Private Cellular Networks Annual Spend to Exceed $7 Billion by 2028
Largest Market Value Increases Seen in the Manufacturing and Energy Sectors
30th July 2024, London, UK: The latest private networks research from connectivity experts Kaleido Intelligence shows that enterprises will spend over $7 billion annually on private cellular networks by 2028, up from an expected $2 billion by the end of 2024.
Manufacturing Lead to Extend as Market Presence Trebles
Kaleido’s latest research, Private LTE And 5G Networks Outlook 2024, shows how the use cases for private networks will extend the lead that manufacturing has in the space, meaning the sector will account for 27% of all private networks deployed in 2028, and the number of networks will grow from over 1,000 in 2024 to over 5,000 by 2028.
By contrast, growth will be relatively slow in the energy and utilities segment with its longer product cycles, meaning it will have over 1,000 fewer networks than the manufacturing sector. Together, these two segments will account for almost half of deployments by the end of the forecast period, and half of the spend throughout the next four years.
Private Networks Leverage Flexible 5G Architecture for Collaboration & Growth
The report discusses how the flexibility of 5G architecture will enable a variety of deployment types, as the business models and collaborations between partners continue to change over time. 5G’s modular architecture allows different components from different providers as needed, and it is this flexibility that will drive the technology to be present in over half of all private networks in 2027, reaching 66% by 2028.
As well as technological experimentation, Kaleido’s report shows how the private networks sector has seen a large amount of business model innovation, driven by both MNOs looking to recoup investment in 5G infrastructure, and specialist private network vendors looking for innovative models that appeal to their clients. As a result, we expect 56% CAGR in spend accounted as Opex, compared to Capex growth of 33%.
“Private Networks are still an experimental model for many businesses, for both vendors and customers,” remarked research author James Moar. “Our report shows that it is vital to have a model where the initial business case can be shown, and then expanded as needed, rather than encapsulating all possibilities within the initial deployment.”
About Kaleido Intelligence
Kaleido Intelligence is a specialist consulting and market research firm with a proven track record of delivering telecom research at the highest level. Kaleido Intelligence is the leading research company addressing mobile roaming and connectivity services in its entirety, covering industry-leading market insights, data forecasts, historical viewpoints, competitive intelligence and operator market surveys.
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