U.S. Private LTE & 5G Network Market (By Component: Hardware, Software, Services; By Frequency: Sub-6 GHz, mmWave; By Spectrum; By Vertical) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The U.S. private LTE & 5G network market size was estimated at around USD 3.08 billion in 2023 and it is projected to hit around USD 30.68 billion by 2033, growing at a CAGR of 25.83% from 2024 to 2033.

Key Pointers

• The hardware segment led the market and accounted for more than 53% of the revenue share in 2023. 
• The sub-6 GHz segment led the market in 2023 with a revenue share of more than 98%. 
• The unlicensed/ shared spectrum segment dominated the market with a revenue share of more than 89% in 2023.
• The manufacturing segment held the largest market share of around 22% in 2023.

U.S. Private LTE & 5G Network Market Overview

The U.S. private LTE & 5G network market is experiencing robust growth driven by the increasing demand for high-speed, reliable, and secure wireless communication solutions across various industries. As organizations seek to leverage advanced connectivity for mission-critical applications, private LTE and 5G networks are emerging as preferred alternatives to traditional wireless networks. This overview provides insights into the dynamics shaping the U.S. Private LTE & 5G Network market, including key trends, market drivers, challenges, and opportunities.

U.S. Private LTE & 5G Network Market Growth

The growth of the U.S. private LTE & 5G network market is propelled by several key factors. Firstly, the increasing demand for dedicated, high-performance wireless communication solutions across industries drives the adoption of private LTE and 5G networks tailored to specific requirements. These networks offer enhanced coverage, capacity, and reliability, supporting mission-critical applications such as IoT, automation, and real-time analytics. Secondly, regulatory initiatives to allocate spectrum for private networks, such as the CBRS band, facilitate cost-effective deployment and interference-free operations. Additionally, the integration of edge computing capabilities enables low-latency processing and real-time data analytics, driving demand for converged solutions. 

Report Scope of the U.S. Private LTE & 5G Network Market

U.S. Private LTE & 5G Network Market Trends:

• Industry-specific Networks: Organizations are increasingly deploying private LTE and 5G networks tailored to their specific industry requirements, enabling enhanced coverage, capacity, and reliability for applications such as IoT, automation, and real-time analytics.
• Edge Computing Integration: The integration of edge computing capabilities with private LTE and 5G networks is gaining momentum, enabling low-latency processing and real-time data analytics at the network edge. This convergence facilitates faster decision-making and supports emerging applications such as autonomous vehicles and augmented reality.
• Security and Privacy Emphasis: With the proliferation of connected devices and the growing threat landscape, there's a heightened emphasis on security and privacy in private LTE and 5G networks. Solutions incorporating encryption, authentication, and access control mechanisms ensure data confidentiality and integrity, bolstering trust among enterprises.
• Spectrum Availability and Licensing: Regulatory initiatives to allocate spectrum for private LTE and 5G networks, such as the CBRS (Citizens Broadband Radio Service) band in the U.S., are driving market growth. Access to licensed and shared spectrum enables organizations to deploy private networks cost-effectively while ensuring interference-free operations.
• Network Convergence: Private LTE and 5G networks are converging with existing wired and wireless networks, enabling seamless integration and interoperability. This convergence supports hybrid network architectures and facilitates the deployment of diverse applications spanning multiple network technologies.
• Hybrid Cloud Deployment: Organizations are increasingly adopting hybrid cloud deployment models for private LTE and 5G networks, leveraging the scalability and flexibility of cloud infrastructure while maintaining control over sensitive data and critical applications. Hybrid cloud deployments enable organizations to optimize resources, improve agility, and mitigate risks associated with network management.

Component Insights

The hardware segment led the market and accounted for more than 53% of the revenue share in 2023. This high share is attributable to the growing deployment of the Radio Access Network (RAN), backhaul, and transport equipment, and the core network for private LTE and 5G networks. The need for improved connectivity to connect a large chain of sensors at industrial premises is anticipated to boost RAN equipment adoption and installation. Furthermore, the increasing development of private 5G networks using RAN technology is expected to fuel the segment's growth. For instance, in April 2023, the Institute for the Wireless Internet of Things (WIoT) at Northeastern University, along with its Open6G R&D Center, unveiled an operational private 5G network. This advanced network is entirely automated using Artificial Intelligence (AI). It has been constructed using open-source components, offering a programmable, fully virtualized, and open-RAN-compliant system designed to serve within a campus environment.

