5G Technology Market Statistics: 2030
The global 5G technology market was valued at $5.13 billion in 2020, and is projected to reach $797.80 billion by 2030, growing at a CAGR of 65.8% from 2021 to 2030.
5G is a next-generation cellular technology that will provide high speed reliable communication at ultra-low latency levels. 5G Technology covers the entire ecosystem of hardware, software and services that are critical for implementation of 5G networks. The 5G technology market includes 5G connectivity technologies such as enhanced mobile broadband, ultra-reliable low latency communications, and massive machine type communications. 5G technology is expected to redefine communication, entertainment, and how people connect to the internet. 5G technology can operate in mmwave bands i.e. within the high frequency spectrum ranging from 24 to 100 GHz that facilitates faster data delivery.
5G technology is used across three main types of connected services, including enhanced mobile broadband, mission-critical communications, and the massive IoT. 5G technology is designed for forward compatibility, which means it can be integrated with a lot of devices including smartphones, laptops, security systems and others. Furthermore, it has the ability to flexibly support future services that require faster internet speed and ultra-low latency levels. In addition to making smartphones better, 5G mobile technology can usher in new immersive experiences such as VR and AR with faster, more uniform data rates, lower latency, and lower cost-per-bit. 5G can enable new services that can transform industries with ultra-reliable, available, low-latency links like remote control of critical infrastructure, vehicles, and medical procedures. Depending on the industry, some businesses can make full use of 5G capabilities, especially those needing the high speed, low latency, and network capacity that 5G is designed to provide. For example, smart factories could use 5G to run industrial Ethernet to help them increase operational productivity and precision.
The companies operating in the market have adopted strategies such as collaboration, partnership, product launch, R&D, and acquisition, to increase their market share and expand their geographical presence. The global 5G technology market is analyzed and estimated in accordance with the impact of the drivers, restraints, and opportunities. The forecast period and the study period for this report are from 2021 to 2030.
The report includes the study of the global 5G technology market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
The key players profiled in the report include Deutsche Telekom AG, Ericsson, Huawei Technology, Nokia, Orange S.A., Qualcomm Inc., Telecom Italia, Telstra, T-Mobile, and Intel Corporation.
The 5G technology market is segmented on the basis of component, connectivity, application, end use, and region. By component, it is classified into hardware, software and services. Based on connectivity, it is segregated into enhanced mobile broadband (EMBB), ultra-reliable low latency communication (URLLC), and massive machine type communication (MMTC). By application, it is segmented into automation, monitoring & tracking, connected vehicle, smart surveillance, VR & AR, enhanced video services, and others. By end use, the market is divided into manufacturing, automotive, energy & utilities, transportation & logistics, healthcare, government, media & entertainment, and others. By region, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyses the profiles of key players operating in the 5G technology market such as Deutsche Telekom AG, Ericsson, Huawei Technology, Nokia, Orange S.A., Qualcomm Inc., Telecom Italia, Telstra, T-Mobile, and Intel Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the 5G technology industry.
Hardware segment accounted for the highest market share in 2020.
COVID-19 impact analysis
The global COVID-19 pandemic has drastically affected businesses across the world. Various industry verticals will likely leverage the COVID-19 situation to expedite their 5G-based technology investment for running their operations. There are a few common areas of interest across industries that encourage the use of 5G technology. This is the primary outcome due to social distancing, containment, and work-from-home arrangements. Social distancing, workspace impact, and associated disruptions have increasingly triggered to rethink on operating models within enterprises using 5G technology. Moreover, adoption of SD-WAN at employee personal workspace will increase, clearly enabling good QoS and better security controls, both provided by a 5G network. In addition, there is a big push toward IoT, AR/VR, computer vision, autonomous systems, and robotics across industries, powered by 5G. While there are a lot of uncertainties and slowdowns across the world due to the COVID-19 pandemic, there is new investment expected in technologies associated with 5G and these investments will change the way the industry runs its operations. Thus, the COVID-19 pandemic had a positive impact on the 5G technology industry.
Top impacting factors
Growth in Number of IoT Devices and Adoption of Edge Computing
Edge computing allows huge volumes of data to be processed close to the data source. Edge computing facilities real-time analysis with faster response times while improving reliability and overall performance. Moreover, edge computing helps reduce privacy and security concerns. Gartner has projected that the number of IoT devices will surge to 50 billion by 2020. The data generated by these devices is also growing exponentially. The growing demand for edge computing coupled with increasing amounts of data generated by IoT devices is expected to drive the demand for higher data speeds. 5G technologies will help deliver unmatched data speeds while improving the overall user experience and enhancing real-time data processing capabilities. 5G communication is expected to perform 1000 times faster than 4G, while bringing down device response times to milliseconds.
Enhanced Mobile Broadband (Embb) segment accounted for the highest market share in 2020.
Small Cell Deployments Challenges
Cost-effective and rapid deployment of small cell networks is one of the key requirements in 5G deployments. However, in many regions of the world small cell deployments are facing excessive regulatory, financial and administrative obligations further delaying the implementation of 5G technology. It is seen that local body permissions for deploying small cells take months or sometimes years. Moreover, local administrative bodies are charging huge amount for small cell deployments near street furniture.
Increase in Investments in Smart Cities
According to IDC, investments in smart city tech is projected to reach $135 billion by 2021. 5G technologies are expected to serve as the foundation of small cell networks that will drive the next generation of wireless infrastructure within a smart city which is anticipated to create lucrative opportunity for the 5G technology market forecast period. Moreover, 5G technologies are expected to spur innovation and adoption of cutting-edge technologies in smart cities. One of the major hurdles for bringing smart cities into reality has been the need for immense speed and bandwidth to handle vast amounts of data. 5G technologies are anticipated to drive cost saving in smart cities. According to a report by Accenture, smart city solutions that are applied to the management of vehicle traffic and electrical grids can considerably save energy usage, traffic congestion and fuel costs, and can help save up to $160 billion. Growth in investments toward smart city infrastructure is expected to provide significant opportunity for implementation of 5G technologies which will help in the 5G technology market growth.
Asia-Pacific would exhibit the highest CAGR of 69.7% during 2021-2030
Key Benefits for Stakeholders
- The study provides in-depth analysis of the global 5G technology market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global 5G technology market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the market.
- An extensive analysis of the key segments of the industry helps to understand the global 5G technology market trends.
- The quantitative analysis of the global 5G technology market size from 2021 to 2030 is provided to determine the 5G technology market analysis.
5G Technology Market Report Highlights
By End User
By Key Market Players
Increasing demand for low latency connectivity in industrial automation is expected to propel the growth of the global 5G technology market. However, challenges in deployment of small cell and implementation of robust fiber backhaul is anticipated to restrain the market growth. In the near future, rise in investments toward smart cities coupled with opportunities in autonomous vehicles are expected to provide lucrative opportunities for the key players operating in this market.
Furthermore, the impact of 5G is much greater than previous network generations. The development requirements of the new 5G network are also expanding beyond the traditional mobile networking players to industries such as the automotive industry. In addition, 5G can enable new services that can transform industries with ultra-reliable, available, low-latency links such as remote control of critical infrastructure, vehicles, and medical procedures.
The market participants are anticipated to continue to introduce technologically advanced products to remain competitive in the market. Product launch, product development, and collaboration are the prominent strategies adopted by the market players. Some of the key players profiled in the report include Deutsche Telekom AG, Ericsson, Huawei Technology, Nokia, Orange S.A., Qualcomm Inc., Telecom Italia, Telstra, T-Mobile, and Intel Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry