Unlock the power of private 5G: top applications and key business outcomes
28 February 2023 | Research
Perspective | PDF (30 slides) | Private Networks
The private 5G market is at an early stage of development, but activity in the market is increasing. 5G accounted for over 50% of all publicly disclosed private network announcements at the end of 2022, according to Analysys Mason’s Private LTE/5G networks tracker.
5G’s share is lower when non-public announcements are included, but it is expected that most private networks will eventually use 5G. Enterprises are deploying private 5G for several reasons. 5G can help enterprises with their digitization goals by connecting devices to generate useful data for the enterprise. Private 5G will enable automation, streamline production processes, and bring sizable cost efficiencies. Private 5G will also help to develop emerging applications such as autonomous vehicles, drones and robotics.
Enterprises can use private 5G to replace ageing technology (such as TETRA) or provide a cheaper and less complex alternative to wired networks. Private networks are typically deployed to complement existing Wi-Fi networks. Wi-Fi is well-suited to connecting many indoor applications and will continue to do so through the development of Wi-Fi 6 and Wi-Fi 7, but private 5G is particularly suited to outdoor applications, and indoor applications that require dedicated, licensed spectrum.
The manufacturing sector has led the deployment of private 5G thus far, followed by industrial sectors such as transport and logistics, mining, and oil and gas. Private 5G has also been deployed to a lesser extent in other sectors, such as healthcare and the public sector, and opportunities in these sectors will grow significantly over time. Common private 5G applications include industrial equipment, automated/autonomous vehicles, location services and connected sensors. New 5G applications, such as those utilizing AR/VR, digital twins and robotics will emerge over time.
Many enterprises that have deployed private LTE/5G networks are already seeing positive business outcomes. Automation is the most common goal and can help to reduce costs and increase productivity. Private 5G can also provide significant energy savings, helping firms to meet sustainability goals, and improve on-site worker safety and security.
The private 5G market is evolving rapidly. Enterprises that explore private 5G early will be well-placed to understand the technical and commercial challenges associated with deploying a private network and will be able to see how private 5G can complement existing networks such as Wi-Fi. 5G could also give enterprises a competitive edge by improving productivity and developing new, advanced applications before competitors do so.
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