The Private LTE & 5G Network Ecosystem: 2023 – 2030 – Opportunities, Challenges, Strategies, Industry Verticals & Forecasts

Historically a niche segment of the wider cellular communications industry, private cellular networks – also referred to as NPNs (Non-Public Networks) in 3GPP terminology – have rapidly gained popularity in recent years due to privacy, security, reliability and performance advantages over public mobile networks and competing wireless technologies as well as their potential to replace hardwired connections with non-obstructive wireless links. With the 3GPP-led standardization of 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, private networks based on LTE and 5G technologies have gained recognition as an all-inclusive connectivity platform for critical communications, Industry 4.0 and enterprise transformation-related applications. Traditionally, these sectors have been dominated by LMR (Land Mobile Radio), Wi-Fi, industrial Ethernet, fiber and other disparate networks.

The liberalization of spectrum is another factor that is accelerating the adoption of private LTE and 5G networks. National regulators across the globe have released or are in the process of granting access to shared and local area licensed spectrum. Examples include but are not limited to the three-tiered CBRS (Citizens Broadband Radio Service) spectrum sharing scheme in the United States, Canada's planned NCL (Non-Competitive Local) licensing framework, United Kingdom's shared and local access licensing model, Germany's 3.7-3.8 GHz and 28 GHz licenses for 5G campus networks, France's vertical spectrum and sub-letting arrangements, Netherlands' geographically restricted mid-band spectrum assignments, Finland's 2.3 GHz and 26 GHz licenses for local 4G/5G networks, Sweden's 3.7 GHz and 26 GHz permits, Norway's regulation of local networks in the 3.8-4.2 GHz band, Poland's spectrum assignment for local government units and enterprises, Bahrain's private 5G network licenses, Japan's 4.6-4.9 GHz and 28 GHz local 5G network licenses, South Korea's e-Um 5G allocations in the 4.7 GHz and 28 GHz bands, Taiwan's provision of 4.8-4.9 GHz spectrum for private 5G networks, Hong Kong's LWBS (Localized Wireless Broadband System) licenses, Australia's apparatus licensing approach, India's CNPN (Captive Non-Public Network) leasing framework and Brazil's SLP (Private Limited Service) licenses. Even China – where mobile operators have been at the forefront of initial private 5G installations – has started allocating private 5G spectrum licenses directly to end user organizations. Vast swaths of globally and regionally harmonized license-exempt spectrum are also available worldwide that can be used for the operation of unlicensed LTE and 5G NR-U equipment for private networks. In addition, dedicated national spectrum in sub-1 GHz and higher frequencies has been allocated for specific critical communications-related applications in many countries.

LTE and 5G-based private cellular networks come in many different shapes and sizes, including isolated end-to-end NPNs in industrial and enterprise settings, local RAN equipment for targeted cellular coverage, dedicated on-premise core network functions, virtual sliced private networks, secure MVNO (Mobile Virtual Network Operator)  platforms for critical communications, and wide area networks for application scenarios such as PPDR (Public Protection & Disaster Relief) broadband, smart utility grids, railway communications and A2G (Air-to-Ground) connectivity. However, it is important to note that equipment suppliers, system integrators, private network specialists, mobile operators and other ecosystem players have slightly different perceptions as to what exactly constitutes a private cellular network. While there is near universal consensus that private LTE and 5G networks refer to purpose-built cellular communications systems intended for the exclusive use of vertical industries and enterprises, some industry participants extend this definition to also include other market segments – for example, 3GPP-based community and residential broadband networks deployed by non-traditional service providers. Another closely related segment is multi-operator or shared neutral host infrastructure, which may be employed to support NPN services in specific scenarios.

Despite the somewhat differing views on market definition, one thing is clear – private LTE and 5G networks are continuing their upward trajectory with deployments targeting a multitude of use cases across various industries, ranging from localized wireless systems for dedicated connectivity in factories, warehouses, mines, power plants, substations, offshore wind farms, oil and gas facilities, construction sites, maritime ports, airports, hospitals, office buildings and university campuses to regional and nationwide sub-1 GHz private wireless broadband networks for utilities, FRMCS (Future Railway Mobile Communication System)-ready networks for train-to-ground communications, and hybrid government-commercial public safety LTE networks, as well as rapidly deployable systems such as the German Armed Forces' ZNV (Deployable Cellular Networks) solution, Hsinchu City Fire Department's satellite-backhauled portable 5G network for emergency communications and BBC's (British Broadcasting Corporation) temporary private 5G network used during King Charles' coronation. Custom-built cellular networks have also been implemented in locations as remote as Antarctica and there are even plans for installations on the moon's surface and outer space.

SNS Telecom & IT estimates that global spending on private LTE and 5G network infrastructure for vertical industries will grow at a CAGR of approximately 18% between 2023 and 2026, eventually accounting for more than $6.4 Billion by the end of 2026. As much as 40% of these investments – nearly $2.8 Billion – will be directed towards the build-out of standalone private 5G networks that will become the predominant wireless communications medium to support the ongoing Industry 4.0 revolution for the digitization and automation of manufacturing and process industries. This unprecedented level of growth 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.

