A new report from analyst group SNS Telecom & IT, based out of Dubai, says global spending on private LTE and 5G network infrastructure for vertical industries will grow at a CAGR of approximately 18 percent between 2023 and 2026, eventually accounting for more than $6.4 billion by the end of 2026. As much as 40 percent ($2.8 billion) of these investments, it estimates, will be directed towards standalone private 5G networks for Industry 4.0.
It said this “unprecedented” growth, with most of this Industry 4.0 spend going to automate discrete and process manufacturing industries, is likely to “transform private LTE and 5G networks into an almost parallel equipment ecosystem to public mobile operator infrastructure in terms of market size by the late 2020s”. But traditional mobile network operators (MNOs) are squarely in the picture, it said, alongside a new breed of “private network operator”.
A statement said: “By capitalizing on extensive licensed spectrum holdings, infrastructure assets and cellular expertise, national MNOs have retained a strong foothold in the market. With an expanded focus on vertical opportunities in the 5G era, [they] are actively involved in diverse projects extending from localized 5G networks for… industrial and enterprise environments to nationwide public safety broadband networks.”
It listed new-breed operators (more accurately described as network providers / vendors) as: Celona, Betacom, Kajeet, BearCom, Ambra Solutions, , Tampnet, Smart Mobile Labs, MUGLER, Telent, Logicalis, Citymesh, Netmore, RADTONICS, Combitech, NS Solutions, OPTAGE, Wave-In Communication. It also cited dedicated business units in tower companies, including Boingo Wireless, Crown Castle, Cellnex Telecom, BAI Communications, and Freshwave.
It also noted how the vendor market has exploded with the entry of system integrators NTT and Kyndryl, and hyperscalers AWS, Google, and Microsoft, and also consolidated with HPE’s purchase of Athonet and mobile operator Telstra’s acquisition of industrial specialist Aqura Technologies and fiber solutions provider Vocus’s deal for “pioneer” private networks outfit Challenge Networks; the last two deals are both focused on the Australian market.
The report suggests enterprises in manufacturing, mining, oil and gas, ports and other vertical industries have credited private cellular network installations with productivity and efficiency gains 30-to-70 percent, cost savings of more than 20 percent, and 80 percent higher worker safety and accident reductions. It listed dedicated spectrum regulation (some in process) in Australia, Bahrain, Brazil, Canada, China, Germany, Finland, France, Hong Kong, India, Japan, Netherlands, Norway, Poland, South Korea, Sweden, Taiwan, the UK, and the US.
The report has a long list of private LTE/5G engagements by sector, which are not often available (or free to view), and so are worth publishing in full. The list includes many (but not all) references by name. It is included below; all the text is by SNS Telecom & IT. A link to the report is here.
Agriculture | Private cellular network installations in the agriculture industry range from custom-built 250 MHz LTE networks that provide wide area cellular coverage for agribusiness machinery, vehicles, sensors and field workers in Brazil to Japan’s standalone local 5G networks supporting 4K UHD (Ultra-High Definition) video transmission, mobile robotics, remote-controlled tractors and other advanced smart agriculture-related application capabilities.
Aviation | Private LTE and 5G networks have been deployed or are being trialed to support internal operations at some of the busiest international and domestic airports, including Hong Kong, Shanghai Pudong and Hongqiao, Tokyo Narita, London Heathrow, Paris-Charles de Gaulle, Orly and Le Bourget, Frankfurt, Cologne Bonn, Brussels, Amsterdam Schiphol, Vienna, Athens, Oslo, Helsinki, Bahrain, Chicago O’Hare, DFW (Dallas Fort Worth), Dallas Love Field and MSP (Minneapolis-St. Paul). Lufthansa Technik and JAL (Japan Airlines), among others, are leveraging private 5G connectivity for aircraft maintenance operations. In addition, national and cross-border A2G (Air-to-Ground) networks for inflight broadband and critical airborne communications are also beginning to gain significant traction.
Broadcasting | Within the broadcasting industry, FOX Sports, BBC (British Broadcasting Corporation), BT Group, RTÈ (Raidió Teilifís Éireann), Media Broadcast, WDR (Westdeutscher Rundfunk Köln), RTVE (Radiotelevisión Española), SVT (Sveriges Television), NRK (Norwegian Broadcasting Corporation), TV 2, TVBS, CMG (China Media Group) and several other media and broadcast players are utilizing private 5G networks – both temporary and fixed installations – to support live production and other use cases.
Construction | Mortenson, Ferrovial, BAM Nuttall (Royal BAM Group), Fira (Finland), Kumagai Gumi, Obayashi Corporation, Shimizu Corporation, Taisei Corporation, Takenaka Corporation, CSCEC (China State Construction Engineering Corporation), Hoban Construction, Hip Hing Engineering, Gammon Construction and Hyundai E&C (Engineering & Construction) are notable examples of companies that have employed the use of private LTE and 5G networks to enhance productivity and worker safety at construction sites.
