The private LTE market is expected to grow enormously by 2028 owing to surging demand for maintaining and supervising operations in remote areas for better coverage. In addition, low latency and an outreach of wireless trends and innovations are set to contribute to market growth through the forecast period.
The coronavirus outbreak boosted the need for wireless communication and digital technology. Commercialization of 5G networks around the world has positively impacted the private LTE market during the pandemic.
Moreover, key participants in the industry have been focusing on testing and driving better connectivity to widen its range of application in different sectors, which has been favorable for industry expansion. For instance, in March 2022, Sierra Wireless, an IoT solutions expert, launched a new global private access point name (APN) solution called the Sierra Wireless Smart Connectivity, which provides seamless flexibility and security to customers, thereby fast-tracking application implementation.
Notably, governments have been increasingly partnering with private LTE firms to introduce better coverage and capacity to reach remote systems, vehicles, and personnel, which has fostered product outlook. To cite an instance, in March 2022, Boingo Wireless, a wireless network specialist, formed an alliance with the Las Vegas Convention and Visitors Authority (LVCVA) to bring next-generation wireless services to LVCVA's Monorail Convention Center Station as well as to open Boingo's Innovation Center.
The private LTE market has been categorized based on component, application, and region. In terms of component, the market has been divided into product and service. Under product, the market has been further segmented into infrastructure (backhaul, evolved packet core (EPC), and eNodeB) and device (vehicular routers, smartphones, IoT modules, and handheld terminals).
In 2021, the evolved packet core (EPC) infrastructure segment held a market share of more than 60% and is speculated to exhibit significant growth over the assessment timeframe. Growing adaption of industrial IoT devices among various enterprises is primed to drive segmental growth.
The smartphones device segment is estimated to grow at a CAGR of over 20% through the analysis period. Increasing penetration of smartphones around the globe is anticipated to foster segmental outlook.
With respect to application, the private LTE market has been bifurcated into energy, public safety, transportation, defense, manufacturing, mining, and others. The defense sector garnered over 15% market share in 2021 and is set to observe strong growth through 2028 on account of increased investment in the defense sector.
The mining sector is likely to grow at about 25% CAGR over the study timespan due to mounting demand for wireless network in the mining sector. The private LTE market share from the transportation segment is expected to depict a CAGR of roughly 20% over the assessment timeframe owing to soaring consumer interest in connected vehicles.
In the regional landscape, the LAMEA private LTE industry is anticipated to expand at a CAGR of around 20% through the forecast period. Notable smart city infrastructural advancements in the region are foreseen to bolster market development.