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Private Network Services Market - Forecast(2024 - 2030)
Private Network Services Market Overview
The market for Private Network Services Market
size is forecast to reach $20 billion by 2026,
growing at a CAGR of 4.5% from 2021 to 2026. The Private Network Services
Market is estimated to witness substantial growth over the forecast period
primarily due to reduction in deployment cost and decline in downtime costs
driving the market growth. Private network services enable mobile network operators
and mobile service providers to quickly and securely deliver private LTE/5G
network services to the enterprises. Private network service operators can offer
enterprises a carrier-grade private network experience on the hybrid cloud to run and operate
business critical applications that require low latency, high bandwidth and
end-to-end security. The rising technological advancements and modernization in
the field of network services, especially virtual private networks and storage area networks for data centers will further create new opportunities for private
network services market.
Report Coverage
The report: “Private Network Services Market– Forecast (2021-2026)”, by
IndustryARC covers an in-depth analysis of the following segments of the Private
Network Services Market.
By
Service Type – Managed
Services, Professional Services
By
Network Type – Wide Area
Network, Large Area Network, Virtual Private Network, Enterprise Private
Network, Storage Area Network and Others
By
Enterprise Size – Small,
Medium and Large Enterprises
By
End-User – Telecommunication
and IT, Retail & E-Commerce, Government, Media & Entertainment,
Transportation & Logistics, Health Care, BFSI, manufacturing and Others
By
Geography - North America (U.S,
Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands
and Others), APAC(China, Japan India, SK, Australia, Indonesia and Others), South America(Brazil, Argentina, Chile, Colombia and
others), and RoW (Middle East
and Africa).
Key Takeaways
- Private Network Services Market is estimated to witness substantial growth over the forecast period primarily due to reduction in deployment cost and decline in downtime costs driving market growth.
- The
emergence of 5G technology is offering new support to providers with its low
latency capability, high bandwidth and end-to-end security.
- North-America
is projected to hold the largest share of Private Network Services Market
during the forecast period due to increasing rate of cybercrime and increase in the number
of cellular/mobile subscribers.
Private Network Services Market Share, By Geography, 2020
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Private Network Services Market Segment Analysis – By Network Type
The market segment by network type
into Wide Area
Network, Large Area Network, Virtual Private Network, Enterprise Private
Network, Storage Area Network and Others. The WAN segment is the leading
segment of all the segments in terms of revenue at 26.5% in 2020. It is due to
widespread adoption and acceptance of the WAN solutions across organizations in
any industry or business verticals. WAN connectivity can be established to
permit users to access private or public gateways based on the customer’s
requirements.
Private Network Services Market Segment Analysis – By End-User
The market segment by end-user into Telecommunication and IT, Retail &
E-Commerce, Government, Media & Entertainment, Transportation &
Logistics, Health Care, BFSI, manufacturing and others. The manufacturing segment is the leading segment of all the
segments in terms of revenue at 16.9% in 2020. Manufacturing is one of the key
sectors where private 5G networks are gaining traction as many companies are
looking forward to construct their own networks in order to take the concept of
industry 4.0 to the next level. For Instance. Mercedes-Benz is one of the large
automotive manufacturers looking to do this and has in fact been working with
German Telco Telefonica/02 in order to realize its private 5G network ambitions
to promote digital transformation within its operations.
Private Network Services Market Segment Analysis – By Geography
Private Network Service’s market by geography has been
segmented into North America, Europe, APAC, South-America and RoW. North
America is expected to dominate the Private Network Services Market with a
share of 36.8% in 2020 due to the increasing rate of cybercrime and increase in the
number of cellular/mobile subscribers. The region is transforming dynamically
with respect to the adoption of new technologies across various sectors.
Enterprises in this region are the early adoptors of LAN, WAN and Wi-Fi.
North America has sustainable and well established economies which enable them
strongly invest in R&D activities which contribute to the development of
innovative technologies in the private network services.
Private Network Services Market Drivers
Increase in number of cellular/mobile subscribers driving the market growth
Private Network Services is
witnessing a rise in demand due to heavy adoption of cellular networks in the
last few years and continue to rise in the forecast period. Private 5G cellular
network comprises of core network servers and cell sites to support the
connectivity and maximizes WAN connection to mobile end points. Private
cellular network offer features such as network slicing, far low latency,
superior bandwidth. Moreover, a private 5G cellular network provides industries
with high-performing networks and helps in operations of several technologies
such as automated guided vehicles, drones, sensor technology, and heavy
machinery automation and others. In the wake of covid-19 pandemic wi-fi
hotspots are overloaded and demand has increased for higher capacity and data
speeds that incorporate private 5G network have increased among the private organization
and potential users globally.
Ultra-high reliability driving the market growth
The ultra-high reliability by Private Network Services is the
biggest advantage compared to public network services. Many industries require
99% network reliability and this is a challenge to achieve with existing
private network. A 5G network with coordinated multiple points technologies
increases reliability and addresses this need. Private network services have
many transmitters and receivers organized in small cells that transfer user
data to the nearest receiver code. Private networks thus face less interference
as compared to public 5G networks. Besides, the transmitters and receivers have
data feedback capability enabling them to share channel conditions. This kind of
approach promises reliability with private networks which in turn drives market
growth.
Private Network Services Market Challenges
Regulatory Challenges
Regulatory issues are the biggest challenges of private
network services. To improve private 5G network throughput one needs more radio
spectrum. Radio spectrum is not an easily available resource most of it comes
under licensed spectrum. Mobile operators pay a significant price to use this
spectrum and in most countries usage is regulated by government agencies.
Private networks today need demand spectrum from low – (Sub-1 GHz), mid-(1-6
GHz) and high bands above 6 GHz. This can be accomplished with integration of
public and private network services.
Private Network Services Market Landscape
Product launches, acquisitions, and R&D activities are
key strategies adopted by players in the Private Network Services Market. The Private
Network Services top ten companies include:
- Fujitsu
- Synnex Corporation
- GTT Communications Inc.
- Oracle
- Jupiter Networks Inc.
- VMware Inc.
- Telstra Corporation Ltd.
- DXC Technology Company
- IBM Corporation
- Meta Networks Ltd
Acquisitions/Technology Launches/Partnerships
- In Aug 2021, NTT launched its private 5G network as a service platform with complete end-to-end stack of services that goes beyond the network. NTT’s private network service helps chief information officers and chief digital officers leverage the benefits of private 5G to solve business problems.
- In Dec 2020, Verizon expanded its private wireless network portfolio with the launch of its on-site LTE for enterprise customers. On-site LTE provides private, secure and dedicated on-premises wireless network platform for business applications and operations.
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