Private IP addresses are sort of like apartment numbers. They allow multiple internet-connected devices to share a single IP address (just like multiple people can live in the same apartment building) and thus address the shortage of IPv4 address.

There are three ranges of private IP addresses:

24-bit block: 10.0.0.0 — 10.255.255.255 20-bit block: 172.16.0.0 — 172.31.255.255 16-bit block: 192.168.0.0 —192.168.255.255

As you can see, the 192.168.0.0 IP address belongs to the 16-bit block of private IP addresses, along with 65,535 other private IP addresses.

In practice, private IP addresses work something like this:

A router with a public IP address sends and receives data to and from the internet. The router then uses a private IP address for communication with devices in the local network, which are also assigned private IP addresses. That’s how it’s possible for many devices to share a single public IP address.

Private IP addresses have become especially important with the emergence of the Internet of Things. When you use a network analyzer such as NetSpot visualize, manage, troubleshoot, audit, plan, and deploy wireless networks, you can expect to see anywhere from a few to several dozen wireless networks. In reality, each network you find likely contains many different internet-connected devices that all share the same public IP address.