Education | Higher education institutes are at the forefront of hosting on-premise 5G networks in campus environments. Tokyo Metropolitan University, McMaster University, Texas A&M University, Purdue University, Cal Poly (California Polytechnic State University), Northeastern University, UWM (University of Wisconsin-Milwaukee), RWTH Aachen University, TU Kaiserslautern (Technical University of Kaiserslautern) and CTU (Czech Technical University in Prague) are among the many universities that have deployed private 5G networks for experimental research or smart campus-related applications. Another prevalent theme in the education sector is the growing number of purpose-built LTE networks aimed at eliminating the digital divide for remote learning – particularly CBRS networks for school districts in the United States.
Forestry | There is considerable interest in private cellular networks to fulfill the communications needs of the forestry industry for both industrial and environmental purposes. For example, Swedish forestry company SCA (Svenska Cellulosa Aktiebolaget) is deploying local 5G networks to facilitate digitization and automation at its timber terminals and paper mills, while Tolko Industries and Resolute Forest Products are utilizing portable LTE systems to support their remote forestry operations in remote locations in Quebec and British Columbia, Canada, where cellular coverage has previously been scarce or non-existent.
Healthcare | Dedicated 5G campus networks have been installed or are being implemented to support smart healthcare applications in many hospitals, including Nagasaki University Hospital, West China Second University Hospital (Sichuan University), SMC (Samsung Medical Center), Ewha Womans University Mokdong Hospital, Bethlem Royal Hospital, Frankfurt University Hospital, Helios Park Hospital Leipzig, UKD (University Hospital of Düsseldorf), UKSH (University Hospital Schleswig-Holstein), UKB (University Hospital Bonn), Cleveland Clinic’s Mentor Hospital and Hospital das Clínicas (São Paulo). In addition, on-premise LTE networks are also operational at many hospitals and medical complexes across the globe.
Manufacturing | AGC, Airbus, Arçelik, ASN (Alcatel Submarine Networks), Atlas Copco, BASF, BMW, BorgWarner, British Sugar, Calpak, China Baowu Steel Group, COMAC (Commercial Aircraft Corporation of China), Del Conca, Delta Electronics, Dow, Ford, Foxconn, GM (General Motors), Gerdau, Glanbia, Haier, Holmen Iggesund, Inventec, John Deere, Logan Aluminum, Magna Steyr, Mercedes-Benz, Midea, Miele, Navantia, Renault, Ricoh, Saab, SANY Heavy Industry, Schneider Electric, SIBUR, Whirlpool, X Shore and Yara International and dozens of additional manufacturers – including LTE/5G equipment suppliers themselves – have already integrated private cellular connectivity into their production operations at their factories. Many others – including ArcelorMittal, Bayer, Bosch, Hyundai, KAI (Korea Aerospace Industries), Nestlé, Nissan, SEAT, Siemens, Stellantis, Toyota, Volkswagen and WEG – are treading cautiously in their planned transition from initial pilot installations to live 5G networks for Industry 4.0 applications.
Military | Led by the U.S. DOD’s (Department of Defense) “5G-to-Next G” initiative, several programs are underway to accelerate the adoption of private 5G networks at military bases and training facilities, defense-specific network slices and portable cellular systems for tactical communications. The U.S. military, Canadian Army, Bundeswehr (German Armed Forces), Italian Army, Norwegian Armed Forces, Finnish Defense Forces, Latvian Ministry of Defense, Qatar Armed Forces, ADF (Australian Defence Force), ROK (Republic of Korea) Armed Forces and Brazilian Army are among the many adopters of private cellular networks in the military sector.
Mining | Mining companies are increasingly deploying 3GPP-based private wireless networks at their surface and underground mining operations to support mine-wide communications between workers, real-time video monitoring, teleoperation of mining equipment, fleet management, self-driving trucks and other applications. Some noteworthy examples include Agnico Eagle, Albemarle, Anglo American, AngloGold Ashanti, Antofagasta Minerals, BHP, Boliden, Codelco, China Shenhua Energy, China National Coal, Eldorado Gold, Exxaro, Fortescue Metals, Freeport-McMoRan, Glencore, Gold Fields, Jiangxi Copper, Metalloinvest, Newcrest Mining, Newmont, Northern Star Resources, Nornickel (Norilsk Nickel), Nutrien, Polyus, Polymetal International, Rio Tinto, Roy Hill, Severstal, Shaanxi Coal, South32, Southern Copper (Grupo México), Teck Resources, Vale, Yankuang Energy and Zijin Mining.
