Private LTE/5G Networks Surge Worldwide, Driving Opportunities and Investments
Berg Insight’s latest research reveals a substantial presence of 2,900 private LTE/5G networks globally as of the close of 2023, encompassing trial and pilot deployments. These networks, defined as 3GPP-based and exclusive to entities like enterprises or government organizations, are rapidly opening avenues for investment in the cellular ecosystem. As established network equipment suppliers and new entrants invest, the market witnesses growth from trials to commercial operations.
The report estimates approximately 2,200 deployed private 4G LTE networks globally, serving diverse use cases. Notably, private 5G networks are transitioning from trials to commercial operations, with an estimated 700 networks in place. Berg Insight forecasts a robust compound annual growth rate (CAGR) of 33% in private LTE/5G network deployments, reaching 11,900 networks by 2028. The trend indicates faster deployment into commercial operations, reducing the need for extensive use case testing.
Anticipating the future, Berg suggests a significant number of private LTE networks will upgrade to 5G, commencing within the next two to three years. The market landscape comprises specialized core network software suppliers such as Druid Software, Athonet (acquired by HPE in June 2023), Affirmed Networks, and Metaswitch (part of Microsoft since mid-2020). Berg identifies around 30 suppliers offering EPC/5GC solutions and IT-centric players like Cisco and HPE, providing integrated Wi-Fi and private LTE/5G solutions.
Key RAN vendors, including Ericsson, Nokia, and Huawei, play substantial roles as integrated solution providers, facing challenges from smaller RAN equipment providers. Nokia leads with over 635 private cellular network customers at the end of Q2-2023. These vendors adopt channel-led sales strategies, creating ecosystems with mobile operators, systems integrators, VARs, and consulting partners to bring solutions to the market.
The report underscores the contributions of small cell and RAN equipment providers like Airspan Networks, Baicells, CommScope, JMA Wireless, Mavenir, Samsung Networks, Sercomm, and ZTE, offering LTE/5G radio products and comprehensive private network solutions. The surge in private LTE/5G networks signals a transformative era, fostering innovation and growth in the global cellular landscape.