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U.S. Private LTE & 5G Network Market Size, 2027 | Industry Report

U.S. Private LTE & 5G Network Market Analysis Report By Component, By Frequency, By Spectrum, By Vertical And Segment Forecasts From 2020 To 2027

Report ID: MN17620119  |  Published: September 2020  |  No of Pages: 150
Format: Electronic (PDF)  |  Industry: Technology  |  Publisher: Grand View Research

Industry Insights

The U.S. private LTE & 5G network market size was worth USD 1.35 billion in 2019. It is projected to register 17.0% CAGR over the forecast duration. Increasing adoption of 5G network and private LTE for smart city application and IoT is driving the market growth. IoT is gaining traction across industries such as manufacturing, public safety, transportation and power & energy among others. In addition, 5G technology & private LTE is projected to find its application in collaborative robots, industrial sensors, industrial automation and autonomous vehicles, which in turn, offers a huge growth opportunity for the industry participants.

U.S. private LTE & 5G network market

Rapid growth in smart city construction has led to a rise in adoption of IoT applications for several applications such as security, transport, energy management and public safety among others. Therefore, businesses that have witnessed high adoption of IoT applications are increasingly using private networks and 5G networks.

The private LTE & 5G can be made operational on three spectra including shared, licensed and unlicensed. In the beginning, only two kinds of frequency spectrum were used in the U.S. for private network & 5G network. These spectra are unlicensed spectrum at 3.5 GHz and 5GHz. However, recently, the Federal Communications Commission (FCC) for 5G technology has released several spectrum bands with a different frequency range. Therefore, government regulations are estimated to drive the adoption of 5G networks, thereby, proliferating the U.S. private LTE and 5G networkmarket growth.

Private network systems offer flexibility to users to modify the network as per their business needs, thereby, offering complete control to users. Owing to the advent of industry 4.0 standards, industry players are emphasizing on the deployment of the high-speed network to facilitate various operations using innovative technologies such as machine-to-machine, wireless camera, collaborative robots and industrial IoT. These industries are increasingly relying on the deployment of advanced private networks that provide secure connectivity.

Several companies in manufacturing, transportation, automotive and others are adopting private LTE networks in their business operations. However, small and medium scale companies are witnessing significantly low adoption. Factors such as easy availability of alternate network and low financial budgets are hindering the growth of these companies.

Component Insights

Depending on the component, the hardware segment accounted for the highest share of over 50% in 2019. Increasing deployment of transport equipment, backhaul and core network for 5G and private network is attributing to the high growth of the hardware segment. Further, the hardware segment is divided into the core network, backhaul & transports and Radio Access Network (RAN). Increasing need to connect the multiple sensors in industrial premises is estimated to supplement the demand for RAN sub-segment.

On the other hand, the service category is likely to register the highest growth over the forecast duration. Increasing demand for integration and deployment of 5G technology is driving the growth of this segment. Services segment include installation & integration, support & maintenance and data services. In 2019, the installation & integration category accounted for the major share in the market. Increasing demand for infrastructure integration, application integration and consulting services are driving the demand for this segment.

Frequency Insights

By frequency, the sub-6 GHz accounted for the major share in the U.S. private LTE & 5G networkmarket by revenue in 2019. This segment alone held over 95% share in 2019. It comprises of low to mid-band spectrum ranges, primarily 6 GHz and less. MultiFire and the Federal Communication Commission (FCC) have released 5 GHz and 3.5 GHz frequency band for 5G services and private networks. The focus by the federal government on releasing sub-GHz frequencies has significantly attributed to the growth of the market.

On the other hand, the mmWave segment is projected to register the highest growth from 2020 to 2027. These frequencies are of the high band, thereby they offer high connectivity along with significantly low latency. mmWave are Highly reliable, which makes it suitable for public safety and mission-critical industrial applications.

Spectrum Insights

On the basis of spectrum, unlicensed/shared segment held the maximum share in the market with over 90% revenue in 2019. Further, the segment is projected to continue to remain dominant over the forecast duration. Rise in the number of the shared and unsilenced spectrum by MultiFire Alliance and FCC for 5G and private network is driving the segment growth. In addition, others benefit such as open access and low cost make the unlicensed spectrum readily available and preferred for massive machine-type communications (mMTC) application.

