The global Private 5G Network market is estimated to be valued at USD 924.4 million in 2020 and is expected to grow at a CAGR of 40.9% during the forecast period. A private 5G network is a local area network (LAN) that offers improved internet access to commercial, industry and other customers. The emerging next generation network networks are expected to meet the need for secure wireless communication to industries, public safety and essential infrastructure connectivity.
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The advent of Covid-19 pandemic and its recurrent occurrence in the form of second wave as well as third wave in some part of the globe has led to a rising need for private 5G adoption due to the network’s inherent benefits. Private 5G allows remote sensing, better video quality, low latency and high bandwidth which can be effectively utilized in remote working for almost all verticals. Therefore, private 5G is being witnessed by companies as a means to achieve the norms set by the post pandemic new normal scenario and this factor has greatly accelerated the adoption of private 5G across the globe.
Organizations across vital communications and industrial IoT (Internet of Things) realms including national security agencies, military, utilities, oil & gas firms, mining associations, rail & port operators, manufacturers and industrial behemoths are making substantial investments in the private LTE networks. The very first private 5G networks are now starting to be deployed to enable a variety of device scenarios ranging from wired manufacturing robots and large sensor networking to AVG (Automated Guided Vehicles) and AR / VR power.
With the emergence of industry 4.0, various primary industrial operators such as Siemens AG, ABB Ltd., Mercedes-Benz AG have made extensive use of sensor-based technology and industrial robotics to achieve superior operational efficiency and improved productivity. The private 5G network plays a critical role in providing seamless and safe Internet access to the Industrial IoT (IIoT) devices listed above.
Today, the private LTE sector is primarily dominated by public safety, rail and port infrastructure and other utility applications. The deployment of private networks in these important verticals is motivated by the large coverage criteria of predictive efficiency and versatility to be well suited for the LTE. The manufacturing and mining industries are now implementing Private LTE and 5G networks very rapidly and are expected to lead to an unprecedented growth over the next five years.
COVID-19 changed the market environment, pushing businesses to develop new work models to ensure business continuity. There is, however, a silver lining to the otherwise painful episode: support for accelerated adoption of 5G. Telecom operators have started to invest in 5G networks in order to improve service quality and alleviate network congestion. Both networks can be categorized into two wide buckets: public 5 G and private 5G. Public 5 G applies to mobile broadband networks and B2C users worldwide. Private 5G is a kind of limited network, mostly used by companies on their premises to take advantage of 5G's low latency and high availability for faster adoption by Industry 4.0.
Private LTE market is emerging, with the deployment activity across several industrial verticals, across the globe. These systems take advantage of the robust LTE environment, which benefits from high-volume, standardized infrastructure and well-established suppliers capable of developing and deploying networks. Albeit demand for 5G network market will proliferate over the forecast period. Moreover, LTE will support many industrial applications. However, where consumers have more stringent performance requirements, in terms of availability, reliability, latency, jitter, number of devices, speed, etc. 5G contains advances in the radio domain and network design that make it better able to meet the high-performance requirements of private 5G networks.
The global market is primarily segmented based on Component, By Frequency, By Spectrum, By Vertical and geographic region.
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Based upon component type, the global private 5G network market is segregated into hardware and services. With an increasing need for businesses to run their high-speed broadband network privately through a variety of sectors, main network providers such as Qualcomm, Nokia Corporation, and Ericsson are installing feasible infrastructure to enable back-to-back operations in providing high-speed bandwidth. It is therefore projected that there will be a substantial increase in the market share of the core network segment by the end of 2020. However, the strong demand for better connectivity to link millions of sensors in industrial premises is expected to display a significant uptake and deployment of RAN equipment over the study period.
Growth is due to the growing demand for private 5G services to provide seamless access to multiple devices such as ultra-HD cameras, Augmented Reality Headsets and AGVs. The growing demand for uninterrupted contact between machines is also expected to fuel segment growth from 2020 to 2027. Private 5G networks are commonly favored across vertical markets, including manufacturing, aerospace and defense, mining, electricity and infrastructure, transport and logistics, oil and gas, and government and public safety.
North America is expected to reach the largest market share by more than xx% by 2020 due to the presence of various private 5 G solution providers such as Qualcomm Technologies, Inc. In addition, a major rise in investment in the implementation of private 5 G network networks by key service providers such as AT&T Inc. and Verizon Communications is expected to help North America gain access to the network.
Moreover, in Asia Pacific, the market is expected to have the fastest growth rate by 2027. Growth is due to the involvement of many manufacturers and their substantial investment in the construction of automated factories in the area. In addition, large-scale projects to gain a 5G network in key countries such as China, Japan, South Korea and South Korea are expected to proliferate the growth for private 5G network market in the coming years.
Private 5G industry participants are teaming up with vertical industries and are deploying their products in order to establish new use case scenarios and for displaying capabilities that 5G has to offer. For example, Verizon, a telecom company partnered with a glass manufacturer Corning, in the U.S., to investigate the role 5G can play in the overall work environment improvement. 5G is being deployed in the factory in order to test the control on processes such as tracking of supplies, quality control and is also being used to test the role of autonomous vehicles.
As the global strategy the prominent players work in tendon with the domestic players to widespread the adoption of private 5G networks. Market actors continually doing greenfield & brownfield investments to adopt new technologies and meet the global market demand. Some of the renowned players in the market includes: Qualcomm Technologies, Inc., Telefonaktiebolaget LM, Huawei Technologies Co., Vodafone Limited, Ericsson, Deutsche Telekom, Nokia Corporation, T-Systems International GmbH, Verizon Communications, AT&T Inc., Broadcom Inc., Ltd, Altiostar, SAMSUNG, Cisco Systems, Inc., ZTE Corporation, and others.