U.S. Private LTE & 5G Network Market Trends Report, 2022-2030
The U.S. Private LTE & 5G Network market size was valued at US$ 2.35 billion in 2021 and is expected to hit US$ 7.68 billion by 2030, growing at a compound annual growth rate (CAGR) of 18.2% from 2022 to 2030.
Growth Factors:
The key drivers attributed to the market expansion include increased adoption of private LTE and 5G networks for the Internet of Things (IoT) and smart city applications. The gradual increase in the number of IoT applications in energy, manufacturing, public safety, and transportation has driven businesses and organizations toward deploying a private network infrastructure. Additionally, the demand for private networks from use cases such as Automated Guided Vehicles (AGV), collaborative robots/ cloud-robots, industrial sensors, and heavy machinery automation, among others is driving the market growth.
The rapidly building smart cities in the U.S. have surged IoT devices' deployment for several applications, including transport, public safety, security, energy management, and so on. Therefore, the demand for private networks in the U.S. is expected to increase from the businesses that are highly utilizing the IoT ecosystem.
The private LTE and 5G networks can be operated on three frequency spectrum categories, including licensed, unlicensed, and shared spectrum. Initially, two types of frequency spectrums were used for private LTE and 5G networks in the U.S. These spectrums encompass the unlicensed spectrum at 5 GHz (MulteFire) and 3.5 GHz spectrum in the Citizens Broadband Radio Service (CBRS) band. The CBRS bands in the U.S. occupy 150MHz of the shared spectrum in the C-band. However, the Federal Communications Commission (FCC) of the U.S. has released spectrum bands for 5G at several frequency ranges, including high band, mid-band, low band, and unlicensed. As such, the positive response from the government and regulatory authorities is anticipated to boost the private 5G market in the U.S. over the forecast period.
The private networking infrastructure provides complete control over the network and allows customers to modify it as per their specific requirements and the priority of operations. With the introduction of industry 4.0., the industrial players are actively focused on deploying the high-speed network to deliver uninterrupted connectivity for several industrial applications, including machine connectivity (M2M), AGV, collaborative robots, and ultra-high-speed (UHD) wireless camera, among others. The manufacturing, energy, and utility sectors are witnessing high adoption of the Industrial Internet of Things (IIoT), which is also an integral part of Industry 4.0 revolutions. The companies from such sectors are heavily adopting private networks to provide unified and secure connectivity for these mission-critical applications.
Report Scope of the U.S. Private LTE & 5G Network Market
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Report Coverage |
Details |
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Market Size in 2021 |
USD 2.35 Billion |
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Revenue Projection By 2030 |
USD 7.68 Billion |
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Growth Rate |
CAGR of 18.2% from 2022 to 2030 |
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Base Year |
2021 |
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Historical data |
2017 - 2020 |
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Forecast Period |
2022 to 2030 |
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Segments Covered |
Component, frequency, spectrum, vertical |
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Companies Mentioned |
Altiostar; AT&T INC.; Broadcom Inc.; Cisco Systems, Inc.; Mavenir; Nokia Corporation; Samsung Electronics Co., Ltd.; Telefonaktiebolaget LM Ericsson; T-Mobile USA, INC; Verizon Communications |
Most of the unlicensed and shared spectrum bands used for private LTE connections are suitable for 5G deployment. As a result, several telecom providers are already deploying 5G network infrastructure across major metropolitan cities such as Las Vegas, Los Angeles, Miami, and New York City. The private 5G network provides enhanced data capacity and extremely low latency connectivity compared to the private LTE network. Such benefits of the 5G network allow customers to deploy standalone infrastructure for integrating multi-cloud platforms on a centralized high-speed network in the office and facility locations. The robust deployment of the IIoT, coupled with a growing need for ultra-high and secured bandwidth connectivity, is anticipated to bolster the deployment of private 5G networks during the forecast period.
Numerous companies in automotive, manufacturing, and logistics, among others, are increasingly setting up private LTE networks in the U.S. However, the adoption from small- and medium-scale businesses is still very low. The companies in low-income markets and outskirts areas face challenges, such as financial budget and alternative networks' availability, in adopting private networks. Many small- and medium-sized companies from the U.S. cannot meet the massive capital investments required to build a reliable private connectivity infrastructure, which in turn is anticipated to be a challenging factor for the steady growth of the market.
Component Insights
The hardware segment led the market and accounted for more than 52% of the revenue share in 2021. This high share is attributable to the growing deployment of the core network, backhaul, and transport equipment for private LTE as well as 5G networks. The hardware segment is further bifurcated into three component categories, including Radio Access Network (RAN), core network, and backhaul and transports. The need for improved connectivity to connect a large chain of sensors at industrial premises is anticipated to boost RAN equipment adoption and installation.
