From 2024 to 2030, the global private 5G network market size is expected to grow at a compound annual growth rate (CAGR) of 54.1%, following its USD 2 billion rise in 2023, according to Grand View Research.
In the modern era, where wireless network technologies drive enhanced business operations, Private Mobile Networks (PMNs) have emerged as an innovative solution for enterprises aiming to improve their performance, coverage, and security.
Wi-Fi has proven to be a popular and cost-effective solution for home connectivity. However, PMNs are set to revolutionize connectivity in the enterprise world, offering tailored innovations transcending traditional wireless networks.
As technology continues to evolve, enterprises must adapt and learn to harness the power of modern innovations to stay relevant and establish their competitive edge in the market.
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A New Era of Enterprise Connectivity
Over the years, the demand for PMNs has drastically increased, fueled by the immense growth in data usage, heightened security, and enhanced mobility in enterprises. Consequently, organizations are racing to transform their business operations to accelerate connectivity and monetization goals.
These network solutions deliver a wide array of key features, enhancing enterprise connectivity, including tailored services and traffic management.
Compared to traditional wireless networks, private 5G technology is more beneficial to enterprises, as it delivers ultra-fast speeds, enhances security, and offers unparalleled reliability in a dedicated space. This robust connection supports the broad ecosystem of Internet of Things (IoT) devices and applications.
According to Analysys Mason, the private LTE/5G network is poised to grow from over 4,000 in 2022 to over 60,000 in 2028, with network spending predicted to reach USD 9 billion in the same year. This substantial growth underscores the increasing adoption of PMNs, enabling enterprise digital transformation.
PMNs provide greater coverage with a smaller footprint compared to traditional Wi-Fi networks, enabling more use cases with high mobility or stationary assets in hard-to-reach areas.
Furthermore, PMNs enable handover capabilities for critical use cases, such as asset tracking, inventory control, and autonomous vehicle management.
The ability to establish virtual networks in a single physical infrastructure through network slicing optimizes the key features of PMNs.
In addition, private 5G networks can operate in harsh environments using spatial diversity and coordinated multipoint (CoMP) parameters, ultimately meeting the demand for availability.
The networks’ configurable quality of service and improved cost-effectiveness facilitates its widespread adoption across various industries, driving digital transformation in enterprises.
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Navigating the Challenges of Private Mobile Networks
The emergence of PMNs provides clear benefits for enterprises. However, implementing PMNs presents a set of challenges that deployers and enterprises must overcome.
The complex PMN landscape requires specialized skills and knowledge, which many organizations currently lack, establishing a potential barrier to widespread adoption.
For smaller enterprises, the high cost of adopting and maintaining advanced private networks can be challenging, potentially placing this cutting-edge technology out of reach for small organizations.
Optimizing 5G private network coverage demands careful planning to avoid interference, adding another layer of intricacy.
Additionally, PMNs must adhere to regulatory compliances, including spectrum licensing, data privacy and security, and environmental and health regulations. Obtaining the right frequency band is crucial to achieving optimal network performance and coverage.
The complex integration with existing IT/OT networks poses substantial challenges in the PMN landscape. The shift from Proof-of-Concept (PoC) to full-scale production may also present a challenge for enterprises.
Notably, telecommunications and technology companies are continuously developing innovative solutions to simplify deployment and reduce the costs of PMNs. These strategic moves will make PMNs more accessible to small- and medium-sized enterprises.
As these network solutions evolve, the barriers to global PMN adoption are likely to be resolved, creating new opportunities for enterprises to grow and flourish.
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Private Mobile Network Innovations
The 5G era has delivered new opportunities for the global mobile ecosystem. According to the GSMA, there has been an increase in the number of collaborations between operators and enterprises to deploy private networks, signifying the development of more innovative PMN solutions in the coming years.
The GSMA also highlighted edge cloud solutions as key drivers in unlocking the real value of private 5G, providing enterprises with the flexibility to deploy workloads.
Telecom operators, including Verizon, AT&T, and T-Mobile are prioritizing private 5G for their enterprise customers.
In Belgium, telecom operator, Citymesh, implemented mobile private networks across the country, supporting mission-critical applications for city infrastructure and major transportation hubs.
Ericsson’s Private 5G delivers a secure and powerful 4G LTE and 5G Standalone (5G SA) connectivity to organizations, optimizing business-critical operations. This next-generation private network is tailored to unlock innovative indoor and outdoor use cases.
Meanwhile, AWS’ Private 5G facilitates the connection of hundreds of devices and machines utilizing PMN’s high reliability and low latency features. AWS’ Private 5G enables enterprises to deploy, operate, and seamlessly scale their own PMNs.
Verizon’s Mobile Private Network wireless access point (WAP) solution delivers seamless and secure access to network enterprises. This solution prevents unauthorized traffic on the private network while providing easier scalability.
In addition, Verizon’s private 5G networks enable organizations to secure data traffic on-site and segregate it from public traffic. This provides greater security than Wi-Fi and ensures the safer integration, management, and control of devices and applications.
Recently, technology solution providers, NEC and Cisco, launched a private 5G solution for enterprises, addressing the demands for optimized performance and security. The strategic collaboration will implement, maintain, and support private 5G networks for enterprise customers directly or through cooperation with telecommunication companies worldwide.
In the Middle East, UAE-based telecom operator, e&, is set to build a private 5G wireless network for ADNOC. Spanning 11,000 square kilometers, the high-speed network is poised to be the largest private 5G wireless network in the energy industry.
Another UAE-based telecom operator, du, commercially rebranded from Emirates Integrated Telecommunications Company (EITC), announced a collaboration with Ericsson in early 2024 to drive digital transformation within enterprises and government entities through private 5G networks.
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Final Thoughts
PMNs demonstrate a significant leap in enterprise connectivity. Its impact extends beyond mere connectivity; these network solutions will enable new use cases and drive innovation across industries.
As organizations embrace digitalization and automation, the demand for more secure and reliable network solutions will continue to grow.
The ever-evolving nature of modern technology will spiral the development of enhancements in enterprise connectivity, catapulting businesses to new heights.
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