Private 5G networks: Making high internet speeds more accessible

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  Quantumrun Foresight
• February 6, 2023

Insight summary

Private telecom networks give local operators more control over access points and devices, making them more secure. By controlling access and deprioritizing activities, private networks can limit or even isolate exposure to third parties, which could serve as added protection against employee information, data, and intellectual property theft. 

Private 5G networks context

According to consultancy firm Frost & Sullivan, the global private cellular network market is predicted to grow at a compound annual growth rate (CAGR) of 28.1% from 2021-2026, reaching USD $6.32 billion by 2026. This figure is up from USD $1.83 billion in 2021 and represents significant opportunities for businesses in this space.

The drivers for private 5G investment can be classified into three major categories: digitization, distributed computing systems, and democratization of the spectrum. Enterprises wanting to create a private network connectivity platform must buy spectrum from the government or mobile operators, get 5G equipment (base stations, mini-towers, small cells) from infrastructure providers, and connect it all to edge devices (smartphones, routers, gateways, etc.). 

A private 5G network is much like a public one but with some additional features. For example, both offer gigabit speeds and lower-latency high-throughput connectivity. A significant difference is that private networks can be set up to only work within the confines of one location, such as a factory. This always-on connectivity is necessary for smoothly running machinery, computer systems, and logistics.

For example, a private 5G network would allow an auto manufacturing plant to move parts along with an assembly line that is robotics-based and connected. This proposed network can be configured to prioritize specific machines over others, enabling operators to quickly adapt processes to developing situations.

Disruptive impact

As industry 4.0 progresses, industrial businesses rely more on platform ecosystems in which the wireless network is coordinated with other information and communication technology (ICT) infrastructures and services. As collaborative robots become more specialized, self-driving machines are becoming increasingly popular in factories, hospitals, farms, government agencies, and many other industries. Adopting private 5G networks will unlock even more compelling use cases for these innovative technologies.

The mobile network operators (MNOs) stand to gain the most from private 5G networks as MNOs can act as integrators and consultants for the private network. Private networks will allow mobile network operators (MNOs) to become value-added partners for their enterprise customers rather than simply connectivity providers. In addition, private networks will create new revenue opportunities for operators beyond the boundaries of their spectrum licenses.

Private 5G networks are already helping enterprises in various industries to cut costs and reduce energy use. Additionally, they can leverage data in real time and generate new revenue. By implementing a private connectivity network, enterprises can lay the groundwork for new and innovative use cases that will be immensely valuable. Companies in several industries, such as manufacturing, mining, and logistics, can pick up the pace of their digital transformation by ensuring secure connectivity while collecting and organizing enormous amounts of essential data.

Implications of private 5G networks

Wider implications of private 5G networks may include: 

• IT managers are turning to private 5G providers to create dynamic structures that can adapt according to the needs of different applications and users. This capability is becoming essential as companies rely more on their network systems.


• Enhanced support for autonomous guided vehicles in a warehouse or intelligent video analytics to automate processes, which demand high throughput, reliability, and always-on operations.


• Cloud providers, such as Amazon Web Services (AWS) and Microsoft, implementing centralized data centers along with edge extensions that go into private 5G networks.


• Government regulators making more frequency assets accessible via licensed, lightly licensed, and eventually even unlicensed spectrum to allow businesses to innovate.


• Enhanced performance for Internet of Things (IoT) devices, such as smart homes, urban infrastructure (e.g., street lights), and self-driving vehicles.

Questions to consider

• How else will a private 5G network make processes easier for firms?


• How is your industry going to benefit from private 5G networks?