SNS Predicts 5G Private Networking Will Dominate the U.S. by 2027
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Loading... - Valentina Bianco
- 21 Jan 2025
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According to a recent report from SNS Telecom & IT, 5G technology is expected to become the dominant force in digital industrialization in the United States by 2027, surpassing the current prevalence of 4G LTE in the enterprise sector. The consultancy emphasizes that private networking will play a crucial role in this transition.
Asad Khan, the 5G research director at SNS Telecom & IT, stated, “Overall we expect 5G to become the prevalent technology by 2027.” However, he noted that certain industries, particularly utilities, may experience a slower transition, with private LTE continuing to account for up to 80% of new investments in that sector even by 2027. This indicates that wide area, low-band networks operating in the Band 8 (900 MHz) spectrum will still be significant.
SNS Telecom & IT projects that annual spending on private LTE and 5G network infrastructure in the U.S. will grow at a CAGR of approximately 18% from 2024 to 2027, cumulatively exceeding $3.7 billion by the end of that period.
The report highlights that commercial deployments of private 5G networks are gaining traction in various industrial and enterprise settings. Notable examples of facilities where private 5G networks are operational or being deployed include:
- Walmart distribution centers
- Tesla's Gigafactory Texas
- BMW Group's Spartanburg plant
- General Motors' Factory ZERO assembly center
- Toyota Material Handling's Columbus production complex
- Cummins' Jamestown Engine Plant
- LG Electronics' Clarksville home appliance manufacturing plant
- Delta Air Lines' Atlanta operating hub
- Dallas Fort Worth International Airport
- Port of Virginia's container terminals
- Boston Children's Hospital
- Cleveland Clinic's Mentor Hospital
- Department of Veterans Affairs healthcare systems
- Various Department of Defense military installations
Additionally, companies like John Deere are implementing standalone 5G connectivity at select facilities while continuing to roll out private LTE networks.
An emerging trend is the deployment of private network-based neutral host solutions, which enhance public cellular coverage in indoor locations where traditional Distributed Antenna System (DAS) installations may be too costly or complex. The availability of 3.5 GHz CBRS spectrum in the U.S. has facilitated the growth of these private networks across various sectors, including industrial facilities, public venues, hospitals, hotels, and educational campuses.
Examples of such deployments include:
- Tesla and Toyota production sites
- Meta's corporate offices
- City of Hope Hospital
- Stanford Health Care
- Various hotels and universities, including Arizona State University and Duke University
The expanding market for private networking will be supported by a variety 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, and dedicated DOD and public safety broadband spectrum.
In a related report, STL Partners noted that manufacturing is currently the leading sector for 4G and 5G private networking globally. The firm highlighted that manufacturing has advanced further along the digitization and automation journey, driving demand for private networks. Other sectors, such as healthcare, ports, transport and logistics, and mining (including oil and gas), are also deploying significant amounts of private networking equipment.
However, STL Partners cautioned that other industries will need to see reductions in equipment prices, setup costs, and complexity to justify investments in private networking solutions.
As 5G technology continues to evolve, its anticipated dominance in the U.S. enterprise space by 2027 underscores the importance of private networking in driving digital industrialization. With significant investments and deployments already underway, industries are poised to leverage the benefits of enhanced connectivity and automation, paving the way for a more connected future.
