A lack of cutting-edge 5G chips, reseller uptake, and integration challenges will slow the growth of private cellular network use over the next two years, according to IDC. Credit: Ericsson Private 5G/LTE networks for the enterprise are becoming increasingly common, but a new forecast from tech analyst firm IDC has found that several headwinds exist for the technology, which could slow its adoption over the next 18 to 24 months. The report, authored by IDC research manager Patrick Filkins, predicted that private cellular networking infrastructure sales will grow from $2.4 billion in global revenue this year to $5.3 billion in 2027. The use cases for private cellular networks are numerous and varied, according to IDC, encompassing everything from wide-area applications like grid networks for utility systems and transport networks to local networks for manufacturing facilities or warehouses. Yet three factors have continued to slow the growth of private cellular, which IDC defines as 5G/LTE networks that don’t share traffic between users, as a public network would. The first is slower-than-expected availability of the latest 5G chipsets, specifically those for releases 17 and 18 from 3GPP — the cellular technology standards body — which are designed to improve ultra-reliable, low-latency communications. That creates a drag on particularly advanced new implementations, particularly in the industrial sector, that can be created with private networks, the report said. In the short-term, that means that LTE will account for the bulk of spending on private cellular networks, according to the report, not to be superseded by 5G spending until 2027. Difficulties with integrating private cellular into existing network infrastructure is also slowing growth, IDC noted. Particularly in demand is a single-pane management console that can let IT staff set policy, security and traffic rules in one place, although vendors are working to deliver that. “The idea is to integrate where it is feasible, so as to avoid simply overlaying another network, thus driving complexity and costs up,” the report said. Finally, the way in which private cellular is sold has slowed its deployment, according to IDC. The technology is mainly delivered, at present, through systems integrators, though carriers, distributors and cloud providers have dipped their toes into the market as well. “However, for the market to scale faster globally, and for vendors to capture more profits, we foresee the need for a traditional enterprise channel to develop whereby a larger portion of equipment is pushed to market via distributors and value-added resellers,” according to the report. Related content news AWS launches Cost Optimization Hub to help curb cloud expenses At its ongoing re:Invent 2023 conference, the cloud service provider introduced several new and free updates that are expected to help enterprises optimize their AWS costs. By Anirban Ghoshal Nov 28, 2023 3 mins Amazon re:Invent Events Industry how-to Getting started on the Linux (or Unix) command line, Part 4 Pipes, aliases and scripts make Linux so much easier to use. By Sandra Henry-Stocker Nov 27, 2023 4 mins Linux news AI partly to blame for spike in data center costs Low vacancies and the cost of AI have driven up colocation fees by 15%, DatacenterHawk reports. By Andy Patrizio Nov 27, 2023 4 mins Generative AI Data Center news Nvidia’s made-for-China chip delayed due to integration issues: Report Nvidia’s AI-focused H20 GPUs bypass US restrictions on China’s silicon access, including limits on-chip performance and density. By Sam Reynolds Nov 24, 2023 4 mins CPUs and Processors Generative AI Technology Industry Podcasts Videos Resources Events NEWSLETTERS Newsletter Promo Module Test Description for newsletter promo module. Please enter a valid email address Subscribe