Research and consulting company SNS Telecom & IT predicted global revenue for 4G and 5G private network infrastructure would reach $6 billion by 2027, double the sum recorded in 2023.

While SNS Telecom is bullish on private network revenue growth, the latest projection is down from $6.4 billion by 2026 predicted in a forecast issued in 2023.

SNS Telecom’s report stated global spending on 4G and 5G private network infrastructure will grow at a CAGR of around 20 per cent between 2024 and 2027.

Close to 60 per cent of related investments, or $3.5 billion, are expected to come from the buildout of standalone (SA) 5G private networks. The SA 5G private networks “will become the predominant wireless communications medium to support the ongoing Industry 4.0” projects.

Those Industry 4.0 initiatives include digitisation efforts by businesses and the automation of manufacturing processes, according to SNS Telecom.

It stated private network revenue growth is “one of the few bright spots in an otherwise gloomy wireless telecommunications industry,” which includes a slowdown in public mobile network infrastructure spending and operators struggling to monetise 5G investments.

“This unprecedented level of growth is likely to transform private LTE and 5G networks into an almost parallel equipment ecosystem to public mobile operator infrastructure in terms of market size by the late 2020s.”

SNS Telecom estimates by 2030 private networks could account for as much as a fifth of all mobile operator network infrastructure spending.