Private LTE/5G wireless infra market to exceed $8.3bn by 2026: IDC
IDC noted that the worldwide market for private LTE/5G wireless infrastructure continued to gain traction throughout 2021
The global private LTE/5G wireless infrastructure market is forecast to reach revenues of $8.3 billion by 2026, an increase compared to revenues of $1.7 billion in 2021, according to new research from International Data Corporation (IDC).
IDC said that this market is expected to achieve a five-year compound annual growth rate (CAGR) of 35.7% over the 2022-2026 forecast period.
IDC defines private LTE/5G wireless infrastructure as any 3GPP-based cellular network deployed for a specific enterprise/industry vertical customer that provides dedicated access to private resources. This could include dedicated spectrum, dedicated hardware and software infrastructure, and which has the ability to support a range of use cases spanning fixed wireless access, traditional and enhanced mobile broadband, IoT endpoints/sensors, and ultra-reliable, low-latency applications.
IDC noted that the worldwide market for private LTE/5G wireless infrastructure continued to gain traction throughout 2021. The research firm highlighted that private LTE remained the predominant revenue generator during 2021, while private 5G marketing, education, trials, and new private 5G products and services also began to see market availability. IDC also said that most private 5G projects to date remain as either trials or pre-commercial deployments.
“Heightened demand for dedicated or private wireless solutions that can offer enhanced security, performance, and reliability continue to come to the fore as both current and future applications, particularly those in the industrial sector, require more from their network and edge infrastructure,” said Patrick Filkins, research manager, IoT and telecom network infrastructure at IDC. “While private LTE/5G infrastructure continues to see more interest, the reality is 5G itself continues to evolve, and will evolve for the next several years. As such, many organizations are expected to invest in private 5G over the coming years as advances are made in 5G standards, general spectrum availability, and device readiness.”
The total addressable market for private networks – including the Radio Access Network, Mobile-access Edge Computing (MEC), core, and professional services – is forecast to increase from $3.7 billion in 2021 to more than $109.4 billion in 2030, according to a recdent report by ABI Research.
The report forecasts that the market for 5G private networks will reach $47.5 billion in 2030, up from $221 million last year, while the total market for 4G private networks will go from $3.54 billion in 2021 to $66.88 billion in 2030.
The research firm also noted that the global spending on smart manufacturing will expand from $345 billion in 2021 to more than $950 billion in 2030.