SNS said that the private networking space in the U.S. will be worth over $3.7 billion by 2027
Neutral host is growing concurrently in the U.S., the firm reports.
STL Partners also said that manufacturing is the most dominant private cellular space globally
SNS Telecom & IT told Fierce this week that the consultancy expects 5G to become the dominant technology in digital industrialization by 2027, overtaking the dominance of 4G LTE in the United States enterprise space. Private networking is at the bleeding edge of digital industrialization.
“Overall we expect 5G to become the prevalent technology by 2027,” Asad Khan, 5G research director at SNS Telecom & IT, told Fierce in an email. “However, the transition will take longer in industries such as utilities, where private LTE will continue to account for up to 80% of all new investments even in 2027,” he added. Specifically, this means wide area, low-band networks operating in Band 8 (900 MHz) spectrum, Asad said.
SNS Telecom & IT estimates that annual spending on private LTE and 5G network infrastructure in the U.S. will grow at a CAGR of approximately 18% between 2024 and 2027, cumulatively accounting for more than $3.7 billion by the end of that time period.
“Commercial deployments of private 5G networks are starting to gain significant traction in industrial and enterprise settings,” the firm's report stated.
“Notable examples of facilities where private 5G networks are operational or being deployed include Walmart's distribution centers, Tesla's Gigafactory Texas, BMW Group's Spartanburg plant, GM's (General Motors) Factory ZERO assembly center, Toyota Material Handling's Columbus production complex, Cummins' JEP (Jamestown Engine Plant), LG Electronics' Clarksville home appliance manufacturing plant, Delta Air Lines' Atlanta operating hub, DFW (Dallas Fort Worth) International Airport, the Port of Virginia's container terminals, Boston Children's Hospital, Cleveland Clinic's Mentor Hospital, the VA's (Department of Veterans Affairs) healthcare systems, and several of the DOD's (Department of Defense) military installations. Other end user organizations, including John Deere, have also begun implementing standalone 5G connectivity at select facilities, alongside their continued rollout of private LTE networks,” noted the report.
One emerging trend is the growing deployment of private network-based neutral host solutions for public cellular coverage enhancement in indoor locations where DAS (Distributed Antenna System) installations are deemed too costly and complex to implement.
Facilitated in the U.S. by the accessibility of 3.5 GHz CBRS spectrum, private networks supporting neutral host operations are increasingly being deployed in industrial facilities, public venues, hospitals, hotels and educational campuses across the country.
“Some examples of such deployments include Tesla, Toyota, and Cummins’ production sites, Meta's corporate offices, City of Hope Hospital, SHC (Stanford Health Care), Sound Hotel, Gale South Beach Hotel, Gale Hotel & Residences (formerly Natiivo Miami), Nobu Hotel, ASU (Arizona State University), Cal Poly (California Polytechnic State University), University of Virginia, Duke University, and Parkside Elementary School,” the report said.
The growing market will be supported by a diversity of spectrum options, including shared Band 48/n48 (3.5 GHz) CBRS spectrum, Globalstar's Band 53/n53 (2.4 GHz) spectrum, Band 41/n41 (2.5 GHz) EBS licenses, Band 8/n106 (900 MHz) broadband spectrum for critical infrastructure, dedicated DOD and public safety broadband spectrum, and service provider licensed frequencies.
Global makers and markers
Meanwhile, STL Partners reported that globally manufacturing is the area where 4G and 5G private networking is most prevalent. “Manufacturing has moved further along the digitization and automation journey, and will naturally generate more demand for private networks, as will those with significant health and safety demands,” the firm noted in it's own report also released this week.
In that report, STL found that manufacturing is followed by healthcare, ports and other transport and logistics and mining — including oil and gas — in deploying the most private networking equipment.
“Other industries need to see equipment prices, setup costs and complexity come down further to get the investment to make sense,” the firm stated.
Similarly, Gartner delivered its first-ever "Magic Quadrant for 4G and 5G Private Mobile Network Services" this week, which ranked Verizon and Orange Business as leaders.