The digital age is undergoing a significant transformation, with private 5G networks emerging as a critical driver of this change. In Europe, the private 5G market is rapidly gaining traction, fueling innovation across industries such as manufacturing and healthcare.
As businesses increasingly prioritize control, security, and efficiency, private 5G is becoming the preferred solution for building a connected and competitive future. With its potential to revolutionize various sectors while quietly operating behind the scenes, the private 5G market is poised to make a swift and impactful entrance into our everyday lives.
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5G Shapes Europe
In 2013, the European Commission recognized the potential of 5G early on, initiating the 5G Public-Private Partnership (5G-PPP) to drive research and innovation in 5G technology. The program comprised 93 projects organized in three distinctive phases: specification, development, and realization of trials and pilots (T&P).
Through the Horizon 2020 Programme, the EU Commission has committed over EUR 700 million in public funding to advance these efforts. At the Mobile World Congress in Barcelona, Vice-President of the EU Commission, Ms Neelie Kroes, stated, “Today I call on EU industry and other partners to join us in a public-private partnership in this area—an open platform that helps us reach our common goal more coherently, directly, and quickly. European 5G is an unmissable opportunity to recapture the global technological lead. And I hope you will be able to support and join us.”
In 2016, the adoption of the 5G Action Plan marked the transition from theory to practice. The plan aimed to deploy 5G services across all EU Member States by the end of 2020. It also outlined a rapid expansion to achieve continuous 5G coverage in urban areas and along major transport routes by 2025. Building on this, the “Digital Compass: The European Way for the Digital Decade,” adopted in 2021, set an additional goal to extend 5G coverage to all populated areas by 2030.
According to current market research conducted by the CMI Team, the global Europe private 5G network market is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.2% from 2023 to 2032. By 2032, the market valuation is projected to reach USD 3,200.06 million.
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The Landscape of Tomorrow
Europe’s private 5G market is rapidly evolving, shaped by the growing demands for high-speed, low-latency, and highly secure wireless communications across various industries. Unlike public 5G networks, private 5G provides enterprises with dedicated network infrastructure, offering superior data control, enhanced reliability, and solutions tailored to specific business needs. Leading this transformation are several vital countries, operators, and vendors who are spearheading the development and deployment of private 5G networks, shaping the landscape of tomorrow.
Germany is a leading player in the private 5G space, driven by its strong industrial base and commitment to Industry 4.0. The country’s private 5G landscape is marked by significant growth, driven by its strong industrial base, advanced technological infrastructure, and favorable regulatory environment. This robust ecosystem has positioned the country as a leader in private 5G adoption, particularly within the manufacturing sector, where Industry 4.0 initiatives are central.
A key factor in Germany’s leadership is its emphasis on integrating advanced digital technologies into manufacturing processes. Major corporations like Siemens, Bosch, and BASF are at the forefront, utilizing private 5G networks to enhance automation, optimize production, and enable real-time data analytics. These networks support diverse industrial applications, including automated guided vehicles, predictive maintenance, and digital twins. Moreover, Tesla’s factory in Berlin has established its own private 5G network to support its cutting-edge manufacturing operations, further underscoring the role of private 5G in revolutionizing production processes.
The Federal Network Agency (Bundesnetzagentur) has played a crucial role in facilitating this growth by allocating specific spectrum bands for local 5G networks, making it easier for enterprises to deploy tailored private 5G solutions. Collaboration between industrial players and telecom operators like Deutsche Telekom and Vodafone has also been vital, with these companies providing the necessary infrastructure and expertise to meet the specific needs of sectors such as manufacturing, logistics, and energy.
Private 5G adoption in France is making significant strides, particularly within the industrial and research sectors. The French government’s France 2030 plan underscores its commitment to fostering private 5G growth with strategic investments and policy initiatives to accelerate deployment and innovation. Key projects, such as Alcatel Submarine Networks’ 5G network, illustrates France’s proactive approach to integrating 5G into critical infrastructure. This effort is bolstered by robust collaborations between French companies and research institutions, enhancing the country’s technological capabilities and driving advancements in intelligent manufacturing and data analytics.
On the other side of the La Manche Channel, the United Kingdom is rapidly advancing in private 5G, with a strong focus on smart cities and industrial applications. The UK government and Ofcom have facilitated private network deployments through favorable spectrum policies, creating a conducive environment for critical partnerships.
