IHS Markit: Critical Communications LTE Market to Hit US$2.6B by 2020
Friday, February 24, 2017 | Comments

The critical communications Long Term Evolution (LTE) market is expected to increase at a compound annual growth rate of 20 percent, from $1.1 billion in 2015 to $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 eNodeBs shipped for use on private networks.

During the past few years, demand has increased for data alongside voice communications within a range of applications. The broadband market is opening to multiple sectors such as public safety and security, transportation, military, utilities, industrial and public access mobile radio (PAMR). 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,” said Jesus Gonzalez, market analyst for critical communications, IHS Markit. “As a result, the industry requires broadband-capable network solutions such as private LTE or other operating models possible with commercial and private LTE. 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 specific regional trends in terms of early deployments, with evidence of system 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 IHS Markit’s “Critical Communications Broadband Report – 2016.”

Meanwhile, the rollout of the First Responder Network Authority (FirstNet) network continues to be a difficult task. IHS Markit remains optimistic about FirstNet in the long term, expecting that, from 2020, scalable deployments on the network will begin. As a result, the United States 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’s 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.

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