Global Private LTE and Private 5G Network Market Size, Share & Trends Analysis Report By Technology (LTE and 5G), By Cell Sizes (Small Cells and Macrocells), By Component, By Spectrum, By End User, By Organization Size, By Regional Outlook and Forecast, 2

Global Private LTE and Private 5G Network Market Size, Share & Trends Analysis Report By Technology (LTE and 5G), By Cell Sizes (Small Cells and Macrocells), By Component, By Spectrum, By End User, By Organization Size, By Regional Outlook and Forecast, 2024 - 2031

The Global Private LTE and Private 5G Network Market size is expected to reach $33.36 billion by 2031, rising at a market growth of 20.7% CAGR during the forecast period.

Private LTE and 5G networks are being deployed for real-time monitoring and control of power grids, renewable energy facilities, and pipelines. For instance, smart grids rely on private networks to seamlessly integrate renewable energy sources, load balancing, and fault detection. Consequently, the energy & utilities segment garnered nearly 1/5th revenue share in the market in 2023. These networks enable utilities to improve efficiency, reduce outages, and optimize energy distribution through IoT-based systems and advanced analytics. This ability to support critical infrastructure and ensure uninterrupted operations positions the energy and utilities sector as a significant driver of segment growth.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance In September, 2024, Ericsson AB unveiled its Enterprise 5G strategy, offering private and neutral host 5G solutions to enhance business-critical connectivity for carpeted and industrial enterprises. These solutions improve innovation, safety, and operational efficiency, addressing the limitations of Wi-Fi and DAS with Ericsson’s advanced radio, software, and managed operations capabilities. Additionally, In June, 2024, Huawei Technologies Co., Ltd. unveiled the 5G-A Pioneers Program, gathering global operators to discuss advancing 5G-A networks. With the official release of 3GPP Release-18, 2024 marks the first year of commercial 5G-A deployment, aimed at expanding business opportunities and driving long-term growth toward an intelligent future.

Based on the Analysis presented in the KBV Cardinal matrix; AT&T Inc., Huawei Technologies Co., Ltd., Qualcomm Incorporated, Samsung Electronics Co., Ltd., and Siemens AG are the forerunners in the Private LTE and Private 5G Network Market. In September, 2024, Huawei Technologies Co., Ltd. hosted the optical summit themed "Accelerate F5G-A, Amplify Intelligence," and unveiled new F5G Advanced products based on the "3 In 3 Out" trends to enhance industrial intelligence. Huawei's initiatives include Fiber-in Copper-out, fgOTN-in SDH-out, and Optical-sensing-in Hard-work-out, urging industry collaboration for smarter, faster connectivity solutions. Companies such as Robert Bosch GmbH, Nokia Corporation, and ZTE Corporation are some of the key innovators in Private LTE and Private 5G Network Market.

Market Growth Factors

The integration of IoT devices and industrial digitalization also opens the door for advanced technologies like artificial intelligence (AI) and edge computing, which further enhance efficiency and decision-making capabilities. Private LTE and 5G networks provide the reliable connectivity backbone required to deploy these innovations at scale, ensuring that industries can harness the full potential of digital transformation. Thus, as industrial digitalization expands, private networks will remain an essential enabler, driving productivity, sustainability, and innovation across sectors.

Private LTE and 5G networks excel in minimizing latency, a key requirement for real-time applications. For instance, in automated manufacturing environments, even a minor delay in communication between machines can disrupt production processes, leading to inefficiencies or costly errors. Similarly, in Internet of Things (IoT) ecosystems, rapid data transmission enables devices to respond instantly to environmental changes. Private networks ensure seamless operation of these critical applications by reducing latency to near-zero levels, facilitating automation and IoT deployment advancements. Hence, these factors will drive the growth of the market.

Market Restraining Factors

Beyond deployment, the ongoing maintenance and operational costs of private LTE or 5G networks can also be prohibitive. These costs include system upgrades, equipment replacement, network monitoring, and staffing skilled personnel to manage the network efficiently. Businesses must also allocate resources to ensure network security and resilience against potential cyber threats, which involves implementing security protocols, software updates, and compliance measures. Consequently, many organizations find public networks or shared solutions more appealing, further hampering the growth and adoption of private LTE and 5G networks. Hence, this combination of high initial and ongoing costs makes achieving widespread penetration challenging for these networks, hampering the market's growth.

Technology Outlook

Based on technology, the market is bifurcated into LTE and 5G. The 5G segment procured 46% revenue share in the market in 2023. This growth is driven by the increasing adoption of next-generation technologies that demand ultra-low latency, enhanced connectivity, and high bandwidth. Industries like smart manufacturing, autonomous vehicles, and augmented reality applications have started leveraging private 5G networks to support their advanced use cases. Although 5G adoption is currently limited by higher deployment costs and technical complexity, its potential to revolutionize enterprise operations continues to attract significant investments.

Cell Sizes Outlook

On the basis of cell sizes, the market is classified into small cells and macrocells. The small cells segment acquired 72% revenue share in the market in 2023. The small cells segment is driven by its ability to provide high-capacity, low-latency connectivity in localized areas, making it ideal for industries with dense user demands, such as manufacturing, healthcare, and retail. Their compact size, cost efficiency, and scalability allow enterprises to deploy them in indoor and outdoor environments, including factories, hospitals, and urban hotspots. Furthermore, the rising adoption of IoT devices and smart infrastructure has increased the demand for small cells, as they enable seamless connectivity in high-traffic zones.