Virgin Media O2 (VMO2) has partnered with Accenture to explore private 5G opportunities, developing tailored solutions that leverage AI and advanced computing technologies. This collaboration aims to help local businesses harness the potential of 5G, with the UK private network market projected to reach GBP 528 million by 2030. Additionally, Vodafone is expanding its private 5G offerings across the UK and Europe, focusing on industrial use cases, smart cities, and research initiatives.
Among the vendors shaping the private 5G market, Ericsson is a leading force, providing essential network infrastructure and technology solutions for operators and industries across Europe. Nokia is also playing a pivotal role, offering comprehensive network solutions and partnering with major telecom operators and industrial players. These key players hold significant influence and power in the market, driving forward substantial projects. Despite geopolitical challenges, Huawei remains a crucial player in the European private 5G market, supplying advanced technology across various sectors.
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Unlocking Opportunities
Healthcare
In a groundbreaking move for the healthcare industry, Oulu University Hospital, in partnership with Boldyn Networks, WICOAR Technologies, and the University of Oulu, has unveiled Europe’s first fully operational private 5G network within a hospital setting. This landmark initiative, funded by the European Commission under the “Hola 5G Oulu” project, is set to transform patient care and operational efficiency through the advanced capabilities of 5G technology.
Transportation and Logistics
From autonomous vehicles to intelligent ports, private 5G networks can enhance the efficiency and safety of transport and logistics operations. Rotterdam World Gateway, a cutting-edge, highly automated container terminal, faced challenges with WiFi connectivity for its automated guided vehicles (AGVs), terminal trucks, and tablets, which proved unreliable, insecure, and costly to maintain. Ericsson provided a superior solution by implementing a fully redundant, highly available, and secure private LTE network. Utilizing privately owned spectrum in the 3.5 GHz range, this end-to-end solution offers robust and cost-effective data communication for approximately 100 clients across the terminal.
One of the most inspiring projects in Europe’s 5G expansion is the Rijeka Gateway in Croatia. Hrvatski Telekom (HT) has equipped the new container terminal with a state-of-the-art 5G network, a significant leap forward for 5G technology in the maritime industry.
Marijana Bačić, Management Board Member and Chief Operating Officer of Business at Hrvatski Telekom, emphasized the company’s dedication to quality and reliability in her comments on the Rijeka Gateway project. She said, “This initiative at Rijeka Gateway is a testament to our unwavering commitment to delivering highly reliable service for uninterrupted 24/7 port operations. It reaffirms our commitment to providing essential business communication through our public mobile network, ensuring our clients’ confidence in our services.”
The Port of Tyne is one of the UK’s most significant and pivotal ports. It has introduced comprehensive 4G and 5G private network connectivity to become a leading smart port known for its safety, efficiency, and sustainability. In collaboration with BT and Ericsson, the Port of Tyne has rolled out a private network that spans its entire estate. This marks the UK’s first full-site deployment of 4G and 5G standalone connectivity for innovative port applications.
Education
Helmut Schmidt University has launched its own private 5G campus network, providing high-security and cutting-edge 5G technology for research. This advanced network supports the connectivity of the Bundeswehr Centre for Digitalization and Technology Research with high-performance 5G standalone (5G SA). Additionally, the network will serve as a testbed for partners from academia and industry to explore and trial innovative digital applications. Deutsche Telekom has implemented this private 5G network using Ericsson’s technology.
Dr.-Ing. Gerd Scholl, Chair of Electrical Measurement Technology at Helmut Schmidt University, sees it as an opportunity to blend academics with new technology: “5G Standalone will further boost our research into digitalization and future technologies.”
Energy
The launch of Italy’s first private 5G mobile network dedicated to the energy sector by Vodafone Business and Snam is a significant milestone in the country’s technological advancement. This pioneering initiative aims to revolutionize the energy industry by leveraging the capabilities of 5G technology to enhance operational efficiency, safety, and innovation, bringing about exciting potential improvements.
Defense
In 2020, in partnership with the Latvian National Armed Forces and the Ministry of Defence of the Republic of Latvia, LMT inaugurated Europe’s first 5G military testbed at the Adazi military base. Located within the NATO Enhanced Forward Presence Battle Group, this cutting-edge facility is strategically designed to advance next-generation mobile technology.
As a vital research and development hub, the testbed not only fortifies Latvia’s national security but also plays a pivotal role in enhancing NATO’s collective defense capabilities.
