Private 5G network spend to hit USD $7.2bn by 2028

Spending on private LTE and 5G networks is set to reach USD $7.2 billion by the end of 2028, according to new estimates from market research firm SNS Telecom & IT. The company expects private cellular systems to expand far faster than the broader public mobile infrastructure market over the next several years.

The forecast covers private LTE and 5G networks for industrial and public-sector customers. SNS Telecom & IT projects that global expenditure on private LTE and 5G infrastructure will grow at a compound annual rate of about 22% between 2025 and 2028.

The firm said more than 70% of that projected outlay, or around USD $5.1 billion, will go to standalone private 5G networks rather than LTE-based deployments. It expects private 5G to dominate new projects as organisations move beyond pilot schemes and incorporate cellular networks into long-term planning for facilities and operations.

Shift from LTE

SNS Telecom & IT said 5G-based deployments are now overtaking LTE across many vertical industries. Public mobile operators continue to invest in standalone 5G cores. However, the firm described spending on public radio access infrastructure as flat after a sharp decline last year.

The company argues that this divergence reflects a maturing public mobile market alongside early-stage growth in private cellular. It said that by the late 2020s, private radio access, mobile core and transport systems could form an almost parallel equipment ecosystem in size to public mobile operator infrastructure.

By 2030, private networks could account for as much as a quarter of all mobile network infrastructure spending, according to the report.

Industrial use cases

Industrial and logistics groups feature prominently in the deployments highlighted by SNS Telecom & IT. The report points to private networks at Tesla, LG Electronics and Hyundai production facilities. Those facilities use private LTE and 5G to support automated guided vehicles on factory floors.

These manufacturers have eliminated connection-related stoppages of AGVs at their sites, the firm said. It presents this as evidence of productivity gains in production environments where wireless reliability is critical.

Port operators are another early adopter segment. Peel Ports Group has rolled out a private network at the Port of Liverpool. SNS Telecom & IT said the installation has produced a tenfold increase in network performance in a metal-heavy environment that had previously hindered Wi-Fi signals.

Lufthansa has implemented a private cellular network at its Los Angeles cargo facility. The company said the airline has recorded a 75% improvement in operational process speed at the LAX site.

Public sector projects

Public safety and government organisations are also investing. Police forces in Ontario's Peel-Halton Region operate an independent public safety broadband network. The network has recently undergone a 5G core upgrade.

According to SNS Telecom & IT, the police forces have had uninterrupted in-vehicle data access, particularly during outages that affect public mobile operator services. The company positions this as a case of agencies pursuing greater control over connectivity for critical operations.

Government agencies are starting to include private 5G in new-build facilities. The Georgia Department of Corrections in the United States is building a new state prison complex. The project includes a secure, physically isolated private 5G network that uses Band n48 CBRS spectrum at 3.5 GHz.

The prison campus will span 13 buildings, cover about 800,000 square feet and extend across 200 acres, according to the research. The network is designed for both indoor and outdoor coverage across the site.

Greenfield deployments

SNS Telecom & IT notes a series of greenfield deployments where private 5G is present from the outset. Hitachi Rail in the United States, Hyundai Motor's HMGMA electrified vehicle plant, and Pegatron's Batam smart factory are among the industry examples in the report.

In healthcare, Cleveland Clinic's Mentor Hospital in the United States and Children's Health Ireland's New Children's Hospital in Dublin are listed as private 5G adopters. The firm said these sites are using dedicated cellular networks for clinical and operational applications.

Sports and entertainment venues are emerging as another area of activity. The Los Angeles Chargers' training facility in El Segundo and Formula 1's Las Vegas complex are both cited as locations that have deployed private 5G.

Crystal Palace Football Club's Selhurst Park stadium in London has used a private 5G system to support headsets for partially sighted fans. SNS Telecom & IT said the fans can experience matches in what it describes as exceptional detail through the connected devices.

Ports and industrial plants in Europe and Asia are also part of the first wave. The report highlights the Port of Aberdeen's South Harbour in Scotland, NEC's Kakegawa plant in Japan, PATTA's low-carbon Renwu factory in Taiwan, and Jacto's Paulópolis production facility in Brazil.

Parallel ecosystem

The company argues that the accumulation of such projects across sectors will reshape the vendor landscape for mobile infrastructure. It expects private deployments in manufacturing, process industries, utilities, transport, public safety and defence to underpin demand.

SNS Telecom & IT positions private 5G as a likely primary wireless medium for so-called Industry 4.0 applications in factories and process plants. It also expects private broadband systems to carry a growing share of mission-critical communications in public safety, defence and utility environments.

The firm's latest report covers the period from 2025 to 2030. It sets out scenarios in which private network investments continue to grow as enterprises and public bodies look beyond shared operator networks for specific operational needs.