Private mobile networks are emerging as a cornerstone of enterprise digital transformation strategies, with a recent forecast by STL Partners highlighting a significant growth trajectory. The research firm anticipates a 62% annual increase in private network spending, culminating in a $21 billion market by 2030. This growth is underpinned by the networks' role in enabling applications that not only boost productivity and operational efficiency but also revolutionize operational methodologies.
According to Yesmean Luk, Principal Consultant and Private Networks practice lead at STL Partners, the past two years have seen cautious investment as enterprises assessed the return on investment. However, a surge in adoption is expected from 2024 to 2026, with the market exceeding $5 billion by 2027. Ahmed Ali, Senior Analyst at STL Partners, emphasizes that the private network market extends beyond infrastructure, with the applications layer poised to dominate the value chain. By 2030, applications are projected to account for 42% of the market, generating over $9 billion in revenue.
Geographically, China and the United States are set to lead the private network space, with anticipated market shares of $2.4 billion and $1.8 billion, respectively, by 2030. The manufacturing sector will continue to be the largest investor in private networks, representing nearly half of the market in 2024. However, its dominance is expected to wane as sectors like utilities, extractive industries, and logistics experience rapid adoption.
Technologically, 4G (LTE) will remain the predominant choice for private mobile networks until 2028, when 5G is forecasted to take the lead. Luk notes that 4G currently meets the needs of many enterprises, particularly for tactical applications such as ensuring reliable connectivity in remote areas. However, the advent of more affordable 5G devices, coupled with advancements in dynamic network slicing and standalone 5G, is expected to lower the barrier to entry, facilitating broader adoption across enterprises, including small-to-medium-sized businesses.
STL Partners, a renowned provider of market analysis and consulting services in the private networks domain, offers comprehensive insights through thought leadership reports, market forecasts, deployment databases, and use case analysis. For more information, visit https://www.stlpartners.com.
