According to statistics, in 2022, China's 5G private network market size will be CNY52.3 billion yuan, an increase of 16%. It is expected that the market size will reach CNY96 billion yuan in 2026, with a compound annual growth rate of over 16%.

5G private Network is one of the Local Area Network (LAN) technology branches, providing enterprises in the target industry with unified connectivity, optimized services, and a specific area of secure communication dedicated 5G network system. The advantages are stronger task carrying capacity, higher cost performance, higher broadband/lower latency differentiated mobile networks, and personalized security customization and dynamic exclusive resources. With the acceleration of digital transformation in various industries in China and continuous breakthroughs in data collection/transmission/application technologies, 5G private networks are promoting the construction of a new generation of networks.

Industry private network is an important networking mode in the 5G toB market, and there are three mainstream deployments at present:

A virtual private network (fully shared) provides a wide range of services and flexible deployment based on the flexible slice of the public network, and applies to the scenario where the wide area enterprise service or the information security requirement is low.

Hybrid private network (partial sharing) to achieve local data uninstallation and function customization optimization, applicable to the local open, security isolation needs moderate, high cost control scenarios.

The independent private network (independent deployment) is customized according to the needs of industry enterprises, applicable to the local area closure, network security and reliability requirements are very high, and the performance is far higher than the cost concern scenario.

Compared with 5G public networks, 5G private networks provide industry customers with exclusive services, a higher level of stability/privacy/security protection, significantly improve broadband and optimize deployment cycles. For example, mining, oilfield, power grid and other industries have high risk factor, high labor cost, low production efficiency, high cost of public network coverage, and cannot be digitally upgraded. The application of 5G private network technology not only helps remote control, real-time monitoring, intelligent analysis, etc., but also meets the needs of information isolation security. At the same time, new applications such as Open RAN will continue to lead the 5G private network optimization process and meet the high requirements for low-latency key performance in the medical industry.

The combination of 5G private network and public network can also expand industry business and help enterprises cultivate cross-regional differentiated business capabilities. This kind of convergence scenario has also become a research hotspot. At the same time, combined with a variety of emerging technologies, such as network diversion/slicing technology, Mobile Edge Computing (MEC)/encryption technology, 5G private networks and industries continue to deepen the integration. 5G private network combined with network diversion/slicing technology has broad prospects in areas such as car networking/driverless driving and Augmented Reality (AR). The 5G private network based on MEC technology has better features such as large bandwidth, low delay, and wide connection. In addition, network slicing and MEC technologies overlap to enhance resource protection. The 5G private network promotes the accelerated evolution of the industrial system to digitalization/intelligence, provides "private network + terminal + platform + application" tools for the key links of enterprise research and development, production, manufacturing, sales, and so on, and brings great changes in the industry ecology. 5G private networks also help improve the resilience of urban governance and the precision of services, making cities smarter.