Strong Growth in the Uptake of Private/Hybrid LTE in MEA Region

Over the last few years, there has been increasing demand for data alongside voice communications across 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 (e.g. private LTE) or the various operating models possible with commercial and private LTE.

In many regions, LTE is selected for commercial mobile communication as well as being considered the future de-facto broadband standard for critical communications users, with the option of private LTE networks a reality.

Significant advances are being made toward these private network solutions, which give LMR users the option of rolling out dedicated high-speed data networks that would address their current and future data throughput needs.

Cost, standards, and availability of spectrum remain some of the most important factors that will determine how fast these networks are rolled out. Currently, many users are using commercial cellular networks to service their data needs.

Scope

IHS Markit states that in this report the main objective is to provide a strategic marketing tool for cellular and mobile radio network operators, infrastructure suppliers, user equipment suppliers, semiconductor manufacturers, and component suppliers.

The report will also help to develop a better understanding of the current state and evolution of broadband/data in the critical communications market.

Finally, this report provides market statistics and forecasts of four LTE broadband markets:

• Data over public commercial cellular networks
• Data over public commercial cellular networks that have dedicated access enhancements for its users.
• Data over private networks only, based on commercial cellular technology
• Data over a combination (hybrid) of private networks based on commercial cellular technology and public commercial cellular networks that have dedicated access enhancements for its users.

Key research findings

IHS Markit estimates the global private/hybrid mission-critical LTE infrastructure market was worth $1.14 billion in 2016. It is predicted to reach $4.30 billion in 2021. The research company also estimates the global private/hybrid mission-critical LTE managed services and system integration market was worth $684 million in 2016. It is predicted to reach $3.50 billion in 2021.
The forecast is that, in 2021, revenues from LTE devices in private/hybrid networks will reach $831 million; a large increase from $158 million in 2016, boosted by the public safety and security sector.

Regional insights

Asia Pacific is forecast again to have the greatest share of the world private/hybrid LTE user installed base from the end of 2016 to the end of 2021. This is mostly due to the progress in the public safety sector in China.

IHS Markit continues to forecast the European broadband market to be moving particularly slowly compared with the global market. In particular, in Western Europe, spectrum availability remains a major challenge, with countries struggling to allocate valuable spectrum for private public-safety networks.

In North America, IHS Markit remains in the longer term optimistic about FirstNet; however, today the business model approach that AT&T will very likely propose to all states and territories in the United States will be an incentive-based partnership model.

Within the MEA region, IHS Markit predicts a strong growth in the uptake of private/hybrid LTE networks over the coming years. IHS Markit expects strong data demands to drive increasing data usage alongside traditional LMR communications.

In Latin America, IHS Markit has changed its forecasts very little in the short term. However, with recent announcements, trials, and planned projects (e.g. Red Compartida in Mexico) IHS Markit is upgrading its forecasts for the longer term.

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