According to a recent report published by Allied Market Research, titled, "5G Technology Market by Offering, Connectivity, and Application: Global Opportunity Analysis and Industry Forecast, 2020-2026," the global 5G Technology market size was valued at $5.54 billion in 2020 and is projected to reach $667.90 billion by 2026, growing at a CAGR of 122.3% from 2020 to 2026.
5G is the next-generation cellular technology that is estimated to 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 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.
Asia-Pacific is estimated to be the largest region in the 5G technology market in response to great initiatives by government in key economies toward deployment of 5G spectrum. For instance, China’s central government is associating in positioning of 5G network in China to increase earnings from the domestic market and develop industrial systems. Further, the government in South Korea is also supporting the telecommunications providers in development of 5G. Furthermore, wide presence of younger population in Asia-Pacific is increasing demand for digital applications including social gaming, media, and online video consumption, in such applications 5G network is expected to provide high data rate and thus, meet consumers expectations. Moreover, Asia-Pacific is origin for many new entrants in multiple markets, which is also expected to fuel demand for 5G technology in the region. China secures the highest 5G Technology market share along with significant growth. This is attributed to factors such as governments investment and support for deployment of 5G spectrum. Furthermore, the strong R&D activities in China has helped Chinese industry for standard development and testing of 5G technology solutions in collaboration with international partners. For instance, China funded $400 billion in 5G to the manufacturers of 5G technologies. Nonetheless, China is targeting towards increase in domestic equipment in 5G network.
The smart surveillance sector is expected to be affected widely with the introduction of 5G technology. Governments, enterprises, financial institutions, and healthcare organizations alike are all expected and required to have a certain level of security and monitoring measures. As a result, there has been a dramatic increase in the demand for security applications such as smart surveillance, to monitor and record borders, ports, transportation infrastructure, corporate houses, educational institutes, public places, buildings, and others, which is expected to drive the 5G Technology industry growth.
Key Findings of The 5G Technology Market:
- Based on offering, the hardware segment is expected to generate the highest revenue in the global 5G technology market in 2020.
- Based on end user, the automotive segment is expected to generate the highest revenue by 2026 in the global 5G technology market.
The key players profiled in this report include Deutsche Telekom AG, Ericsson, Huawei Technology, Nokia, Orange S.A., Qualcomm Inc., Telecom Italia, Telstra, T-Mobile, and Intel Corporation.
These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their market penetration.