ABI Research identified a $1.3 billion market opportunity for neutral hosts and managed service providers (MSPs) in the enterprise mobile connectivity market by 2030, predicting more than 65 per cent of the revenue would come from verticals including industrial manufacturing, logistics and warehousing, and energy generation.
Leo Gergs, principal analyst for enterprise connectivity and 5G markets, stated enterprises face increased production costs, which is driving demand for digitalisation powered by private mobile networks.
He noted another factor driving enterprise cellular connectivity is tight investment budgets.
As a result of those factors, Gergs said enterprises are unable to invest vast amounts of capital into building their own network infrastructure, “so they tend to decide to partner with neutral hosts or managed service providers” to access mobile connectivity “in a managed service model”.
ABI Research stated the significance of neutral host providers in private mobile networks became evident in 2023, with vendors including Federated Wireless, Celona and Kajeet launching services with various partners.
The company noted a Boldyn Networks deal to buy private network operator Edzcom from Cellnex as being beneficial to both companies, but cautioned “acquisitions carry certain business economic risks and should only be carefully considered”.
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