Private mobile networks are increasingly becoming a cornerstone for enterprises embarking on digital transformation journeys. According to a recent forecast by STL Partners, spending on private networks is expected to grow by 62% annually, culminating in a $21 billion market by 2030. This growth is underpinned by the recognition of private networks as pivotal enablers of applications that enhance productivity, operational efficiency, and revolutionize operational methodologies.
Yesmean Luk, Principal Consultant and Private Networks practice lead at STL Partners, highlights the transformative potential of private networks. Despite a period of cautious investment over the past two years, a significant uptick in adoption is anticipated from 2024 to 2026, with the market expected to exceed $5 billion by 2027. Ahmed Ali, Senior Analyst at STL Partners, emphasizes that the value of private networks extends beyond mere infrastructure, with the applications layer poised to dominate the value chain by 2030, accounting for 42% of the market share.
Geographically, industrial powerhouses like China and the United States are projected to lead the private network space, with expected market shares of $2.4 billion and $1.8 billion, respectively, by 2030. The manufacturing sector, currently the largest spender, will see its dominance challenged as sectors such as utilities, extractive industries, and logistics experience rapid adoption.
Technologically, 4G (LTE) is set to remain the backbone of private mobile networks until 2028, when 5G is expected to take the lead. Luk notes that 4G meets the needs of early, tactical use cases, such as ensuring reliable connectivity in remote locations. However, the advent of more affordable 5G devices, alongside advancements in dynamic network slicing and standalone 5G, is expected to lower the barrier to entry, facilitating widespread adoption among enterprises of all sizes.
For more insights into the evolving landscape of private networks, visit https://www.stlpartners.com.