The “Private LTE & 5G Network Ecosystem: 2023 – 2030 – Opportunities, Challenges, Strategies, Industry Verticals & Forecasts” report presents an in-depth assessment of the private LTE and 5G network ecosystem, including the value chain, market drivers, barriers to uptake, enabling technologies, operational and business models, vertical industries, application scenarios, key trends, future roadmap, standardization, spectrum availability and allocation, regulatory landscape, case studies, ecosystem player profiles and strategies. The report also presents global and regional market size forecasts from 2023 till 2030. The forecasts cover three infrastructure submarkets, two technology generations, four spectrum licensing models, 15 vertical industries and five regional markets.

The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report, as well as a database of over 6,000 global private LTE/5G engagements – as of Q2’2023.
Topics Covered
The report covers the following topics: 
 - Introduction to private LTE and 5G networks
 - Value chain and ecosystem structure
 - Market drivers and challenges
 - System architecture and key elements of private LTE and 5G networks
 - Operational and business models, network size, geographic reach and other practical aspects of private LTE and 5G networks
 - Critical communications broadband evolution, Industry 4.0, enterprise transformation and other themes shaping the adoption of private LTE and 5G networks
 - Enabling technologies and concepts, including 3GPP-defined MCX, URLLC, TSC, NR-U, SNPN and PNI-NPN, cellular IoT, high-precision positioning, network slicing, edge computing and network automation capabilities
 - Key trends such as the emergence of new classes of specialized network operators, shared and local area spectrum licensing, private NaaS (Network-as-a-Service) offerings, IT/OT convergence, Open RAN, vRAN (Virtualized RAN) and rapidly deployable LTE/5G systems
 - Analysis of vertical industries and application scenarios, extending from mission-critical group communications and real-time video transmission to reconfigurable wireless production lines, collaborative mobile robots, AGVs (Automated Guided Vehicles) and untethered AR/VR/MR (Augmented, Virtual & Mixed Reality)
 - Future roadmap of private LTE and 5G networks
 - Review of private LTE and 5G network installations worldwide, including 100 case studies spanning 15 verticals
 - Database tracking more than 6,000 private LTE and 5G engagements in over 120 countries across the globe
 - Spectrum availability, allocation and usage across the global, regional and national domains
 - Standardization, regulatory and collaborative initiatives
 - Profiles and strategies of more than 1,800 ecosystem players
 - Strategic recommendations for LTE/5G equipment and chipset suppliers, system integrators, private network specialists, mobile operators and end user organizations
 - Market analysis and forecasts from 2023 till 2030

Forecast Segmentation
Market forecasts are provided for each of the following submarkets and their subcategories:
Infrastructure Submarkets
 - RAN (LTE & 5G NR Radio Access Network)
  ○ Base Station RUs (Radio Units)
  ○ DUs/CUs (Distributed & Centralized Baseband Units)
 - Mobile Core (EPC & 5GC)
  ○ User Plane Functions
  ○ Control Plane Functions
 - Transport Network (Fronthaul, Midhaul & Backhaul)
  ○ Fiber & Wireline
  ○ Microwave
  ○ Satellite Communications

Technology Generations
 - LTE
 - 5G

Cell Sizes
 - Small Cells
  ○ Indoor
  ○ Outdoor
 - Macrocells

Spectrum Licensing Models
 - Mobile Operator-Owned Spectrum
 - Wide Area Licensed Spectrum
 - Shared & Local Area Licensed Spectrum
 - Unlicensed Spectrum

Frequency Ranges
 - Low-Band (Sub-1 GHz)
 - Mid-Band (1-6 GHz)
 - High-Band mmWave (Millimeter Wave)

End User Markets
 - Vertical Industries
  ○ Agriculture
  ○ Aviation
  ○ Broadcasting
  ○ Construction
  ○ Education
  ○ Forestry
  ○ Healthcare
  ○ Manufacturing
  ○ Military
  ○ Mining
  ○ Oil & Gas
  ○ Ports & Maritime Transport
  ○ Public Safety
  ○ Railways
  ○ Utilities
  ○ Others
 - Offices, Buildings & Corporate Campuses

Regional Markets
 - North America
 - Asia Pacific
 - Europe
 - Middle East & Africa
 - Latin & Central America

