Critical Communications Private Broadband LTE Market to Reach $2.6 Billion by 2020
February 27, 2017 | IHS MarkitEstimated reading time: 2 minutes
The critical communications broadband LTE market is expected to grow at a compound annual growth rate of 20%, from $1.1 billion in 2015 to reach $2.6 billion in 2020, according to IHS Markit, a world leader in critical information, analytics and solutions. The total addressable market for private LTE is compounded by increasing revenues from both devices and evolved Node Bs (eNBs) shipped for use on private networks based on cellular technology.
Over the last few years, demand has increased for data alongside voice communications within a range of applications. The broadband market is opening up to multiple sectors such as public safety and security, transportation, military, utilities, industrial and public access mobile radio. Users are now requiring high bandwidth solutions to facilitate applications such as video streaming, internet access and advanced mapping.
“Broadband-capable technologies can provide these tools because of their ease of interoperability and high performance. As a result, the industry requires broadband-capable network solutions such as private LTE or other operating models possible with commercial and private LTE,” said Jesus Gonzalez, market analyst for critical communications, IHS Markit. “For critical communications users today, it is clearer than ever that LTE is the de facto broadband standard, with the option of private LTE networks a reality.”
Initial deployments of private cellular networks have been small in scale and varied across several sectors – many are trial systems used by public safety. There are some very specific regional trends in terms of early deployments, with evidence of systems deployments across China, the Middle East, the United States, Western Europe, and Australia, among others. Moreover, with the possibility of spectrum allocation in other parts of the world, the market for private LTE cellular systems for PMR users will expand, according to the IHS Markit Critical Communications Broadband Report – 2016.
Meanwhile, the rollout of FirstNet continues to be a difficult task. It is important to consider all factors affecting it, particularly in public safety, including funding, cooperative partnerships, end-user perspectives and legislation. IHS Markit remains longer-term optimistic about the FirstNet network, expecting that, from 2020 onwards, scalable deployments on the network will begin. As a result, the US will become a main driver of global private LTE revenues.
The Middle East and Africa (MEA) region has had the fastest short-term growth rate of installed base of private LTE users, but the Asia Pacific region will continue to have the greatest share of the world private LTE users installed base in the upcoming years. “This is mostly due to the progress in the public safety sector in China.” Gonzalez said.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and expertise to forge solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Suggested Items
Commercial Demand Continues to Be the Main Driver of Personal Computing Device Shipments into the GCC Region
03/26/2024 | IDCThe Gulf Cooperation Council (GCC) personal computing device (PCD) market, which is made up of desktops, notebooks, and workstations, declined 4.0% year on year in 2023, with high inventory levels and reduced consumer spending the primary causes.
Suppliers Aim to Raise Contract Prices, But With Uncertain Demand, 2Q24 DRAM Price Increase Expected to Narrow to 3–8%
03/26/2024 | TrendForceTrendForce’s latest report reveals that despite DRAM suppliers’ efforts to trim inventories, they have yet to reach healthy ranges. As they continue to improve their lose situations by boosting capacity utilization rates, the overall demand outlook for this year remains tepid.
LPKF Reports Strategic Successes and Narrowly Achieves Forecast for 2023 Financial Year
03/26/2024 | LPKFLPKF Laser & Electronics SE generated revenue of EUR 124.3 million in the financial year (previous year: EUR 123.7 million) and earnings before interest and tax (EBIT) of EUR 3.7 million (previous year: EUR 6.8 million), putting the EBIT margin at 3.0% (previous year: 5.5%).
Arlon EMD and EMC Announce Expansion in California
03/25/2024 | Arlon EMDArlon EMD, a division of Elite Materials Company (EMC), announces a factory expansion at the Rancho Cucamonga, CA location. Arlon is a global leader in high performance thermoset substrates for mission critical printed circuit boards manufactured for high endurance and long-life programs. Arlon has a 45-year history of manufacturing specialty materials for the Aerospace, Industrial and Military (AIM) markets.
Intraratio Enhances MES + Yield / IoT Management with New Advanced Manufacturing Analytics
03/22/2024 | IntraratioIntraratio announced AICard, which harnesses the power of artificial intelligence and machine learning to empower manufacturers to make informed decisions quickly and accurately regarding product quality and manufacturing line performance and optimization.