The Rise of Private LTE and 5G Networks: Transforming Industries and Driving Growth

The private LTE and 5G network market is experiencing remarkable growth, driven by the demand for secure and high-speed connectivity in industries undergoing digital transformation. According to SNS Telecom & IT’s recent report, the market is expected to reach a value of $7.2 billion by 2028, with private 5G networks overtaking LTE deployments across various sectors. This growth contrasts with the relatively stagnant public mobile network market, where RAN (Radio Access Network) spending has remained flat since last year’s decline. Private networks, with their focused application, are gaining traction for enabling smarter and more efficient operations in industries such as manufacturing, logistics, healthcare, and public safety.

Industry Leaders Showcase Private Network Success

Real-world applications of private LTE and 5G networks highlight their transformative impact. Companies such as Tesla, Hyundai, and LG Electronics have reported significant operational improvements, including the elimination of connection-related stoppages in their automated guided vehicles (AGVs). Similarly, Peel Ports Group reported a tenfold improvement in network performance at the Port of Liverpool, overcoming Wi-Fi limitations in challenging environments. In the realm of public safety, police forces in Ontario, Canada, have benefited from uninterrupted in-vehicle data access, even during outages on public mobile networks. These examples showcase how private networks are revolutionizing operations and improving efficiency across diverse industries.

Private 5G Networks: A Key Component of Future Facilities

Another significant trend is the integration of private 5G networks into the infrastructure of new facilities from the outset. For example, the Georgia Department of Corrections is implementing a private 5G network in a new state prison project, covering 800,000 square feet across 200 acres. Other facilities, such as Hyundai Motor’s electrified vehicle plant, Cleveland Clinic’s new hospital, and Formula 1’s Las Vegas complex, have also adopted private 5G to future-proof their operations. These networks offer enhanced performance, reliability, and security, ensuring operational excellence in industries undergoing technological transformation.

Market Growth and Industry Verticals Benefiting from Private 5G

The report predicts a compound annual growth rate (CAGR) of approximately 22% for private LTE and 5G network infrastructure investments between 2025 and 2028. By 2030, these networks could represent up to 25% of mobile network infrastructure spending. Manufacturing remains the dominant industry, leveraging connectivity for robotics, quality control, and automated systems. Meanwhile, healthcare is the fastest-growing vertical, utilizing private networks for remote monitoring, telemedicine, and connected medical devices. Other sectors like transportation, logistics, energy, and utilities are also rapidly adopting private 5G to enhance efficiency and safety in their operations.

Future Challenges and Opportunities

Despite its promising outlook, the private 5G network market faces challenges such as high initial investment costs and the need for specialized technical expertise. Regulatory hurdles related to spectrum availability also pose barriers in some regions. However, emerging cost models like network-as-a-service (NaaS) and simplified solutions are making private networks more accessible to small and medium-sized enterprises (SMEs). As industries continue to embrace Industry 4.0, private LTE and 5G networks are set to play a crucial role in enabling smarter, more efficient, and interconnected operations across the globe.