Private LTE Market Size, Share & Trends Analysis Report By Component (Infrastructure, Service), By Technology (Frequency Division Duplexing, Time Division Duplexing), By Spectrum (Licensed Spectrum, Unlicensed Spectrum, Shared Spectrum), By Deployment Model (Centralize, Distributed), By Industry Vertical (Healthcare, Manufacturing, Government and Defense, Energy and Utilities, Oil and Gas, Education, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global private LTE market size was valued at USD 4.60 billion in 2021 and is anticipated to generate USD 11.12 billion by 2030. The market is projected to grow at a CAGR of 10.3% during the forecast period (2022–2030). 

Private LTE technology is comparable to 5G network technology and is a sort of long-term evolution. It's identical to 5G base stations, LTE networks, and radio access networks in that it's used (RAN). 

To send data from a smartphone to a wearable device and data from one smartphone to another, 4G network technology provides reliable, secure, and fast communications. Private LTE has several advantages over LTE, including faster data transfer, the ability to connect more devices, and lower latency.

Market Dynamics

Private LTE Market Drivers

• Need for Wireless Network in Business Soaring Market 

Most organizations are migrating to digital platforms, which will raise the requirement for a low-latency, high-speed wireless network and drive the worldwide private LTE market. It will enhance data rates from Mbps to Gbps (Gbps). Network densification increases network capacity by adding more micro stations, including macro sites, radio access networks, and interior wireless deployments. Private LTE competes with 4G and 5G networks. It's preferable when transferring significant volumes of data that strain the public network. 

Public LTE networks can be prohibitively expensive for large data transfers. Private LTE can be installed anywhere, outside public carriers' coverage, and can store data on-site for security. Private LTE can handle specific traffic types. Real-time IoT applications can have low latency for instant reaction. Penetration of digital services such as driverless cars and remote surgeries has increased, enhancing the need for more robust connectivity and faster speed, pushing the worldwide private LTE market over the projection period.

• Access to Private LTE Unlicensed and Shared Spectrum Deployment Surging Global Market

With shared and unlicensed spectrum bands and standalone cellular technologies like MulteFire, commercial and industrial organizations can invest in private LTE and 5G networks. A robust, standards-based technology, LTE can help enterprises reduce implementation and operational expenses and prevent vendor lock-in in infrastructure and devices. Some IoT/IIoT users will use proprietary equipment. In September 2019, corporate service-based private LTE networks were introduced on the 3.5MHz band based on the citizen's broadband radio service band (CRBS) and permit cable operators and wireless and fixed telecom carriers. This wireless network was unlicensed. 

LTE-based MulteFire has features such as "listen before you speak" that allows companies to establish their own private LTE station without consulting mobile network operators. 2.4 GHz and 5 GHz global bands, 800/900 MHz and 1.9 MHz regional bands. MulteFire's standalone capability will open an unlicensed spectrum to wireless ISPs, corporations, verticals, and MNOs. Anyone could implement MulteFire LTE private networks. The global market will be driven by an unlicensed and shared spectrum. 

• Internet Traffic and the Need for a Unique Network Propelling Market Growth

The rise of AI, cloud computing, and digital platforms have increased internet consumption. Smartphones and wearable devices such as smartwatches and fitness trackers are increasing the demand for high-speed internet. Internet transfers content to smartphones, smartwatches, and tablets. Increased smartphone and internet use drive market growth. By 2023, two-thirds of the world's population will have access to the Internet. In 2023, internet users will account for 66% of the worldwide population, up from 51% in 2018. Due to rising internet traffic, the need for technically superior telecommunication networks will rise. Internet traffic growth will propel the worldwide private LTE industry. Private LTE's unique quality will drive worldwide market growth. 

• Investment in 5G Infrastructure Boosting Market

The US, China, India, the U.K., France, Germany, Japan, the Republic of Korea, Singapore, and Taiwan have progressed with private LTE deployment, fueling the market growth. AT&T, Verizon, Sprint, and T-Mobile have begun testing proprietary LTE technology and equipment, with commercial releases scheduled for 2019. China's central government supported private LTE and 5G R&D and implementation. China's wireless investments have been handled nationally through China Unicom, China Mobile, and China Telecom since 2015. These factors are expected to boost the worldwide private LTE market over the forecast period.

