Private 5G as a Service Market - Size, Industry Share, Growth Trends and Forecasts (2024 - 2031)

By Type:

Based on type the market is segmented into standalone (SA) and non-standalone (NSA).

Trends in the type:

• There is a growing trend towards deploying 5G cores specifically designed for Standalone networks. These cores are essential for unlocking the full potential of 5G, including network slicing and ultra-reliable low-latency communication (URLLC), which are critical for advanced use cases like autonomous vehicles.
• Non-Standalone networks offer a cost-effective way for operators to introduce 5G services, as they do not require immediate investment in a 5G core. This growth has made NSA networks the preferred choice for initial 5G rollouts in many regions, especially in developing markets.

The standalone type component accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR during the forecast period.

• SA networks provide the complete range of 5G features, including ultra-low latency and network slicing, which are crucial for advanced industrial applications and enterprise needs.
• Additionally, Industries with complex use cases, such as autonomous vehicles, smart manufacturing, and remote operations, are increasingly adopting SA networks to fully leverage 5G's capabilities.
• In September 2022, Telstra, in collaboration with Ericsson, announced a suite of innovative 5G Standalone (SA) services designed for enterprises. This partnership highlights several groundbreaking advancements in 5G technology, including the deployment of fully automated 5G network slicing and the introduction of a Local Packet Gateway within Telstra's commercial network.
• Thus, the standalone enhances the industrial operations, fueling the private 5G as a service market demand.

By Component:

Based on components the market is segmented into hardware, software, and services.

Trends in the component:

• The opportunities for managed services are increasing as enterprises seek to offload the complexities of deploying and managing private 5G networks. Managed service providers offer end-to-end solutions, including network design, deployment, monitoring, and maintenance, allowing organizations to focus on their core business.
• The adoption of Network Function Virtualization (NFV) and Software-Defined Networking (SDN) is transforming private 5G networks by enabling more flexible and scalable network management. These technologies allow for virtualized network functions and centralized control, which simplify deployment and reduce operational costs.

The hardware component accounted for the largest revenue share of 46.21% in the year 2023.

• The private 5G network infrastructure encompasses hardware including base stations, antennas, modems, and edge computing devices.
• These components are essential for establishing the foundational infrastructure needed to support 5G connectivity and performance.
• In February 2021, Qualcomm released Snapdragon X65 5G Modem-RF System, fourth-generation 5G modem-to-antenna solution. These modems facilitated high-speed, reliable connectivity for various private 5G deployments, including smart logistics and healthcare.
• Therefore, the hardware segment is propelling the private 5G as a service market trend.

The software segment is anticipated to register the fastest CAGR during the forecast period.

• Software segment enables more flexible, scalable, and cost-effective management of private 5G networks.
• It allows for centralized control, automation, and dynamic resource allocation, essential for managing the complexity and scale of future 5G deployment.
• In November 2023, Ericsson launched 5G RAN Software to boost automation and network capacity. The software includes automation and orchestration capabilities, enabling efficient management and optimization of private 5G networks in manufacturing environments.
• Thus, as per the analysis, enhanced control and automation offered by the software segment is fueling the private 5G as a service market opportunities.

By Frequency band:

Based on frequency band the market is segmented into Sub-1 GHz, 1 GHz to 6 GHz, 24 GHz, and above.

Trends in the frequency band:

• Advancements in network management software and radio technologies are enhancing the efficiency of mid-band (1 GHz to 6 GHz) spectrum usage. Techniques such as dynamic spectrum sharing, and advanced beamforming are optimizing network performance and resource allocation.
• The high-band spectrum (24 GHz and above) is increasingly used for applications requiring ultra-high-speed data transfer and low latency. This trend includes immersive technologies such as virtual reality (VR) and augmented reality (AR), as well as advanced manufacturing and autonomous vehicles.

The 1 GHz to 6 GHz frequency band accounted for the largest revenue share in the year 2023.

