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The 5G equipment market is estimated to grow at a CAGR of 66.5% between 2022 and 2027. The size of the market is forecast to increase by USD 56,716.75 million. The growth of the market depends on several factors, including the adoption of 5G networks for smart cities, the growing adoption of smartphones and the demand for better connectivity, and government initiatives for high-speed network connectivity.
This report extensively covers market segmentation by product (macrocell, small cell, and others), end-user (non-retail sector and retail sector), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The adoption of 5G networks for smart cities is notably driving the market growth, although factors such as the energy efficiency challenges in 5G small cell networks the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key 5G Equipment Market Driver
The adoption of 5G networks for smart cities is one of the key factors driving the growth of the global 5G equipment market. Smart cities are gaining popularity as a result of the sophisticated technology that makes them more convenient. Information and communication technology (ICT) is commonly used in these cities to construct connected and harmonized public amenities and infrastructure. Because every component must be connected to the Internet and integrated, communication is a critical component of the overall infrastructure. Internet, telephone, and wireless communications services are all necessary for commercial use.
A smart city necessitates a large number of machine-to-machine communication applications. Smart metering, property monitoring, logistics management, and smart parking are just a few of the major MTC uses. Because they are placed in tough locations such as basements and farms, these huge applications use relatively low data rates but require considerable long-range connectivity. The demand for 5G networks will grow as data transmission and communications become more efficient.
Key 5G Equipment Market Trend
The growing R&D and deployment of the 5G network will fuel the global 5G equipment market growth. In the future, R&D activities and trend-setting innovations are expected to increase. The increase in R&D activities, along with the improvement of items joining trend-setting innovations, are probably going to increment during the conjecture time frame. In October 2019, Qualcomm Inc. (Qualcomm) announced $200 million in venture subsidies for organizations constructing the 5G biological system. Since 2018, Ericsson has been focusing on 5G R&D and has contributed more than $350 million to 5G R&D.
The organization is focused on creating 5G and other imaginative portable innovations. In January 2020, Chinese vendor Huawei completed 5G New Radio testing using a 2.6 GHz spectrum in the 5G trial organized by the IMT-2020 (5G) promotion group. The company's dominating position in test completion and newly acquired results further accelerate the progress of 5G technology R&D and help in forming a set of unified global standards to impressively conclude China's second phase of the 5G test. The evolution of 5G technology will compel vendors to develop wireless test equipment that effectively supports the technology.
Key 5G Equipment Market Challenge
The energy efficiency challenges in 5G small cell networks are a major challenge for the global 5G equipment market growth. 5G networks are projected to make communication between linked devices like driverless vehicles, electronic healthcare, smart cities, and building and home automation easier. In these applications, the implementation of 5G networks would enable real-time monitoring and control of numerous connected devices. With the integration of 5G networks in these applications, the threat of cyber-attacks will grow. Hacking connected devices to collect customer data or breaching many devices to launch a Distributed Denial of Service (DDoS) assault on important target servers are examples of cyber-attacks on 5G networks.
Moreover, numerous small-cell manufacturing organizations will face a challenge to meet the above-mentioned requirements. The transmission power, although it increases computational cost, will lessen with the utilization of advancements, for example, Massive MIMO. In this manner, firms need to address the exchange off, wherein they have to choose whether computational or transmission power is increasingly imperative to keep up the vitality proficiency of 5G little cell systems.
Key 5G Equipment Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global 5G Equipment Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airspan - The company offers 5G equipment such as Air5G. Also, under this segment, the company offers products and solutions such as 4G, 5G, net span, rural solutions, defense and public safety, and others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the macrocell segment will be significant during the forecast period. Macrocells are high-power network cells that provide radio coverage for cellular networks. They are typically used to create cellular base stations by mounting microcell antennas on masts or towers. For the smooth functioning of microcells, antennas should have a clear vision of the surroundings so that the signal is not obstructed. Hence, they are typically mounted on towers and not on the ground, rooftops, or other existing small structures. Macrocells can provide cellular network coverage for large areas such as large towns.
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The macrocell segment was valued at USD 295.81 million in 2017 and continue to grow by 2021. Macrocells transmit high-intensity signals that ensure strong network strength, which can propel longer distance-delivering connectivity to mobile device users. Macrocells transmit data signals as output, which is 5 to 10 times more intense than the signals transmitted through small cells. Similarly, the coverage area of macrocells is very high compared with small cells and microcells. Macrocells specifically used in 5G infrastructure are integrated with power semiconductor devices to support the high-power density requirements. Thus, macrocells are deployed in applications of long-range network coverage compared with small cells, which are used in network densification. The demand for macrocells is increasing with a growing focus on the development of smart cities globally, as macrocells can facilitate the deployment of 5G networks over large city areas and have high user connection capacity. This would drive the market for macrocells during the forecast period.
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North America is projected to contribute 32% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Thus, macrocells are deployed in applications of long-range network coverage compared with small cells, which are used in network densification. The demand for macrocells is increasing with a growing focus on the development of smart cities globally, as macrocells can facilitate the deployment of 5G networks over large city areas and have high user connection capacity. This would drive the market for macrocells during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for North America. However, the initiation of vaccination drives across North America since the second half of 2020 has led to the resumption of industrial operations, which has increased the production of 5G equipment in the region. Moreover, North America has more than 3.4 million 5G connections. Thus, increasing adoption of remote working models is further expected to drive the demand for 5G equipment, which, in turn, will fuel the growth of the 5G equipment market in North America during the forecast period.
Technavio categorizes the global 5G equipment market as a part of the global communications equipment market within the overall global information technology sector. The parent global communications equipment market covers manufacturers of enterprise networking products, including LANs, WANs, routers, telephones, switchboards, and exchanges. Technavio also includes communications infrastructure or telecom equipment market, within the scope of the communications equipment market. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (Macrocell, Small cell, and Others), End-user (Non-retail sector and Retail sector), and Geography (North America, Europe, APAC, Middle East and Africa, and South America).
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5G Equipment Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 66.5% |
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Market growth 2023-2027 |
USD 56,716.75 million |
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Market structure |
Fragmented |
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YoY growth (%) |
65.6 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 32% |
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Key countries |
US, China, South Korea, Japan, and the UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airspan Networks Inc., Alpha Networks Inc., Altiostar, Analog Devices Inc., Cisco Systems Inc., Comba Telecom Systems Holdings Ltd., CommScope Holding Co. Inc., Fujitsu Ltd., Huawei Technologies Co. Ltd., Infinite Electronics Inc., Laird Connectivity, Mavenir Systems Inc., NEC Corp., Nokia Corp., Qorvo Inc., Qualcomm Inc., Samsung Electronics Co. Ltd., Telefonaktiebolaget LM Ericsson, Wireless Excellence Ltd., and ZTE Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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