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Private LTE and 5G Networks to Worth $5 billion by 2025, says Omdia

Private LTE and 5G Networks to Worth $5 billion by 2025, says Omdia Image Credit: shutting/Bigstockphoto.com

Private LTE and 5G networks are becoming a fast lane to over $5 bn of global enterprise expenditure on services and solutions, according to Omdia’s latest Private LTE and 5G Networks Market Forecast 2020–25.

The truth about private LTE and 5G networks, however, is that they are not important for the network itself but rather for what it enables. While the private networks market – consisting of RAN, core networking equipment, and professional and managed services – will be worth $5 billion by 2025, it triggers associated expenditure in services such as security, integration and IoT applications.

 

99% of enterprises buying into private networks plan to buy additional services, according to recent Omdia intelligence gathered across 7 countries and 6 industries. Collectively, this means private LTE and 5G networks should be used to tap into an estimated $2 tn beneficial ecosystem of additional enterprise services in areas such as cloud and applications.

Manufacturing ($1.3 billion) alongside energy and utilities ($1.2 billion), and transportation and logistics ($698 million) will generate more than 60% of the total market. Competition will heat up quickly in industrial verticals forcing competitors without specific skills and budgets out of the race.

Pablo Tomasi Principal Analyst Private Networks at Omdia
Despite the hype and market noise generated by everything that is 5G-related, private LTE and 5G networks represent a complementary opportunity to the core business of providers and vendors. While there is a growing interest and increasing network rollouts, this is a long game market. 

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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