- The global private cellular network market is predicted to increase at a compound annual growth rate (CAGR) of 28.1% to $6.32 billion by 2026, up from $1.83 billion in 2021.
- Private 5G networks are being used by businesses to improve manufacturing process efficiency while ensuring safety and security.
- Licensed spectrum is the only realistic option for most enterprises interested in investing in a private 5G network.
- Consider using shared or unlicensed spectrum to solve business problems that do not jeopardize safety.
Organizations are adopting private 5G networks to boost manufacturing process efficiency while maintaining safety and security. According to Frost & Sullivan’s recent report, Global Private 5G Network Growth Opportunities, combining the increased power of 5G with the idea of a private 5G network propels organizations to new heights.
Growth of private 5G networks
While some have begun their journey with 4G, the possibilities provided by 5G will attract the majority to upgrade over time. The growing worldwide private cellular network market is expected to reach $6.32 billion by 2026, up from $1.83 billion in 2021, at a compound annual growth rate (CAGR) of 28.1%. Private 5G network contributions will be large, reaching $5.05 billion during the projected period, up from $600 million in 2021.
Troy Morley, ICT Industry Principal Analyst at Frost & Sullivan, stated that “Wi-Fi continues to be important to most enterprises, but private cellular networks cover use cases that Wi-Fi does not do well and, in many cases, can provide a better network for less. Private 4G networks improve on Wi-Fi, particularly around mobility, and private 5G networks improve on 4G, enabling higher throughput, higher connection densities, and lower latencies.”
“To achieve an acceptable return on 5G investments, communication service providers (CSPs) must better serve customers outside of the consumer market. This may be with network slicing, edge networks, and/or private 5G networks,” he added.
Spectrum is required for any wireless technology, and CSPs license a portion of the available spectrum for private 5G networks, but not all. Organizations should do the following to realize the benefits of private 5G networks:
Begin by collaborating with local CSPs. The licensed spectrum provides the greatest level of dependability and quality of service (QoS); it is required for mission-critical activities. Globally, the CSP-licensed spectrum is available. Licensed spectrum is the only viable option for most businesses interested in investing in a private 5G network. Collaboration with a CSP and their spectrum is frequently the best solution.
If accessible, look into an industry-licensed spectrum. In several parts of the world, governments are directly licensing spectrum to businesses, providing an alternative to the CSP-licensed spectrum. Industry-licensed spectrum delivers the required dependability and QoS at a lower cost.
Consider shared or unlicensed spectrum to solve commercial challenges that do not affect safety. While licensed spectrum is required when private 5G networks are solving mission-critical use cases, other firms are attempting to solve challenges that do not necessitate the same level of dependability or QoS.
This opens the door to employing shared spectrum (such as CBRS in the United States) or even unlicensed spectrum for private 5G networks, thereby lowering total costs. (Wi-Fi uses an unlicensed spectrum.)