Private LTE Will be a $16.3 Billion Opportunity by 2025
February 21, 2019 | ABI ResearchEstimated reading time: 3 minutes
By 2025, the private Long-Term Evolution (LTE) market comprising of healthcare, transport and logistics, manufacturing, smart venues, smart cities, and oil and gas will be worth $16.3 billion, according to ABI Research. With the future of Mobile Service Providers (MSPs) and network vendors to be defined beyond the consumer market to end-vertical enterprises, private LTE is set to be a key asset to create new revenue streams.
“A new understanding of spectrum usage, spearheaded by the Citizens Broadband Radio Service (CBRS) activities in the United States, and increasing demand from industry verticals are the main drivers of private LTE,” said Pablo Tomasi, Senior Analyst at ABI Research. “The United States is taking the lead in bypassing the issue of spectrum, which has been traditionally one of the roadblocks to private LTE expansion. The CBRS three-tier system provides 150 MHz of spectrum and most importantly, offers the ability for companies to acquire spectrum depending on their needs. Besides CBRS, other developments such as MulteFire and that countries are considering auctioning regional spectrum, show that this new spectrum paradigm has a global scale,” continued Tomasi.
The market will be worth $16.3 billion by 2025 with the vertical of transport and logistics being the largest among those analyzed, representing 26.3% of the total market. The growth potential and the size of the market, where virtually every sector could benefit from private LTE deployments, mean that an increasing number of companies will be attracted to it. From existing specialized network vendors, such as Redline Communication, to global vendors such as Nokia, all vendors are betting on private LTE for growth. Not only vendors, but companies with diverse backgrounds including indoor wireless providers, such as Boingo Wireless, and web-scale players such as Amazon, are also being attracted to this market. Contrary to this market trend, with few notable exceptions such as Deutsche Telekom, MSPs are hesitant to fully commit to private LTE, which they see as a competitive threat to their core business and investments. MSPs are moving slower than the rest of the market, and if they do not start engaging with partners and taking a more central role in the delivering of private LTE solutions, they will miss this opportunity to enter the vertical market space. A deeper engagement of MSPs, would not only benefit the category but the wider market as a strong commitment from leading carriers will spur the growth of the whole ecosystem.
“The importance of Private LTE is not only in its revenue opportunity as the technology has also an additional value. The delivering of successful projects will show the reliability of cellular technology (and its ecosystem) and will ultimately pave the way for 5G in industrial markets,” concluded Tomasi.
These findings are from ABI Research’s Carrier Strategies for Private LTE application analysis report. This report is part of the company’s Telco Digitization research service, which includes research, data, and Executive Foresights. Based on extensive primary interviews, Application Analysis reports present in-depth analysis of key market trends and factors for a specific application, which could focus on an individual market or geography.
About ABI Research
ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI’s own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture.
Suggested Items
Commercial Demand Continues to Be the Main Driver of Personal Computing Device Shipments into the GCC Region
03/26/2024 | IDCThe Gulf Cooperation Council (GCC) personal computing device (PCD) market, which is made up of desktops, notebooks, and workstations, declined 4.0% year on year in 2023, with high inventory levels and reduced consumer spending the primary causes.
Suppliers Aim to Raise Contract Prices, But With Uncertain Demand, 2Q24 DRAM Price Increase Expected to Narrow to 3–8%
03/26/2024 | TrendForceTrendForce’s latest report reveals that despite DRAM suppliers’ efforts to trim inventories, they have yet to reach healthy ranges. As they continue to improve their lose situations by boosting capacity utilization rates, the overall demand outlook for this year remains tepid.
LPKF Reports Strategic Successes and Narrowly Achieves Forecast for 2023 Financial Year
03/26/2024 | LPKFLPKF Laser & Electronics SE generated revenue of EUR 124.3 million in the financial year (previous year: EUR 123.7 million) and earnings before interest and tax (EBIT) of EUR 3.7 million (previous year: EUR 6.8 million), putting the EBIT margin at 3.0% (previous year: 5.5%).
Arlon EMD and EMC Announce Expansion in California
03/25/2024 | Arlon EMDArlon EMD, a division of Elite Materials Company (EMC), announces a factory expansion at the Rancho Cucamonga, CA location. Arlon is a global leader in high performance thermoset substrates for mission critical printed circuit boards manufactured for high endurance and long-life programs. Arlon has a 45-year history of manufacturing specialty materials for the Aerospace, Industrial and Military (AIM) markets.
Intraratio Enhances MES + Yield / IoT Management with New Advanced Manufacturing Analytics
03/22/2024 | IntraratioIntraratio announced AICard, which harnesses the power of artificial intelligence and machine learning to empower manufacturers to make informed decisions quickly and accurately regarding product quality and manufacturing line performance and optimization.