Private wireless networks are proving to be a game-changer for enterprises, offering significant benefits over legacy Wi-Fi and cellular technologies, according to a recent report from GSMA.
GSMA Intelligence says private wireless networks, particularly those based on LTE and 5G, are reshaping industries by providing nearly complete coverage, reduced infrastructure needs, and enhanced operational efficiency across indoor and outdoor environments.
Hurdles
But other reports indicate that investment in private wireless networks market is facing slow down due to lack of strong use cases.
The latest Analysys Mason report said network spend on private networks will increase to $9 billion in 2028 from $1 billion in 2022. However, network spend on private networks will be less than 5 percent of the equivalent spend on public network infrastructure.
The number of private LTE / 5G networks worldwide will grow from over 4,000 in 2022 to over 60,000 in 2028, according to Analysys Mason.
The private networks market faces barriers that are holding back adoption, Ibraheem Kasujee, analyst at Analysys Mason said. The main hurdle is the price of 5G devices. The report indicates 5G devices are not yet available in several markets.
Private cellular can be expensive because deployments are based on a dedicated, on-premises model that has both a Capex and Opex element. Opex-only pricing models are emerging, which may be better suited to small and medium-sized enterprises (SMEs). Opex-only pricing models will not be cost effective as compared with Wi-Fi.
Gartner says spending on Communications Services will grow 3 percent to $1,537.188 billion in 2024. Total IT spending will grow 7.5 percent to $5,267.163 billion in 2024.
Growth potential
GSMA says one of the advantages is the ability to cover large areas with far fewer cellular radios (small cells) than Wi-Fi access points. For instance, mining giant Rio Tinto replaced over 30 Wi-Fi access points with just four LTE base stations, and Nokia’s smart factory in Chennai achieved the same with only two LTE base stations.
With 5G, the reduction in base stations is even more pronounced, driving down total cost of ownership. The cost-effectiveness of 5G radios, along with reduced cabling requirements, leads to lower operational costs and energy consumption.
In contrast to Wi-Fi, private wireless networks enable real-time communication with moving endpoints, such as products or people, making them ideal for advanced applications like asset tracking, inventory control, and autonomous vehicles (AGVs). AGVs, for example, require low-latency communication (below 10 milliseconds) and seamless handover between coverage areas to operate efficiently. Wi-Fi struggles to meet these stringent demands, whereas 5G excels in providing the necessary reliability and speed.
Another key feature of 5G networks is their ability to prioritize specific data traffic. Unlike Wi-Fi, which is a shared resource, 5G allows for the configuration of differential access. This means that critical systems, such as CCTV cameras or 4K video feeds, can be given higher data throughput, while worker safety systems that require ultra-low latency — like geofencing around hazardous areas — can be optimized for real-time warnings.
For industries operating in harsh environments, such as oil and gas, mining, transportation, and aviation, 5G private networks offer advanced techniques like spatial diversity and coordinated multipoint (CoMP) to ensure stable, high-quality connectivity, overcoming challenges posed by physical obstructions or lack of clear sightlines.
As manufacturing and other sectors transition to private 5G networks, they stand to benefit from reduced infrastructure costs, lower energy consumption, and enhanced connectivity solutions that can tackle the most complex operational demands.
Key Markets
The GSMA has revealed significant momentum in the private wireless network business, with key developments taking place across North America, Europe, and Asia. Companies are increasingly adopting private 5G networks to enhance security, speed, and operational efficiency, especially in sectors like defense, transportation, and healthcare.
In North America, telecom giants Verizon, AT&T, and T-Mobile have launched live private wireless networks, prioritizing the enterprise market for 5G solutions. These deployments are split between licensed and unlicensed spectrum, with the latter leveraging Citizens Broadband Radio Service (CBRS) frequencies. High demand from the U.S. military, transportation industries, and professional sports organizations such as the National Hockey League is driving growth.
Across Europe, key countries such as Germany, France, the UK, Spain, and the Nordics are witnessing increased private wireless activity. Large-scale deployments are evident in critical infrastructure sectors, including construction, mining, and healthcare, alongside traditional enterprise use in manufacturing and services.
In Asia, South Korea leads the private network surge, with 48 operational private 5G sites, showing strong growth from last year. Key use cases include shipbuilding, logistics, and energy. China also dominates globally, with over 30,000 private 5G deployments, driven by the country’s major telecom operators.
Innovations
GSMA has highlighted several innovations in private wireless networks, which are poised to significantly enhance enterprise operations and drive adoption beyond traditional connectivity solutions. These advancements build on the core benefits of LTE and 5G networks, bringing new capabilities that elevate the value proposition of private networks for businesses.
One of the most promising features of 5G is network slicing, which allows operators to offer enterprises tailored connectivity “slices” from a public network. This enables customized solutions that meet specific requirements for throughput, latency, and quality of service. While still in its early stages, network slicing will gain traction as 5G standalone (SA) networks expand, allowing enterprises to benefit from flexible, fully managed private networks.
AI is playing a growing role in optimizing private wireless networks, particularly in edge computing. AI is being deployed to accelerate workloads on edge servers, manage complex data streams from IoT devices, and orchestrate network services from the cloud to the premises. Over time, AI-driven insights from industrial sensors and machines will improve operational efficiency and business intelligence.
Baburajan Kizhakedath
