Unlocking the path to 5G monetization and enterprise transformation

While AI has captured the spotlight, private 5G offers the telecoms sector a transformative, solution-driven opportunity to expand into enterprise markets, overcome challenges, and redefine connectivity beyond consumer-focused models.

Private 5G: A Challenging yet transformative opportunity for a changing industry

The private 5G market is projected to exceed $9 billion by 2028, encompassing RAN, core, and professional and managed services. While this number is modest compared to overall telecom sector spending, the real value of private 5G lies in its ability to unlock entirely new customer segments for communication service providers (CSPs). Private networks - both private LTE and private 5G - mark a significant step toward extending the reach of CSPs and vendors into enterprise environments.

Just a few years ago, cellular infrastructure vendors or CSPs were virtually absent from factory floors, warehouses, and ports. Today that landscape is evolving. However, breaking into this new market and delivering innovative solutions to traditionally cautious enterprises is a gradual process. Success will favor those CSPs and vendors with long-term strategies, clear vision and realistic expectations rather than those banking on a “5G silver bullet” - a scenario that seems unlikely to materialize.

For CSPs, no 5G monetization opportunity holds as much potential as private 5G. Many CSPs and vendors recognize that the future of wireless technology and of new revenue sources lies in the enterprise space. Yet, often, the sector targets this market with products and solutions designed primarily for consumers. Private 5G represents a paradigm shift offering a solution that leverages its criticality, reliability, on-site data ownership, and performance to the specific needs of the enterprise market. In the long term, private 5G stands out as the key development in the CSP landscape that can move the needle for enterprise revenues significantly.

Exploring the challenges, opportunities, and growth of the private 5G market

The journey of the private 5G market is marked by both challenges and opportunities for CSPs and vendors. Entering new markets requires a deep understanding of the unique language, KPIs, ecosystems, technologies, mindsets, and solutions of different verticals. This further highlights the importance of hands-on experience through real-world deployments. The more contracts secured and deployments executed, the more valuable lessons CSPs and their partners can learn, creating a stronger foundation for future growth.

Private 5G adoption has its own various challenges. According to Omdia Private LTE and 5G Network Enterprise Survey Insights 2024: Drivers, Technologies, And Use Cases, enterprises cite high deployment costs (37%) and integration (32%) as key obstacles to private 5G adoptions. Addressing these issues through product evolution and partnerships can help overcome these challenges.

The private 5G market is gaining traction, with enterprises experiencing tangible benefits from their deployment. According to Omdia, 65% of enterprises surveyed reported improved production and efficiency due to private 5G. At the same time the market continues to evolve. There is a growing understanding among the most advanced providers, including CSPs, vendors, or system integrators, that connectivity is not the end game for private 5G monetization.

Connectivity serves as the foundation for deeper integration into the enterprise ecosystem. Omdia’s data highlights that key drivers for enterprise adoption of private 5G include enhanced data computing, improved workforce safety, and streamlined data collection, management, and privacy. These findings reveal two major opportunities for private networks: addressing work-force related use cases and optimizing the vast amounts of data generated by private networks. The focus lies on processing the data in the best possible way, computing it as close as possible to source and developing specific applications that solve critical enterprise challenges.

Private 5G brings new opportunities for the wireless technology ecosystem and 2025 will be a pivotal year for CSPs and vendors. This year will determine which companies are prepared to tackle market challenges and thus reap the benefits of experience, product and processes optimization, but also of internal cultural transformation. These companies will be best placed to position themselves to capitalize on the long-term opportunities that private 5G can deliver.

Transform your telecom strategy with future-ready insights

To explore more on how CSPs can drive innovation and transform their operations, download our complimentary e-book Future-ready Telcos: Navigating the Next Era of Connectivity and Innovation. Discover strategies for leveraging connectivity, automation, and enterprise opportunities to thrive in the evolving telecoms landscape.