The services segment is expected to expand at a high CAGR from 2024 to 2033 on account of the emerging need for 5G deployment and integration. This segment is categorized based on installation and integration, support, and maintenance, and data services. The installation and integration segment held the largest market share in 2022 on account of the high demand for infrastructure integration, consulting, and application integration services. The market is anticipated to flourish owing to the partnerships between cloud service providers, system integrators, equipment vendors, and application/software developers to integrate and deploy core network infrastructure and complete private virtualized RAN (vRAN/C-RAN) at the customer premises.

Frequency Insights

The sub-6 GHz segment led the market in 2023 with a revenue share of more than 98%. The sub-6 GHz frequency encompasses a low band and a mid-band of spectrum ranges, mainly 6 GHz and below. The increasing development of sub-6 GHz frequency-based 5G modules by several market players across the globe is attributed to the segment’s growth. In September 2022, at MWC Las Vegas, Fibocom, an IoT wireless solutions and modules provider, introduced the FX170(W) series, its latest offering in the 5G Sub-6GHz and mmWave module category. These modules are powered by Snapdragon's X65 5G Modem-RF System and are designed to provide users with a seamless and high-speed wireless connectivity experience.

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 38.6 to 40.0 GHz, 24.75 to 25.25 GHz, 24.25 to 24.45 GHz, and 47.20 to 48.20 GHz, among others, for 5G use cases. Thus, the high focus on releasing 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 89% in 2023 and is expected to continue leading over the forecast period. The high revenue share is attributed to the substantial focus on releasing shared and unlicensed 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 highly preferred and easily accessible 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 to deliver 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 in industrial, government, and defense sectors that require highly secured connectivity.

Vertical Insights

The manufacturing segment held the largest market share of around 22% in 2023 and is expected to continue leading over the forecast period. The high revenue share is attributable to the growing demand for private network infrastructure across various factories/manufacturing facilities in the U.S. to improve their overall productivity and operational efficiency. The deployment of private LTE and 5G networks primarily caters to the need for high-speed bandwidth for critical use cases, including AGV, UHD wireless cameras, machine-to-machine communications, collaborative/cloud robots, predictive maintenance, and process monitoring, among others. Furthermore, the AGV applications in the industries are expected to portray a remarkable demand for private LTE and 5G networks. The segment is further bifurcated into automotive, electrical, and electronics, food and beverages, pharmaceuticals, heavy machinery, and clothing and accessories.

The transportation and logistics segment is expected to experience substantial growth throughout the forecast period. This segment is further bifurcated into warehouses, vehicle-to-everything (V2X) connectivity, ports, airports, and rail. The segment’s growth can be attributed to the increasing need for enhanced and secure network connectivity to support various applications, such as autonomous forklifts, warehouse robots, and private connectivity solutions at railway stations and airports. These advancements in connectivity solutions are driving the growth of the market.

U.S. Private LTE & 5G Network Market Key Companies

• AT&T Inc.
• Broadcom Inc.
• Cisco Systems, Inc.
• Nokia Corporation
• Qualcomm Technologies, Inc.
• Samsung Electronics Co., Ltd.
• Telefonaktiebolaget LM Ericsson
• T-Systems International GmbH
• Verizon Communications Inc.
• Vodafone Group Plc

U.S. Private LTE & 5G Network Market Segmentations:

By Component 

• Hardware
  • Radio Access Network (RAN)
  • Core Network
  • Backhaul & Transport
• Software
• Services
  • Installation & Integration
  • Data Services
  • Support & Maintenance

By Frequency 

• Sub-6 GHz
• mmWave

By Spectrum 

• Licensed
• Unlicensed/Shared

By Vertical 

• Manufacturing
  • Automotive
  • Electrical & Electronics
  • Food & Beverages
  • Pharmaceuticals
  • Heavy Machinery
  • Clothing & Accessories
  • Others (Medical Devices and Consumer Goods)
• Transportation & Logistics
  • Warehouses
  • Vehicle to Everything (V2X) Connectivity
  • Ports
  • Airports
  • Rail
• Energy & Utilities
• Defense
• Public Safety
• Enterprises & Campus
• Public Venues
• Mining
• Healthcare/Hospitals
• Oil & Gas
• Retail
• Agriculture
• Smart Cities
• Others (Construction Sites and Real Estate)