• 1 GHz to 6 GHz frequency band is also known as Mid-band spectrum. It offers a favorable balance between coverage and capacity, making it well-suited for high-density urban environments and enterprise applications.
• Many private 5G networks being deployed today use mid-band frequencies. This growth is driven by its ability to provide a good mix of coverage and performance.
• In September 2021, Ericsson and Qualcomm collaborated to deploy a 5G New Radio (NR) call on CBRS (Citizen Broadband Radio Service) with mid-band spectrum. This combination enables support for high-speed data transfer and enables various IoT applications within industrial and commercial environments, fueling the Industry 4.0 evolution.
• Hence, due to widespread deployments and diverse applications, the mid-band spectrum is boosting the private 5G as a service market trend.

The 24 GHz and above frequency band segment is anticipated to register the fastest CAGR during the forecast period.

• 24 GHz above is called a high-band spectrum including mmWave, and offers extremely high data rates and bandwidth, making it ideal for applications that require massive amounts of data transfer.
• It provides very low latency, which is crucial for applications demanding real-time responses.
• In October 2023, Huawei introduced a series of 5.5G solutions enabling mmWave tailored for individuals and home users, focusing on delivering high-speed connectivity and low latency to enhance immersive user experience and connectivity.
• Therefore, according to the analysis, the ability of the 24 GHz and above frequency band particularly mmWave provide high-data rates and low latency, is poised to dominate the global private 5G as a Service market share.

By Application :

Based on application the market is segmented into industrial, commercial, healthcare, residential, entertainment, BFSI, and others.

Trends in the Application :

• The 5G network is increasingly being used in healthcare, as it provides surgical guidance to primary hospitals and makes robotic surgery widespread and accessible to the masses.

The Industrial application segment accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR during the forecast period.

• The demand for automating industrial processes to enhance productivity, reduce costs, and improve operational efficiency is propelling the segment.
• Additionally, 5G networks provide the high-speed, low-latency connectivity needed to support advanced robotics, real-time monitoring, and automated control systems.
• In September 2023, Siemens launched private infrastructure with 5G communications standards. This solution enables industrial companies to build their customized 5G networks catering to industrial needs, which will provide optimal support for automation applications.
• Thus, as per the analysis, private 5G as a service market is driven by the need for high-speed and low-latency connectivity to support industrial automation systems.

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 952.17 Million in 2023. Moreover, it is projected to grow by USD 1,299.29 Million in 2024 and reach over USD 12,806.28 Million by 2031. Out of this, China accounted for the maximum revenue share of 35.9%. As per the private 5G as a service market analysis, In the Asia-Pacific region, the adoption of private 5G networks is rapidly gaining momentum, driven by the region's strong focus on technological innovation and industrial advancement. Countries including China, India, Japan, and South Korea are at the forefront of this development, with extensive investments in private 5G networks across various sectors.

In June 2022, Samsung Electronics partnered with Naver Cloud to launch a private 5G network solution, aiming to cater to businesses and industries seeking secure and high-performance connectivity. This partnership combined Samsung's advanced 5G network technology with Naver Cloud's cloud services to provide a comprehensive private 5G offering.

North America is estimated to reach over USD 16,320.16 Million by 2031 from a value of USD 1,250.03 Million in 2023 and is projected to grow by USD 1,701.49 Million in 2024. In North America, the deployment and adoption of private 5G networks are notably advanced, driven primarily by the United States and Canada. These deployments focus on Industry 4.0 solutions, leveraging high-speed, low-latency connectivity to improve automation, real-time data analytics, and overall operational efficiency. Consequently, the integration of private 5G across various sectors, including manufacturing, healthcare, and smart cities propels the private 5G as a service industry.

• In November 2021, according to the analysis of IBM (US), the IoT and Edge devices with 5G connectivity use AI analytics to detect faults across industrial sites. These devices are compelling business use cases and favorable regulatory changes on spectrum, availability for enterprises. TBR estimates private 5G networks market will reach USD 7.5 billion in 2025 up from USD 200 million in 2020.

Europe is emerging as a key region in the adoption of private 5G networks driven by robust investment and security. The region is particularly focused on enhancing its industrial and manufacturing sectors with countries including Germany, France, and the UK.

Latin America is gradually embracing private 5G as a service as countries in this region are experiencing economic expansion and innovation in technology. The Middle East and Africa region is experiencing steady private 5G as a service market expansion. It is boosted by the need for advanced connectivity in sectors including oil and gas, smart cities, and logistics.