Counterpoint Research forecasts that the global LTE/5G private networks infrastructure market will increase from approximately $2.5 billion revenues at the end of 2022 to reach $21.8 billion at the end of 2030, representing a CAGR of 30.7% over the forecast period (Exhibit 1).
Private Networks Market by Verticals
Counterpoint Research segments the private networks market into seven vertical markets: public sector, manufacturing, energy and utilities, natural resources extraction, transportation and logistics, SME and Others. The public sector consists of several sub-verticals such as public safety networks, smart cities, healthcare and government as well as education and defence. The SME market encompasses mostly non-industrial applications of private networks, for example, office buildings, hotels, shopping malls, leisure centres, etc. Counterpoint Research forecasts that manufacturing will be the biggest vertical by revenue at the end of the forecast period in 2030.
Variations by Region
The release of CBRS spectrum has been a key driver in the US, which is predominantly based on 4G LTE and typically used for simple applications that do not require 5G, for example, mobile broadband connectivity in schools. In contrast, Europe has a higher proportion of 5G networks with the focus being on Industry 4.0 automation and the development of smart factories. Key use cases driving the market in Europe include AGVs/AMR connectivity, advanced worker productivity technologies such as AR/VR, predictive maintenance, video analytics (particularly security), asset tracking, etc.
Most deployments of private networks are in the developed, high GDP regions of the world with developing regions of the world lagging. An exception is Latin America, where there are numerous networks targeting the mining industry (predominantly copper mines).
Exhibit 1: Global Private Networks Market: 2021-2030
Key Points and Issues
Some key points discussed in the report include:
- Spectrum – spectrum availability has been the key driver behind the growth of the private networks market, with countries such as Germany, France, the UK and US leading deployments due to early availability of spectrum in those countries. However, none of these countries use the same spectrum bands for private networks. They also have different usage rules. Spectrum fragmentation is therefore an issue and there is an urgent need for harmonisation of private networks spectrum, particularly between countries in the same regions, such as Europe.
- 5G Advanced – the introduction of devices supporting 5.5G from 2025 onwards will provide a boost to 5G private networks and will result in a number of new device capabilities leveraging the advanced features offered by NR-Light (Redcap), expanded sidelink, etc. as well as new indoor/outdoor positioning techniques, passive IoT tag technology, etc. These developments will enable new applications and drive growth in key verticals such as advanced manufacturing, energy and utilities, etc.
- Private Networks vs Network Slicing – although network slicing is starting to be introduced over public networks, the technology is not yet mature. However, as slicing become mainstream (and coupled with improvements in the uplink capacity of public networks), it will in time become a lower cost alternative to dedicated private networks for some use cases.
Counterpoint Research’s “Private Networks Market – Market Sizing and Forecasts: 2021-2030” PPT report provides market sizing and multi-year forecasts for the global private networks market divided by vertical, region, technology and spectrum. An overview of the business and technological challenges facing the industry is also presented as well as Counterpoint’s key takeaways about the future of the private networks market.
Table of Contents:
- Study Overview and Assumptions
- Private Networks: Introduction & Definitions
- Market Sizing and Forecasts
- Global Market Revenues
- Market by Verticals
- Definition of Verticals
- Forecast Revenues by Vertical
- Key Drivers per Vertical
- Forecast Revenue by Regions
- Definition of Regions
- Forecast Revenue per Region
- Key Drivers per Region
- Forecast Revenue by Technology
- 4G versus 5G
- Forecast Revenue by Spectrum
- Sub 6GHz vs millimetre Wave
- Key Challenges
- Key Takeaways