The Future of Private LTE & 5G Infrastructure: Global Spending to Surpass $6.4 Billion by 2026

$2.8 billion, or 40%, Of This Money To Be Spent On Building Private 5G Networks For Businesses For Digitizing & Automating The Manufacturing & Process Businesses

According to the most recent data that was made public by the market intelligence company SNS Telecom & IT, the global spending on private LTE and 5G network infrastructure for vertical industries are projected to increase at a compound annual growth rate (CAGR) of about 18% between the years 2023 and 2026 and will amount for more than $6.4 billion by the end of 2026.

In order to support Industry 4.0 and the digitalization and automation of manufacturing and process sectors, 40% of this expenditure will go toward the development of independent private 5G networks.

This unprecedented growth level of growth is likely to transform private LTE and 5G Networks into an almost parallel equipment ecosystem for public mobile operator infrastructure in terms of market size by the late 2020s.

Private Cellular Networks, also known as Non-Public Networks (NPNs), have emerged as a prominent technology in recent years, as per findings from a leading research firm. These networks have gained attention due to their numerous advantages over public networks and other wireless technologies, including enhanced privacy, security, reliability, and performance. Additionally, NPNs have the potential to replace traditional wired connections with wireless links, further adding to their appeal.

The standardization efforts led by 3GPP have resulted in the inclusion of various features such as MCX (Mission-Critical PTT, Video & Data), URLLC (Ultra-Reliable, Low-Latency Communications), TSC (Time-Sensitive Communications), SNPNs (Standalone NPNs), PNI-NPNs (Public Network-Integrated NPNs), and Network Slicing. As a result, private networks that utilize LTE and 5G Technologies have been acknowledged as a comprehensive connectivity platform for critical communications, applications related to Industry 4.0, and enterprise transformation.

Historically, the aforementioned sectors have exhibited a prevalence of LMR (Land Mobile Radio), Wi-Fi, Industrial Ethernet, Fiber, and other heterogeneous networks.

According to SNS Telecom & IT, the adoption of private LTE and 5G networks is being propelled by the liberalization of the spectrum. This is evident as national regulators worldwide have either already granted or are in the process of granting access to shared and locally licensed spectrum.

The examples provided encompass various spectrum-sharing schemes and licensing frameworks implemented in different countries. These include the three-tiered CBRS (Citizens Broadband Radio Service) spectrum sharing scheme in the United States, Canada’s planned NCL (Non-Competitive Local) licensing framework, the shared and local access licensing model in the United Kingdom, Germany’s allocation of 3.7 – 3.8 GHz and 28 GHz licenses for 5G campus networks, France’s utilization of vertical spectrum and sub-letting arrangements, the geographically restricted mid-band spectrum assignments in the Netherlands, and Finland’s allocation of 2.3 GHz and 26 GHz licenses for local 4G/5G networks, among others.

Check out: Cabinet Approves 5G Infrastructure Sharing Framework – Industry Experts Sharing Insights

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