Industrial
Alcatel Submarine Networks (ASN), part of Nokia, launched Europe’s largest private industrial 5G network in Calais. The network covers 50,000 square meters with 59 small-cell antennas. This extensive two-year deployment involves partnerships with iliad, Free Pro, Sopra Steria, and BSCA and includes indoor and outdoor emission points across ASN’s facilities.
Tom Richter, Head of Nokia’s Manufacturing Business, emphasized the critical role of quality control in undersea cable production, noting that repairs after deployment are exceedingly costly. He explained that the 5G network will enable low-latency data transfer, facilitating real-time quality control throughout manufacturing.
Automotive
Tesla, under the leadership of its lead staff engineer, Pat Ruelke, is at the forefront of the automotive industry’s transformation with the deployment of a large-scale private 5G network at its Berlin Gigafactory. Ruelke underscored the significance of this move, stating, “Private 5G networks are the bedrock of our vision for the future of Tesla, where enhanced connectivity can significantly enhance the performance and functionality of our vehicles and robotics.”
The implementation of private 5G is poised to revolutionize autonomous driving and robotic operations. This is particularly crucial for Tesla’s Full Self-Driving (FSD) software, which relies on the low latency and high data transmission rates provided by 5G to make real-time decisions essential for safe driving.
Entertainment
The deployment of 5G at Camp Nou, using Telefónica’s commercial band and a standard Ericsson 3GPP network, has provided the stadium with comprehensive coverage, both in the stands and on the pitch. During the pilot phase, several 360º video cameras connected via 5G transmitted live images from the stadium, including exclusive footage from FC Barcelona’s training sessions at the Ciutat Esportiva Joan Gamper.
Previously, the stadium was equipped with a robust 3G and 4G system featuring Ericsson Micro Radio Units and the Radio Dot System, particularly in VIP areas. This setup made Camp Nou one of Europe’s top stadiums for mobile capacity. Now, Ericsson has elevated this infrastructure with 5G, utilizing massive MIMO active antennas operating at 3.5 GHz, further improving the stadium’s connectivity.
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Hidden Challenges
While the private 5G market in Europe is indeed facing challenges, it is also a realm of immense potential. The high cost of deployment, the need for specialized expertise, and the complexity of integrating 5G with existing infrastructure are significant barriers, but they are being addressed, paving the way for a promising future.
The “A Future-Proof Network for the EU: Full Fiber and 5G” report provided by the European Parliamentary Research Service this year drew attention to the fragmentation of the market, given that each EU Member State has its own rules governing its national electronic communications market and that there are more than 100 operators across the EU. This fragmentation, the report argues, “hinders the scale and growth of pan-European operators, limiting their ability to invest, innovate, and compete with their global counterparts.”
Spectrum fragmentation remains a significant challenge, with varying regulations across European countries complicating cross-border operations and requiring customized solutions. Another hidden issue lies in supply chain vulnerabilities, as reliance on non-European suppliers for crucial 5G components exposes networks to geopolitical risks and potential disruptions. Additionally, the risk of interference with existing public or private networks demands extra management resources to prevent disruptions.
Operational complexity is also a significant hurdle, particularly with advanced features like network slicing and virtualization, which require specialized expertise to function smoothly. Meeting ultra-low latency and performance expectations across diverse environments adds another layer of difficulty. As businesses scale, hidden challenges arise in efficiently expanding networks without significant disruptions or costs. Integration with legacy systems often uncovers compatibility issues, leading to delays and increased expenses.
Cybersecurity threats present critical risks as hidden vulnerabilities within 5G architectures can be exploited if not adequately addressed. This highlights the urgent need for significant investments in security. Regulatory inconsistencies across regions add further complexity, requiring companies to adapt quickly to evolving rules. Environmental and health concerns, although sometimes overlooked, can lead to public resistance and project delays.
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On the Privacy Rise
The rise of private 5G in Europe goes beyond a mere technological upgrade; it’s a strategic effort that equips businesses with the resources to innovate and thrive in the global market. As industries increasingly recognize the benefits of private 5G networks, a surge in deployments across the continent are inevitable, driving economic growth and technological advancement. This quiet revolution in connectivity places Europe at the forefront, leading the charge into a more connected future.
Progress in private 5G deployment is being driven by cooperation among telecom operators, technology companies, and industrial stakeholders. Innovative solutions are emerging, helping to overcome existing barriers and propelling Europe forward in deploying private 5G networks. With these collaborative efforts, Europe is well-positioned to lead the next wave of connectivity innovation.
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