What's Happening?
Private 5G networks are experiencing significant growth, particularly in industrial sectors such as manufacturing, logistics, mining, and energy. According to Dell’Oro Group, revenue from private 4G/5G systems grew by 40% in 2024 and is expected to increase
by another 20% in 2025. This growth contrasts with flat sales in traditional public cellular networks. The adoption of private 5G is accelerating beyond China, with major vendors like Huawei, Nokia, Ericsson, Samsung, and ZTE leading the market. These networks are increasingly being used for operational technology in Industry 4.0, enhancing worker safety and camera analytics adjacent to production systems.
Why It's Important?
The expansion of private 5G networks in industrial environments represents a significant shift in connectivity solutions, offering enhanced performance and integration capabilities. This growth is crucial for industries seeking to improve operational efficiency and safety. The deployment of private 5G networks allows for more reliable and secure communication systems, which are essential for critical operations. As industries continue to adopt these technologies, established vendors stand to benefit from increased demand, while enterprises gain from improved productivity and reduced operational risks.
What's Next?
The private 5G market is expected to continue its rapid growth, with revenues projected to account for five-to-10 percent of total RAN by 2029. As enterprises gradually embrace private cellular technologies, the market will likely see further integration into critical industrial operations. This could lead to increased competition among vendors and further technological advancements. Stakeholders in industrial sectors may need to adapt to these changes by investing in infrastructure and training to fully leverage the benefits of private 5G networks.
Beyond the Headlines
The deployment of private 5G networks raises questions about data security and privacy, as these networks handle sensitive operational information. Additionally, the concentration of market power among a few major vendors could impact pricing and innovation. As private 5G becomes more prevalent, industries may need to address these challenges to ensure sustainable growth and equitable access to advanced connectivity solutions.