Private LTE Market Restraints

• Interoperability and Interference Issues Resisting Market Growth 

Due to the scarcity of fiber networks in many countries, operators are confronted with the task of deploying private LTE networks to meet low latency issues such as compatibility and frequency band interference. The UK, for example, has the lowest fiber penetration rates. The UK government introduced a five-year respite from corporate profits on the new fiber network infrastructure to encourage investment in fiber networks. 

Furthermore, fiber backhaul deployment is not cost-effective in some countries; thus, operators should examine wireless backhaul alternatives. Where this is the case, a repertoire of wireless technologies such as mmWave, PMP, and satellite must be considered concerning fiber. Such options aid sectors in overcoming compatibility and frequency band interference issues and boost the small cell market's growth. 

• Private LTE Deployment Costs and Other Issues Hampering Global Market 

Private LTE is low-cost to operate. However, it has a high deployment cost and the infrastructure required to deploy private LTE, which is very expensive and challenging to deploy in emerging economies. Severe administrative and financial constraints on operators have hampered the emergence of private LTE in several nations, local authorities, and regulation policies linked with wireless solutions, preventing investment. The rollout of private LTE is hampered by lengthy procurement processes, lengthy permitting processes, high prices, and antiquated restrictions that prevent access. 

Local regulatory and planning processes, for example, can take up to 18–24 months to authorize plans for private LTE deployments, causing delays. Local rules and regulations like these prevent the speedy and cost-effective deployment of private LTE in city centers, where the wireless network is projected to be most in demand at first. These reasons are projected to fuel the global expansion of the private LTE market.

Private LTE Market Opportunities

• Demand for Ultra-reliable, Low-latency Communications Providing Opportunities

For applications like autonomous driving, factory automation, remote surgery, mission-essential communications, and VR/AR entertainment, private LTE is being designed to enable services for latency-sensitive devices. These applications demand sub-millisecond latency and error rates of less than one packet lost every 105 packets. The application cases for ultra-reliable, low-latency communications (URLLC) involve strict latency and reliability requirements. 

Due to factors such as interference levels, channel fading, and user equipment (UE) movement, cellular networks face several obstacles. High reliability, low latency, and optimum multiplexing between URLLC and other traffic in the system are all supported by private LTE technology. Private LTE deployment must be designed to match the high latency and reliability standards for URLLC that is suitable for the global private LTE market throughout the projection period. 

• Emergence of IoT and AI Making Way for New Openings

Previously, 4G-based IoT technologies were implemented to satisfy IoT needs. These offerings are best for applications with modest latency, bandwidth, and reliability criteria. 4G IoT performance and scalability are lower than private LTE aspirations but enough to establish a new connection and business models. Private LTE, which can be deployed densely, will enable wireless IoT use cases. They also support the short-range of millimeter-wave 5G networks. 

Massive IoT demands high connection densities of up to one million devices per square kilometer with low per-device data rates, which is expected to generate profitable opportunities for the global market. By 2025, the IoT market might exceed USD 11 trillion. Private LTE supports more connections per square kilometer than 4G, which is essential because billions of IoT devices will be connected. More connections mean fewer network equipment, better setup, and faster deployment time, which will raise the global demand for private LTE.

Regional Analysis

Based on region, the global private LTE market share is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America to be the Largest Revenue Holder in Global Market

North America is anticipated to hold the largest market share of USD 5243 million by 2030 at a CAGR of 12.4% during the forecast period. The market in North America was valued at USD 1831 million in 2021. North America has created a connected network by advancing technology, research, and commerce to fulfill end-user demands. In this region, strategic launches of private LTE facilities and tools are rising, driving the market growth. The US has the primary market in this region, with USD 1687 million in 2021.

Europe is the second contributor to the private LTE market with revenue of USD 1423 million in 2021 and is projected to generate revenue of USD 4449 million in 2030 with a CAGR of 13.5%. Europe is allocating a 5G spectrum. Private LTE is expected to rise as the European Government builds network infrastructure. The European Government's Private LTE requirements require high-quality outdoor and indoor cellular connectivity, which permits a light-touch regulatory environment and may stimulate private LTE adoption in this region. Germany and UK have more market revenue compared to Italy and France. The market revenue of Germany and the UK were valued at USD 299 million and USD 318 million, respectively, in 2021.

