Global Private 5G Network Market Overview
The key driver impacting the private 5G network market is the increasing deployment of the 5G network across the leading nations. For instance, As per the Congressional Research services, In 2018, telecommunication providers began deploying fifth-generation (5G) networks to meet increasing demands for data from consumer and industrial users. Globally the 5G technologies can produce $12.3 trillion in sales activity across multiple industries and hold 22 million jobs by 2035. The U.S. is one of the global leaders, along with South Korea and China. U.S. government has supported 5G deployment, making spectrum available for 5G use and streamlining processes related to the siting of 5G equipment. Similarly, China has a national plan to deploy 5G locally, confining the revenues from its domestic market, advance its industrial systems, and develop into a foremost supplier of telecommunications equipment worldwide. Moreover, the growing need for ultra-reliable low-latency connectivity for Industrial Internet of Things (IIoT) applications, together with industrial cameras, collaborative robots, and industrial sensors, contributes to private 5G network market demand in the coming years.
According to Value Market Research, the global Private 5G Network market size was valued at about USD 4.3 Billion in 2022 and is estimated to grow at a CAGR of around 39.8% during the forecast period 2023 to 2030.
The high adoption of industry 4.0 is being done on a large scale in many industries to obtain higher productivity and efficiency will likely augment the need for a private 5G network in the forecast period. Industry 4.0 requires the addition of connected devices, a variety of sensors, and these are which is employed on sites that need remote network accessibility with elevated bandwidth and low latency. However, high costs related to the development and maintenance cost of 5G infrastructure hampers the market in the long run. In addition, the rising concern for cyber-attacks such as rejection of Service (DoS) attacks, malware attacks, and Mobile Network Mapping (Nmap) attacks is negatively impacting the market growth. Nevertheless, the industry trends, growing need for high-speed bandwidth connectivity during end-to-end security, and real-time based networking across a range of sectors such as aerospace, automotive, oil, and gas, etc., might provide massive market opportunities to the key players of the market.
The Private 5G network market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as extending product portfolio, acquisitions, contracts, amalgamation, product upgrades to raise their market share globally. The key players taken in the report are T-Systems International GmbH, Cisco Systems Inc., Qualcomm Technologies Inc., Deutsche Telekom, Telefonaktiebolaget LM Ericsson, Nokia Corporation, AT&T Inc., Verizon Communications, Broadcom Inc., Huawei Technologies Co. Ltd.
In this research report, the Private 5G Network market is segmented by component, frequency, spectrum, vertical, and region.
Analysis by Component:
By component, the report is categorized into hardware, software, and services. The hardware segment dominates the component segment with over 50% share in 2020. It is due to the growth in the deployment of core networks and backhaul and transport equipment globally which contributes to the hardware segment's growth in the forecast period.
Analysis by Frequency:
By frequency, the report is segmented into Sub-6 GHz and mmWave. The segment dominates the frequency segment with over 70% share in 2020. It is due to the sub-6 GHz frequency include a low band, and a mid-band of spectrum ranges mostly 6GHz and below. Moreover, governments across leading countries, such as the U.S., China, South Korea, and Japan free sub-6 GHz frequencies to give 5G services, contributed to the growth of the Sub-6 GHz segment in the forecast period.
Analysis by Spectrum:
By spectrum, the report is segmented into licensed, unlicensed/shared. The unlicensed/shared segment dominates the spectrum segment with over 73% share in 2020. It is due to the rising demand for high-speed private 5G networks at reasonable costs. Moreover, unlicensed spectrum bandwidth is easily accessible and highly preferred during massive machine-type communications (mMTC), which add to the growth of the Unlicensed/Shared segment in the forecast period.
Analysis by Vertical:
By vertical, the report is segmented into manufacturing, energy & utilities, transportation & logistics, defense, enterprises & campus, mining, healthcare/hospitals, oil & gas, retail, agriculture, smart cities, etc. The manufacturing segment dominates the vertical segment with over 25% share in 2020. It is due to the massive demand for private 5G services to offer flawless connectivity to several devices, such as extended reality headsets, Ultra-HD cameras, and AGVs. Moreover, the growing need to start uninterrupted communication among machines contributed to the high market demand from the manufacturing sector in the forecast period.
Analysis by Region:
In the regional outlook of the global Private 5G network market, the North America region is expected to hold a market share of around 32% in the forecast period. It is due to the noteworthy increase in the investments for installing private 5G network infrastructure by key service providers, such as Verizon Communications and AT&T Inc. Also, the growing requirement for ultra-reliable bandwidth low latency connectivity (URLLC) across various verticals, such as public safety, oil & gas, and aerospace & defense, adds to the regional growth. Moreover, the robust deployment of numerous industrial sensors by leading automakers, such as General Motors Company and Ford Motor Company, contributes to the tremendous market growth across North America.
Market Segmentation Covered in the Report:
By Frequency
By End User
- Manufacturing
- Energy & Utilities
- Transportation & Logistics
- Aerospace & Defense
- Government & Public Safety
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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