Private 5G & LTE spend to surpass USD $7.2bn by 2028

SNS Telecom & IT has forecast global spending on private 5G and LTE network infrastructure for vertical industries at more than USD $7.2 billion by the end of 2028, with most of that investment directed at standalone private 5G networks.

The market research firm said private cellular networks continued to expand across multiple sectors. It contrasted that growth with slower infrastructure spending in public mobile networks, where standalone 5G core investment increased but radio access network sales stayed flat after a decline in the previous year.

SNS Telecom & IT cited deployments across both facility and campus networks, as well as wide-area private networks. It listed customers that include manufacturers, ports, airlines, sports clubs, and public sector organisations.

Industry examples

The firm pointed to industrial sites that reported fewer connectivity disruptions for automated equipment. It said Tesla, LG Electronics, and Hyundai eliminated connection-related automated-guided-vehicle stoppages at production facilities.

In ports, SNS Telecom & IT highlighted Peel Ports Group's experience at the Port of Liverpool. It said the port recorded a tenfold increase in network performance in an environment with heavy metal structures where Wi‑Fi previously struggled.

In aviation logistics, it referenced Lufthansa's private network deployment at its cargo facility at Los Angeles International Airport. It said Lufthansa achieved a 75% improvement in operational process speed at the site.

In sports and public venues, SNS Telecom & IT described a deployment at Crystal Palace Football Club's Selhurst Park stadium. It said partially sighted fans used private 5G-connected headsets and experienced matches in exceptional detail.

In public safety, the firm cited police forces in Ontario's Peel-Halton Region. It said the forces had uninterrupted in-vehicle data access during outages that affected public mobile operator services since adopting an independent public safety broadband network. It said that the network recently underwent a 5G core upgrade.

New builds

SNS Telecom & IT said more customers now include private 5G as part of new facilities. It described the Georgia Department of Corrections' new state prison project, which includes a secure, physically isolated private 5G network. It said the network will use Band n48 in the 3.5 GHz Citizens Broadband Radio Service spectrum. It said the build will provide indoor and outdoor coverage at a greenfield prison campus with 13 buildings spanning 800,000 square feet across 200 acres.

The firm listed other projects in which private 5G networks have been deployed or are planned from the outset. These included Hitachi Rail's Hagerstown factory, Hyundai Motor's HMGMA electrified vehicle plant, and the Los Angeles Chargers' El Segundo training facility.

It also cited Formula 1's Las Vegas complex, Cleveland Clinic's Mentor Hospital, and Children's Health Ireland's New Children's Hospital. Additional examples included the Port of Aberdeen's South Harbour, NEC's Kakegawa plant, Pegatron's Batam smart factory, PATTA's low-carbon Renwu factory, and Jacto's Paulópolis production facility.

Spending outlook

SNS Telecom & IT said its report projected a compound annual growth rate of about 22% for global spending on private 5G and LTE network infrastructure between 2025 and 2028. It said more than 70% of the investment, or about USD $5.1 billion, would go to standalone private 5G networks.

It said these networks were positioned as a wireless connectivity medium for Industry 4.0 applications in manufacturing and process industries. It also cited critical communications over mission-critical broadband networks in sectors that include public safety, defence, utilities, and transportation.

The firm said the scale of investment would expand the market for private radio access networks, mobile core systems, and transport networks. It said those segments would form an equipment ecosystem that approached public mobile operator infrastructure in market size by the late 2020s.

It added that private networks could account for as much as a quarter of all mobile network infrastructure spending by 2030.