Component Outlook

By component, the market is divided into hardware, software, and services. The software segment garnered 35% revenue share in the market in 2023. The increasing need for network optimization, scalability, and security in private LTE and 5G networks drives the software segment. Solutions like network management systems, virtualization technologies, and security software enable enterprises to control, monitor, and protect their networks efficiently. The shift towards cloud-based operations and software-defined networking (SDN) has also spurred demand for flexible and scalable software solutions.

Spectrum Outlook

Based on spectrum, the market is segmented into licensed, unlicensed, and shared. The licensed segment procured 57% revenue share in the market in 2023. Industries like healthcare, manufacturing, and transportation rely on licensed spectrum to ensure reliable communication for remote monitoring, automation, and logistics applications. The exclusivity of licensed spectrum ensures dedicated bandwidth, reducing latency and enhancing performance, which is essential for mission-critical use cases. Furthermore, structured regulatory frameworks governing licensed spectrum offer long-term operational stability, encouraging enterprises to invest in this segment.

End-user Outlook

On the basis of end-user, the market is classified into manufacturing, IT & telecom, energy & utilities, healthcare, aerospace & defense, transportation & logistics, and others. The transportation & logistics segment witnessed 21% revenue share in the market in 2023. The sector’s growing reliance on connectivity for operational efficiency and real-time tracking fueled the segment. Private LTE and 5G networks enable advanced applications such as autonomous vehicles, smart traffic management, and fleet monitoring. For example, logistics hubs and ports adopt private networks to manage inventory, optimize vehicle movement, and ensure safety in large-scale operations.

Organization Size Outlook

By organization size, the market is bifurcated into large enterprises and SMEs. The large enterprises segment procured 68% revenue share in the market in 2023. Significant investments in advanced connectivity solutions drive the segment to enhance operational efficiency, scalability, and security. Large organizations, particularly in manufacturing, logistics, and healthcare industries, leverage private networks to support mission-critical applications, IoT deployments, and real-time analytics. For instance, major manufacturers like Siemens and Bosch have adopted private 5G networks to modernize their operations and enable Industry 4.0 capabilities.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 38% revenue share in the market in 2023. The North America segment is driven by its advanced technological infrastructure and early adoption of private LTE and 5G networks. The strong presence of key industry players and significant investments in private network deployments across sectors such as manufacturing, healthcare, and transportation fuel the market's growth.

Recent Strategies Deployed in the Market

• Oct-2024: Nokia Corporation partnered with NTT DATA, a Japanese multinational information technology service and consulting company to deliver advanced Private 5G solutions for industries like airports and smart cities. Combining Nokia’s 5G technology with NTT DATA’s Private 5G Network-as-a-Service platform, the collaboration enhances connectivity, enabling AI, IoT, and edge computing for improved efficiency, safety, and sustainability.
• Aug-2024: AT&T Inc. partnered with Oracle, a technology company, to leverage the operator’s 5G network and programmable APIs for delivering cloud applications across industries like telehealth and utility management. Their collaboration enables IoT connectivity and near real-time communications, enhancing performance and reliability while simplifying integration for businesses, particularly in public safety.
• Aug-2024: Nokia Corporation teamed up with YellowScan, an Electronics manufacturer Company to enhance industrial operations by integrating the YellowScan Surveyor Ultra LiDAR scanner with Nokia's Drone Networks. This collaboration aims to automate 5G-based LiDAR scanning for inspections in telecommunications, utilities, and mining, potentially reducing operational costs by over 60% while enabling real-time data streaming and accurate digital twins.
• Jul-2024: Nokia Corporation signed an agreement with Telefónica, a Spanish multinational telecommunications company to develop Spain’s private 5G network market, focusing on industries like ports, manufacturing, and logistics. Nokia will deploy 100 advanced solutions, including DAC, MPW, and MXIE, to enhance productivity, safety, and sustainability, integrating with Telefónica’s infrastructure for digital transformation.
• Feb-2024: Ericsson AB teamed up with du, from EITC, to provide Ericsson Private 5G Networks in the UAE. This collaboration aims to enhance secure, reliable 4G and 5G connectivity for government and enterprise sectors, accelerating Industry 4.0 adoption, smart services, and digital transformation, supporting the UAE’s technology-driven economic growth vision.

List of Key Companies Profiled

• AT&T Inc.
• Ericsson AB
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• NEC Corporation
• Nokia Corporation
• Qualcomm Incorporated (Qualcomm Technologies, Inc.)
• Samsung Electronics Co., Ltd. (Samsung Group)
• ZTE Corporation
• Siemens AG
• Robert Bosch GmbH

Global Private LTE and Private 5G Network Market Report Segmentation

By Technology

• LTE
• 5G

By Cell Sizes

• Small Cells
• Macrocells

By Component

• Hardware
• Software
• Services

By Spectrum

• Licensed
• Unlicensed

By End-user

• Manufacturing
• IT & Telecom
• Energy & Utilities
• Healthcare
• Aerospace & Defense
• Transportation & Logistics
• Other End-users

By Organization Size

• Large Enterprises
• SMEs

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA