2025 a ‘transformative year’ for private connectivity

In contrast to the so-called “tepid” pace of spending in the much larger but relatively stagnant public mobile network market, there have been nearly 1,300 new private cellular network engagements over the past 12 months, with 5G-based infrastructure deployments overtaking those based on LTE networks across many vertical industries, according to research by SNS Telecom & IT.

The Private LTE & 5G network ecosystem: 2025-2030 – opportunities, challenges, strategies, industry verticals report calculates that global spending on private 5G and LTE network infrastructure for vertical industries will grow at a compound annual growth rate of approximately 22% between 2025 and 2028, eventually exceeding $7.2bn by the end of 2028.

In addition, more than 70% of these investments – an estimated $5.1bn – will likely be directed towards the buildout of standalone private 5G networks, which the analyst said are well-positioned to become the predominant wireless connectivity medium for Industry 4.0 applications in manufacturing and process industries, as well as critical communications over mission-critical broadband networks for sectors such as public safety, defence, utilities and transportation.

SNS Telecom & IT sees this growth continuing where standalone 5G core investments are growing, but noted that radio access network (RAN) sales remain flat following a sharp decline in 2024. It added that against this backdrop, the real-world impact of private networks – spanning both facility/campus-based and wide-area deployments – was clearly visible across a diverse range of customers, from manufacturers, port operators and airlines, to sports clubs and public sector organisations.

What the analyst calls this “unprecedented” level of growth is regarded as being likely to transform the private RAN, mobile core and transport network segments into an almost parallel equipment ecosystem to public mobile operator infrastructure in terms of market size by the late 2020s. By 2030, private networks could account for as much as a quarter of all mobile network infrastructure spending.

As for the practical and quantifiable benefits of private LTE and 5G networks, the report highlighted how end-user organisations have credited private cellular network installations with productivity and efficiency gains for specific manufacturing, quality control and intralogistics processes in the range of 20% to 90%, cost savings as high as 60%, and an uplift of up to 80% in worker safety and accident reduction.

While it says such practical and tangible benefits of private 5G are already compelling, SNS Telecom & IT observed that another sign of the market’s positive momentum is how customers are increasingly incorporating private 5G networks as a key component of new facilities.

The study also noted a number of key examples of standalone 5G private network deployment. These included Tesla, LG Electronics and Hyundai, which have eliminated connection-related automated guided vehicle stoppages at their production facilities.

In addition, Peel Ports Group is said to have experienced a tenfold increase in network performance at the Port of Liverpool’s metal-heavy environment, which previously hindered Wi-Fi connectivity, and Lufthansa was cited as improving operational process speed by 75% at its LAX cargo facility.

Other noteworthy applications included partially sighted fans being able to experience football matches in exceptional detail using private 5G-connected headsets at Crystal Palace Football Club’s Selhurst Park stadium, and police forces in Ontario’s Peel-Halton Region having uninterrupted in-vehicle data access since adopting their independent public safety broadband network, which has recently undergone a 5G core upgrade. This was seen especially during outages affecting public mobile operator services.