Private LTE and 5G spending will surpass $5 billion annually on a global level by 2021 as it’s projected to grow at a rapid pace moving forward, according to a new study conducted by Market Reports Center. The Indian analytics firm is expecting global network infrastructure investments in the private sector to have a compound annual growth rate of approximately 30-percent until 2021, forecasting that the segment will already be a $2.5 billion market this year before its yearly investments more than double over the next 36 months. While global connectivity leaders are already pushing for 5G deployment, 4G LTE technologies are still expected to prompt major spending moving forward, with LTE now growing into the role of a “critical communications platform,” the research firm believes.
Commercial 5G networks are expected to start rolling out in late 2018 before large-scale deployment starts next year but many wireless carriers are still committing notable efforts to stressing the continued importance of LTE. 5G won’t make “one iota of difference” in the industry over the next two years, T-Mobile Chief Technology Officer Neville Ray said earlier this month, predicting that U.S. mobile service providers will still be competing with their LTE offerings for a while before 5G becomes their main focus. Most telecom giants and network equipment manufacturers aren’t shying away from such long-term commitments and have repeatedly stated they’re willing to accept any kind of near-term losses due to the vast implications of the fifth generation of connectivity. With 5G being developed with use cases in mind, the technology is expected to enable a variety of products, services, and business, consequently allowing wireless carriers to redefine their enterprise offerings and agree to more comprehensive partnerships with many of their business clients.
The newly published report doesn’t cover government-backed wireless spending but identifies private investments as the driving force in the upcoming infrastructural push expected to benefit a broad range of industries. 5G will be a major focus at this year’s Mobile World Congress scheduled to take place over the course of the next week, with everyone from Qualcomm and Ericsson to Nokia and various mobile service providers promising to showcase their latest and greatest advancements in the wireless segment at the Barcelona, Spain-based trade show.