G Advanced becomes a commercial reality.

Among other features for mission-critical networks, 3GPP Release 18 - which defines the first set of 5G Advanced specifications - adds support for 5G NR equipment operating in dedicated spectrum with less than 5 MHz of bandwidth, paving the way for private 5G networks operating in sub-500 MHz, 700 MHz, 850 MHz and 900 MHz bands for public safety broadband, smart grid modernization and FRMCS (Future Railway Mobile Communication System).

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 segment - iNET's (Infrastructure Networks) 700 MHz LTE network in the Permian Basin, Tampnet's offshore 4G infrastructure in the North Sea, Rio Tinto's private LTE network for its Western Australia mining operations and other initial installations date back to the early 2010s. However, in most national markets, private cellular networks or NPNs (Non-Public Networks) based on the 3GPP-defined 5G standard are just beginning to move beyond PoC (Proof-of-Concept) trials and small-scale deployments to production-grade implementations of standalone 5G networks, which are laying the foundation for Industry 4.0 and advanced application scenarios.

Compared to LTE technology, private 5G networks - also referred to as 5G MPNs (Mobile Private Networks), 5G campus networks, local 5G or e-Um 5G systems depending on geography - 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, despite its relatively higher cost of ownership, 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.

It is worth noting that China is an outlier and the most mature national market thanks to state-funded directives aimed at accelerating the adoption of 5G connectivity in industrial settings such as factories, warehouses, mines, power plants, substations, oil and gas facilities and ports. To provide some context, the largest private 5G installations in China can comprise hundreds to even thousands of dedicated RAN (Radio Access Network) nodes supported by on-premise or edge cloud-based core network functions depending on specific latency, reliability and security requirements.

Despite prolonged teething problems in the form of a lack of variety of non-smartphone devices, high 5G IoT module costs due to low shipment volumes, limited competence of end user organizations in cellular wireless systems and conservatism with regards to new technology, early adopters are affirming their faith in the long-term potential of private 5G by investing in networks built independently using new shared and local area licensed spectrum options, in collaboration with private network specialists or via traditional mobile operators. Some 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.

Some of the most technically advanced features of 5G Advanced - 5G's next evolutionarily phase - are also being trialed over private wireless installations. Among other examples, Chinese automaker Great Wall Motor is using an indoor 5G Advanced network for time-critical industrial control within a car roof production line as part of an effort to prevent wire abrasion in mobile application scenarios, which results in production interruptions with an average downtime of 60 hours a year.

In addition, against the backdrop of geopolitical trade tensions and sanctions that have restricted established telecommunications equipment suppliers from operating in specific countries, private 5G networks have emerged as a means to test domestically produced 5G network infrastructure products in controlled environments prior to large-scale deployments or vendor swaps across national or regional public mobile networks. For instance, Russian industrial groups are trialing private 5G networks in pilot zones within their production sites, using indigenously built 5G equipment operating in Band n79 (4.8-4.9 GHz) spectrum.

To capitalize on the long-term potential of private 5G, a number of new alternative suppliers have also developed 5G infrastructure offerings tailored to the specific needs of industrial applications. For example, satellite communications company Globalstar has launched a 3GPP Release 16-compliant multipoint terrestrial RAN system that is optimized for dense private wireless deployments in Industry 4.0 automation environments, while German engineering conglomerate Siemens has developed an in-house private 5G network solution for use at its own plants, as well as those of industrial customers.

Topics Covered

• Introduction to private 5G networks
• Value chain and ecosystem structure
• Market drivers and challenges
• System architecture and key elements of private 5G networks
• Operational and business models, network size, geographic reach and other practical aspects of private 5G networks
• Industry 4.0-driven wireless connectivity requirements, critical communications broadband evolution, enterprise transformation and other themes shaping the adoption of private 5G networks
• Enabling technologies and concepts, including 3GPP-defined URLLC, TSC, DetNet, NR-U, SNPN and PNI-NPN, MCX, RedCap, cellular IoT, high-precision positioning, network slicing, edge computing and network automation capabilities
• Key trends such as the emergence of new classes of specialized network operators, shared and local area spectrum licensing, private NaaS (Network-as-a-Service) offerings, IT/OT convergence, Open RAN, vRAN and rapidly deployable 5G systems
• Analysis of vertical industries and application scenarios such as reconfigurable wireless production lines, collaborative mobile robots, autonomous transport systems, untethered AR/VR/MR (Augmented, Virtual & Mixed Reality), UHD (Ultra High-Definition) video transmission, machine vision, digital twins and mission-critical group communications
• Future roadmap of private 5G networks
• Review of private 5G network installations worldwide, including 100 case studies spanning 16 verticals
• Database tracking more than 2,200 private 5G installations in over 60 countries across the globe
• Spectrum availability, allocation and usage across the global, regional and national domains
• Standardization, regulatory and collaborative initiatives
• Profiles and strategies of more than 1,800 ecosystem players
• Strategic recommendations for 5G equipment and chipset suppliers, system integrators, private network specialists, mobile operators and end user organizations
• Market analysis and forecasts from 2024 to 2030

Forecast Segmentation

Infrastructure Submarkets

• 5G NR RAN (Radio Access Network)
• Base Station RUs (Radio Units)
• DUs/CUs (Distributed & Centralized Baseband Units)
• 5GC (5G Core)
• UPF (User Plane Function)
• Control Plane Functions
• 5G Transport (Fronthaul, Midhaul & Backhaul)
• Fiber & Wireline
• Microwave
• Satellite Communications

Cell Sizes

• Small Cells
• Indoor
• Outdoor
• Macrocells

Frequency Ranges

• Sub-6 GHz
• mmWave (Millimeter Wave)

End User Markets

• Vertical Industries
• Agriculture
• Aviation
• Broadcasting
• Construction
• Education
• Forestry
• Healthcare
• Manufacturing
• Military
• Mining
• Oil & Gas
• Ports & Maritime Transport
• Public Safety
• Railways
• Utilities
• Warehousing & Others
• Offices, Buildings & Public Venues

For more information about this report visit https://www.researchandmarkets.com/r/udsf2n

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