Global Private 5G Network Market – Overview, Trends, and Forecast (2022–2030)
According to Custom Market Insights (CMI), the Global Private 5G Network Market was valued at approximately USD 1.45 billion in 2021 and is projected to grow significantly to reach nearly USD 41.80 billion by 2030, expanding at a remarkable compound annual growth rate (CAGR) of 49.7% between 2022 and 2030.
A private 5G network operates similarly to a public 5G network but is configured exclusively for individual enterprises or organizations. These networks utilize dedicated infrastructure and customized bandwidth to meet highly specific connectivity, latency, and security requirements. Enterprises typically acquire spectrum licenses from mobile network operators (MNOs), governments, or third-party spectrum providers to build and deploy their private networks.
As governments across the globe continue to allocate more spectrum for enterprise use, the market for private 5G networks is gaining momentum rapidly. This has opened up a multitude of new applications and is expected to drive strong market growth through 2030.
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“Private 5G Network Market Size, Trends, and Insights By Component, Frequency, Spectrum, Industry Vertical, and Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2022–2030”
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Market Dynamics
Key Drivers
Global Infrastructure Development Initiatives
The transformative potential of 5G technology is being recognized worldwide, prompting countries to launch extensive infrastructure development programs. For example, during the June 2022 G7 Summit, member nations (Canada, France, Japan, Germany, Italy, the U.K., and the U.S.) announced the Partnership for Global Infrastructure and Investment, aiming to mobilize USD 600 billion by 2027 to enhance sectors such as healthcare, energy, and telecommunications in middle-income and developing countries.China’s Aggressive 5G Expansion
Under the 14th Five-Year Plan, China has made significant advancements in 5G infrastructure deployment, contributing substantially to the global growth of private 5G networks.Industry 4.0 and Smart Manufacturing
The demand for private 5G is accelerating in response to Industry 4.0, which drives the adoption of sensor-based automation, robotics, and real-time data-driven production systems. Leading industrial manufacturers such as Siemens AG, Mercedes Benz AG, and ABB Ltd. are deploying private 5G networks to support operations such as:Autonomous guided vehicles (AGVs)
Collaborative robots
Augmented and virtual reality (AR/VR)
Predictive maintenance systems
Spectrum Licensing for Enterprises
Regulators are enabling private network deployments by offering direct spectrum access to enterprises. For instance:In 2021, Germany issued private 5G licenses to 33 corporations, including BMW, Bosch, BASF, Volkswagen, and Lufthansa.
In 2019, Germany’s Bundesnetzagentur began allocating local 5G licenses to support SMBs and industrial applications.
Restraints
While private 5G networks offer substantial benefits, several challenges are impeding faster adoption:
Compatibility with Legacy Infrastructure
The transition from 4G LTE to 5G is complex due to the integration issues with legacy systems. According to a recent NTT survey, this incompatibility is one of the most significant barriers to the widespread deployment of private 5G.High Data and Latency Standards
The stringent demands of 5G—such as ultra-low latency, high reliability, and massive device connectivity—require new infrastructure, increasing the technical and financial burden for businesses.
Opportunities
New Infrastructure Investment
Enterprises seeking to deploy private 5G are heavily investing in new infrastructure, creating opportunities for vendors of 5G-compatible devices, antennas, small cells, and routers.Strategic Collaborations
Telecom operators are partnering with technology providers to accelerate deployment. For example:In March 2022, Nokia partnered with Etisalat UAE to deploy private 5G wireless networks for industries across Abu Dhabi, aiming to drive digital transformation and Industry 4.0 integration.
Specialized Industry Applications
Sectors such as oil gas, shipping, defense, and remote industrial operations are finding tailored use cases for compact, secure, and high-performance private 5G networks.
Challenges
Despite the rapid adoption of private 5G, certain hurdles persist:
Cost Concerns
The deployment of private 5G networks involves significant upfront investment in spectrum licenses, infrastructure, and compatible devices.Competition from Alternatives
Wi-Fi 6, while less powerful, remains a competitive and cost-effective alternative in many enterprise environments.Regulatory and Spectrum Availability
Licensing procedures and spectrum allocation vary by country and can delay or limit deployment opportunities in certain regions.
Report Highlights
By Component
Hardware Segment
This segment is expected to exhibit the highest CAGR and dominate the market due to increased enterprise demand for modular, scalable infrastructure. Hardware vendors are innovating with compact systems to meet the needs of industrial clients.For example, in February 2022, Hewlett Packard Enterprise (HPE) launched a “5G-in-a-box” system, tailored for industries like shipping, oil gas, and military applications.
By Industry Vertical
Manufacturing Sector – Market Leader
The manufacturing industry is projected to contribute the most significant share of revenue to the private 5G market. The rise of smart factories has led to increased investments in IoT, AI, and automation technologies, all of which rely on 5G for seamless operation.Manufacturers are deploying private networks to enhance real-time process control, machine learning, and remote equipment monitoring, supporting overall productivity and cost-efficiency.
Regional Insights
North America – Market Leader
North America currently holds the dominant market position and is expected to maintain this status throughout the forecast period. The growth is driven by:
Large-scale investments from service providers such as Verizon Communications and ATT Inc.
Early adoption of 5G across industries
Government support for telecom infrastructure development
Asia-Pacific – Fastest Growing Region
The Asia-Pacific region is forecast to experience the highest growth rate in the global private 5G network market due to:
Rapid deployment of automated factories
Strategic spectrum acquisitions by governments in China, South Korea, Japan, and Australia
Massive government support for digital transformation and smart city initiatives
Key Market Players
Leading players are focusing on partnerships, RD, and geographic expansion to strengthen their presence in the global private 5G network landscape.
Telefonaktiebolaget LM Ericsson
Nokia Corporation
Samsung
ZTE Corporation
Deutsche Telekom
Juniper Networks
ATT Inc.
Verizon Communications
Altiostar
Huawei Technologies Co. Ltd.
Mavenir
BT Group
These companies are actively developing solutions across hardware, software, and services, supporting the rapid digitization of industries through scalable and secure private 5G ecosystems.
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