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The 5G technology market size is projected to reach a value of USD 440.19 billion with a CAGR of 93.25% between 2022 and 2027. The market's growth depends on the 5G network's R&D (Research and Development) and deployment, government initiatives for high-speed network connectivity, and the increasing adoption of smartphones and demand for better connectivity. 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.
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5G services refer to the next generation of wireless technology that offers faster speeds, increased network capacity, lower latency, and more reliable connections compared to previous generations (such as 4G LTE). 5G service technology supports various technology applications, including high-definition video streaming, augmented reality (AR), virtual reality (VR), Internet of Things (IoT) devices, autonomous vehicles, smart cities, and remote healthcare, among others. 5G network speed substantially higher speeds compared to 4G LTE networks, providing ultra-fast data transmission capabilities.
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 are 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.
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.
One of the major challenges to the 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 endeavours are anticipated to consistently drive positive growth in the market, reflecting the increasing acknowledgment of 5G's transformative potential across diverse industries.
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.
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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 regional services market is experiencing significant growth owing to the increasing number of mobile subscribers, particularly in markets like India. The surge in 5G-enabled smartphone launches by various companies is poised to further propel the demand in the coming years. The market's expansion is also attributed to the escalating demand for Internet protocol (IP)-based voice and video services within the region. Moreover, the uptick in disposable income has resulted in heightened smartphone sales, consequently contributing to a rise in the number of mobile subscribers accessing the Internet.
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:
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.
The market is experiencing rapid growth, transforming global connectivity standards and enhancing end-user experiences. With the advent of 5G networks, mobile networking standards are evolving, revolutionizing how smartphones and Internet of Things (IoT) devices operate. machine-to-machine (M2M) communication is becoming more efficient, leveraging the capabilities of 5G. Compared to 4G, 5G offers faster download speeds and lower latency, enabling applications such as augmented reality, wearable technology, and autonomous vehicles. Industries are leveraging 5G for smart city services, public security, and safety through CCTV systems and wireless updates.
Enterprises are implementing private 5G small cell networks to enhance connectivity in industrial facilities, manufacturing processes, and supply chains. 5G Fixed Wireless Access (FWA) is a revolutionary technology that utilizes connectivity to deliver high-speed broadband internet access to homes, businesses, and other locations. Fixed wireless access, users can access the internet without the need for physical cables or fiber optics. FWA provides flexibility, scalability, and the potential for high-speed connectivity suitable for bandwidth-demanding applications, such as high-definition video streaming, online gaming, smart home devices, and more. With high-speed millimeter waves and advanced antennas, 5G cell towers are driving market trends and facilitating the rollout of 5G devices for both consumer and business applications, including connected car systems and autonomous driving.
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.
5G Technology 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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