In an increasingly digital and interconnected world, the demand for private networks is on the rise, especially within the global manufacturing, energy, and public service sectors. As the world moves into the 5G era, the reliance on private wireless networks to support high device densities and operate over expansive geographical areas is becoming more important.
Private wireless networks leverage cellular technologies to provide a closed network that can be fully managed by enterprises. Their use is predicted to see a meteoric rise in the coming years. According to Juniper Research, enterprise spend on private networks will reach $10 billion globally by 2028, a significant increase from the $1 billion spend this year.
What are Private Wireless Networks?
Private wireless networks are exclusive networks that leverage cellular technologies to provide a closed network that is fully controlled and managed by an individual enterprise. In contrast to public networks, which are accessible by anyone with a cellular connection, private networks are much more secure and can only be accessed by users authorized by the network.
Private wireless networks offer robust security, high-quality connectivity, and the ability to customize network performance to the specific needs of enterprise use cases. Whether it is supporting high device densities in IoT deployments, operating over large geographical areas, or providing high-levels of orchestration via software-defined networks, private networks have demonstrated their inherent value in various industry applications.
Benefits Across Industries
Private networks have found significant traction in a variety of sectors, the most notable of which are manufacturing, energy, and public services, which make up 35%, 20%, and 16% of the market respectively, according to Juniper Research.
In manufacturing, the need for frictionless coordination of automated processes and devices necessitates high-level orchestration via software-defined networks. The high-device density operations and ultra-low latency properties of 5G private networks make them ideal for managing the complexities of modern manufacturing processes. Private networks enable manufacturers to coordinate a myriad of automated processes with ease and efficiency, leading to increased productivity and operational efficiency.
The utility sector also greatly benefits from the implementation of private networks. The ability to simultaneously manage high device densities and cover large geographical areas is particularly beneficial for managing energy grids and related facilities. Private networks can provide real-time data on energy usage, detect faults promptly, and facilitate rapid response to any issues, ultimately helping ensure uninterrupted energy supply.
In the public service space, private networks can enhance the delivery of critical services. For instance, emergency services can leverage private networks for reliable, real-time communication and data exchange, enhancing response times and coordination efforts during emergencies and other critical events.
Other industries, too, will be able to leverage the same benefits of private networks to deliver fast, reliable, secure connectivity across a range of use cases. From sports/entertainment to retail and from healthcare to logistics and transportation, private networks will continue to support the new digital era we all live in.
The Future of Private Networks
As the complexities of these networks increase, private network vendors should adopt an ongoing managed service approach. By providing continuous technical support and other value-added services, vendors can build and maintain strong relationships with their customers and secure recurring revenue. This managed service approach will ensure that customers can fully leverage the potential of their private networks and achieve maximum value.
Moreover, spectrum resource management will become a key factor in determining the quality of service provision. By minimizing network interference, vendors can guarantee high throughput for private network connections. Consequently, network slicing – a method for segregating a single network connection into multiple virtual connections – can be a vital technology in ensuring the quality of service for end users across private network deployments.
The expected surge in private network adoption is not an isolated phenomenon, but part of a broader trend towards digitalization and connectivity. As enterprises across sectors strive to improve operational efficiency, ensure data security, and stay competitive, the role of private networks will only grow more crucial.
Edited by
Erik Linask
