Edge Computing, Private Networks Inextricably Linked

Much edge computing is inextricably linked with private network usage as well. In a salient use case, private 5G networks might support factory automation, linking sensors with local prccessing.

5G private network demand is a complicated matter. Defined as use of 5G infrastructure by an enterprise to create its own 5G connectivity within a building or on a campus, 5G private networks have been seen as a suitable support for manufacturing applications, for example, to support sensor networks and edge computing, often on the premises.

Nokia, Ericsson and other 5G suppliers naturally believe this is a growth opportunity for them, as factory automation use cases might be use 5G rather than Wi-Fi, for example.

Forecasters sometimes try to think about the total market in terms of private networks that might otherwise use Wi-Fi. But 5G does not make all that much sense for most Wi-Fi use cases where support of phones, PCs and other office or consumer equipment is the use case, generally fixed but also for “mobile” applications such as in-car connectivity.



source: Grand View Research

Grand View Research says the global 2021 market size for 5G private network services, hardware and software was about $1.4 billion. If the growth rate is 48 percent, then it is possible 2030 global revenue could be nearly $48 billion.

5G Private Network Forecast Global

Year                 2021   2022 2023    2024   2025    2026 2027   2028   2029   2030   

Revenue $B 1.4    2.1  3.1    4.5 6.7     9.9 14.7     21.8   32.2    48

source: IP Carrier estimate

Much hinges on the assumptions about growth. Also often unclear is whether we ought to be counting indoor 5G transmission infrastructure (“neutral hosts”) as 5G private networks. That has been expected to develop.

What remains unclear is the degree to which enterprises will find enough value in private 5G to replace some Wi-Fi connectivity. This is essentially a new form of the “Wi-Fi versus mobile network” debate that has arisen episodically over the past three decades or so.

Some have argued that Wi-Fi would be a replacement for mobile connectivity. The argument now seems to be about the degree to which 5G can replace Wi-Fi.

Applications that require ultra-low latency and predictability will be the use cases where private 5G will be considered, rather than Wi-Fi. But Wi-Fi proponents will not be standing still. So private 5G will still be compared to Wi-Fi that has much-better latency performance and quality.

Private networks using 5G will not displace most Wi-Fi networks, but will augment some Wi-Fi networks. No private network will displace the public networks for most outdoor, untethered connectivity.