Private LTE/5G networks: a framework for understanding the

Private LTE/5G networks: a framework for understanding the opportunity

Private LTE/5G networks: a

framework for understanding

the opportunity

Caroline Chappell and Michele Mackenzie


WHO SHOULD READ THIS REPORT

KEY QUESTIONS ANSWERED IN THIS REPORT

About this report

2

This report analyses current and emerging deployment models

for private LTE/5G networks.

We examine the rationale for private LTE/5G network adoption,

the network models, and the buyer and supplier landscape. It

complements two reports already published by Analysys Mason

on how operators can maximise value from the private network

opportunity and the private LTE/5G network strategies of selected

operators, systems integrators and vendors.1 This report

establishes a framework for assessing the opportunity and

includes:

▪ market context: analysis of key demand and supply side

drivers, the spectrum landscape and market sizing

▪ network models: analysis of deployment models and how

they address different enterprise requirements

▪ adoption trends: analysis and mapping of each network

model to the types of enterprises and verticals.

The report provides implications for buyers and suppliers of

private LTE/5G solutions. It is based on several sources:

▪ interviews with stakeholders in the operator, vendor and

systems integrator markets

▪ Analysys Mason’s internal research on the private LTE/5G

market such as our Private LTE/5G networks tracker.2

▪ Operators, vendors and systems integrators (all suppliers)

that want to understand the market dynamics for private

LTE/5G networks and why this opportunity is emerging now.

▪ All suppliers that want to understand the network

deployment models.

▪ All suppliers that want to understand the adoption trends

and mapping of enterprise segments/verticals to each

model.

▪ What are the different network models for private LTE/5G

and how do they differ?

▪ What are the advantages and disadvantages of each

network model?

▪ What are the early adoption trends for each model and how

do the models map to enterprise segments and verticals?

▪ What is the size of the private LTE/5G network market?

1 For more information, see Analysys Mason’s Private LTE/5G networks: operator strategies and Private LTE/5G networks:

operator and vendor profiles and analysis.2 For more information, see Analysys Mason’s Private LTE/5G networks tracker.

https://www.analysysmason.com/research/content/short-reports/private-lte-5G-networks-rdme0-rma18/

https://www.analysysmason.com/research/content/reports/private-networks-case-studies-rdme0-rma18/

https://www.analysysmason.com/research/content/data-set/private-networks-tracker-rdme0/


ContentsExecutive summary

Research overview

Market context

Network models

Dedicated/on-premises network model

Private/public hybrid network model

Public industrial network model

Appendix

About the authors and Analysys Mason


Enterprises will spend USD9 billion on private LTE/5G networks

over the next 5 years, laying an important foundation for

industrial transformation.

This report examines the private LTE/5G networks market and

establishes a framework to analyse the opportunity. It includes

the following sections.

▪ Market context: analysis of key demand and supply-side

drivers, the spectrum landscape and market sizing.

▪ Network models: analysis of deployment models including:

― how the models address enterprise requirements

― analysis and mapping of each network model to the types

of enterprises and verticals.

Figure 1: Framework for private LTE/5G networks

4

Executive summary

KEY IMPLICATIONS

1. The private LTE/5G network market is highly bespoke and

fragmented. Suppliers and buyers need to understand the

main drivers and size of this opportunity.

2. Three deployment models serve the heterogenous private

LTE/5G network market. Each model has advantages and

disadvantages for buyers.

3. Suppliers’ objectives are to maximise revenue from the

private LTE/5G network market. The value that each model

can bring will depend on the supplier’s assets and skills. Source: Analysys Mason

Dedicated/on-premises Public industrial

Private/public hybrid

Enterprises that

have had digital

transformation

strategies

underway for the

past 1–3 years

Market context

Network deployment models

1 3

54%USD9

billion

Cumulative

capex and opex

spend on

private LTE/5G

networks

2019–2025

2



Research overview

Market context

Network models




Appendix



Suppliers need to articulate to buyers how private LTE/5G networks can address

industrial sector requirements

The private LTE/5G networks market is heterogenous.

All aspects of the market are varied (see Figure 2). For example,

on the supply side spectrum regimes vary by country, which may

also determine which suppliers have more influence. On the

demand side, private LTE/5G network requirements vary

according to the industry. Buyers and suppliers of private LTE/5G

networks should evaluate the opportunity in the context of:

▪ Use cases: enterprises deploy digital technologies to

automate processes, increase productivity and quality, and

reduce costs.

▪ Devices: devices are out of scope of this report but networks

need to support devices that will differ in terms of

computing power, bandwidth and mobility requirements.

