5G drives the growth of the rising private mobile network market

2021.09.10

The demand for dedicated mobile networks based on LTE or 5G technology is driven by the explosive edge computing needs of modern enterprises.

The use of dedicated mobile networks based on LTE or 5G technology is increasing, and the pace of 5G-based deployment is also accelerating. These are the findings of the recent market status report released by the Global Mobile Suppliers Association (GSA).


The new private mobile network market status report found that at least 370 companies around the world are investing in private mobile networks based on LTE or 5G. According to the report, this figure includes "trial and pilot deployments, commercial network launches or licensing investments to deploy private LTE or 5G networks."

 

Most companies use LTE for their private mobile network deployments. But 5G is on the rise. Specifically, LTE was used in 64% of cases, down from 81% in October 2020. Now 44% of cases are deploying (or planning to deploy) 5G.

 

Why are you interested in LTE and 5G private wireless networks?

A private mobile network based on LTE or 5G is a variant of a private cellular network. They are usually on-premises networks dedicated to enterprise use.

 

Many edge computing applications can benefit from the use of private LTE or 5G networks. Some reasons why companies choose to use private (LTE or 5G) networks include:

 

Lack of coverage in other ways: A given site may not be able to provide service through public cellular network services, or it may be too difficult to deploy a Wi-Fi solution at that site.

 

Demand for low-latency transmission: Although many edge applications perform analysis on the device, in some cases, data needs to be streamed to a more suitable computing platform for analysis and real-time insight derivation.

 

Data privacy and security: Some industries are subject to regulatory standards that require certain data to be protected. In some cases, the most feasible method is to transmit the data only through a dedicated network.

 

Performance and control: A dedicated wireless network allows companies to build analytical workflows to ensure that the right bandwidth is available to meet the requirements of their specific applications.

 

The demand for dedicated mobile networks based on LTE or 5G technology is driven by the explosive growth of data, security, and digitization needs of modern enterprises.

 

GSA data found that the manufacturing industry is an early adopter of wireless private network technology. It found that 79 companies hold licenses, participate in pilots, or deploy the technology. Adoption is happening fast. Compared with the beginning of the year, the number of companies meeting these conditions has increased by about 47%.

In-depth study of the manufacturing field, the automotive sub-industry is in a leading position in private network investment and adoption. They account for more than a quarter (25.3%) of the 79 identified manufacturing companies.