Oil & Gas | Arrow Energy, BP, Centrica, Chevron, CNOOC (China National Offshore Oil Corporation), ConocoPhillips, Equinor, ExxonMobil, Gazprom Neft, Neste, PCK Raffinerie, Petrobras, PetroChina/CNPC (China National Petroleum Corporation), Phillips 66, PKN ORLEN, Repsol, Santos, Schlumberger, Shell, Sinopec (China Petroleum & Chemical Corporation), TotalEnergies and many others in the oil and gas industry are utilizing private cellular networks. Some companies are pursuing a multi-faceted approach to address their diverse connectivity requirements. For instance, Aramco (Saudi Arabian Oil Company) is adopting a 450 MHz LTE network for critical communications, LEO satellite-based NB-IoT coverage to enable connectivity for remote IoT assets, and private 5G networks for advanced Industry 4.0-related applications.
Ports & Maritime Transport | Many port and terminal operators are investing in private LTE and 5G networks to provide high-speed and low-latency wireless connectivity for applications such as AGVs (Automated Guided Vehicles), remote-controlled cranes, smart cargo handling and predictive maintenance. Prominent examples include but are not limited to APM Terminals (Maersk), CMPort (China Merchants Port Holdings), COSCO Shipping Ports, Hutchison Ports, PSA International, SSA Marine (Carrix) and Steveco. In the maritime transport segment, onboard private cellular networks – supported by satellite backhaul links – are widely being utilized to provide voice, data, messaging and IoT connectivity services for both passenger and cargo vessels while at sea.
Public Safety | A myriad of fully dedicated, hybrid government-commercial and secure MVNO/MOCN (Multi-Operator Core Network)-based public safety LTE networks are operational or in the process of being rolled out throughout the globe, ranging from national mission-critical broadband platforms such as FirstNet, South Korea’s Safe-Net, France’s RRF (Radio Network of the Future), Spain’s SIRDEE and Finland’s VIRVE 2.0 to the Royal Thai Police’s 800 MHz LTE network and Halton-Peel region PSBN (Public Safety Broadband Network) in Canada’s Ontario province. 5G NR-equipped PPDR (Public Protection & Disaster Relief) broadband systems are also starting to be adopted by first responder agencies. For example, Taiwan’s Hsinchu City Fire Department is using an emergency response vehicle – which features a satellite-backhauled private 5G network based on Open RAN standards – to establish high-bandwidth, low-latency emergency communications in disaster zones.
Railways | Although the GSM-R to FRMCS (Future Railway Mobile Communication System) transition is not expected until the late 2020s, a number of LTE and 5G-based networks for railway communications are being deployed, including Adif AV’s private 5G network for logistics terminals, SGP’s (Société du Grand Paris) private LTE network for the Grand Paris Express metro system, PTA’s (Public Transport Authority of Western Australia) radio systems replacement project, NCRTC’s (National Capital Regional Transport Corporation) private LTE network for the Delhi-Meerut RRTS (Regional Rapid Transit System) corridor, KRNA’s (Korea Rail Network Authority) LTE-R network and China State Railway Group’s 5G-R program. DB (Deutsche Bahn), SNCF (French National Railways), Network Rail and others are also progressing their 5G-based rail connectivity projects prior to operational deployment.
Utilities | Private cellular networks in the utilities industry range from wide area 3GPP networks – operating in 410 MHz, 450 MHz, 900 MHz and other sub-1 GHz spectrum bands – for smart grid communications to purpose-built LTE and 5G networks aimed at providing localized wireless connectivity in critical infrastructure facilities such as power plants, substations and offshore wind farms. Some examples of end user adopters include Ameren, CNNC (China National Nuclear Corporation), CPFL Energia, CSG (China Southern Power Grid), E.ON, Edesur Dominicana, EDF, Enel, ESB Networks, Bahrain EWA (Electricity and Water Authority), Evergy, Fortum, Hokkaido Electric Power, Iberdrola, Kansai Electric Power, KEPCO (Korea Electric Power Corporation), LCRA (Lower Colorado River Authority), Osaka Gas, PGE (Polish Energy Group), SDG&E (San Diego Gas & Electric), SGCC (State Grid Corporation of China), Southern Company, Tampa Electric (Emera) and Xcel Energy.
Other Sectors | Private LTE and 5G networks have also been deployed in other vertical sectors, extending from sports, arts and culture to retail, hospitality and public services. From a horizontal perspective, enterprise RAN systems for indoor coverage enhancement are relatively common and end-to-end private networks are also starting to be implemented in office buildings and campuses. BlackRock, Imagin’Office (Icade), Mitsui Fudosan, NAVER, Rudin Management Company and WISTA Management are among the companies that have deployed on-premise private 5G networks in office environments.
