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Global Private LTE & 5G Market, 2018-2025

November 2021

Analytical Report (full version)

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Analytical Report (full version)

Global Private LTE & 5G Market, 2018-2025
Global Private LTE & 5G Market,  2018-2025
November 2021

Global Private LTE & 5G Market, 2018-2025

November 2021

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The new research by J’son & Partners Consulting based on detailed analysis of network deployments in different industries provides an in-depth view of the global private LTE/5G market. In 2020 the annual worldwide spending on private LTE/5G has reached USD 1 billion (+10% YoY growth). It is only about 2% of total expenditures in the cellular infrastructure sector in spite of quickly growing demand from all major industries. Relatively low costs is mostly due to unacceptably high costs of deployment of private cellular network, even for large enterprises, and low utilization rate of private networking capacity.

 

However, we expect that the market will accelerate since 2022 with an increase of standalone private 5G network deployments. In a base scenario, worldwide spending on private cellular deployments will grow with 23% CAGR (2020-2025) and in 2025 it will reach USD 2.8 billion (Fig 1). The market will be fueled by growth of demand from industrial customers which need tailored QoS, high reliability and security that are not available in existing 4G or “5G-ready” networks. Other important trends include the introduction of network as a service model and such technological innovations as network slicing, MEC, etc.

 

 

Private LTE/5G market status 

 

As on October 2021, J’son & Partners Consulting has analyzed over 100 private LTE or 5G network deployments all over the world. Ecosystem consists of a wide range of service providers, including several dozen equipment/technology vendors, several dozen mobile network operators, systems integrators and the private network end-users from different verticals.

 

J’son & Partners Consulting expects increased demand from industry customers as 5G and MEC technologies develop, which provide not only high network bandwidth and low latency, which are often advertised as the main advantages of 5G, but also guaranteed quality, reliability and security, which is especially important for industrial and other customers.

 

Some industry players are in front of new business models that could be a significant driver of massive private 5G deployment all over the world. For example, NTT has launched first globally available Private 5G Network-as-a-Service platform. Running on a cloud-native architecture, the platform can be delivered via cloud, on-premises, or at the edge. In addition, the Open Networking Foundation (ONF) launched Ananki, an independent venture-backed company to deliver open source-based Software-Defined Private 5G as a commercial service to address enterprises’ unique requirements of Industry 4.0. The company will offer a private 5G solution delivered as a SaaS.

 

MEC becomes one of the key parts of private 5G system

 

MEC has become more relevant in 5G system, in which the control plane and user plane are separated and the user plane functions (UPF) are moved to the edge. MEC brings network capabilities closer to end users (data is processed, saved, and delivered locally, without having to be hauled back to the network center) and supports distributed deployment. With MEC, telecom operators can share their network capabilities to third parties, building an ecosystem around their networks and exploring new business value chains. MEC is also essential to many mission critical and industrial 5G applications for vertical markets for such use cases as smart factories, smart ports, and smart hospitals.

 

So there are clear synergies between the 5G architecture enabling decentralized deployment and MEC enabling new services and experiences. With MEC and 5G, different orchestration scenarios are possible, the range of controlled parameters is larger; it is easier to configure the system. With the advent of a software-controlled access network, it becomes possible to make complex scenarios with cross-domain orchestration and ensure good QoS on the public infrastructure.

 

End-to-end industrial networking-computing slices – no compromise for security and availability, but more economically feasible than pure private deployments

 

5G standalone technology enables network slicing on wireless access networks allowing to include private 5G domain into industrial end-to-end network slice tailored for deployment of hybrid clouds (Fig. 2). Isolation of traffic by use of end-to-end slices combined with MEC (Fig. 3) instead of pure private cellular network deployments allows achieving high availability and end-to-end security of hybrid clouds in the way that is more efficient. 

 

 

 

Forecast for 2021-2025

 

Global private LTE market will be decreasing, while private 5G deployments will become the part of logically isolated end-to-end network slices for deployment of hybrid clouds – Network as a Service, NaaS (Fig. 4). 

 

 

The traffic generated by distributed hybrid clouds is the new traffic, which was not present before in global WANs. First, this is “clients” traffic generated by distributed MES/SCADA systems, so called OT-applications, which previously circulated solely within isolated local enterprise networks. Second, this is “service” traffic generated by distributed scaling, backup and disaster recovery schemes, that didn’t exist when these schemes was limited by boarders of a single datacenter.

 

According to J’son & Partners Consulting estimations, in case of successful full-scale digitalization of key verticals (industries) of global economy, already since 2025 IoT/M2M traffic in WANs, i.e. traffic between IoT/M2M devices and OT-applications backend, as well as associated “service” traffic will make no less than 90% of total volume of traffic in WANs, while less than 10% will be traffic between users’ devices and users’ applications backend, including associated “service” traffic. In this case, volume of NaaS consumption may exceed USD 900 billion in 2030 (refer to Fig. 4).

 

According to Comarch, telcos believe in huge growth of NaaS market – 95% of interviewed mobile operators consider impact of NaaS on their revenues growth as “positive”, “great” and even “real game changer”.  

 

 

 

  

 

The detailed results are represented in the full version of the report:


« Global Private LTE & 5G Market, 2018-2025»


Table of Contents

 

DEFINITIONS AND METHODOLOGY

 

EXECUTIVE SUMMARY

 

1. GLOBAL PRIVATE LTE/5G MARKET STATUS AND FORECAST

 

1.1. Global Market
1.2. Regional Markets
1.2.1. North America
1.2.2. Western Europe
1.2.3. Africa & Middle East
1.2.4. Latin & Central America
1.2.5. Central & Eastern Europe
1.2.6. Russia & CIS
1.2.7. APAC (developed countries)
1.2.8. APAC (developing countries)

 

2. SPECTRUM AVAILABILITY & NATIONAL REGULATORY LANDSCAPE

 

3. GLOBAL PRIVATE LTE/5G KEY ECOSYSTEM PLAYERS & THEIR STRATEGIES


3.1. Vendors
3.1.1. Nokia
3.1.2. Ericsson
3.1.3. Huawei
3.1.4. Samsung
3.1.5. NEC
3.1.6. Motorola Solutions
3.1.7. Cisco
3.1.8. Mavenir
3.1.9. Other vendors
3.2. Operators
3.2.1. AT&T
3.2.2. Verizon
3.2.3. NTT
3.2.4. Telefónica
3.2.5. Telstra
3.2.6. Other operators
3.3. System Integrators
3.4. Other players
3.5. End users

 

4. DRIVERS AND INHIBITORS


4.1. Drivers
4.1.1. 5G & MEC synergy
4.1.2. Spectrum allocations for enterprises
4.1.3. New business models and applications
4.2. Inhibitors

 

5. PRIVATE LTE/5G VERTICAL MARKETS AND USE CASES


5.1. General overview
5.2. Mining
5.3. Electricity generation and distribution
5.4. Manufacturing and machinery production
5.5. Transport and logistics
5.6. Oil and Gas
5.7. Metal production
5.8. Construction and operation of buildings
5.9. Agriculture/Forestry
5.10. Retail
5.11. Education/Academic
5.12 Heathcare
5.13. Media and entertainment
5.14. Communications & IT
5.15. Utilities
5.16. Other