The services segment is expected to expand at a high CAGR from 2022 to 2030 on account of the emerging need for 5G deployment and integration. This segment is categorized based on installation and integration, data services, and support and maintenance. The installation and integration segment held a high market share in 2019 on account of the high demand for consulting, infrastructure integration, and application integration services. The market is expected to flourish owing to the partnerships between system integrators, cloud service providers, application/ software developers, and equipment vendors to deploy and integrate complete private virtualized RAN (vRAN/C-RAN) and core network infrastructure at the customer premises.
Frequency Insights
The sub-6 GHz segment led the market in 2021 with a revenue share of more than 96%. The sub-6 GHz frequency encompasses low band, and a mid-band of spectrum ranges mainly 6 GHz and below. The Federal Communication Commission (FCC) and MultiFire have released frequencies bands such as 3.5 GHz and 5 GHz respectively, for private LTE and 5G services in the U.S. The significant focus by the federal government to release sub-GHz frequencies has contributed to the high market share of the segment.
The mmWave frequency segment is expected to register a high CAGR over the forecast period. mmWave frequencies are high band frequencies that provide significantly high connectivity with very low latency. These frequency bands are highly beneficial for public safety and industrial infrastructure connectivity applications that require highly reliable networks. Additionally, the FCC has released several mmWave frequencies, including 24.25–24.45 GHz, 24.75–25.25 GHz, 38.6-40 GHz, and 47.2-48.2 GHz, among others for 5G use cases. Thus, the high focus to release mmWave frequencies for mission-critical applications is expected to boost the growth of the mmWave segment over the forecast period.
Spectrum Insights
The unlicensed/ shared spectrum segment dominated the market with a revenue share of more than 92% in 2021 and is expected to remain dominant over the forecast period. The high market share is attributed to the significant focus to release unlicensed and shared spectrums by FCC and MultiFire Alliance bodies for the private LTE and 5G use cases. Additionally, with the affordable costs and open access benefits, the unlicensed spectrum bandwidth is easily accessible and highly preferred during massive machine-type communications (mMTC).
The licensed spectrum for private LTE and 5G network services involves higher costs than the unlicensed/ shared spectrum. Customers need to purchase and procure a license for a particular spectrum bandwidth for delivering enhanced and secured wireless connectivity for its private use cases. Also, access to a licensed spectrum can be achieved from Communication Service Providers (CSP) and direct bidding through the federal government auctions. The demand for licensed spectrums is expected to significantly grow from industrial, government and defense sectors that require highly secured connectivity.
Vertical Insights
The manufacturing segment held the largest market share of around 22.8% in 2022 and is expected to continue leading over the forecast period. The high market share is attributable to the growing demand for private network infrastructure across various factories/manufacturing facilities in the U.S. market to improve their overall productivity and operational efficiency. The deployment of private LTE and 5G networks primarily caters to the need of high-speed bandwidth for critical use cases, including UHD wireless camera, AGV, collaborative/cloud robots, machine to machine communications, process monitoring, and predictive maintenance, among others. Furthermore, the AGV applications in the industries are expected to portray a remarkable demand for private LTE and 5G networks.
The manufacturing segment is further bifurcated into automotive, electrical and electronics, food and beverages, pharmaceuticals, heavy machinery, and clothing and accessories. On the other hand, the transportation and logistics segment also held a high market share. It is further categorized based on warehouses, vehicle to everything (V2X) connectivity, ports, airports, and rail. The market growth in the transportation and logistics sector is attributable to the accelerating demand for secured and improved network connectivity for warehouse robots, autonomous forklifts, and private connectivity in airports and railway stations.
