Highlights from the report:
- Insights from 20 new executive interviews with market-leading companies.
- 360-degree overview of the private LTE/5G ecosystem.
- Comprehensive overview of spectrum availability for private LTE/5G network deployments.
- Profiles of the key private LTE/5G solution providers.
- In-depth analysis of private LTE/5G network deployments worldwide.
- Detailed market forecast on private LTE/5G network deployments and IoT
- device shipments by technology and vertical market lasting until 2026.
The report answers the following questions
- How will the private LTE/5G network market evolve over the next five years?
- What spectrum is available for private LTE/5G network deployments?
- What is the main spectrum licensing frameworks for private LTE/5G employed by regulators?
- What types of organizations are deploying private LTE/5G networks?
- What is the state of the 5G IoT device ecosystem?
- Who are the main private LTE/5G solution providers?
- What is the outlook for LTE/5G IoT device shipments for private LTE/5G networks?
Table of Contents
1.2 Spectrum For Private LTE/5G Networks
1.2.1 Licensed Spectrum
1.2.2 Unlicensed Spectrum
1.2.3 Shared Spectrum
1.3 Private LTE/5G Network Deployment Models
1.4 Private Cellular Network Market Segmentation
1.4.1 Indoor Mobile Phone Networks
1.4.2 Campus It Networks
1.4.3 Neutral Host Networks
1.4.4 Critical Communications Networks
1.4.5 IoT Networks
1.5 Business Models
2.2 Private LTE/5G Industry Players
2.3 Private Network Market Sizing and Forecast
2.3.1 Private LTE/5G Network Deployments In Europe
2.3.2 Private LTE/5G Network Deployments In North America
2.3.3 Private LTE/5G Network Deployments In The Rest Of World
2.4 Edge Device Shipments For Private LTE/5G Networks
2.5 The Future Of Private Cellular Attracts M&A Activity
3.1.2 Airspan Networks
3.1.4 Amazon Web Services
3.1.8 Druid Software
3.1.11 JMA Wireless
3.2 Semiconductor Vendors
3.2.2 Sequans Communications
3.2.3 Sony Semiconductor
List of Figures
Figure 1.1: Dedicated local spectrum considered or assigned by country
Figure 1.2: Dedicated spectrum for WANs considered or assigned by country
Figure 1.3: CBRS band overview
Figure 1.4: Private cellular network deployment models
Figure 1.5: Potential sites for deploying private cellular networks
Figure 1.6: Private cellular network use case segments
Figure 1.7: Performance requirements for demanding industrial use cases
Figure 1.8: Delivery models for private cellular network solutions
Figure 2.1: Private LTE/5G solution vendors
Figure 2.2: Private LTE/5G device ecosystem
Figure 2.3: Private LTE/5G network deployments (World 2020–2026)
Figure 2.4: Private LTE/5G network deployments by vertical market (World 2021)
Figure 2.5: 900 MHz licensing landscape in the US
Figure 2.6: IoT device shipments for private LTE/5G networks
Figure 2.7: Technology positioning of RedCap in relation to eMBB, URLLC and mMTC
Figure 2.8: M&A activity in the private cellular network market
Figure 3.1: AWS Private 5G
Figure 3.2: Celona’s private LTE/5G solution
Figure 3.3: Cisco Private 5G overview
Figure 3.4: The Raemis technology platform
Figure 3.5: Ericsson’s Private Networks solution
Figure 3.6: Ericsson private cellular network projects by vertical as of Q1-2022
Figure 3.7: Geoverse CBRS PAL license footprint
Figure 3.8: O-RAN CBRS architecture
Figure 3.9: Microsoft’s private mobile network solution architecture
Figure 3.10: Examples of Microsoft’s private 5G core partners
Figure 3.11: Nokia Digital Automation Cloud overview
Figure 3.12: Nokia DAC and MPW positioning
Figure 3.13: Nokia private wireless customer segmentation as of Q3-2021
Private LTE/5G networks, referred to as non-public networks by the 3GPP, are networks that use spectrum defined by the 3GPP and LTE or 5G NR base stations, small cells, and other radio access networks (RAN) infrastructure to transmit voice and data to edge devices. For the purpose of this report, the publisher defines a private cellular network as a 3GPP-based private LTE/5G network built for the sole use of a private entity such as an enterprise or government organization.
