5G Technology Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, South Korea, UK, Spain - Size and Forecast 2023-2027

5G Technology Market Forecast 2023-2027 

The 5G technology market size is projected to reach a value of USD 440.19 billion at a CAGR of 93.25% between 2022 and 2027. The market is propelled by key factors such as extensive research and development efforts coupled with the deployment of 5G networks, government-led initiatives aimed at enhancing high-speed network connectivity, and the burgeoning demand for smartphones driving the need for superior connectivity. This market encompasses the development, deployment, and utilization of fifth-generation wireless technology, poised to revolutionize communication networks globally. With an emphasis on ultra-fast data transmission, low latency, and enhanced network capacity, 5G technology is set to reshape various industries, ranging from telecommunications to healthcare and beyond. This market research and analysis report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, this market analysis and report also includes historic market data from 2020 to 2021.

What will be the Size of the 5G Technology Market During the Forecast Period?

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In the ever-evolving world of technology, 5G technology has emerged as the latest innovation, revolutionizing the way we connect and communicate. The market is expected to grow significantly, with various industries such as healthcare, education, and manufacturing, embracing this technology for its speed, reliability, and low latency. The rollout of 5G networks is a global effort, with companies like IoT, CSPS, and Broadband investing heavily in this technology. The 5G technology provides consumers with faster download and upload speeds, enabling them to stream high-definition content, play online games, and video conference in real-time. Furthermore, 5G technology is expected to pave the way for advanced applications like autonomous vehicles, smart cities, and telemedicine. The networks are also expected to be more secure and reliable, ensuring the protection of sensitive data. In conclusion, the market is poised for exponential growth, with various industries and consumers reaping the benefits of this revolutionary technology.

Market Dynamics

The fifth generation of wireless communication, is revolutionizing the way we connect and communicate. With speeds up to 100 times faster than 4G, 5G is poised to transform various industries, including healthcare, education, and business. The technology's low latency and high bandwidth capabilities make it an ideal solution for applications requiring real-time data transfer, such as autonomous vehicles, smart cities, and virtual reality. Moreover, 5G's ability to support massive IoT devices makes it a game-changer for industries like manufacturing and agriculture. The Baseline Scenario for the market suggests that the technology will be widely adopted by 2025, with an estimated 1.4 billion 5G connections. Estimates indicate that the European region will lead the 5G market growth, followed by North America and the Asia Pacific region. In conclusion, 5G technology is a game-changer that offers numerous opportunities for businesses and industries. Its high speed, low-latency, and massive IoT capabilities make it an essential investment for businesses looking to stay competitive in the digital age.

Key Market Driver

One of the key factors driving the market growth is the growing R&D and deployment of the 5G network. In January 2020, Chinese vendor Huawei completed 5G New Radio testing using a 2.6 GHz spectrum during the trial organized by the IMT-2020 (5G) promotion group. The dominant position of the company in test completion, as well as the newly acquired results, is expected to help in forming a set of unified global standards to impressively conclude the second phase of tests in China. Companies compete for network deployment, especially in North America.

Additionally,  broadband is intricately linked to the expansion and growth of the market. As a crucial application of broadband plays a pivotal role in driving the market forward and fostering its expansion. 5G broadband meets this demand by offering faster speeds and improved connectivity, driving consumers to adopt 5G-enabled services and devices. Wireless technology is expected to enable and enhance various innovative technologies and applications, including augmented reality (AR), virtual reality (VR), Internet of Things (IoT), smart cities, and edge computing. The evolution will compel market vendors to develop wireless technology test equipment that can support the technology effectively. The Government of India is also working to create a fund for the development which will further drive the market growth during the market forecast period.

Significant Market Trends

Strategic collaboration among market participants is one of the market trends that is expected to impact the industry positively in the forecast period. Various governments are working in collaboration with market participants to accelerate the deployment. For instance, in May 2020, IBM, Samsung, and M1 collaborated to start Singapore's 5G smart manufacturing trial to find ways in which connectivity can improve the control of robotic arms and other smart devices on factory floors. In May 2020, Huawei global expert joined the Saudi Federation for Cybersecurity, Programming, and Drones webinar discussion of  5G and cybersecurity assurance can help harness the value of digital transformation. The strategic collaboration among the market participants will result in the development of products and services supporting the technology, which will further support the market growth during the forecast period.

Major Market Challenges

One of the major challenges to global market growth is the high deployment cost of 5G technology. Numerous government initiatives are underway to promote the integration of high-speed network infrastructure, marking a significant trend in the worldwide infrastructure market.

The US Federal Communications Commission (FCC) has initiated the  Fast Plan to expedite the establishment of infrastructure across the country. In China, substantial investments in research, development, and infrastructure have been allocated, with the government setting ambitious targets for advancement. Infrastructure companies refer to organizations that specialize in providing the necessary technologies, equipment, and solutions for the deployment, maintenance, and operation of 5G wireless networks. Implementing 5G infrastructure companies involves significant capital investments in new equipment, hardware, and infrastructure upgrades. Finding suitable locations for new towers, small cells, and 5G infrastructure companies can be challenging due to regulatory hurdles, zoning restrictions, and the need for site approvals, which can delay deployment. These governmental endeavors are anticipated to consistently drive positive growth in the market, reflecting the increasing acknowledgment of 5G's transformative potential across diverse industries.

Market Segmentation

The market represents a lucrative segment for telecom providers, with manufacturing being a key industry beneficiary. Seamless connectivity offered by 5G networks enables the integration of advanced technologies like artificial intelligence, automation, and augmented reality (AR/VR) in manufacturing processes. Machines and infrastructures become smarter and more interconnected, leading to increased efficiency and productivity. 5G leaders are expected to generate significant revenue. Mobile internet, tablets, and AR/VR devices are essential tools in this digital transformation, making 5G networks an indispensable part of the manufacturing ecosystem.