Key Companies & Market Share Insights
The top 5 companies hold more than 85% of the market share. The key players are strategically building partnerships with industrial manufacturers to establish a private 5G network-based test center to test several industrial automated devices on a private network. Additionally, the companies are engaged in regional expansions and technology collaborations to gain a competitive advantage. For instance, In June 2020, Nokia Corporation and AT&T announced the collaboration for co-creating the RAN Intelligent Controller software platform based on O-RAN architecture. The companies ran a limited live trial of RIC over the latter company’s 5G mmWave network in New York City. Further, In February 2019, Cisco Systems, Inc., and Telenor Group announced to extend their partnership for collaborating over cloud, cybersecurity, digital workspace, and open vRAN solutions for 5G. Some of the prominent players in the U.S. private LTE & 5G network market include:
Some of the prominent players in the U.S. Private LTE & 5G Network Market include:
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at U.S. for the period of 2017 to 2030
Key Points Covered in U.S. Private LTE & 5G Network Market Study:
Chapter 1 Methodology and Scope
1.1 Market Segmentation
1.2 Research Methodology
1.3 Research Scope and Assumptions
1.4 List to Data Sources
1.5 List of Abbreviations
Chapter 2 Executive Summary
2.1 The U.S. Private LTE and 5G Network Market - Executive Summary, 2021 - 2030
2.2 The U.S. Private LTE and 5G Network Market Size & Growth Prospects
2.3 The U.S. Private LTE and 5G Network Market Snapshot, 2021
2.4 The U.S. Private LTE Market Size Estimates And Forecasts Growth Trend - 2021 - 2030
2.5 The U.S. Private 5G Market Size Estimates And Forecasts Growth Trend - 2021 - 2030
Chapter 3 The U.S. Private LTE and 5G Network Market Variables, Trends & Scope
3.1 The U.S. Private LTE and 5G Network Market - Value Chain Analysis
3.2 The U.S. Private LTE and 5G Network Market Dynamics
3.2.1 Market Driver Analysis
3.2.1.1 Increased adoption of private LTE and 5G network for IoT applications
3.2.1.2 Rising implementation of highly secured Private 5G network infrastructure across several enterprise and industrial use cases
3.2.2 Market Restraint Analysis
3.2.2.1 Lack of adoption of Private 5G & LTE from Small and Medium Companies in the low-income markets
3.2.3 Market opportunity Analysis
3.2.3.1 private LTE & 5G network for long term growth of industry 4.0
3.3 The U.S. Private LTE and 5G Network Penetration & Growth Prospects Mapping
3.4 The U.S. Private LTE and 5G Network Market - Porter's Five Forces Analysis
3.5 The U.S. Private LTE and 5G Network Market - PEST Analysis
3.6 Covid-19 Impact Analysis
3.7 Key Use Case Analysis
3.7.1 Automated Guided vehicles (AGV)
3.7.2 Collaborative Robots/Cloud-Robots
3.7.3 Industrial sensors and Heavy Machinery Automations
3.7.4 Predictive Maintenance and Analytics
3.7.5 Remote Patient Monitoring & Diagnosis
3.7.6 Public Safety and Emergency Services
3.8 5G Current and Upcoming Spectrum Scenario
3.9 5G Regulations & Policies
3.10 The U.S. Private LTE and 5G - Key Use Cases by Vertical
3.11 The U.S. Private LTE and 5G - Potential Customers by Vertical
Chapter 4 The U.S. Private LTE and 5G Network - Component Outlook
4.1 The U.S. Private LTE and 5G Network Market By Component, 2021 & 2030
4.2 Component
4.2.1 The U.S. Private LTE and 5G Network Market By Component, 2021 - 2030
4.2.1.1 The U.S. Private LTE and 5G Network Market By Hardware, 2021 - 2030
4.2.1.2 The U.S. Private LTE and 5G Network Market By Services, 2021 - 2030
Chapter 5 The U.S. Private LTE and 5G Network - Frequency Outlook
5.1 The U.S. Private LTE and 5G Network Market By Frequency, 2021 & 2030
5.2 Frequency
5.2.1 The U.S. Private LTE and 5G Network Market By Frequency, 2021 - 2030
Chapter 6 The U.S. Private LTE and 5G Network - Spectrum Outlook
6.1 The U.S. Private LTE and 5G Network Market By Spectrum, 2021 & 2030
6.2 Spectrum
6.2.1 The U.S. Private LTE and 5G Network Market By Spectrum, 2021 - 2030
Chapter 7 The U.S. Private LTE and 5G Network - Vertical Outlook
7.1 The U.S. Private LTE and 5G Network Market By Vertical, 2021 & 2030
7.2 Vertical
7.2.1 The U.S. Private LTE and 5G Network Market By Vertical, 2021 - 2030
7.2.1.1 The U.S. Private LTE and 5G Network Market By manufacturing, 2021 - 2030
7.2.1.2 The U.S. Private LTE and 5G Network Market By Transportation & Logistics, 2021 - 2030