▪ Spectrum: availability of industrial and shared spectrum

varies by country. These options affect barriers to entry for

new suppliers (in addition to MNOs).

Network requirements: network size can vary across small

buildings (several 1000m²) to large mines (several km²). Factors

such as network density, throughput and roaming will depend on

number of devices and use cases.

Industries: the drivers for adopting a private LTE/5G network will

differ by industry and will depend on multiple factors such as

digital transformation priorities, brownfield or greenfield site

deployments and current networks installed.

Figure 2: Heterogenous private LTE/5G market

6

For private networks to scale, standardised network

components and platform models will need to emerge.

Vendors are building scalable, cloud-based network functions for

enterprise deployment. Slide 11 analyses in more detail

developments in this area. There is also a need for new delivery

models that deliver components of the private LTE/5G network in

a software-as-a-service model to facilitate adoption. However,

there will always be an element of bespoke integration in

delivering the private network.

Spectrum

Devices

CoverageThrough-

put

Device

densityRoaming

Network

require-

ments

Use casesReal-time

monitoringSurveillance

Communi-

cations

Worker

safety

Industries

IndustrialPublic

(mobile)Shared

Cost by

country


Three main network models have emerged to accommodate

the diverse requirements for industrial networks and position

cellular as a challenger to existing technologies such as Wi-Fi.

This report analyses three network models for private LTE/5G

network deployments and provides a framework for assessing the

advantages and disadvantages of each. The report has two main

sections.

▪ In the first section we discuss the context and

background for private LTE/5G networks, the supply-side

and demand-side drivers, the potential size of the market

and why new approaches to spectrum are lowering

barriers for new suppliers but also for buyers of private

networks.

▪ In section two, we define three private LTE/5G network

models (see Figure 3). We evaluate the best fit for each

model to support industrial enterprises’ key technical and

commercial requirements and provide a framework for

comparing each model based on drivers and challenges.

We also map each model to the enterprise segments and

verticals that they are best-placed to support. We show

current adoption trends highlighted with enterprise

examples but also indicate future trends.

Figure 3: Three private LTE/5G network models

7

Research framework: three main network models address diverse enterprise

requirements

Dedicated on-

premise

Public/private

hybrid

Dedicated/on-

premises

Private/public

hybridPublic industrial

Fully dedicated

on-premises

model

Multiple

variations of

MNO network

assets (RAN and

core) combined

with on-

premises assets

Public multi-

tenanted

network

dedicated for

industrial use

USD9 billion opportunity for suppliers

2019–2025


Implications

8

1The private LTE/5G network market is highly bespoke and fragmented. Suppliers and buyers need to

understand the main drivers and size of this opportunity.

The private LTE/5G network opportunity is complex because all aspects of the market vary; industrial

requirements for network connectivity differ by sector and use case. The supply-side market landscape is also

diverse; spectrum regulation differs by country as does the vertical opportunity.

2Three deployment models serve the heterogenous private LTE/5G network market. Each model has

advantages and disadvantages for buyers.

To determine best fit for their business, enterprises need to map their requirements – both technical and

commercial – to the different types of model. For example, enterprises that have stringent privacy requirements

may conclude that a dedicated/on-premises model is the best fit despite higher associated costs.

3Suppliers’ objectives are to maximise revenue from the private LTE/5G network market. The value that each

model can bring will depend on the supplier’s assets and skills.

Suppliers will deploy network models that best suit their assets and skills so that they can maximise value and

compete more effectively to deliver on enterprise needs.



Research overview

Market context

Network models




Appendix



Michele Mackenzie (Principal Analyst) is an analyst for Analysys Mason’s IoT and M2M Services research programme, with responsibility for

M2M and LPWA forecasts. She has 20 years of experience as an analyst and conducts research on IoT verticals such as utilities, automotive,

healthcare and fleet management. She also writes reports on the role of network technologies such as NB-IoT.

About the authors

33

Caroline Chappell (Research Director) heads Analysys Mason’s Cloud and Platform Services practice. Her research focuses on service

provider adoption of cloud to deliver business services, support digital transformation and re-architect fixed and mobile networks for the 5G era.

She is a leading exponent of the edge computing market and its impact on service provider network deployments and new revenue

opportunities. She monitors public cloud provider strategies for the telecoms industry and investigates how key cloud platform services can

enhance service provider value. Caroline is a leading authority on the application of cloud-native technologies to the network and helps

telecoms customers to devise strategies that exploit the powerful capabilities of cloud while mitigating its disruptive effects.


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Analysys Mason’s consulting services and research portfolio

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Research from Analysys Mason

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Consulting from Analysys Mason

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JANUARY 2021

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