16th January 2024: SNS Telecom & IT's latest research publication indicates that cumulative spending on private cellular networks in the United States will exceed $3.7 Billion between 2024 and 2027, driven by the market’s pivot towards 5G, growing recognition of private network-based neutral host solutions, and a diverse array of spectrum options for varied use cases.

Private LTE networks in the United States date back to the 2010s as a niche segment of the cellular industry, characterized by specialized projects such as FirstNet early builder networks, tactical LTE networks for the military, iNET's (Infrastructure Networks) 700 MHz LTE network in the Permian Basin, and Tampnet's offshore LTE service rollout in the Gulf of Mexico. With the availability of new spectrum options and 5G technology, the market is gaining mainstream adoption with deployments of all shapes and sizes, from low-band macrocell networks for utility operations across multi-state service territories and city-wide networks in Las Vegas, Santa Maria, Tucson, Glendale, Brownsville, Longmont, New York City, and other municipalities to medium-scale networks for school districts, university campuses, and military bases; highly localized wireless systems at factories, warehouses, oil and gas facilities, maritime ports, airports, hotels, hospitals, and sports stadiums; and temporary networks in support of live broadcasting and special events.

Although the market is dominated by LTE technology, commercial deployments of private 5G networks are starting to gain significant traction in industrial and enterprise settings. Notable examples of facilities where private 5G networks are operational or being deployed include Walmart's distribution centers, Tesla's Gigafactory Texas, BMW Group's Spartanburg plant, GM's (General Motors) Factory ZERO assembly center, Toyota Material Handling's Columbus production complex, Cummins' JEP (Jamestown Engine Plant), LG Electronics' Clarksville home appliance manufacturing plant, Delta Air Lines' Atlanta operating hub, DFW (Dallas Fort Worth) International Airport, the Port of Virginia's container terminals, Boston Children's Hospital, Cleveland Clinic's Mentor Hospital, the VA's (Department of Veterans Affairs) healthcare systems, and several of the DOD's (Department of Defense) military installations. Other end user organizations, including John Deere, have also begun implementing standalone 5G connectivity at select facilities, alongside their continued rollout of private LTE networks.

Another emerging trend is the growing recognition of private network-based neutral host solutions for public cellular coverage enhancement in indoor locations where DAS (Distributed Antenna System) installations are deemed too costly and complex to implement. Facilitated by the open accessibility of 3.5 GHz CBRS spectrum, private networks supporting neutral host operations are increasingly being deployed in industrial facilities, carpeted enterprise spaces, public venues, hospitals, hotels, higher education campuses, and schools across the United States. Some examples of such deployments include Tesla, Toyota, and Cummins’ production sites, Meta's corporate offices, City of Hope Hospital, SHC (Stanford Health Care), Sound Hotel, Gale South Beach Hotel, Gale Hotel & Residences (formerly Natiivo Miami), Nobu Hotel, ASU (Arizona State University), Cal Poly (California Polytechnic State University), University of Virginia, Duke University, and Parkside Elementary School.

SNS Telecom & IT estimates that annual spending on private LTE and 5G network infrastructure in the United States will grow at a CAGR of approximately 18% between 2024 and 2027, cumulatively accounting for more than $3.7 Billion by the end of 2027. The market's growth will be underpinned by a diversity of spectrum options, including shared Band 48/n48 (3.5 GHz) CBRS spectrum, Globalstar's Band 53/n53 (2.4 GHz) spectrum, Band 41/n41 (2.5 GHz) EBS licenses, Band 8/n106 (900 MHz) broadband spectrum for critical infrastructure, dedicated DOD and public safety broadband spectrum, and service provider licensed frequencies. For more information, please visit: https://www.snstelecom.com/private5gus

About SNS Telecom & IT

SNS Telecom & IT is a global market intelligence and consulting firm with a primary focus on the telecommunications and information technology industries. Developed by in-house subject matter experts, our market intelligence and research reports provide unique insights on both established and emerging technologies. Our areas of coverage include but are not limited to 6G, 5G, LTE, Open RAN, vRAN (Virtualized RAN), small cells, mobile core, xHaul (Fronthaul, Midhaul & Backhaul) transport, network automation, mobile operator services, FWA (Fixed Wireless Access), neutral host networks, private 4G/5G cellular networks, public safety broadband, critical communications, MCX (Mission-Critical PTT, Video & Data), IIoT (Industrial IoT), V2X (Vehicle-to-Everything) communications and vertical applications.