The private LTE market in the Asia-Pacific is expected to witness steady growth with a value of USD 1202 million in 2021. The market is expected to grow with revenue of USD 5092 million with a CAGR of 17.4%. Private LTE networks are bringing technological and commercial solutions to Asia-Pacific's cellular industry. This drives private LTE network deployment in this region.

Due to the rising demand for high-quality information and to remain competitive in the global market, the government is taking proactive steps to improve the networking infrastructure. This has led to government initiatives that boost private LTE throughout Asia-Pacific. China is the most significant contributor to the market compared to other countries, which was valued at USD 337 million in 2021. Japan is growing its market gradually, with market revenue of USD 268 million in 2021.

LAMEA has the lowest market. In 2021, the market revenue was valued at USD 370 million, with Latin America and the Middle East being their major contributor. The market is anticipated to generate revenue of USD 1364 million in 2030 at a CAGR of 15.6%. LAMEA is an emerging market adopting modern networking solutions and services for competitive advantage. The rise in industrial and digital revolutions in LAMEA will also boost private LTE usage.

Segmental Analysis

The global private LTE market share is categorized by component, technology, spectrum, deployment model, and industry vertical.

Based on the types of components, the market is segmented into infrastructure and service. Infrastructure is the major shareholder in the global private LTE market. The market revenue of infrastructure and service was valued at USD 3016 million and USD 1810 million in 2021. The global infrastructure market is projected to generate USD 8917 million in 2030 and grow at a CAGR of 12.8% by 2030. Private LTE infrastructure solutions are used to deploy and integrate network device technology. Because it can converge hyper-dense network designs into advanced, scalable systems, promoting connection with low latency. This is estimated to drive the usage of private LTE. The global service market is projected to generate USD 7211 million in 2030 and grow at a CAGR of 16.6% by 2030. Consumers' desire for 5G mobile experiences pushes network operators to employ private LTE products to give high-quality services. This element should boost the market growth in the future.

Based on the technology, the market for private LTE is segmented as frequency division duplexing (FDD) and time division duplexing (TDD). Frequency division duplexing is the highest market shareholder and was valued at USD 2856 million in 2021. LTE is an All-Business-Connected Network for several businesses. This should boost the worldwide private LTE FDD market. The global market for frequency division duplexing is projected to generate USD 8787 million in 2030 and grow at a CAGR of 13.3% by 2030. Time-division duplexing market was valued at USD 1970 million in 2021 and is projected to generate USD 7263 million in 2030 with a CAGR of 15.6%. The deployment of time-division duplexing has grown in the market due to its low cost and compact size, which is expected to generate profitable chances for the private LTE market in the future.

According to spectrum types, the unlicensed spectrum is the largest market holder. It was valued at USD 2209 million in 2021 and is anticipated to generate revenue of USD 6175 million with a CAGR of 12.1% by 2030. Private networks can now deliver tangible benefits to organizations due to the decline in cost and complexity of LTE networks and the growth of spectrum options. This motivates providers to develop novel small cell infrastructure and cloud-based core solutions. Top vendors are launching unlicensed spectrum solutions, fueling industry growth.

Shared spectrum is anticipated to be the second-largest market holder with a value of USD 1805 million in 2021 and is anticipated to generate revenue of USD 7191 million with a CAGR of 16.6% by 2030. A shared spectrum enables an existing private LTE carrier to simultaneously operate 5G New Radio (NR) and LTE with a simple software upgrade, which has a beneficial influence on market growth. In 2021, the market value for licensed spectrum was USD 777 million.

As demand for private LTE in the commercial sector for mobile spectrum bands grows, several telecom regulatory authorities across the world are enacting regulations that will encourage the commercial usage of private LTE. The global market for licensed spectrum is projected to generate USD 2670 million in 2030 and grow at a CAGR of 14.7% by 2030.

