Dedicated Cellular Networks (Private LTE)

A dedicated LTE/5G network is created within one organization, it is isolated from public mobile networks. All its elements are in a closed loop. Such a network is intended exclusively for solving technological problems. It is a controlled and stable digital data environment. It is resistant to interference, has an increased level of protection, provides high quality communication in premises and territories, allows you to safely use data transmission, video monitoring and video surveillance, remote control, etc.

Projects of dedicated networks in Russia

• Dedicated 5G network in Skolkovo
• Dedicated 5G network in Polymetal
• Dedicated networks at Nornickel's enterprises

Market estimates

2023: Sibur abandoned dedicated LTE networks at enterprises due to communication interruptions

At the end of December 2023, it became known that the oil and gas chemical company Sibur abandoned a large-scale project to deploy a dedicated Private LTE network at its production sites. The reason is possible communication interruptions, which is unacceptable at industrial facilities. Read more here.

2022

The Russian market for dedicated LTE networks showed an increase of 20% to 1.5 billion rubles

The volume of the Russian market for dedicated cellular networks LTE created within the same company and isolated from public networks in 2022 reached 1.5 billion, rubles an increase of 20% compared to a year ago in 1.2 billion rubles. Such data in February 2023 led to the analytical agency Oneside.

According to TASS, citing research materials, among publicly announced projects, the largest number of dedicated commercial LTE networks was deployed by MTS - 12 networks, or 37% of all projects on the market. Another 21% was sold by Megafon.

The market volume of dedicated LTE cellular networks reached 1.5 billion rubles

Among the industries in which Private LTE networks were deployed, 30% of projects fell on the mining industry, 18% - on transport, 15% - on petrochemicals, 9% in the context of all projects occupy the oil and gas sector and coal mining, 6% - power, mechanical engineering and power, the report says.

The interest of corporations in private cellular networks did not weaken even after the start of a special military operation of the Russian Federation in Ukraine. For example, in April 2022, the Magnitogorsk Iron and Steel Works (MMK), in partnership with MegaFon, deployed a 5G pilot zone.

The operator is already building a private private network Private LTE at the plant, which will become a springboard for digitalization - the introduction of industrial Internet of things technologies, video analytics and positioning systems, - said Vadim Feoktistov, chief information technology specialist at MMK.

Valery Lutoshkin, Director of the Step Logic Network Solutions Department, says that operators have interest in building Private LTE solutions, but market demand in 2022 was limited largely due to the high cost of such projects. In addition, manufacturers are already accustomed to the fact that their equipment is used in solving niche problems - it will be extremely difficult to rebuild to mass demand, he added.^[1]

Global market for dedicated 4G- and 5G networks valued at $2.5 billion

At the end of December 2022, Counterpoint Technology Market Research announced the results of a study of the global private infrastructure market for fourth (4G/LTE) and fifth (5G) generations of mobile networks.

Analysts divide the industry of dedicated 4G/5G networks into seven vertical segments. These are the public sector, production, power and utilities, natural resource extraction, transport and logistics, small and medium-sized businesses, as well as all other areas. The public sector consists of several sub-verticals such as public safety networks, smart cities, health and government, education and defence. The small and medium-sized business segment mainly covers non-industrial areas, for example, office buildings, hotels, shopping centers, entertainment centers, etc.

The global market for dedicated 4G- and 5G networks for 2022 is estimated at $2.5 billion

According to experts, in 2022 the volume of the global market for dedicated mobile networks amounted to approximately $2.5 billion. Most of the projects to deploy private 4G and 5G infrastructures are in developed countries with high GDP, while developing regions are seriously lagging behind. An exception is Latin America, where there are numerous mining-oriented networks (predominantly copper mines).

USA The CBRS (Citizens Broadband Radio Service) strip is actively used for 4G services that do not require maximum data transfer rates, for example, for mobile connection in schools. On the contrary, To Europe the share of private 5G networks that are created with an eye on Industry 4.0 and the development of intelligent enterprises is high. The key use cases for private 5G networks in Europe are auto-managed trolleys (AGVs), autonomous mobile (robots AMR), augmented virtual reality and (/) systems, ARVR diagnostic maintenance, video analytics and asset tracking.

One of the key factors contributing to the development of the global industry of dedicated 4G/5G networks, analysts call the availability of spectrum. Countries such as Germany, France, the United Kingdom and the United States are leading the deployment of private mobile infrastructures, but they all use different frequency bands and different standards. This raises the problem of spectrum fragmentation. There is an urgent need to harmonize the spectrum of private networks, especially between countries in the same region, in particular in Europe.

The global market for dedicated 4G- and 5G networks for 2022 is estimated at $2.5 billion

Starting 2025, 5G Advanced, or 5.5G, technology is expected to drive the market. Its implementation will lead to the emergence of a number of new services and applications. 5G Advanced solutions will drive growth in key verticals such as advanced manufacturing, power, utilities, etc. Experts also predict the wider use of the Network Slicing model, that is, the division of the network into logical layers. This approach allows operators to use the same physical network to provide different services with certain requirements for bandwidth, security, delays, etc. Over time, the Network Slicing concept will become a cheaper alternative to dedicated private networks for some uses.

In general, Counterpoint Research predicts that the global market for dedicated networks 4G/5G expects sustainable development: the CAGR (compound percentage CAGR) until 2030 will be 30.7%. As a result, by the end of 2030, the industry will reach $21.8 billion. At the same time, production will become the largest vertical segment in terms of revenue.^[2]

2021: Equipment and Software Market for Dedicated 4G and 5G Networks Valued at $1.7 Billion

The global market for solutions designed to launch and operate dedicated LTE and 5G mobile networks reached $1.7 billion in 2021. This is evidenced by data from IDC analysts released in mid-March 2022. Read more here.

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