A recent report from IHS Markit predicts the private LTE network market will hit $2.6 billion in device and equipment revenues by 2020.
The private LTE network market is set to see significant growth over the next few years, with a new forecast from IHS Markit predicting a 20% compound annual growth rate between 2015 and 2020.
IHS notes the market, which it also describes as “critical communications broadband LTE,” will witness revenues increase from $1.1 billion in 2015, to $2.6 billion in 2020. The forecast includes devices and base station equipment shipped for use on private networks.
Segments expected to drive growth include public safety, security, transportation, military, utilities, industrial and public access mobile radio. Service drivers mentioned included video streaming, internet access and “advanced mapping.”
“Broadband-capable technologies can provide these tools because of their ease of interoperability and high performance. As a result, the industry requires broadband-capable network solutions such as private LTE or other operating models possible with commercial and private LTE,” said Jesus Gonzalez, market analyst for critical communications at IHS Markit. “For critical communications users today, it is clearer than ever that LTE is the de facto broadband standard, with the option of private LTE networks a reality.”
In terms of geographic deployments, IHS cited systems rolling out in parts of China, the Middle East, the United States, Europe and Australia, with spectrum allocation in other parts of the world set to support broader deployments. The Middle East and Africa are predicted to post the “fastest short-term growth rate of installed base of private LTE users,” while the Asia-Pacific region will “continue to have the greatest share of the world private LTE users installed base in the upcoming years.”
FirstNet to bolster U.S. dominance in the space
In the U.S., the most prominent private deployment is centered on the First Responder Network Authority program that is in the process of selecting a commercial operator partner to help build the nationwide public safety network. The program includes 20 megahertz of spectrum in the 700 MHz band along with around $6.5 billion in government funding dedicated to constructing the network.
AT&T is currently seen as the favorite to win the contract, which would provide the carrier with access to some of the spectrum assets though require network pre-emption in favor of public safety when needed. IHS said it expects the FirstNet deployment to begin around 2020, with the U.S. becoming “a main driver of global private LTE revenues.”
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