The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Private 5G Network Market Growth & Trends
The global private 5G network market size is estimated to reach USD 7.1 billion by 2027, registering a CAGR of 37.8% from 2021 to 2027, according to a new study by Grand View Research, Inc. Significantly growing demand for ultra-reliable low latency connectivity with an extremely secure network across several mission-critical applications such as public safety is expected to boost the deployment of private 5G networks during the forecast period. Moreover, a wide range of industries, including manufacturing, oil and gas, mining, and energy and utility, are investing a massive amount in deploying private 5G telecom service to enhance their overall productivity and operational efficiency. As a result, it is expected to foster market growth from 2021 to 2027.
The private 5G network is expected to completely transform the transportation and logistics industry by providing seamless Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) connectivity. As such, the need to ensure a secure, seamless, and uninterrupted connectivity with ports, vessels, and ships is estimated to drive the market. At the same time, the continued deployment of private 5G infrastructure is estimated to improve the operational efficiencies in several Industrial IoT (IIoT) use cases. The IIoT use cases include Automated Guided Vehicles (AGV), wireless UHD cameras, machine control systems, collaborative/cloud robots, and remote asset monitoring. Thus, the rising need for higher and secure bandwidth to ensure reliable and unified communication between IIoT devices is expected to propel the market growth over the forecast period.
Key Market Players are strategically building partnerships with industry giants to set-up a private 5G service in order to provide high-speed secure connectivity to their customers. For instance, in Feb 2020, Nokia Corporation deployed a private 5G network infrastructure for Lufthansa Technik for virtual inspection of engine parts remotely for its civil aviation clients. Moreover, rising demand for enhanced bandwidth connectivity for secured enterprise applications is anticipated to fuel the adoption of a private 5G services globally.
Due to the ongoing COVID-19 pandemic, several key countries such as the U.S., France, U.K., and Australia have temporarily postponed the 5G spectrum auctions in their countries. Also, the outbreak of COVID-19 has hampered the production and supply of major telecom equipment needed to deploy the network infrastructure. As a result, it is anticipated to slow market growth over the forecast period.
Private 5G Network Market Report Highlights
- The hardware segment is estimated to reach a market size of USD 4.9 billion by 2027, owing to the increasing deployment of private 5G service, RAN, and backhaul and transport equipment for various mission-critical applications
- With the growing need to provide unified connectivity with low latency to several industrial sensors, the manufacturing sector is anticipated to witness a huge market growth over the forecast period
- The sub-6 GHz segment is expected to attain the highest market share and projected to reach a market size of USD 5.2 million by 2027. This can be attributed to massive allocation of sub-6 GHz frequencies by communication service providers to deliver network services
- With a rising need to avail affordable and highly secure band of the frequency spectrum for Massive Machine Type Communication (mMTC), the unlicensed/shared spectrum segment is anticipated to account for a significant market share by 2027
- Various prominent players are strategically focusing on establishing partnerships to deploy the network in customer’s premises in order to deliver secure and enhanced wireless connectivity.