5G Infrastructure Market Outlook – 2030
The global 5G infrastructure market size was valued at $2.06 billion in 2020, and is projected to reach $83.62 billion by 2030, registering a CAGR of 45.3% from 2021 to 2030. The network of small & macro cell base type stations with edge computing potential required for the fifth-generation technology standard designed for cellular networks is referred to as 5G infrastructure. It also offers low latency coverage for large data streams, which power applications such as semi-autonomous vehicles, augmented reality, and IoT devices.
Growth of the global 5G infrastructure market is anticipated to be driven by factors such as rise in demand for mobile broadband services and proliferation of M2M/IoT connections. Increased acceptance of virtual networking architecture in telecom industry, lower latency in 5G, and surge in mobile data traffic fuels the growth of the 5G infrastructure market. However, high initial investment acts as a major restraint for the global 5G infrastructure market. On the contrary, high demand from Asia-Pacific especially in consumer electronics and industrial automation segment is expected to create lucrative opportunities for the 5G infrastructure industry.
The 5G infrastructure market is segmented on the basis of communication infrastructure, network technology, chipset type, application, and region. By communication infrastructure, the market is classified into small cell, macro cell, radio access network, and distributed antenna system. On the basis of network technology, market is divided into software defined networking, network chipset type virtualization, mobile edge computing, and fog computing. By chipset type, market is segmented into application specific integrated circuit, radio frequency integrated circuit, mmWave integrated circuit, field programmable gate array. Depending on application, it is categorized into automotive & transportation, energy & utilities, healthcare, retail, consumer electronics, industrial automation, and others.
By Communication Infrastructure
Radio Access Network (RAN) segment will grow at a highest CAGR of 49.0% during 2021 - 2030
Region wise, the 5G infrastructure market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific dominated the 5G infrastructure market in 2020, and is projected to register significant growth rate during the forecast period, owing to growth in the flexible 5G infrastructure segment. Also, Asia-Pacific is expected to witness significant growth by the end of the forecast period, followed by North America.
By Network Technology
Mobile Edge Computing (MEC) segment projected to be the most lucrative segment during 2021 - 2030
Leading manufacturers such as, Huawei Devices Co. Ltd., Ericsson, Nokia Corporation, and AT&T are focused on their investments on technologically advanced, cost-effective, and more secure products and solutions for various applications.
Top Impacting Factors
The prominent factors that impact the 5G infrastructure market growth include surge in demand for mobile broadband services and proliferation of M2M/IoT connections. However, high investment and privacy & security concerns restrict the market growth. On the contrary, rise in government initiatives for building smart cities in Asia-Pacific are expected to create lucrative opportunities for the market.
By Chipset Type
Application Specific Integrated Circuit (ASIC) segment will lead the market during 2021 - 2030
Competitive analysis and profiles of the major market players such as AT&T, Huawei Devices Co. Ltd., Ericsson, Intel Corporation, Mediatek Inc., Nokia Corporation, Qualcomm Technologies Inc., Hewlett Packard Enterprise, Samsung Electronics Co. Ltd., and Verizon have been covered in the report. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
Industrial Automation segment will grow at a highest CAGR of 52.2% during the forecast period
COVID-19 Impact Analysis
The outbreak of COVID-19 has significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are expected to remain closed in first quarter of 2022. Furthermore, partial or complete lockdown has disrupted global supply chain posing challenges for manufactures to reach customers.
The COVID-19 pandemic has impacted the society and overall economy across the globe. The impact of this outbreak has grown day-by-day, affecting the overall business globally. The crisis has created uncertainty in the stock market and has resulted in falling business confidence, massive slowing of supply chain, and increasing panic among customers.
Asian and European countries under lockdowns have suffered major loss of business and revenue, owing to shutdown of manufacturing units. Operations of the production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease, which further impacted growth of the 5G infrastructure market.
In addition, the COVID-19 pandemic has impacted the electronics sector as production facilities have stalled, which, in turn, has boosted demand for electronics and semiconductor products in these industries. Its major impact includes a large manufacturing interruption across Europe and interruption in Chinese parts exports, which hinder the 5G infrastructure market opportunity. It is expected that the demand for new and innovative products could surge once the economy begins to recover. Companies look forward to invest in next-generation products using new technologies, as it is expected to boost its goodwill, once customer demand increases.
Asia-Pacific region will lead the market with a highest CAGR of 47.7% during 2021 - 2030
Key Benefits For Stakeholders
- This study comprises analytical depiction of the global 5G infrastructure market size along with current trends and future estimations to depict imminent investment pockets.
- The overall 5G infrastructure market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current 5G infrastructure market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the 5G infrastructure market share of key vendors.
- The report includes the market trends and the market share of key vendors.
5G Infrastructure Market Report Highlights
By Communication Infrastructure
By Network Technology
By Chipset Type
By Key Market Players
The global 5G infrastructure market has flourished at a rapid pace. However, high initial investment and technological & infrastructure challenges in the implementation of 5G network are still major concerns for new entrants. Market players generously invest in R&D activities to develop improved solutions to reduce overall costs of 5G infrastructure products. In addition, according to industry experts, it is essential to optimize affordable prices for 5G infrastructure products for long-term growth.
Growth of the global 5G infrastructure market is anticipated to be driven by factors such as rise in demand for mobile broadband services and proliferation of M2M/IoT connections. Increased acceptance of virtual networking architecture in telecom industry, lower latency in 5G, and surge in mobile data traffic fuels the growth of 5G infrastructure market. However, high initial investment acts as a major restraint for the global 5G infrastructure market. On the contrary, high demand from Asia-Pacific especially in consumer electronics and industrial automation segment is expected to create lucrative opportunities for the 5G infrastructure industry.
Key players of the market focus on introducing technologically advanced products to remain competitive in the market. Partnership, acquisition, and product launches are expected to be the prominent strategies adopted by the market players. Asia-Pacific accounted for a major share of the market in 2020, owing to the presence of major players in the region; Also, Asia-Pacific is expected to grow at the highest CAGR, owing to rise in adoption of 5G infrastructure market in a variety of fields.