Advancements in cellular technology, along with the increasing availability of dedicated spectrum for industries are currently transforming the private cellular network market from a niche to a substantial market. These developments open up a range of opportunities for the cellular ecosystem, fuelling a new wave of investments by established network equipment vendors but also attracting new entrants into the space.
The major RAN vendors (Ericsson, Nokia, and Huawei) all play significant roles as integrated solution providers and are challenged by several smaller RAN equipment providers. Notably, Nokia became the first vendor to offer a private LTE/5G solution as-a-service with the introduction of the Nokia DAC in 2018 and has been followed by a host of other players across the ecosystem in recent times. Small cell and other RAN equipment vendors such as Airspan Networks, JMA Wireless, Mavenir, CommScope, and Samsung Networks provide competitive LTE/5G radio products.
Important specialized core network software vendors include Druid Software, Athonet, Quortus (acquired by Cradlepoint/Ericsson in December 2021), as well as Affirmed Networks and Metaswitch (both part of Microsoft since mid-2020). In line with the trend of network functions virtualization, the major cloud service providers AWS and Microsoft have increased their focus on the telecommunications market. Both offer private LTE/5G solutions with an as-a-service model together with RAN partners. Celona is another important new entrant in space. Founded by an experienced team of wireless networking professionals in 2019, Celona provides an integrated private LTE/5G solution in a single SaaS subscription. Most recently in early 2022, Cisco entered the market through the launch of its Private 5G as-a-service offering together with its partners Airspan Networks and JMA Wireless.
Private LTE/5G network deployments are growing from a small base, with an increasing number of organizations trialing or planning to deploy networks. The analysts estimates that there are today more than 1,000 private LTE networks deployed globally, serving a variety of use cases. Private 5G network deployments are so far mainly concentrated on trial and pilot deployments and amount to an estimated 200–300 networks. Until 2026, the number of private LTE/5G network deployments is expected to grow at a compound annual growth rate (CAGR) of 57 percent to reach 13,500 networks at the end of the period.
Spectrum availability is the most important enabling factor for the adoption of private LTE/5G networks. While the CBRS band in the US allows for both private LTE and 5G network deployments, organizations looking to deploy private LTE networks generally need to gain access to spectrum via mobile operators in most other markets. National regulators in an increasing number of countries, especially in Europe, are introducing local licensing models for private 5G networks. The private 5G ecosystem is however still in an early stage, especially on the device side.
The 5G IoT device value chain starts at the chipset and module levels. Following the commercial availability of 5G NR modules in mid-2020, several cellular IoT gateway vendors have introduced devices supporting 5G NR connectivity. 5G NR modules supporting 3GPP Release 16 and URLLC capabilities are starting to become available in samples, meaning that IoT devices built on the modules are likely to be introduced later in 2022. A key accelerator for the adoption of 5G in less demanding applications will be support for reduced capability (RedCap) devices. The specification is part of the upcoming 3GPP Release 17.
The publisher expects that 5G NR IoT device shipments for private 5G networks will ramp up significantly starting in 2023, as more network trials convert into deployments. Annual 5G NR IoT device shipments for private 5G networks are forecasted to reach 850,000 units in 2026, driven by the manufacturing & warehousing, transport & logistics, and public safety & defense segments.
A selection of companies mentioned in this report includes:
- Airspan Networks
- Amazon Web Services
- Druid Software
- JMA Wireless
- Semiconductor Vendors
- Sequans Communications
- Sony Semiconductor
The Internet of Things is very diverse. There are hundreds of different use cases, each with different dynamics. The starting point is to segment the market.
The analyst begins with a number of sectors: Automotive, Cities, Health, Industry, Home, Industrial, Energy, Retail and Consumer Electronics. Each of these sectors breaks down into a number of applications. In total across all sectors, the analyst examines around 150 separate applications. It is at this application level that they generate their IoT forecast. The analyst builds reliable data bottom-up. They take into consideration the current adoption rate, regulations, demographics, vertical-specific statistics, value chain structure, etc.
The rigorous data collection methods are based on first-hand and secondary sources. The analyst conducts many hundreds of executive interviews on a yearly basis with companies from all parts of the IoT value chain. They talk to on a regular basis all major mobile operator groups and regulators as well as the chipset, module, and terminal vendors. They also interview many companies in each of the vertical markets.