The study also anticipates the rollout of nearly 3,000 new private networks over the next two years, a significant increase compared to the 2,500 deployments observed in the previous four-year period. A key factor driving this growth is the introduction of Network-as-a-Service (NaaS) business models, which offer enterprises reduced costs and enhanced scalability.
NaaS empowers companies to efficiently manage network expenses by leasing components of private networks, thereby providing greater flexibility in deployment. Although 5G technology has been available for private networks since 2019, it is projected to contribute only US$5.6 billion to the market’s overall value by 2028. This is largely attributed to the lower operational costs associated with 4G technologies, which are still deemed adequate for connectivity services in sectors such as manufacturing and logistics.
“As the market grows, vendors must provide flexible business models such as NaaS to attract high-spending private network users. This will also enable vendors to expand private 5G deployments, as businesses are better able to maintain the capital and operational cost of the network,” said Research author Michelle Joynson.
The findings from this study underscore the increasing demand for private cellular networks and the evolving landscape in telecommunications, suggesting that enterprises are eager to leverage tailored network solutions to meet their specific operational needs.
