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

Industry Insights

The U.S. private LTE & 5G network market size was worth USD 1.35 billion in 2019. It is projected to register a 17.0% CAGR over the forecast duration. The increasing adoption of 5G network and private LTE for smart city applications 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 their application in collaborative robots, industrial sensors, industrial automation, and autonomous vehicles, which in turn, offers a huge growth opportunity for the industry participants.

Rapid growth in smart city construction has led to a rise in the 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 networks & 5G networks. 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 network market 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 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 the easy availability of alternate networks 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). The increasing need to connect the multiple sensors in industrial premises is estimated to supplement the demand for the 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 network market by revenue in 2019. This segment alone held over 95% share in 2019. It comprises 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 bands 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 is Highly reliable, which makes it suitable for public safety and mission-critical industrial applications.

Spectrum Insights

Based on the spectrum, the 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. The 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) applications.

The licensed spectrum incurs higher costs 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 network market in 2019. Increasing private network requirements 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.

Further, 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 market has been affected negatively 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 quarters 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 patients 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 shortly, as automation will become a major driving force for various industries post-COVID-19.

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

The 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

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2027. For 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