Key Questions Answered 
The report provides answers to the following key questions:
 - How big is the private LTE and 5G network opportunity?
 - What trends, drivers and challenges are influencing its growth?
 - What will the market size be in 2026, and at what rate will it grow?
 - Which submarkets, verticals and regions will see the highest percentage of growth?
 - What is the status of private LTE and 5G network adoption in each country, and what are the primary application scenarios of these networks?
 - How is private cellular connectivity facilitating the digital transformation of manufacturing, mining, oil and gas, ports and other vertical industries?
 - What are the practical and quantifiable benefits of private LTE and 5G networks in terms of productivity improvement, cost reduction and worker safety?
 - How can satellite backhaul and direct-to-device NTN (Non-Terrestrial Network) access expand the reach of private networks in remote environments?
 - How are MCPTT (Mission-Critical PTT) capabilities enabling the transition from narrowband LMR systems to 3GPP-based private broadband networks? 
 - What are the key characteristics of standalone private 5G connectivity, and when will URLLC, TSC and other 3GPP-defined IIoT (Industrial IoT) features be widely employed?
 - How can private edge computing accommodate latency-sensitive applications while enhancing data sovereignty and security?
 - Where does network slicing for differentiated service requirements fit in the private cellular networking landscape?
 - What are the existing and candidate frequency bands for the operation of private LTE and 5G networks?
 - How are CBRS and other coordinated shared/local spectrum licensing frameworks accelerating the uptake of private networks?
 - When will sub-1 GHz critical communications LTE networks begin their transition to 5G technology?
 - What are the prospects of private 5G networks operating in mmWave spectrum?
 - What is the impact of post-pandemic changes on private LTE and 5G network deployments?
 - What opportunities exist for hyperscalers, managed services providers and other new entrants?
 - Who are the key ecosystem players, and what are their strategies?
 - What strategies should LTE/5G equipment suppliers, system integrators, private network specialists and mobile operators adopt to remain competitive?

Key Findings 
The report has the following key findings: 
 - SNS Telecom & IT estimates that global spending on private LTE and 5G network infrastructure for vertical industries will grow at a CAGR of approximately 18% between 2023 and 2026, eventually accounting for more than $6.4 Billion by the end of 2026. 
 - As much as 40% of these investments – nearly $2.8 Billion – will be directed towards the build-out of standalone private 5G networks that will become the predominant wireless communications medium to support the ongoing Industry 4.0 revolution for the digitization and automation of manufacturing and process industries. 
 - This unprecedented level of growth in the coming years 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.
 - Existing private cellular network deployments range from localized wireless systems in industrial and enterprise settings to sub-1 GHz private wireless broadband networks for utilities, FRMCS-ready networks for train-to-ground communications, and hybrid government-commercial public safety broadband networks, as well as rapidly deployable LTE/5G systems that deliver temporary or on-demand cellular connectivity.
 - As for the practical and quantifiable benefits of private LTE and 5G networks, end user organizations across manufacturing, mining, oil and gas, ports and other vertical industries have credited private cellular network installations with productivity and efficiency gains in the range of 30 to 70%, cost savings of more than 20%, and an uplift of up to 80% in worker safety and accident reduction.
 - Spectrum liberalization initiatives – particularly shared and local spectrum licensing frameworks – are playing a pivotal role in accelerating the adoption of private LTE and 5G networks. Telecommunications regulators in multiple national markets – including the United States, Canada, United Kingdom, Germany, France, Netherlands, Finland, Sweden, Norway, Poland, Bahrain, Japan, South Korea, Taiwan, China, Hong Kong, Australia, India and Brazil – have released or are in the process of granting access to shared and local area licensed spectrum.
 - By capitalizing on their extensive licensed spectrum holdings, infrastructure assets and cellular networking expertise, national mobile operators have continued to retain a strong foothold in the private LTE and 5G network market. With an expanded focus on vertical B2B (Business-to-Business) opportunities in the 5G era, mobile operators are actively involved in diverse projects extending from localized 5G networks for secure and reliable wireless connectivity in industrial and enterprise environments to nationwide public safety broadband networks.
 - New classes of private network operators have also found success in the market. Notable examples include but are not limited to Celona, Betacom, Kajeet, BearCom, Ambra Solutions, iNET (Infrastructure Networks), Tampnet, Smart Mobile Labs, MUGLER, Telent, Logicalis, Citymesh, Netmore, RADTONICS, Combitech, Grape One (Japan), NS Solutions, OPTAGE, Wave-In Communication and the private 4G/5G business units of neutral host infrastructure providers such as Boingo Wireless, Crown Castle, Cellnex Telecom, BAI Communications/Boldyn Networks, Freshwave and Digita.
 - NTT, Kyndryl and other global system integrators have been quick to seize the private cellular opportunity with strategic technology alliances and early commercial wins. Meanwhile, hyperscalers – most notably AWS (Amazon Web Services), Google and Microsoft – are offering managed private 5G services by leveraging their cloud and edge platforms.
 - Although greater vendor diversity is beginning to be reflected in infrastructure sales, larger players are continuing to invest in strategic acquisitions as highlighted by HPE's (Hewlett Packard Enterprise) recent acquisition of Italian mobile core technology provider Athonet. 
 - The service provider segment is not immune to consolidation either. For example, in Australia, mobile operator Telstra – through its Telstra Purple division – has acquired industrial private wireless specialist Aqura Technologies. More recently, specialist fiber and network solutions provider Vocus has acquired Challenge Networks – another Australian pioneer in private LTE and 5G networks.