In recent years the hype around private 5G networks has been steadily increasing, its ability to minimize latency and dramatically improve bandwidth connections threatens to overhaul global society, driving the implementation of cutting-edge technology, smart factories, and digital transformation. Private 5G offers overall enhanced performance against legacy systems, core to enabling numerous complex devices to operate simultaneously over defined spaces which can press the smart industry initiative to new boundaries.
Serving as an alternative or complementary solution to public cellular and Wi-Fi, these networks have now reached a pivotal point in their development with adoption steadily accelerating supported by regulators worldwide continually allocating private spectrum to enterprises building their own 5G networks. This has seen the market mature with a variety of technology vendors, system integrators, MSPs, and MNOs entering the sector and forming partnerships to address demand while seeking new marketing models for private 5G network infrastructure. Leading vendors are focused on building on-ground capabilities to tap into the various opportunities becoming available in the enterprise market.
While private 4G/LTE networks provide adequate bandwidth and reliable connectivity for most enterprise use cases, 5G architectures suit organizations at the forefront of their industries by enabling the next generation of innovative devices and solutions while still capable of supporting a 4G network to provide in less demanding scenarios. 5G can also be used in conjunction with Wi-Fi services to benefit from the advantages of both.
PrivateLTEand5G.com recently released their report ‘State of the Private 5G Networks H1 2022’ which covers the evolution of the market and identifies the key trends shaping the development of private 5G networks in the first half of 2022. PrivateLTEand5G.com is a division of KAIROS Pulse, a strategic consulting company specializing in go-to-market strategy and technology marketing solutions for B2B technology companies. The company is focused on the prevalent growth market of private 5G networks.
The report details the strong momentum surrounding private 5G, referencing a May 2022 report by the Global Mobile Suppliers Association (GSA) which identifies the common use of LTE in 76% of 794 private network deployments. Despite this, the report expects that, as leading vendors prioritize private 5G networks, popularity will only increase and deployments will likely overtake LTE private networks by 2026. Many large corporations have already taken action to incorporate 5G private networks including:
- BT – Announced the establishment of the ‘Division X’ unit which will focus on providing scalability and commercialization for the development of 5G private networks, IoT, and edge computing.
- NOKIA – Launched a Private 5G Open Lab to advance the adoption of 5G private wireless networks in Korea.
- Cisco – Integrated a private 5G-as-a-service that will be available to enterprise customers on a pay-per-use model.
- Qualcomm – A collaboration with Microsoft will see Qualcomm Technologies’ 5G technologies and hardware ecosystem combined with Azure private multi-access edge compute (private MEC), including Azure Private 5G Core.5.
- Hewlett Packard Enterprise – Developed a new private 5G solution based on HPE 5G Core Stack and pre-integrated with 5G radio access network (RAN) solutions from leading vendors.
Alongside this many of the traditional telecom infrastructure vendors and leading mobile network operators have announced new partnerships and revamped their go-to-market strategies as they tackle the market and strengthen their presence. Placing emphasis on delivering new deployment models and capabilities across new channels and customer segments.
The report highlights, “Leading private network solution vendor Nokia believes building a solid indirect sales channel is critical for expanding the customer base for private 5G networks and reaching new markets. Nokia announced new indirect channel strategy partnerships with global systems integrators and IT players Kyndryl and Tech Mahindra. Nokia announced a global alliance with French IT services company Atos to bring 4G/5G private wireless to enterprise customers.”
The report points out that, “Samsung is also leveraging partnerships and going to enterprises with its private network offerings via MNOs and system integrators. The vendor has prioritized the US and Japan markets, where it sees strong demand for private networks.”
This market is only expected to mature further with forecasts that worldwide private LTE/5G wireless infrastructure revenues will reach $8.3B by 2026 as they attract increased interest from enterprises and incorporate more extensive solutions that can be integrated into private 5G network infrastructures, supporting enhanced scalability for companies involved. To learn more, find the full report here.
Edited by
Erik Linask
