The Growing Impact of Private LTE and 5G Networks Across Industries

The Expanding Role of Private LTE and 5G Networks

As industries worldwide embrace digital transformation, the demand for private LTE and 5G networks is experiencing unprecedented growth. According to SNS Telecom & IT’s latest research, the private LTE and 5G market is projected to surpass $7.2 billion by 2028, with a robust compound annual growth rate (CAGR) of 22% from 2025 to 2028. This steady rise highlights the versatility of private networks, with standalone 5G technologies leading investments across manufacturing, critical communications, and other verticals. From enhancing industrial automation to ensuring uninterrupted connectivity in public safety, these private networks are reshaping industry standards.

Unlike the relatively stagnant public mobile network market, private networks are increasingly being favored for their flexibility, security, and low-latency capabilities. Their adoption is driven by operational requirements that traditional connectivity methods like Wi-Fi or public cellular networks struggle to meet. The private network ecosystem is rapidly becoming crucial for enabling Industry 4.0 solutions, such as connected devices, automated guided vehicles (AGVs), and smart manufacturing processes.

Real-World Benefits Across Diverse Sectors

Private LTE and 5G networks are delivering transformative outcomes across a wide array of industries and facilities. In manufacturing, companies like Tesla and Hyundai have eradicated production delays caused by AGV connection failures, while Peel Ports Group reported a tenfold increase in network performance at the Port of Liverpool’s challenging metal-heavy environment. Similarly, Lufthansa has improved operational processes by 75% at its Los Angeles cargo facility, minimizing delays and boosting efficiency.

Beyond industry, private networks are making meaningful impacts in other sectors like entertainment and public safety. At Crystal Palace Football Club, private 5G headsets have revolutionized the experience for partially sighted fans, allowing them to enjoy matches with exceptional detail. In Canada, police forces in Ontario’s Peel-Halton region now benefit from uninterrupted in-vehicle data services, thanks to a robust public safety network equipped with advanced 5G core infrastructure. Such applications demonstrate the ability of private networks to address specific challenges that public networks may fail to resolve.

Future Growth Potential and Challenges

The future of private LTE and 5G networks lies in their adaptability and the increasing availability of dedicated spectrum for enterprises in regions like the U.S. (via CBRS), Germany, and Japan. Use cases continue to diversify, with facilities like Georgia’s prison campus and Hitachi Rail’s U.S. factory integrating private 5G networks from the ground up. Spending on standalone private networks is expected to dominate investments, reaching an estimated $5.1 billion by 2028. These networks are particularly poised to dominate mission-critical applications across public safety, utilities, and transportation sectors.

Despite the promising outlook, challenges remain. High initial setup costs, the need for specialized expertise, and ongoing spectrum regulatory issues are barriers that companies must address. Nonetheless, innovative solutions such as “network-as-a-service” (NaaS) models and simplified deployment kits are helping lower costs, making it possible even for small and medium enterprises to leverage this transformative technology.

A Parallel Ecosystem to Public Networks

With private networks now expanding into healthcare, transportation, logistics, and other industries, their market presence is becoming comparable to public mobile operator infrastructure. By the late 2020s, private mobile network spending could account for up to a fourth of all mobile network investments, creating a parallel ecosystem that rivals traditional telecommunication infrastructure.

As industries continue to prioritize security, speed, and operational efficiency, private LTE and 5G networks are set to play a pivotal role in enabling innovation and supporting critical applications. These networks are not only revolutionizing manufacturing and logistics but also empowering industries such as healthcare and defense with reliable connectivity solutions tailored to their needs.