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Analyst Predicts 2025 as the Breakthrough Year for Mainstream Adoption of Private 5G Networks

Looking ahead to 2025, the dynamics in the private 5G network sector are poised for significant transformation, especially in regions like Europe, North America, and specific parts of Asia—excluding China. Insights from Roy Chua of AvidThink suggest an upsurge in this technology’s adoption, driven by a strategic partnership between Cisco and NEC, which was discussed during a recent interaction with Fierce.

This partnership is initially focusing on the EMEA region, with plans to extend their operations globally, as per statements from NEC. The core of their collaboration revolves around Cisco’s standalone 5G core and Cloud Control Center solution. Although additional comments were requested from Cisco, there was no response at the time of reporting.

The significance of this alliance is further underlined by Asad Khan, Director of 5G Research at SNS Telecom & IT. In his email correspondence, Khan noted that the partnership capitalizes on NEC’s expertise in systems integration and Cisco’s robust portfolio, including private 5G RAN and mobile core solutions. Khan also highlighted NEC’s NEC XON’s operations across more than 16 African countries, which could substantially boost Cisco’s networking capabilities across the continent.

The collaboration between Cisco and NEC is not just about technology deployment but also about strategic market positioning. Chua told Fierce about the integration processes handled by NEC, which involves comprehensive private 5G radio access network equipment setups as part of an end-to-end system. This is particularly crucial in the early stages of private 5G rollouts, often tailored to specific industrial needs such as in transportation, manufacturing, and mining sectors.

According to a report from Analysys Mason, the manufacturing industry is at the forefront of adopting private 5G networking, with leading corporations like Mercedes Benz, Siemens, and Tesla pioneering this technology’s implementation worldwide.

Chua also pointed out that the year 2025 is expected to be a watershed moment for private 5G networking in the aforementioned regions, as operators shift towards standalone 5G networks that are independent of 4G technologies. Moreover, enterprises in certain countries will have the opportunity to establish their private 5G networks using unlicensed shared spectrum.

The adoption of private 5G is set to rise, given its advantages over traditional Wi-Fi in scenarios that demand robust, flexible connectivity solutions, such as in automated manufacturing settings. Chua remains optimistic about the market’s growth trajectory as we approach 2025, noting a slow but steady increase in adoption rates.

However, the alliance faces strong competition in the private networking space from established players like Huawei and Nokia. According to Dell’Oro Group, while Nokia leads outside China, Huawei dominates the global market, with Ericsson holding the third spot. This competitive environment will challenge Cisco and NEC as they aim to expand their market presence in the private 5G domain.

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