Global Private LTE/5G Market Forecast, Trend Analysis & Competition Tracking - Global Industry Insights 2015 to 2031

Demand for Private LTE/5G from 2015 to 2020 Vs Future Market Projections for 2021-2031

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From 2015 to 2020, sales of Private LTE/5G were significantly high, expanding at under 14% CAGR.

Private LTE (Long Term Evolution) and 5G networks use licensed, unlicensed, or shared wireless spectrum for transmitting voice and data to edge devices such as smartphones, embedded modules, routers, and gateways. These private LTE/5G networks are used explicitly in various organizations. It provides fast data speed, technical flexibility, signal prioritization, and network security at multiple endpoints and smart utility applications. These utilities use 900 MHz frequency band for voice and data transmission for long-range data communications. For instance, in May 2020, the Federal Communications Commission (FCC) approved the Notice of Proposed Rulemaking (NPRM) Realignment Rules to repurpose the 900 MHz spectrum band for utility and enterprise private networks.

The COVID-19 pandemic has promised new growth in expanding telecom sector. The total spending for telecom services has increased and reached US$ 1,667 billion in 2020 and is further expected to grow more and reach US$ 2,156 billion in 2025. From 2021 to 2031, demand is likely expanding at a CAGR exceeding 5.5% as customers are inclining towards next-gen technologies, and innovations coupled with increasing mobile subscribers and high-speed data connectivity are expected to fuel the market growth in the near future.

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Global Private LTE/5G Market Revenue Outlook:

The global private LTE/5G market was valued at US$ 2,065 Bn in 2018 and is projected to register а САGR of 13.2% by 2031.

Like the private Wi-Fi network, any organization can set up and operate its own private LTE/5G network using spectrum, network infrastructure equipment, and edge devices that can connect to the equipment. These spectrums are purchased from the government or provided by MNOs or third-party spectrum providers. There have been instances of organizations who have deployed a private LTE/5G network such as Dallas Love Field Airport, The 5G-Industry Campus in Germany, Mercedes Benz factory in Germany, Bosch Factor in the UK, Paris-Charles de Gaulle, Paris-Orly and Paris-Le Bourget airports in France, and a mine operated by Boliden in Kankberg, Sweden. This will increase demand for private LTE/5G networks, thereby amplifying the projected revenue growth for this given market in the years to come.

Technical and Regulatory Enablers for Private LTE/5G Networks

Several countries have started allocating spectrum suitable for private LTE/5G networks. For instance, Germany is releasing 3.7-3.8 GHz frequencies for private 5G networks at industrial sites also; Sweden and Denmark are also working on the same. Additionally, MNOs (Mobile Network Operators) from Australia and Finland are leasing their spectrum for specific areas to the enterprises. Moreover, few countries such as the UK have started adopting models like secondary re-use of national spectrum bands, which are not actively in use currently.

COVID-19 impact on the Private LTE/5G Market

The COVID-19 pandemic has resulted in the slowdown of critical trade activities across several countries. The primary factor behind this slowdown is various countermeasures adopted by respective governments to curb the trajectory of this virus. As significant economies enforce precautionary lockdowns, a considerable gap between market supply and demand is being created, resulting in increased difficulties for both manufacturers and distributors to manage their respective operations effectively. This is a primary factor that is anticipated to influence prospects for revenue growth. However, as these lockdowns are gradually lifted and economies begin to recover, this market is expected to regress to its pre-COVID state.

Opportunities and Challenges of migrating to LTE/5G Networks

Currently, existing narrowband networks are embracing the end of life cycles results in creating an opportunity for the latest LTE/5G network to be an early adopter. Further, Industry 4.0, a current trend of automation and data exchange in manufacturing technologies in the telecom and IT industry, is critical for LTE/5G networks adoption. Moreover, improvisation in data security for making critical assets unbreachable and dynamically customize the network is a challenge face by industry players of LTE/5G network providers. Also, consistent investments and innovations in 3GPP technologies make these networks more attractive to the industries and governments for growing adoption rates.

Factors hindering the Private LTE/5G Networks

However, the hybrid network model is expected to be introduced in upcoming years with lower pricing as the technology gets developed. Private LTE/5G networks are comparatively costlier to deploy over Wi-Fi networks; hence, only a few prominent organizations can deploy private LTE/5G networks currently. Further, these private networks are more complex to deploy based on the requirements, as the technology is still evolving. Also, the existing business models are based on traditional technology; hence, it faces challenges shifting to the latest private LTE/5 G-based networks for small and medium-sized organizations. The above factors are anticipated to hinder the market growth globally.

Regional Analysis

North America is expected to have a significant market share, among others

The market for Private LTE/5G in the North American region is likely to expand at under 17% CAGR until 2031, as high penetration of 5G network and growing use of artificial intelligence (AI) & other smart connected devices in the region. Additionally, the increasing need for wireless networks for various businesses due to the shifting towards digitization and availability of unlicensed and shared spectrum deployment creates opportunities for service providers to set up services on the latest technological advances being developed for the high-speed internet. This is expected to witness significant growth in the North American market in upcoming years.

Competitive Landscape

The Private LTE/5G market landscape appears highly consolidated, with a significant chunk of it being dominated by US players.

• AT&T
• Cisco Corporation
• Deutsche Telekom
• Ericsson
• Huawei Technologies Inc.
• Nokia Corporation
• Telefonica
• Verizon Communications Inc.
• Vodafone Group
• ZTE Corporation
• Other Players

Some notable developments in the market include:

• April 2021, Epic has partnered with Ericsson to modernize its existing network and avail 5G radio access network (RAN) to provide 5G services in Malta. The collaboration includes sharing Ericsson Spectrum and Ericsson Antenna System, which will be deployed in Epic’s network to provide a smooth, fast, and cost-effective shift to 5G services in Malta.
• December 2019, Huawei’s 5G RAN gNodeB and LTE eNodeB have passed 3GPP’s Security Assurance Specifications (SCAS) testing.

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Segments Covered

Private LTE/5G Market, By Component

• Infrastructure
• Services

Private LTE/5G Market, By Technology

• FDD
• TDD

Private LTE/5G Market, By Deployment

• Centralized
• Distributed

Private LTE/5G Market, By Frequency Band

• Licensed
• Unlicensed
• Shared Spectrum

Private LTE/5G Market, By Industry Vertical

• IT & Telecom
• Retail & E-commerce
• Manufacturing
• Government and Defense
• Energy and Utility
• Other Industry Verticals

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