SNS: 5G Private Networking Will Dominate in the U.S. by 2027

Prediction

According to the latest news, SNS Telecom&IT predicts that 5G private networking will become the dominant technology in the US market by 2027, surpassing the existing position of 4G LTE in the US enterprise market. Private networking is a cutting-edge field in the development of digital industrialization.

Asad Khan, Director of 5G Research at SNS Telecom&IT, told Fierce via email, “We expect 5G to become the most common technology by 2027.” However, he also pointed out that in some industries such as utilities, private LTE networks will still account for up to 80% of new investments, even by 2027. Specifically, this refers to a wide area low-frequency network operating on the Band 8 (900 MHz) spectrum.

It is estimated that annual spending on private LTE and 5G networking infrastructure in the United States will grow at a compound annual growth rate of approximately 18% between 2024 and 2027, with a cumulative total of over $3.7 billion by the end of 2027.

The company’s report said: “The commercial deployment of private 5G networking has begun to gain significant appeal in industrial and enterprise environments.” It was mentioned in the report that facilities that are operating or deploying private 5G networking include Wal Mart’s distribution center, Tesla’s Texas Super Factory, BMW Group’s Spartanburg factory, GM’s Factory ZERO assembly center, Toyota Material Handling’s Columbus production complex, Cummins’ JEP, LG Electronics’ Clarksville household appliance manufacturing plant, Delta Airlines’ Atlanta operation hub, DFW International Airport, Port of Virginia’s container terminal, Boston Children’s Hospital, Cleveland Clinic’s Mento Hospital, and Department of Veterans Affairs. Medical system and multiple military facilities of the Ministry of Defense. In addition, other end-user organizations such as John Deere have also begun implementing independent 5G connections in their selected facilities, while continuing to roll out dedicated LTE networks.

A new trend

An emerging trend is the increasing deployment of neutral host solutions based on private networking in indoor locations to enhance public cellular coverage, particularly in locations where distributed antenna systems (DAS) installation is considered too expensive and complex.

In the United States, the availability of 3.5 GHz CBRS spectrum has facilitated the deployment of private networking that support neutral host operations, which are increasingly appearing in industrial facilities, public places, hospitals, hotels, and educational campuses across the country.

STL Partners also pointed out in its report that manufacturing is the most widely used field for 4G and 5G private networking applications worldwide. The manufacturing industry has gone further in the journey of digitization and automation, and will naturally generate more demand for private networking, especially in industries with significant health and safety needs, “the report states.

In addition to manufacturing, healthcare, ports and other transportation and logistics, as well as mining – including oil and gas – are also industries that deploy the most private networking equipment.