Western markets are narrowing China’s early lead in private 5G, writes Asad Khan, 5G & Wireless Research Director, SNS Telecom & IT
Although private LTE networks have existed as a niche segment of the cellular infrastructure sector since the early 2020s, it is private 5G networks that are now emerging as the preferred wireless connectivity platform for Industry 4.0, critical communications, and enterprise transformation initiatives. Their real-world impact is becoming increasingly visible through accelerated investments by industrial giants and other end-user organisations to support diverse applications such as autonomous transport systems, mobile robots, remote-controlled machinery and high-definition video transmission, while reducing reliance on unlicensed wireless and hard-wired connections.
China’s early dominance
China still remains the most mature national market in terms of private 5G adoption. Over the past five years, state-funded directives aimed at accelerating the adoption of 5G connectivity in industrial settings have driven large-scale deployments at factories, warehouses, mines, power plants, substations, oil and gas facilities, and ports. The largest private 5G network installations in the country can comprise hundreds to even thousands of dedicated RAN (Radio Access Network) nodes supported by on-premise or Edge Cloud-based core network functions, depending on specific latency, reliability, and security requirements.
Private 5G momentum in Western markets
Across Western markets in North America and Europe, private 5G is no longer confined to pilots and proofs of concept. The last 12 months have seen a noticeable increase in production-grade deployments. Some of these installations have progressed to a stage where practical and tangible benefits – particularly efficiency gains, cost savings and worker safety – are becoming increasingly evident.
For example, Tesla, LG Electronics, and Hyundai have eliminated connection-related stoppages since migrating AGV (Automated Guided Vehicle) and AMR (Autonomous Mobile Robot) communications from unlicensed Wi-Fi systems to private 5G networks at their production facilities in the United States, while luxury vehicle manufacturer Jaguar Land Rover’s installation of a private 5G network at its Solihull plant in England, United Kingdom, has established connectivity for sensors and data within the plant’s five-story paint shop, which had previously been left unconnected due to the cost and complexity of wired Ethernet links.
The Asia Pacific dimension
Western-aligned Asia Pacific states such as Japan, South Korea, Taiwan and Australia are also playing a critical role in balancing China’s dominance. In Japan, a local 5G installation at Ushino Nakayama’s Osumi farm in Kanoya, Kagoshima Prefecture, has enabled the Wagyu beef producer to achieve labour cost savings of more than 10% through reductions in accident rates, feed loss, and administrative costs.
In Australia, Newmont’s implementation of a private 5G network at its Cadia gold-copper underground mine in New South Wales has enabled remote-controlled operation of its entire dozer fleet across the full 2.5 kilometre width of the mine’s tailings works construction area. Previously, the mining company was unable to connect more than two machines at distances of no more than 100 metres over Wi-Fi, with unstable connectivity causing up to six hours of downtime per shift.
Spectrum availability & regulatory enablement
This progress is not at the behest of state-sponsored projects, but rather due to a conducive market environment in which 5G equipment vendors, system integrators, and mobile operators compete to deliver the most effective solutions at the best price for end user organisations.
The foundational enabler is the availability of shared and local spectrum licensing frameworks, which have significantly lowered the barriers for enterprises to deploy private 5G networks without necessarily relying on national mobile operators. This regulatory shift is reflected in the growing number of local licenses issued in shared spectrum bands. In the United Kingdom, around 930 shared access licenses across four distinct bands have been issued to 118 licensees. In Germany, close to 500 organisations hold 5G campus network licenses, of which just over 210 have been publicly disclosed as the national regulator BNetzA (Federal Network Agency) treats frequency allocation data as confidential business information. Among other examples, Japan and South Korea have issued approximately 200 and 100 permits for locally licensed spectrum.
In the United States, due to spectrum auction provisions and a lack of formal protections in the recently enacted OBBBA (One Big Beautiful Bill Act), there is growing nervousness regarding the future of CBRS shared spectrum, which supports hundreds of private 5G networks, including those of household names and industrial giants such as LG Electronics, Tesla, Hyundai, BMW, Toyota, John Deere, Hyster-Yale, Chevron, BP, Dow, LyondellBasell, SSA Marine, and Walmart. Despite an atmosphere of uncertainty, new deployments are continuing to move forward for now.
No longer a one-country story
Private 5G is no longer a one-country story. China’s early lead gave it undeniable momentum, but the United States, Canada, Germany, the United Kingdom, France, Japan, South Korea, Taiwan, Australia and other countries are rapidly narrowing the gap and pioneering new models. SNS Telecom & IT projects that annual investments in private 5G networks for vertical industries will grow at a CAGR of approximately 41% between 2025 and 2028, eventually surpassing $5 billion by the end of 2028. More than 80% of this spending will be directed outside China.
Asad Khan is responsible for 5G and wireless network research programmes. Prior to joining SNS Telecom & IT in 2016, Asad held R&D, engineering, product management and strategy roles at Motorola Solutions over a tenure of eight years.
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