On the basis of deployment method, the private LTE market is segmented into centralized and distributed deployment. The distributed deployment holds the highest market share with a value of USD 2776 million in 2021 and is expected to generate revenue of USD 8678 million in 2030 with a CAGR of 13.5%. Distributed deployment attracts private LTE operators and service providers due to its low cost, high-bandwidth next-generation operation.

Low-power a short-range data access point that improves indoor coverage and backhauls IP traffic. This will boost private LTE in this area. The centralized deployment had a market value of USD 2050 million in 2021 and is expected to generate revenue of USD 7325 million in 2030 with a CAGR of 15.2%.

As per industry vertical, government & defense, manufacturing, and energy & utilities hold a significant market share in the global market. The global market for government & defense was valued at USD 1237 million in 2021and is anticipated to generate USD 3089 million with a CAGR of 10.7% by 2030. Other significant advantages of private LTE networks include Internet range in unique places such as street lights and sewer holes and ultra-low-power connectivity to IoT components such as sensors for leak detection in water mains.

The manufacturing segment was valued at USD 1070 million in 2021and is anticipated to generate USD 3158 million with a CAGR of 12.8% by 2030. Private LTE and 5G cellular can increase manufacturing operations with fast speed, low latency, and outstanding dependability. This will drive global private LTE adoption. The global market for energy & utilities was valued at USD 878 million in 2021and is anticipated to generate USD 2680 million with a CAGR of 13.2% by 2030. As business and product life cycles shrink, energy sectors face increased demand for electricity and energy for smart cities and heavy industries. To solve this challenge, the energy and utility sector is deploying private LTE, which will raise market demand.

Impact of covid-19

As per the WHO, the number of reported COVID-19 cases jumped from 87,137 on March 01, 2020, to 102,083,344 as of February 01, 2021, with approximately 2,209,195 deaths globally. The rapid rise in the number of confirmed COVID-19 cases globally resulted in the governments of various countries resorting to stringent containment measures to slow down the spread of the pandemic. However, complete lockdowns across countries also resulted in a short-term decline in the GDPs of their respective economies.

The COVID-19 pandemic had e a dual effect on the electronics industry, wherein the manufacturing of electronics components was halted due to lockdowns imposed in various countries, coupled with slower logistical processes and supply interruptions. Furthermore, the unavailability of labor globally has also contributed negatively to the manufacturing of electronic components.

The discontinuation in the delivery of electronics products by e-commerce companies during the lockdown, as they were considered non-essentials, negatively impacted the electronics industry. However, increased demand for laptops, computers, and mobile phones due to work-from-home situations positively affected the electronics industry.

The Chinese economy was hit tremendously as it was the epicenter of the COVID-19 pandemic, disrupting the supply chain for major electronic brands. As China is the major exporter and manufacturer of raw materials required to produce electronic products, this has led to the halting of the ongoing production of electronics in the U.S. and Europe, thereby creating a demand-supply gap.

Recent Developments

• In November 2020, Nokia corporation partnered with the A1 Austria to enhance LTE and 5G enterprise campus network deployments.
• In November 2020, AT & T partnered with a leading IT service provider company, IBM Corporation, to connect its multi-access edge networks (MEC). With IBM hybrid cloud network.
• In October 2020, Cisco system partnered with a leading telecommunication service provider, Verizon communication, to provide private LTE and 5G services to the entertainment industry.
• In October 2020, Ericsson partnered with AT & T, which is a leading telecommunication service provider, to set up private wireless networks for enterprises.
• In October 2020, Verizon communication acquired Bluegrass cellular company, which is a local internet service provider; this acquisition will allow both companies to provide better private LTE service in the tribal area.
• In July 2020, ZTE Corporation collaborated with True Corporation Public Company Limited to build a commercial 5G network and private LTE in Thailand.
• In July 2020, Deutsche Telekom partnered with Ericsson, a leading telecommunication services provider, to manage 5G and private wireless networks.
• In June 2020, Vodafone partnered with Ford motor limited, the leading car manufacturer globally, to deploy private LTE in the new electric car plant in North America.
• In June 2020, Huawei technology partnered with Hudbay’s Constancia copper mine in Peru to deploy private LTE in the mining industry.