By Application

The Market share growth by the manufacturing segment will be significant during the forecast period. The provides network characteristics, which are required to manufacture 5G networks. High reliability and low latency are required to support critical 5g technology applications. High bandwidth and connection density secure ubiquitous connectivity, which are requirements that manufacturers currently rely on fixed-line networks. It allows for lower cost, higher flexibility, and shorter lead times for factory floor production reconfiguration, layout changes, and alterations.

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The manufacturing segment was valued at USD 1.56 billion in 2020 and continue to grow until 2021. 5G technology enables manufacturers to build smart factories and offers various advantages of technologies, including artificial intelligence (AI), automation, augmented reality for troubleshooting, and the Internet of Things (IoT). Manufacturers can create new revenue streams with technology, with manufacturing being one of the most important sectors generating a new revenue potential for operators addressing industry digitalization technologies. 

Regional Overview

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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The market in the Asia Pacific region is experiencing significant growth due to increasing mobile bandwidth demands for immersive experiences. With the rolling out of 5G infrastructure by countries like China, India, Malaysia, and Singapore, as well as Japan, Australia, and South Korea, the market is poised for expansion. The region's market growth is driven by the rising number of mobile subscribers and the launch of 5G-enabled smartphones. This technology offers wider spectrum, higher traffic capacity, and faster download speeds, making it a solution for business travelers and temporary accommodation. Component providers offer Hardware, Software, and Services for 5G standalone services and standalone 5G networks. 5G infrastructure providers offer professional and managed services, including Enhanced Mobile Broadband, which provides high reliability and low latency for mission-critical services. The 5G NR mmWave is experiencing an exponential share in the market, but difficulties in standards and spectrum allocation persist. The market includes home broadband services, in-venue digital services, live sports streaming, and mobile gaming.

Who are the Major Market Companies?

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.

HCL Technologies Ltd. - The company offers 5G technology, such as a 5G network for the retail and automotive industry.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Accenture Plc
• Cisco Systems Inc.
• CommScope Holding Co. Inc.
• Dell Technologies Inc.
• Deutsche Telekom AG
• Fujitsu Ltd.
• Huawei Technologies Co. Ltd.
• Intel Corp.
• Nokia Corp.
• Siemens AG
• Samsung Electronics Co. Ltd.
• T Mobile US Inc.
• Tech Mahindra Ltd.
• Telefonaktiebolaget LM Ericsson
• Telstra Ltd.
• Tietoevry
• TIM S.p.A.
• Viavi Solutions Inc.
• Qualcomm Inc.
• HCL Technologies Ltd.

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.

Market Analyst Overview

The fifth generation of wireless communication is revolutionizing the way we connect and communicate. With speeds up to 100 times faster than 4G, 5G is poised to transform various industries, including healthcare, education, and business. The market is expected to grow significantly in the coming years, driven by the increasing demand for faster and more reliable connectivity. 5G technology offers several advantages over its predecessors, such as lower latency, higher bandwidth, and increased capacity. These features make it an ideal solution for applications that require real-time data transfer, such as autonomous vehicles, telemedicine, and virtual reality. Moreover, this technology is expected to enable new business models and use cases, such as smart cities, industrial automation, and remote work. The technology is also expected to drive innovation in areas like agriculture, transportation, and energy. In conclusion, this technology is set to disrupt various industries and create new opportunities for businesses and individuals alike. The market is expected to grow rapidly in the coming years, driven by the increasing demand for faster and more reliable connectivity.

The market is experiencing exponential growth driven by the demand for 5G services and the implementation of sustainable initiatives. With low-latency capabilities and real-time data collection, 5G technology revolutionizes various sectors, including smart agriculture. Companies like NTT Docomo are leading the way in the 5G rollout, offering SA (Standalone) solutions to CSPs (Communication Service Providers). However, concerns about data espionage persist, emphasizing the need for robust security measures in mobile data consumption. Meanwhile, spectrum auctions and infrastructure contracts drive investments in telecommunications services and digital tools. As mobile network operators expand 5G services, the market witnesses a surge in mobile broadband services and the adoption of XR (extended reality) technologies like XR and smart agriculture. The market is experiencing exponential growth driven by the demand for 5G services, with a focus on Sustainability initiatives and the adoption of internet service providers to accommodate the growing application needs.

Segment Overview

The market trends and analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2020 to 2027. 

• Application Outlook 
  • Manufacturing
  • Automotive
  • Energy and utilities
  • Healthcare and others

• Component Outlook 
  • Software
  • Services

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

 

Market Scope
Report Coverage	Details
Page number	169
Base year	2022
Historic period	2017 - 2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 93.25%
Market growth 2023-2027	USD 440.19 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	77.06
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 49%
Key countries	US, China, South Korea, UK, and Spain
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, Cisco Systems Inc., CommScope Holding Co. Inc., Dell Technologies Inc., Deutsche Telekom AG, Fujitsu Ltd., Huawei Technologies Co. Ltd., Intel Corp., Nokia Corp., Siemens AG, Samsung Electronics Co. Ltd., T Mobile US Inc., Tech Mahindra Ltd., Telefonaktiebolaget LM Ericsson, Telstra Ltd., Tietoevry, TIM S.p.A., Viavi Solutions Inc., Qualcomm Inc., and HCL Technologies Ltd.
Market dynamics	Parent market analysis, Market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Market Growth Analysis across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies 

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