Chapter 8 The U.S. Private LTE Network - Component Outlook
8.1 The U.S. Private LTE Network Market By Component, 2021 & 2030
8.2 Component
8.2.1 The U.S. Private LTE Network Market By Component, 2021 - 2030
8.2.1.1 The U.S. Private LTE Network Market By Hardware, 2021 - 2030
8.2.1.2 The U.S. Private LTE Network Market By Services, 2021 - 2030
Chapter 9 The U.S. Private LTE Network - Frequency Outlook
9.1 The U.S. Private LTE Network Market By Frequency, 2021 & 2030
9.2 Frequency
9.2.1 The U.S. Private LTE Network Market By Frequency, 2021 - 2030
Chapter 10 The U.S. Private LTE Network - Spectrum Outlook
10.1 The U.S. Private LTE Network Market By Spectrum, 2021 & 2030
10.2 Spectrum
10.2.1 The U.S. Private LTE Network Market By Spectrum, 2021 - 2030
Chapter 11 The U.S. Private LTE Network - Vertical Outlook
11.1 The U.S. Private LTE Network Market By Vertical, 2021 & 2030
11.2 Vertical
11.2.1 The U.S. Private LTE Network Market By Vertical, 2021 - 2030
11.2.1.1 The U.S. Private LTE Network Market By manufacturing, 2021 - 2030
11.2.1.2 The U.S. Private LTE Network Market By Transportation & Logistics, 2021 - 2030
Chapter 12 The U.S. Private 5G Network - Component Outlook
12.1 The U.S. Private 5G Network Market By Component, 2021 & 2030
12.2 Component
12.2.1 The U.S. Private 5G Network Market By Component, 2021 - 2030
12.2.1.1 The U.S. Private 5G Network Market By Hardware, 2021 - 2030
12.2.1.2 The U.S. Private 5G Network Market By Services, 2021 - 2030
Chapter 13 The U.S. Private 5G Network - Frequency Outlook
13.1 The U.S. Private 5G Network Market By Frequency, 2021 & 2030
13.2 Frequency
13.2.1 The U.S. Private 5G Network Market By Frequency, 2021 - 2030
Chapter 14 The U.S. Private 5G Network - Spectrum Outlook
14.1 The U.S. Private 5G Network Market By Spectrum, 2021 & 2030
14.2 Spectrum
14.2.1 The U.S. Private 5G Network Market By Spectrum, 2021 - 2030
Chapter 15 The U.S. Private 5G Network - Vertical Outlook
15.1 The U.S. Private 5G Network Market By Vertical, 2021 & 2030
15.2 Vertical
15.2.1 The U.S. Private 5G Network Market By Vertical, 2021 - 2030
15.2.1.1 The U.S. Private 5G Network Market By manufacturing, 2021 - 2030
15.2.1.2 The U.S. Private 5G Network Market By Transportation & Logistics, 2021 - 2030
Chapter 16 Competitive Analysis - U.S. Private LTE and 5G Network Market
16.1 Company/Competition Categorization (Key Innovators, Market Leaders, Emerging Players)
16.2 Vendor Landscape
16.2.1 Key Company Market Share Analysis, 2021
16.2.2 Market Position Analysis
16.2.3 Competitive Dashboard analysis
Chapter 17 Competitive Landscape - U.S. Private LTE and 5G Network Market
17.1 Altiostar
17.1.1 Company Overview
17.1.2 Product Benchmarking
17.1.3 Strategic Initiatives
17.2 AT&T Inc.
17.2.1 Company Overview
17.2.2 Financial Performance
17.2.3 Product Benchmarking
17.2.4 Strategic Initiatives
17.3 Broadcom Inc.
17.3.1 Company Overview
17.3.2 Financial Performance
17.3.3 Product Benchmarking
17.3.4 Strategic Initiatives
17.4 Cisco Systems, Inc.
17.4.1 Company Overview
17.4.2 Financial Performance
17.4.3 Product Benchmarking
17.4.4 Strategic Initiatives
17.5 HUAWEI TECHNOLOGIES CO., LTD.
17.5.1 Company Overview
17.5.2 Financial Performance
17.5.3 Product Benchmarking
17.5.4 Strategic Initiatives
17.6 Nokia Corporation
17.6.1 Company Overview
17.6.2 Financial Performance
17.6.3 Product Benchmarking
17.6.4 Strategic Initiatives
17.7 QUALCOMM INCORPORATED
17.7.1 Company Overview
17.7.2 Financial Performance
17.7.3 Product Benchmarking
17.7.4 Strategic Initiatives
17.8 Samsung Electronics Co., Ltd.
17.8.1 Company Overview
17.8.2 Financial Performance
17.8.3 Product Benchmarking
17.8.4 Recent Developments
17.9 Telefonaktiebolaget LM Ericsson
17.9.1 Company Overview
17.9.2 Financial Performance
17.9.3 Product Benchmarking
17.9.4 Strategic Initiatives
17.10 T-Systems International GmbH
17.10.1 Company Overview
17.10.2 Financial Performance
17.10.3 Product Benchmarking
17.11 Verizon Communications
17.11.1 Company overview
17.11.2 Financial performance
17.11.3 Product benchmarking
17.11.4 Strategic initiatives
17.12 Vodafone Group Plc
17.12.1 Company Overview
17.12.2 Financial Performance
17.12.3 Product Benchmarking
17.12.4 Strategic Initiatives
17.13 ZTE Corporation
17.13.1 Company Overview
17.13.2 Financial Performance
17.13.3 Product Benchmarking
17.13.4 Strategic Initiatives
Cross-segment Market Size and Analysis for
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