- SNS Telecom & IT expects the private network spending will increase 22% between now and the end of 2028
- The firm noted that top cellular vendors Nokia and Ericsson are diverging on their path to private networking
- The firm said that there are many more private network RAN and mobile core vendors emerging into the market
“2025 has been a transformative year for the private LTE/5G market, with 5G deployments overtaking LTE across many vertical industries,” SNS Telecom & IT told Fierce, highlighting their 4th quarter report on the market. “[We] estimate that global spending on private LTE and 5G network infrastructure for vertical industries will grow at a compound annual growth rate (CAGR) of approximately 22% between 2025 and 2028, eventually exceeding $7.2 billion by the end of 2028.”
“By 2030, private networks could account for as much as a fourth of all mobile network infrastructure spending,” the analysts claim.“Over the last 12 months, SNS Telecom & IT has added nearly 1,300 new projects to our database of private cellular network engagements – up from 900 additions a year earlier. Annual numbers vary from anywhere between 10 and 30 deployments reported individually by smaller vendors to 50-170 global projects attributable to each of the European and Asian telecommunications equipment giants.”
More than 70% of these investments – an estimated $5.1 billion – will be directed towards the buildout of standalone private 5G networks, which are positioned to become the predominant wireless connectivity medium for so-called Industry 4.0 applications in manufacturing and process industries.
Vendor divergence and diversity
“Traditional wireless infrastructure players – from incumbents Ericsson, Nokia, Huawei, and ZTE to the likes of Samsung and NEC – continue to lead the private cellular market in terms of infrastructure sales,” SNS said. The firm noted, however, that the two major Western vendors - Nokia and Ericsson - are diverging on how they approach the private network market.
Nokia
“Just as it is approaching the milestone of 1,000 private network deployments, Nokia has disclosed plans to divest its ECE (Enterprise Campus Edge) integration and software business, while continuing to provide small cell radios together with its own and third-party mobile core solutions through channel partners – channel sales already account for 70% of Nokia’s private network deals,” SNS noted.
Ericsson
Meanwhile, Ericsson is doubling down on its enterprise wireless push with an end-to-end portfolio comprising compact and scalable private 5G solutions, a small cell-based neutral host coverage system, Cradlepoint routers, and AI-enabled management and orchestration. “The Swedish vendor claims to have won several two-digit million dollar deals for multi-site campus networks, and 83% of its new deployments are based on 5G,” the analyst firm noted.
What remains common between the Scandinavian giants is their commitment to MCN (Mission-Critical Network) solutions for public safety, utilities, railways, and other verticals requiring wide area coverage. “MCN infrastructure is built on the same components as commercial macro-grade networks with enhanced features and capabilities. Both vendors have also established defense business units that offer tailored solutions for military communications,” SNS said.
“There is much greater OEM (Original Equipment Manufacturer) and vendor diversity than in the public mobile network segment with other players making their presence known,” SNS stated.
Vast vendor landscape
Examples of other RAN, mobile core, and transport network equipment vendors include: Celona, Globalstar, Airspan Networks, Moso Networks/Sercomm, Ataya, Mavenir, GXC, Baicells, Telrad Networks, BLiNQ Networks, Ceragon Networks, JMA Wireless, Abside Networks, SEMPRE, Eridan Communications, AmpliTech, ANDREW (Amphenol), Ubiik, Canoga Perkins, Aviat Networks, Star Solutions/BTI Wireless, EdgeNectar, Expeto, Druid Software, HPE (Hewlett Packard Enterprise), Cisco Systems, RADTONICS, Pente Networks, Blue Arcus, Axyom.Core, A5G Networks, Radisys, Wilson Connectivity, Nextivity, SOLiD, EUCAST, EasyCell, HFR Mobile, Qucell, Askey Computer, Saviah Technologies, QCT (Quanta Cloud Technology), G REIGNS, Pegatron, CloudRAN.AI, IPLOOK, Comba Telecom, AsiaInfo Technologies, AI-LINK, FLARE SYSTEMS, Hytec Inter, Siemens, Firecell, Obvios, Eviden, Kontron, Teltronic, BubbleRAN, Amarisoft, CampusGenius, GuardStack/Blackned, Cumucore, Apeiroon, Accelleran, IS-Wireless, Effnet, Node-H, SRS (Software Radio Systems), Benetel, AttoCore, cellXica, JET Connectivity, Neutral Wireless, Wireless Excellence, Antevia Networks, ASOCS, ASELSAN, i2i Systems, PROTEI, Trópico, Niral Networks, Tidal Wave and Lekha Wireless.
At this point, some mobile operators and system integrators have chosen to develop their own infrastructure solutions for private networks.
For example, Vietnamese national mobile operator Viettel’s private 5G product portfolio includes both RAN and core network functions, while German system integrator COCUS has an in-house 4G/5G packet core software solution, with RAN and hardware components sourced from its partners. LG Electronics has also entered the market using Open RAN-compliant radio units manufactured by South Korean OEM Samji Electronics.