Private IP addresses, typically assigned from the ranges defined in RFC 1918, such as 10.0.0.0/8, 172.16.0.0/12, and 192.168.0.0/16, allow devices within a network to communicate with each other without directly exposing them to the public internet. This enables organizations to establish secure local networks, safeguarding sensitive data and resources from external threats.
By utilizing private IP addresses, businesses can implement network segmentation, enhancing security and controlling access to specific areas of their infrastructure. It also facilitates efficient use of available IP address space, particularly in large networks, by eliminating the need for publicly routable IP addresses for internal communications.