A new report from analyst group SNS Telecom & IT, says global spending on private LTE and 5G network infrastructure for vertical industries will grow at a CAGR of approximately 18 percent between 2023 and 2026, eventually accounting for more than $6.4 billion by the end of 2026. As much as 40 percent ($2.8 billion) of these investments, it estimates, will be directed towards standalone private 5G networks for Industry 4.0.
It said this "unprecedented" growth, with most of this Industry 4.0 spend going to automate discrete and process manufacturing industries, 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". But traditional mobile network operators (MNOs) are squarely in the picture, it said, alongside a new breed of "private network operator".
A statement said: "By capitalizing on extensive licensed spectrum holdings, infrastructure assets and cellular expertise, national MNOs have retained a strong foothold in the market. With an expanded focus on vertical opportunities in the 5G era, [they] are actively involved in diverse projects extending from localized 5G networks for… industrial and enterprise environments to nationwide public safety broadband networks."
It noted how the vendor market has exploded with the entry of system integrators NTT and Kyndryl, and hyperscalers AWS, Google, and Microsoft, and also consolidated with HPE's purchase of Athonet and mobile operator Telstra's acquisition of industrial specialist Aqura Technologies and fiber solutions provider Vocus's deal for "pioneer" private networks outfit Challenge Networks; the last two deals are both focused on the Australian market.
The report suggests enterprises in manufacturing, mining, oil and gas, ports and other vertical industries have credited private cellular network installations with productivity and efficiency gains 30-to-70 percent, cost savings of more than 20 percent, and 80 percent higher worker safety and accident reductions. It listed dedicated spectrum regulation (some in process) in Australia, Bahrain, Brazil, Canada, China, Germany, Finland, France, Hong Kong, India, Japan, Netherlands, Norway, Poland, South Korea, Sweden, Taiwan, the UK, and the US.
The report has a long list of private LTE/5G engagements by sector: Agriculture, Aviation, Broadcasting, Construction, Education, Forestry, Healthcare, Mining, Railways, Utilities and many other vertical sectors. A link to the report is here.
Source: https://www.rcrwireless.com/20230703/private-5g/private-5g-worth-6-4bn-in-2026-40-from-industry-4-0-bigger-than-public-5g
