Published: September 22, 2025, By AGL Staff Writers
As industries worldwide increasingly adopt automation, robotics, AI, and the Internet of Things (IoT), private 5G networks are transitioning from experimental projects to mission-critical infrastructure. Recent market research, deployment tracking, and corporate announcements show a strong upswing in both investment and deployment. Forecasts predict that the annual investment in private 5G for vertical industries will exceed $5 billion by 2028.
Market Forecasts and Growth Drivers
Multiple independent reports offer strikingly similar projections:
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SNS Telecom & IT, in its Private 5G Network Deployment & Forecasts 2025-2030 report, estimates an annual compound growth rate (CAGR) of about 41% between 2025 and 2028. According to this forecast, private 5G spending is expected to surpass US$5 billion per year by the end of 2028.
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MarketsandMarkets supports this outlook, citing strong demand for use cases requiring ultra-reliable low-latency communications (URLLC) and massive machine-type communications (mMTC) as among the primary factors fueling growth.
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A separate global market-size report puts the private 5G network market at approximately US$4.90 billion in 2025, with projections of sharp increases through 2030.
Key drivers include:
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Industry 4.0 adoption: Factories, logistics hubs, mining operations, and process industries are deploying private 5G to overcome limitations of Wi-Fi or LTE: reliability, latency, determinism.
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Spectrum access and regulatory reforms: More regions are making spectrum available for private networks, including shared or dedicated bands, easing the path for enterprise deployments.
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Technology advances: Open RAN, virtualization (vRAN), mmWave, and AI-assisted network management are helping reduce cost barriers and increase performance.
Real-World Deployments and Case Studies
Beyond forecasts, actual deployments are scaling:
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The report “Private 5G Installations and Impacts – 20+ of the Best” by RCR Wireless highlights companies such as Tesla and Sinopec among those that have achieved measurable productivity and safety gains from private 5G networks.
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In the UK, Verizon Business, in partnership with Nokia, has won the contract to build private 5G networks at Thames Freeport—covering key industrial/logistics sites including ports and a major manufacturing plant. This project aims to support advanced applications, such as predictive maintenance, real-time coordination, and AI-based analytics.
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In India, Assam’s Numaligarh Refinery Limited (NRL) is collaborating with BSNL to deploy its first industry-specific captive non-public 5G network (CNPN), designed to support AR/VR, digital twins, IoT, and real-time applications within the refinery.
These cases demonstrate that deployments are not only increasing in number but also in sophistication—beyond simple connectivity, toward enhanced performance, security, latency, and enterprise-grade reliability.
Challenges & Limitations
While momentum is strong, several hurdles remain:
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Capital expense and ROI concerns: Private 5G deployments often require significant upfront investment in radio access network, core, edge infrastructure, specialized devices and spectrum licensing. Enterprises must justify costs via efficiency gains, safety, or other quantifiable benefits.
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Spectrum policy: Access to appropriate spectrum (mid-band, mmWave, etc.), local regulations, license fees, and availability vary widely by country. In some cases, restrictive or expensive spectrum rules slow adoption.
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Integration with existing infrastructure: Private 5G often requires interoperability with legacy networks (Wi-Fi, wired Ethernet), OT systems, and existing safety and control infrastructure. Ensuring security, low latency, and reliability is a non-trivial task.
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Workforce capability and standardization: Enterprises may lack skilled personnel to design, deploy, and maintain private networks; standards (e.g., O-RAN) are still in the process of maturation; vendor lock-in remains a significant concern.
Implications for Industry & Infrastructure
The surge in private 5G signals broader shifts in how connectivity is conceived in industrial and enterprise settings:
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Digital transformation acceleration: Organizations with critical real-time requirements (manufacturing, transportation, health, mining) can leverage private 5G to automate processes, reduce downtime, improve quality, safety.
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Policy and regulation opportunity: Governments that streamline spectrum allocations, enable shared access, and incentivize private network deployment may attract innovation and investments.
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Vendor and ecosystem expansion: Traditional telcos, infrastructure vendors, and newer entrants (open RAN, specialized private network providers) are all gaining roles, increasing competition and options for enterprises.
The private 5G sector is entering a phase of rapid growth. With multiple forecasts converging on US$ 5 billion or more in annual investments by 2028, and a growing variety of real-world deployments in manufacturing, logistics, refining, and other heavy industries, private 5G is no longer a fringe or experimental technology. Challenges remain, including those related to cost, spectrum access, integration, and skills, but momentum is strong. For enterprises and governments embracing Industry 4.0, private 5G is becoming a foundational building block of next-generation infrastructure.
