The Private LTE/5G Network Market 3rd Edition

The Private LTE/5G Network Market 3rd Edition

The Private LTE/5G Network Market is a strategy report fromBerg Insight analysing the latest developments on the roll-outof private cellular networks worldwide. This strategic researchreport from Berg Insight provides you with 100 pages of uniquebusiness intelligence including 5-year industry forecasts and expertcommentary on which to base your business decisions.

The Private LTE/5G Network Market 3rd Edition

Private LTE/5G networks, referred to as non-public networks by the 3GPP, are networks that usespectrum defined by the 3GPP and LTE or 5G NR base stations, small cells and other radioaccess network (RAN) infrastructure to transmit voice and data to edge devices. For the purposeof this report, Berg Insight defines a private cellular network as a 3GPP-based private LTE/5Gnetwork built for the sole use of a private entity such as an enterprise or government organisation.Private LTE/5G networks offer numerous benefits, including strong security and reliability, highbandwidth, low latency, smooth handoffs for mobile use cases and compatibility with publicnetworks for increased coverage.

The increased availability of dedicated spectrum and emergence of new use cases open up awide range of opportunities for the cellular ecosystem. The shift is fuelling a new wave ofinvestments by established network equipment vendors while also attracting new entrants intothe space. While the market historically has been mainly supply-driven, it is today increasinglydriven by organic demand from end users.

The major RAN vendors (Ericsson, Nokia and Huawei) all play significant roles as end-to-endsolution providers and are challenged by a number of smaller RAN equipment providers. Nokiais the largest private LTE/5G network solution vendor of the three with about 800 customers andover 1,500 private network deployments at the end of 2024. The vendors increasingly pursuechannel-led sales strategies, and have developed ecosystems of mobile operators, systemintegrators, VARs and consulting partners to bring solutions to market. A number of small celland other RAN equipment providers offer competitive LTE/5G radio products and in some casescomplete private network offerings, including Airspan Networks, Askey, Baicells, Benetel,Cablefree, Celona, Firecell, GXC, JMA Wireless, Mavenir, Samsung Networks, Sercomm, StarSolutions and ZTE. Important specialised core network software vendors include Cisco,Cumucore, Druid Software, Expeto, Highway 9, HPE and Microsoft. In total, RAN and EPC/5GCofferings for private networks are available from over 60 vendors.

Berg Insight estimates that there were 4,700 private LTE/5G networks, excluding proof-of-concept (PoC) projects, deployed across the world at the end of 2024, up from 3,400 networksin the previous year. The private LTE/5G network market can be divided into two main segments:Enterprise and Wide Area Networks (WAN). Enterprise networks are smaller, typically coveringareas ranging from single buildings to mid-sized cities. WANs extend across much larger areas,sometimes whole countries, and are typically owned by government organisations or utilities andused for critical communications.

The market value for private LTE/5G network solutions reached an estimated US$ 1.8 billion in2024. The Enterprise and WAN segments accounted for US$ 0.8 billion and US$ 1.0 billionrespectively. The figures do not take into account adjacent revenue streams such as installation,system integration and cross-selling of other adjacent products and services. Berg Insightbelieves that the market value for private LTE/5G network solutions will grow at a steady paceover the next five years, largely driven by new network deployments. Revenue growth will alsobe driven by upgrades and expansions of existing networks, as enterprises add new applicationsand transition from LTE to 5G. Growing at a CAGR of 38 percent, the total market value for privateLTE/5G network solutions is forecasted to reach US$ 8.9 billion in 2029.

Whereas the number of devices connected to indoor mobile phone networks and IT networks isclosely tied to the number of employees or other user groups, edge devices connected to privateLTE/5G networks for IoT use cases vary significantly between application areas. Nationwideutility and public safety networks may support hundreds of thousands or even millions of IoTdevices, while the number of IoT devices connected to a local private LTE/5G network at afactory, port, mine or other industrial site typically are in the low hundreds to a few thousands.Berg Insight estimates that the number of IoT devices connected to private LTE/5G networksreached 1.6 million by the end of 2024. Large-scale public safety and utility networks accountedfor the majority of the connections. Until 2029, private LTE/5G IoT connections are expected togrow at a CAGR of 45 percent to reach 10.3 million.