IDC forecasts the private LTE/5G infrastructure market to reach $5.7B in 2024 as demand from mission-critical organizations drives early investment...
A new report from International Data Corporation (IDC) presents IDC’s inaugural forecast for the worldwide Private LTE/5G infrastructure market for the period 2020–2024.
Private LTE/5G infrastructure is any 3GPP-based LTE and/or 5G network deployed for a specific enterprise/industrial customer that provides dedicated access. It includes networks that may utilize dedicated (licensed, unlicensed, or shared) spectrum, dedicated infrastructure, and private devices embedded with unique SIM identifiers. Private LTE/5G infrastructure carries traffic native to a specific organization, with no shared resources in use by any third-party entities.
Worldwide revenue attributable to the sales of private LTE/5G infrastructure will grow from $945 million in 2019 to an estimated $5.7 billion in 2024 with a 5-year compound annual growth rate (CAGR) of 43.4%. This includes aggregated spending on RAN, core, and transport infrastructure.
“Private LTE infrastructure is already used by select verticals worldwide to solve mission-critical networking challenges. However, the barrier to consumption has remained high, limiting adoption to organizations possessing in-house competency and access to dedicated spectrum,” said Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure. “With more spectrum being made available for enterprise uses, coinciding with the arrival of commercial 5G, interest has grown toward using private LTE/5G solutions as a basis for connectivity across a multitude of mission-critical, industrial and traditional enterprise organizations.”
Many organizations are deploying private LTE today, and a select few are beginning to deploy private 5G in limited instances. While many of these verticals overlap in both use case and network needs, the market opportunity can be categorized in three segments: