Private LTE Market

[367 Pages Report] The global private LTE market size is projected to grow from USD 5.0 billion in 2022 to USD 8.3 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 10.6% during the forecast period. Major factors such introduction of the open networking model, advancements in cloud and virtualization technologies and digital transformation across businesses will drive the market

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Market Ecosystem

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Market Dynamics

Driver: Open networking model and infusion of the cloud and virtualization

The introduction of the open networking model could drive innovation in the working of private LTE networks. With advancements in cloud and virtualization technologies, vendors can provide virtualized and cloud-based solutions for radio-based stations and mobile core networks. The Open RAN (O-RAN) has received large-scale acceptance from MNOs and enterprises as it provides more flexibility to businesses and curtails vendor lock-in problems. Open networking empowers enterprises to use solutions from any vendor, which in turn can reduce dependency on a single vendor and the overall cost of solutions deployment. The use of the cloud and virtualization have paved the way for open networking. For instance, in the radio network, vendors can use a virtual Baseband Unit (vBBU) that can be deployed in the operator’s or enterprise’s data center. An EPC can be built with virtualization and deployed on Commercial Off The Shelf (COTS) servers or in the cloud. The private LTE market ecosystem includes network infrastructure enablers, ISVs, cloud service providers, MNOs, Sis, channel partners, and MSPs. The strong collaboration between all these ecosystem players is expected to drive the growth of the private LTE market.

Restraints: Frequency bands interference

Spectrum regimes are fragmented, with options for licenced, shared, and unlicensed spectrum. More spectrum availability may increase demand for private networks, but it may also result in complexity and scale issues. GAA Tier 3 users will be the first commercial users to be able to implement private LTE networks. The major challenge lies in managing the licensing of this band. Network operators need to design their services through different spectrum ranges. Spectrum is available in a highly fragmented band in many parts of the world. In the US, telecommunication operators work on different frequencies, such as 700 Megahertz (MHz), 800MHz, and 1900MHz spectrums.

Opportunity: Emergence of industrial and commercial IoT

Organizations across various industry verticals are consistently trying to increase the use of IoT for automating their processes and increasing efficiency . Hence, the adopption of IoT and associated technologies would create growth opportunities for the private LTE market . The advent of Industry 4.0, manufacturers intend to implement private LTE networks for better security. Furthermore, private LTE also provides an independent network with dedicated radio equipment, enabling sensitive data to stay local. The network is also tailored for industrial applications based on QoS and can be easily deployed due to the ready availability of the spectrum.

Challenge: Long-term investments in leasing licensed frequency

Private LTE networks operate in licensed frequency bands, which is owned by MNOs across the globe. Telecom operators buy these frequency bands through the auction process controlled by country-level government regulatory authorities. As per requirements, telecom operators utilize license frequency bands for different use cases in the consumer and enterprise segments. In some cases, MNOs have unused frequency bands that can be delivered to enterprises on a 5-10 year lease period. Enterprises partner with MNOs to lease license bands for the deployment of private LTE networks. License bands can be used across various business applications in utilities (energy, oil and gas, and mining), manufacturing, government (public safety and military), transportation and logistics, finance, healthcare, and education sectors.

Enterprises need to invest a significant amount of their capital in buying or leasing licensed frequency bands and the deployment of private LTE networks. In most cases, enterprises opt for a partnership model wherein they lease frequency bands for the short or long-term time. This involves a long-term investment for businesses. Hence, it is challenging for businesses to invest a massive amount in buying frequency bands for the deployment of private LTE networks.

Government sector to grow at the highest CAGR during the forecast period

A private LTE mobile network provides government the ability to support both mission-critical and administrative applications. Also, various smart city initiatives by government across regions are providing different range of use cases and application of private LTE for reliable end-to-end connectivity. Private LTE networks have several capabilities to support and deliver low latency and wider network coverage for smart city applications ranging from public safety, public transportation, and citizen services.

APAC to account for the highest CAGR during the forecast period

Asia Pacific is an emerging region in the private LTE market. The major countries contributing to the growth in APAC includes China, Japan, and Australia. The region has 5G-empowered applications for verticals, ranging from industrial manufacturing, transportation, electric power, healthcare, and education. The countries across the region are to adopting advanced technologies, such as IoT and robotics to move up from traditional manufacturing to high-tech manufacturing.

This research study outlines the market potential, market dynamics, and major vendors operating in the private LTE market. Key and innovative vendors in the private LTE market Nokia( Finland), Ericsson (Sweden), Huawei (China), ZTE(China), NEC(Japan), Aviat Networks, Samsung (South Korea) Affirmed Networks(US), Athonet (Italy), Airspan (US), ASOCS (US), Boingo Wireless (US), Casa Systems (US), Cisco (US), Comba (China), CommScope (US), Druid Software (Ireland), ExteNet Systems, Fujitsu (Japan), Lemko (US), Mavenir (US), Quortus (UK), Star Solutions (Canada), Tecore (US), Telrad Networks (Israel), Wireless Excellence (UK), Accelleran (Belgium), Altiostar (US), Amarisoft (France), Baicells Technologies (US), Celona (US), IPLOOK (Hong Kong), JMA Wireless (US), Parallel Wireless (US), Phluido (US), NetNumber (US), JI Technology (Japan), Verizon (US), Sierra Wireless (Canada), Future Technologies (US), Ambra Solutions (Canada), URSYS (Australia), Geoverse (US), Cradlepoint (US).

The study includes an in-depth competitive analysis of these key players in the private LTE market with their company profiles, recent developments, and key market strategies.

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Scope of the Report

This research report categorizes the Private LTE market to forecast revenue and analyze trends in each of the following submarkets:

Based on Component:

• Infrastructure
  • RAN
  • Mobile Core Network
  • Backhaul
• Services
  • Consulting
  • Integration and Deployment
  • Support and Maintenance
  • Managed Services

Based on Technology:

• FDD
• TDD

Based on Deployment Model:

• Centralized
• Distributed

Based on Frequency Band:

• Licensed
• Unlicensed
• Shared spectrum

Based on End user:

• Utilities
• Mining
• Oil and Gas
• Manufacturing
• Transportation and Logistics
• Government and Public Safety
• Healthcare
• Others*

Based on regions:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Recent Developments:

• In November 2022, Ericsson partnered with Thales to launch IoT Accelerator Device Connect with first-ever connection-ready generic eSIMs for enterprises In June 2020, Ericsson announced the general availability of Standalone (SA) 5G new radio software with cloud infrastructure edge services.
• In July 2022, Nokia announced the five-year agreement with Ice to provide high-capacity equipment such as 5G Massive MIMO to support all types of spectrum bands. In this agreement, the company will modernize approximately 3,200 base stations and will deploy 3,900 new base stations.
• In September 2021, NEC Corporation of India (NEC India) announced the launch of iPASOLINK EX Advanced Dual, NEC's outdoor, integrated, ultra-compact microwave radio system. It supports 70-80 GHz band communications (E-band).

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