The licensed spectrum incurs higher cost than unlicensed ones. To deliver secured and enhanced connectivity, customers are required to purchase a license of particular spectrum bandwidth. In addition, the licensed spectrum can be procured through direct bidding organized by the federal government. Sectors such as government, defense and industrial are estimated to witness significant growth for the licensed segment.

Vertical Insights

Among different industry verticals, the manufacturing segment accounted for the highest share of approximately 20% in the U.S. private LTE and 5G networkmarket in 2019. Increasing private network requirement among various manufacturing facilities across the United States is driving the segment growth. The emergence of industry 4.0 has further increased the demand for the high-speed network to ensure the smooth operation of various technologies such as cloud robots, M2M, AGV and others. AVG, in particular, is likely to supplement the demand for 5G networks and private LTE.

U.S. private LTE & 5G network market shareFurther, the manufacturing segment is classified into electrical and electronics, automotive, pharmaceuticals, clothing & accessories, heavy machinery and food & beverages. Besides, the transportation & logistics segment accounted for the highest share in the market. Increasing demand for improved and secured transportation is driving the demand for this segment.

Impact of COVID-19

The markethas been affectednegatively due to the COVID-19 outbreak. The country is one of the worst hit in terms of COVID-19 spread, which led to the closure of various industrial operations in the second and third quarter of 2020. In addition, deployment of 5G technology has been delayed in the country owing to disruption in the supply chain.

However, the healthcare industry has witnessed the increased adoption of private LTE and 5G network. Following the shortage of workforce in the healthcare industry, telehealth and remote monitoring of patient become the need of the hour, which in turn, led to increased adoption of high-speed connectivity in the sector. In addition, the market is projected to register considerable growth in the near future, as automation will become a major driving force for various industries post-COVID-19.

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

Top five leading companies account for over 80% share in the market. Key players are focusing on strategic partnerships with various stakeholders to establish a test center for the 5G network to test industrial automated devices. Further, companies are involved in technology collaboration and regional expansion to strengthen their position in the market. For example, AT&T and Nokia Corporation in 2020 collaborated to create O-RAN architecture-based RAN Intelligent Controller software platform. Key market participants are Mavenir, Verizon Communications, Altiostar, Broadcom Inc., Nokia Corporation and T-Mobile USA, INC. among others.

Report Scope

Report Attribute

Details

Market size value in 2020

USD 1.89 billion

Revenue forecast in 2027

USD 5.68 billion

Growth Rate

CAGR of 17.0% from 2020 to 2027

Base year for estimation

2019

Historical data

2019

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Component, frequency, spectrum, vertical

Country scope

The U.S.

Key companies profiled

Altiostar; AT&T INC.; Broadcom Inc.; Cisco Systems, Inc.; Mavenir; Nokia Corporation; Samsung Electronics Co., Ltd.; Telefonaktiebolaget LM Ericsson; T-Mobile USA, INC; Verizon Communications

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Avail customized purchase options to meet your exact research needs.


Segments Covered in the Report

This report forecasts revenue growth at country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2019 to 2027. For the purpose of this study, Million Insights has segmented the U.S. private LTE & 5G network market report based on component, frequency, spectrum and vertical:

• Component Outlook (Revenue, USD Million, 2019 - 2027)
    • Hardware
        • Radio Access Network (RAN)
        • Core Network
        • Backhaul & Transport
    • Software
    • Services
        • Installation & Integration
        • Data Services
        • Support & Maintenance

• Frequency Outlook (Revenue, USD Million, 2019 - 2027)
    • Sub-6 GHz
    • mmWave

• Spectrum Outlook (Revenue, USD Million, 2019 - 2027)
    • Licensed
    • Unlicensed/Shared

• Vertical Outlook (Revenue, USD Million, 2019 - 2027)
    • Manufacturing
        • Automotive
        • Electrical & Electronics
        • Food & Beverages
        • Pharmaceuticals
        • Heavy Machinery
        • Clothing & Accessories
    • Transportation & Logistics
        • Warehouses
        • Vehicle to Everything (V2X) Connectivity
        • Ports
        • Airports
        • Rail
    • Energy & Utilities
    • Defense
    • Public Safety
    • Enterprises & Campus
    • Public Venues
    • Mining
    • Healthcare/Hospitals
    • Oil & Gas
    • Retail
    • Agriculture
    • Smart Cities
    • Others

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