U.S. Private LTE & 5G Network Market Size & Trends | 2031

Report Description

U.S. Private LTE & 5G Network Market Outlook 2031

The U.S. Private LTE & 5G network market size was valued at USD 2.47 Billion in 2022 and is expected to reach USD 2.98 Billion by 2031, expanding at a CAGR of 2.12% during the forecast period, 2023 and 2031.  The growth of the market is attributed to the rising acquisition of private LTE & 5G networks for the various applications of smart city and Internet of Things (IoT).

A private LTE & 5G network is a private network that is confined to be used by an enterprise and is used for connecting the things or people of that enterprise efficiently. This networking infrastructure enables the user to have complete control over the network that enables them to modify the network as per the needed requirements. 

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The application of IoT is increasing gradually in regards to public safety, energy, transportation, and manufacturing which is increasing the demand for this network used in the businesses utilizing the IoT ecosystem. This network is basically operated in three frequency spectrums that include multefire and citizens broadband radio service (CBRS) band.

In the U.S. the CBRS occupies a frequency of 150MHz in the C-band of the shared spectrum. However, spectrum bands for 5G have been released by the U.S. Federal Communications Commission (FCC). These bands are at various ranges of frequency including unlicensed, low band, mid-band, high band.

The private LTE connections majorly use shared spectrum and unlicensed bands resulting in the deployment of various telecom providers to 5G network. 5G network has various benefits that include low latency connectivity, enhanced data capacity, and others resulting in the integration of multi-cloud platforms in the office and other facility locations. These centralized high-speed networks provide secured and ultra-high bandwidth connectivity.

The COVID-19 pandemic had an adverse effect on various industries and shattered the global economy emergency lockdown, social distancing, and other regulations imposed by the local governments across the various parts of the world. However, the pandemic had a positive impact on the U.S. private LTE & 5G network market owing to the growing dependence of customers on online businesses.

U.S. Private LTE & 5G Network Market Trends, Drivers, Restraints, and Opportunities

• The increasing insistence of private networks out of the use cases such as heavy machinery automation, cloud robots, automated guided vehicles, industrial sensors, and others is expected to propel the market growth.
• Presence of unlicensed spectrum including multefire bands and CBRS is anticipated to fuel the market growth in the coming years.
• Interference occurring in frequency bands is estimated to act as a restraining point that can hamper the market growth over the forecast period.
• Deployment of network infrastructure is high in cost and requires an authorized license which is a key challenge that can restrain the market expansion.
• Rising adoption of industrial internet of things (IIoT) and launch of industry 4.0 for the automation of processes are expected to create lucrative opportunities for the market growth.

Scope of U.S. Private LTE & 5G Network Market Report

The report on the U.S private LTE & 5G network market includes an assessment of the market, trends, and segments. Overview and dynamics have also been included in the report.

U.S. Private LTE & 5G Network Market Segment Insights

Components Segment Analysis

On the basis of components, the U.S. private LTE & 5G network market is divided into software, hardware, and services. The hardware segment is further divided into backhaul & transport, core network, and radio access network. And the services segment is further divided into installation & integration, support & maintenance, and data services.

The hardware segment dominated the market in 2019 owing to the increasing deployment of transport equipment, backhaul, and core network towards private LTE & 5G networks. On the other hand, the services segment is estimated to extend at a high CAGR attributed to the deployment and integration towards 5G networks.

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Frequencies Segment Analysis

Based on frequencies, the market is bifurcated into mmWave and sub-6 GHz. The sub-6 GHz segment dominated the market in 2019 attributed to the serious focus of the federal government in releasing the sub-GHz frequencies. However, the mmWave segment is anticipated to inscribe a high CAGR owing to the increasing focus on releasing these frequencies for mission-critical applications.

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Spectrums Segment Analysis

On the basis of spectrums, the U.S. private LTE & 5G network market is bifurcated into unlicensed/shared and licensed. The unlicensed/ shared spectrum segment led the market in 2019 and is expected to dominate the market over the forecast period as it is highly preferred due to its easy accessibility and affordable cost contradicting licensed spectrums which are comparatively high in cost.

Verticals Segment Analysis

Based on verticals, the market is segmented into public safety, energy & utilities, enterprises & campus, defense, healthcare/hospitals, public venues, oil & gas, mining, smart cities, retail, agriculture, transport & logistics, manufacturing, and others.

The transport & logistics segment is further segmented into vehicle to everything connectivity, airports, warehouse, ports, and rail. And the manufacturing segment is further segmented into food & beverages, automotive, pharmaceuticals, electrical & electronics, clothing & accessories, and heavy machinery.

The transport & logistics segment held a key share of the market in 2019 attributed to escalating urge for improved and secured network connectivity by the railway stations and airports.

On the other hand, the manufacturing segment held a large share of the market in 2019 and is anticipated to lead the market in the coming years attributed to the rising urge for private network infrastructure among several manufacturing facilities to improve the overall operational efficiency and productivity.