Private 5G Market to Reach $96 Billion by 2030
According to ABI Research, the private 5G market is expected to grow massively in the next decade, reaching $96 billion by 2030. This market includes private 5G networks built specifically for enterprise use rather than being part of a public network.
Private 5G networks are becoming increasingly popular as more businesses recognize the benefits of having their dedicated network. These networks offer greater security, reliability, and control than public networks.
Various industries, including manufacturing, logistics, and healthcare, demand private 5G networks. These industries require high-bandwidth, low-latency networks to support their operations, and private 5G networks can provide the necessary infrastructure.
System Integration Services to Contribute 50% of Revenue to Private 5G Market
While the private 5G market is expected to be worth $96 billion by 2030, system integration services are predicted to be a major contributor to this growth. According to ABI Research, system integration services are likely to account for 50% of the revenue generated by the private 5G market.
System integration services are critical to the success of private 5G networks, as they involve the network’s design, deployment, and management. These services ensure that the network is optimized for the specific needs of the enterprise and that it can deliver the necessary performance and reliability.
Despite the expected growth of the private 5G market, it will likely continue relying on private LTE networks until 2030. This reliance is due to the immature ecosystem around industrial-grade 5G devices, which are necessary to fully leverage the capabilities of 5G networks.
Private LTE networks offer many of the same benefits as private 5G networks, including greater security, reliability, and control. As such, they are expected to remain the primary choice for enterprises until the industrial-grade 5G ecosystem matures.
The Majority of Private 5G Activity is Currently Outdoors
Most private 5G activity occurs outdoors rather than inside factories and plants. This drawback is due to a lack of chipsets that support ultra-reliable low-latency communication (URLLC) and time-sensitive networking (TSN), which are necessary for many industrial applications.
While private 5G networks offer many advantages over public networks, such as greater security and control, their success in industrial settings depends on their ability to support these critical functions. With chipsets supporting URLLC and TSN, private 5G networks can support the high-bandwidth, low-latency applications necessary for many industrial use cases.
Enterprises Prioritize Bottom Line & Require Reliable Partners for Exact Capabilities and Monetization
Regarding private cellular networks, enterprises prioritize their bottom line and require reliable partners to deliver exact capabilities and monetization. This priority is because private cellular networks are a significant investment, and enterprises must justify the costs and demonstrate a return on investment.
Partners must deeply understand their enterprise customers’ specific needs and requirements to succeed in the private cellular market. This understanding requires a collaborative approach and a willingness to work closely with the customer to design, deploy, and manage a network optimized for their operations.
In addition to meeting specific capabilities and monetization requirements, reliability is also a key factor for enterprises when selecting partners for private cellular networks. Enterprises need partners to ensure that the network is always available and performing at peak capacity, as downtime or poor performance can significantly impact their operations.