Report: The private LTE and 5G network market “will only continue to grow”
In the era of constant connectivity, private LTE and 5G networks have the potential to become the preferred approach to deliver wireless connectivity for a host of environments and use cases. Some of the most notable examples include critical communications, industrial IoT, enterprise and campus environments and public venues like stadiums and transportation hubs.
In fact, according to a new report from SNS Telecom & IT, the private LTE and 5G network market is expected to reach $4.7 Billion in annual spending by the end of 2020, and further, the market will only continue to grow, eventually racking up nearly $8 billion by the end of 2023.
SNS Telecom & IT estimates that as much as 30% of private network market investments — approximately $2.5 billion — will be directed towards the build-out of private 5G networks as the fifth generation of cellular connectivity becomes the preferred wireless connectivity medium to support the ongoing automation of industrial and enterprise spaces.
But, 5G isn’t entirely overshadowing LTE just yet. According to the report, organizations across the communications and industrial IoT domains are making significant investments in private LTE networks. These areas include public safety agencies, militaries, oil & gas companies, mining groups and manufacturers.
The report revealed that China alone has hundreds of small-to-medium-scale private LTE networks. Predominantly supporting police forces, local authorities, power utilities, railways, metro systems, airports and maritime ports, these networks extend from single-site systems through to city-wide networks.
In the coming months and years, SNS Telecom & IT expects a “significant activity in the 1.9 GHz sXGP, 3.5 GHz CBRS, 5 GHz and other unlicensed/shared spectrum bands to support the operation of private LTE and 5G networks.”
Spectrum sharing schemes such as the three-tiered Citizens Broadband Radio Service (CBRS) framework have already been proven with initial rollouts in locations such as corporate campuses, stadiums, golf courses and airports.
