With early investment in infrastructure driven by demand from mission-critical organizations, and with more spectrum available for business uses, the inaugural forecast for the global LTE / 5G private infrastructure market from International Data Corporation (IDC) predicts a boom for dedicated enterprise architectures through 2024.
IDC defines a private LTE / 5G infrastructure as any 3GPP-based LTE and / or 5G network deployed for a specific business / industrial customer providing dedicated access. That definition includes networks that can use dedicated spectrum (licensed, unlicensed, or shared), dedicated infrastructure, and embedded private devices with unique SIM identifiers.
IDC also considers private LTE / 5G infrastructure to be one that carries native traffic for a specific organization, with no shared resources in use by any third-party entity.
Taking this base into account, the analyst estimates that revenue attributable to LTE / 5G private infrastructure sales will grow from $ 945 million (£ 695 million) in 2019 to an estimated $ 5.7 billion (£ 4.2 billion) in 2024 with a compound annual growth rate of five years. (CAGR) of 43.4%. This includes aggregate spending on transportation infrastructure, core, and RAN.
While it said that many of the private LTE and private 5G verticals currently overlap in both use cases and network needs, IDC said the market opportunity can be classified into three segments: mission critical, industrial and traditional or business-critical business.
In the first category, IDC saw verticals that require permanent addressable connectivity through redundancy and dedicated resources, as well as the clear need or desire for mobile site connectivity. Loss of connectivity would likely result in significant negative business or operating results for such companies.
In the industry, it was observed that there were verticals whose main focus is industrial and process automation for Industry 4.0, which also generally involves providing ultra-reliable, high-capacity low-latency communication (5G URLLC) with either sensitive networks. time (TSN), or alternatively.
Business-critical verticals were those that require deterministic wireless networks beyond traditional Wi-Fi, but where redundancy and automation needs are lower. These included applications, where the loss of connectivity could result in a loss of revenue.
“Private LTE infrastructure is already used by select verticals around the world to solve mission-critical network challenges,” said Patrick Filkins, senior research analyst for Internet of Things and Mobile Network Infrastructure. “However, the barrier to consumption has remained high, limiting adoption to organizations that have internal competition and access to dedicated spectrum.
“With more spectrum available for business uses, coinciding with the advent of commercial 5G, interest in using private LTE / 5G solutions as the foundation for connectivity has grown in a multitude of traditional business, industrial and mission-critical organizations.”
IDC added that many organizations are currently implementing private LTE, and a few are starting to implement private 5G in limited cases.
In what it said was part of its continued investment in such infrastructures and its network-as-a-service strategy, leading operator Verizon Business launched its international private 5G platform for global enterprises located in Europe and the Asia-Pacific region in October 2020. .
Days later, BT and the Port of Belfast announced plans to build a private 5G ecosystem at the port to provide a foundation for delivering a series of 5G-led innovations to accelerate the port’s digital transformation and help meet its strategic smart port ambitions. . In December 2020, Nokia began rolling out an industrial-grade extension of its private 5G independent (SA) wireless network as part of Germany’s 5G4KMU project.