Commercial Private 5G Deployment Accelerates in Defense Sector, $1.5 Billion to be Invested by 2015

Research firm SNS Telecom recently released its latest report on the global private 5G/LTE market. In it, the company predicts that private 5G investments in the defense sector will expand significantly in the coming years. The report forecasts that investments by organizations in this sector will expand at a CAGR of 21% from 2024 to 2027, with total investments reaching $1.5 billion (approximately 225 billion yen) over the same period.

According to SNS Telecom, military forces around the world have increasingly adopted commercial network solutions (especially those based on 3GPP standards) in recent years to reduce costs, shorten deployment times, and accommodate increasingly complex applications and scenarios. OpenRAN technology has also become an attraction for private 5G deployments in the defense sector, with the US Department of Defense recently announcing a strategy to deploy OpenRAN-compliant private 5G networks in US military installations.

In addition to this, according to the report, global investment in private 5G/LTE network infrastructure is expected to expand at a CAGR of 20% from 2024 to 2027, reaching over $6 billion per year in 2027. Nearly 60% of this amount is expected to be spent on building stand-alone private 5G networks, which will support Industry 4.0, which is underway to digitize and automate manufacturing and process industries (chemical, pharmaceutical, steel, food, etc.). It is also projected that by 2030, investments for private networks will account for one-fifth of all mobile network infrastructure investments.

Materials

• Militaries tipped to spend big on private 5G
• SNS Telecom Report Highlights Private 5G Adoption in Defense
• Private 5G/4G Network Deployment Tracker & Forecasts: 2024 - 2030