SNS Telecom & IT, a global research and consulting company, has projected that global revenue for 4G and 5G private network infrastructure will reach $6 billion by 2027, doubling from 2023 levels. The report indicates a compound annual growth rate (CAGR) of approximately 20% from 2024 to 2027, with standalone (SA) 5G private networks expected to account for close to $3.5 billion of this investment.
The rise of SA 5G networks is pivotal for supporting ongoing Industry 4.0 initiatives, which encompass business digitization and manufacturing automation. This growth in private networks is seen as one of the few bright spots in the otherwise stagnant wireless telecommunications industry, marked by a slowdown in public mobile network infrastructure spending.
SNS Telecom anticipates that by 2030, private networks could represent up to 20% of all mobile operator network infrastructure spending, potentially creating a parallel ecosystem to public mobile networks. In Nigeria, telecom operators like MTN and Airtel are expanding their 4G and 5G infrastructure, with MTN reporting a 2.7% increase in 4G sites and a rise in 5G sites from 588 to 2,106, enhancing 5G penetration significantly.
Airtel has also launched its 5G network in several states, emphasizing the transformative potential of 5G technology for the telecom sector. The advancements in these networks promise faster speeds, lower latency, and greater opportunities for collaboration in areas such as Artificial Intelligence, Machine Learning, and Smart Cities.