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The 5G equipment market is forecast to increase by USD 56.71 billion at a CAGR of 66.5% between 2022 and 2027. The market is expected to grow significantly, fueled by the widespread adoption of 5G networks to power smart city initiatives. With the increasing reliance on smartphones and the burgeoning demand for seamless connectivity, there's a pressing need for advanced 5G infrastructure. Government initiatives aimed at enhancing high-speed network connectivity further bolster the market prospects, paving the way for transformative advancements in communication technology. This market analysis and report includes key drivers, trends, and challenges during the forecasted period.
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The market, including services like streaming and gaming, is expected to benefit greatly from the increased speed and reliability of 5G networks. The high-end devices market, including high-end smartphones and laptops, is also expected to see growth as consumers demand the latest technology. The Cloudevolutions and Onlineservices market is also expected to be impacted by 5G, as it enables faster and more efficient data transfer and processing. The Basestations and Infrastructure market is a crucial part of the market, as it provides the foundation for the network. The Applications and Services market is expected to be the largest segment of the market, as it enables new and innovative services that were not possible with previous generations of technology.
The market is poised for exponential growth, driven by the demand for data-intensive applications and the proliferation of smart devices like smartphones and tablets. With the rise of data-driven services and high-definition videos, there's a pressing need for robust infrastructure to support cloud-based applications and online gaming. Macro and small-cell base stations, coupled with edge computing capabilities, are crucial for delivering the fifth-generation technology standard's promise of ultra-fast connectivity. As IoT devices and semi-autonomous vehicles become more prevalent, the global rollout of 5G networks presents vast opportunities for market expansion, spurring development in both hardware and software sectors. 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.
The adoption of 5G networks for smart cities is one of the key factors driving the growth of the global market. The market is experiencing significant growth due to the increasing adoption of smart cities, which prioritize networking efficiency and connectivity for business needs. Network hierarchies are being developed to support various applications, including those in the manufacturing sector, retail, and others. These applications, such as smart metering, property monitoring, logistics management, and smart parking, require high bandwidth capabilities and low latency rates for data transfer in challenging environments. 5G's high-speed connectivity and low latency rates make it an ideal growth platform for commercial enterprises, particularly in the manufacturing sector, where real-time data processing is crucial. In the retail industry, 5G's capabilities enhance the customer experience in both online and physical outlets by enabling seamless communication between various systems and devices.
The growing R&D and deployment of the 5G network will fuel the global market growth. The 5G equipment market is experiencing significant growth due to increasing Research and Development (R&D) activities in network hierarchies. This trend is expected to continue, with major players such as Qualcomm and Ericsson investing heavily in 5G R&D. Qualcomm has allocated USD 200 million in venture capital for 5G infrastructure development, while Ericsson has contributed over USD 350 million. The manufacturing sector is a key commercial area for 5G, with a focus on networking efficiency and business needs. Management systems are being upgraded to leverage high bandwidth capabilities and low latency rates for data transfer. In the retail sector, Smart Retail is a growth platform, enhancing customer experience in both online and physical outlets. Huawei, a Chinese vendor, has completed 5G New Radio testing, showcasing the technology's potential in the manufacturing sector and beyond. The 5G network's high bandwidth and low latency rates are essential for various industries, including manufacturing, to streamline operations and improve overall performance.
The energy efficiency challenges in 5G small cell networks are a major challenge for the global market growth. TIn the context of the market, network hierarchies are being reevaluated to ensure networking efficiency as business needs evolve. The deployment of 5G will result in increased traffic load due to the anticipated adoption of high bandwidth applications by a larger consumer base. To maintain energy efficiency, network operators must redesign their infrastructure. The manufacturing sector, including the portable correspondence industry, contributes significantly to carbon emissions. In the commercial realm, management systems must balance the need for low latency rates and high bandwidth capabilities to enhance customer experience in both online and physical outlets. The growth platform of 5G offers opportunities for Smart Retail and data transfer, making it a crucial investment for businesses.
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.
Market Customer Landscape
Companies 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 companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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). Furthermore, the report includes historic market data from 2017 to 2021. In the evolving networking landscape, the market is witnessing significant growth due to the expanding urban areas and increasing business needs for high network hierarchies. This growth is driven by the demand for networking efficiency in the online environment and physical outlets, such as Smart Retail. Macrocells, a commercial solution, are essential for providing high bandwidth capabilities and low latency rates to support data transfer in the manufacturing sector and other industries. Manufacturing systems rely on 5G's growth platform to enhance customer experience and ensure smooth functioning of microcells, which require a clear view of their surroundings for optimal signal transmission. Overall, it is a crucial investment for businesses seeking to improve networking efficiency and meet the growing demand for high-speed data services.
The market share growth by the macrocell segment will be signicant 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. In the evolving networking landscape, the market is witnessing significant growth due to the expanding urban areas and increasing business needs for high network hierarchies. This growth is driven by the demand for networking efficiency in the online environment and physical outlets, such as Smart Retail. Macrocells, a commercial solution, are essential for providing high bandwidth capabilities and low latency rates to support data transfer in the manufacturing sector and other industries. Manufacturing systems rely on 5G's growth platform to enhance customer experience and ensure smooth functioning of microcells, which require a clear view of their surroundings for optimal signal transmission. Overall, it is a crucial investment for businesses seeking to improve networking efficiency and meet the growing demand for high-speed data services.
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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.
The market in North America, particularly in the US and Canada, is experiencing significant growth due to reduced latency and enhanced connectivity offered by 5G technology. Innovation and competition among equipment manufacturers and telecommunication vendors are driving this growth. Government investments and financial commitment are crucial for 5G implementation. Barriers to entry include equipment procurement, spectrum acquisition, regulatory compliance, talent acquisition, financial planning, and strategic planning. Advanced 5G services such as high throughput, reliability, mobile cloud gaming, video conferencing, live broadcasting, remote-controlled machines/vehicles, and public safety services require peak downlink and uplink speeds. Unique mobile subscribers and mobile users will reach 345 million in 2023, with wireless 5G connections increasing. SDN, NFV, MEC, and network programmability are key technologies for network performance enhancement.
The market is experiencing significant growth due to the increasing demand for faster and more reliable connectivity. The market is driven by key players such as Apple, Google, and Samsung, who are constantly innovating and releasing new 5G devices. The implementation of 5G technology requires specific equipment, including 5G base stations, antennas, and routers. These 5G equipment components are crucial for providing the high-speed and low-latency connectivity that 5G promises. The major regions driving the growth of the market are North America and Europe, where the adoption of 5G technology is highest. The market is also witnessing significant investments from telecom companies and governments to build 5G infrastructure. Overall, the market is poised for substantial growth in the coming years.
The market is driven by the surge in data-intensive applications and data-driven services, fueling the need for advanced infrastructure to support high-definition videos, cloud-based applications, and online gaming. The rising prevalence of remote work culture and the demand for seamless connectivity have led to investments in macro and small-cell base stations and edge computing capabilities. As the fifth-generation technology standard unfolds, Internet of Things (IoT) devices and semi-autonomous vehicles benefit from enhanced global connectivity facilitated by the rollout of the 5G network. This development offers substantial opportunities for market growth across hardware and software sectors, prompting nations to prioritize the development of infrastructure to meet evolving demands. In the era of digitalization, businesses are leveraging technologies like big data, cloud computing, and customer premise equipment (CPE) to enhance operations and customer experiences. Big data analytics empower organizations to extract valuable insights from vast datasets, driving informed decision-making.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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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 56.71 billion |
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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 companies, Market Positioning of companies, 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 market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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