What's Happening?
Private 5G networks are experiencing significant growth, with enterprise deployments expanding and industrial use cases becoming more prevalent. According to Dell’Oro Group, revenue from private 4G/5G
systems grew by 40% in 2024 and is expected to increase by 20% in 2025. The adoption of private 5G is accelerating beyond China, particularly in manufacturing, logistics, mining, and energy sectors. The market is dominated by major RAN vendors like Huawei, Nokia, Ericsson, Samsung, and ZTE, who are favored due to integration and scale requirements.
Why It's Important?
The growth of private 5G networks represents a shift in the telecom industry, with industrial applications driving demand. This trend could lead to increased efficiency and innovation in critical sectors, enhancing productivity and safety. The concentration of market power among established vendors highlights the importance of scale and integration capabilities in deploying private networks. As private 5G becomes more integral to industrial operations, it could reshape the competitive landscape and influence future technological developments.
What's Next?
The continued expansion of private 5G networks is likely to drive further investment and innovation in industrial applications. As adoption spreads beyond China, other regions may see increased deployment, potentially leading to new partnerships and collaborations. The focus on industrial use cases could prompt vendors to develop more specialized solutions tailored to specific sector needs, further accelerating the digital transformation of industries.
Beyond the Headlines
The rise of private 5G networks raises questions about data security and privacy, particularly in industrial settings. As these networks become more widespread, ensuring robust security measures will be crucial to protect sensitive information and maintain operational integrity. Additionally, the shift towards private networks may influence regulatory frameworks and standards, impacting how these technologies are governed and implemented.
