Private 5G to Reach $6.4B by 2026, Emerging as Parallel Ecosystem to Public Networks
A new report from SNS Telecom & IT forecasts global spending on private LTE and 5G network infrastructure for vertical industries will grow at a **18% CAGR** from 2023 to 2026, surpassing **$6.4 billion** by the end of 2026. Of this, **40% ($2.8 billion)** is earmarked for standalone private 5G networks powering Industry 4.0 automation in discrete and process manufacturing.
Unprecedented Growth to Create Parallel Ecosystem
The report characterizes this growth as “unprecedented,” projecting that by the late 2020s, private LTE/5G networks will evolve into an **almost parallel equipment ecosystem** to public mobile operator infrastructure in terms of market size. Traditional mobile network operators (MNOs) remain key players, alongside a new generation of “private network operators,” in this expanding landscape.
MNOs Leverage Core Assets to Capture Vertical Opportunities
“By capitalizing on extensive licensed spectrum holdings, infrastructure assets and cellular expertise, national MNOs have retained a strong foothold in the market,” the report states. “With an expanded focus on vertical opportunities in the 5G era, [they] are actively involved in diverse projects extending from localized 5G networks for industrial and enterprise environments to nationwide public safety broadband networks.”
Vendor Market Sees Rapid Expansion and Consolidation
The vendor ecosystem has grown rapidly with the entry of system integrators (NTT, Kyndryl) and hyperscalers (AWS, Google, Microsoft), while also witnessing consolidation. Notable deals include HPE’s acquisition of Athonet, and in Australia, Telstra’s purchase of Aqura Technologies and Vocus’s acquisition of private network pioneer Challenge Networks.
Tangible Business Outcomes Drive Enterprise Adoption
Enterprises in manufacturing, mining, oil and gas, ports and other verticals report significant benefits from private cellular deployments: **30–70% gains in productivity and efficiency**, **>20% cost savings**, and **80% improvement in worker safety and accident reduction**. The report notes that dedicated spectrum regulations (or processes) are in place across key markets including Australia, Bahrain, Brazil, Canada, China, Germany, Finland, France, Hong Kong, India, Japan, Netherlands, Norway, Poland, South Korea, Sweden, Taiwan, the UK, and the US.
Broad Vertical Adoption Across Industries
The report outlines private LTE/5G deployments spanning Agriculture, Aviation, Broadcasting, Construction, Education, Forestry, Healthcare, Mining, Railways, Utilities and numerous other sectors. Access the full report at https://www.snstelecom.com/private-lte.
