According to a recent report published by Allied Market Research, titled, “South east Asia 5G private network Market Analysis by Component, Frequency Type, Spectrum Type and Industry Vertical: Regional Opportunity Analysis and Industry Forecast, 2021-2030.”
The South East Asia 5G private network market was valued at $59.31 Million in 2020, and is projected to reach $1939.6 Million by 2030, growing at a CAGR of 41.9% from 2021 to 2030. Use of 5G private network in the market has increased in the last few years due to adoption of new cutting-edge technologies in various organizations and rise in competition to create new milestone in the communication sector. In addition, increase in demand for next-generation telecommunication network mmWave among enterprises fuels the growth of the market. Furthermore, surge in need for interactive, efficient, and cost-effective communication and data mmWave along with emerging technologies such as Internet of Things and artificial intelligence is expected to open new avenues for the expansion of the market during the forecast period.
Depending on spectrum, the licensed segment dominated the South East Asia 5G private network market share in 2020, and is expected to continue this trend during the forecast period. The growth of the segment is attributed to numerous benefits provided by this spectrum type such as high quality of connectivity, which results in lower costs if there is addition of new resources and high security. However, the unlicensed/shared segment is expected to witness highest growth in the upcoming years. Furthermore, the adoption of unlicensed infrastructure for deployment is considerably increasing among end users due to its standalone and cost-effective operation, which notably contributes toward the growth of the market.
On the basis of frequency, the sub-6Ghz segment dominated the overall Southeast Asia 5G private network market in 2020, and is expected to continue this trend during the forecast period. This is attributed to increase in adoption of 5G private network solution among enterprises to gain strategic as well as competitive advantage over their competitors. In addition, it provides wide coverage area and allows full network inside the close places such as house and offices, which drives the growth of the South East Asia 5G private network market. However, the mmWave frequency segment is expected to witness the highest growth, as the mmWave 5G private network technology allows large number of users to connect one access point, which is useful in densely populated areas in metropolitan cities. The adoption of this technology speeds up new business implementation, maximizes the value of existing mobile and wearable resources by optimizing it, and minimizes the data cost, which further fuel the growth of the South East Asia 5G private network market market.
Post COVID-19, the South East Asia 5G private network market forecast is estimated to grow from $83.35 million in 2021, and reach $1939.60 million by 2030, at a CAGR of 41.9%.
The COVID-19 pandemic can contribute to trade changes. For instance, as coronavirus continues to sweep the region, many countries will recognize that their supply chains are dependent on others. Supply chains that have been disrupted include hardware frequency equipment of the 5G private network. Some countries may choose to start manufacturing these frequencies domestically in the future to be better prepared for new epidemics and pandemics.
The 5G private network market in Southeast Asia is experiencing supply shortages or halted shipments of these frequency equipment across the region, as workforce is reduced and nonessential businesses have stopped their operations. The impact is majorly witnessed in Singapore, Thailand, and Malaysia where majority of the hardware frequencies are produced. The current COVID-19 pandemic has highlighted the importance of digitalization for businesses in the region. Connectivity has enabled companies to continue engaging with customers as well as conduct business transactions online. In addition, the combination of 5G private network and digitalization creates new opportunities for service providers to extend their businesses beyond connectivity into a variety of sectors ranging from healthcare, automotive, to manufacturing.
KEY FINDINGS OF THE STUDY
- By component, the hardware segment dominated the South East Asia 5G private network market in 2020. However, the service segment is expected to exhibit significant growth during the forecast period.
- On the basis of frequency, the Sub6Ghz segment accounted for the highest revenue of the market in 2020; however, the MMwave segment is expected to witness the highest growth rate during the forecast period.
- Depending on Spectrums type, the Unlicensed or shared segment generated the highest revenue in 2020. However, the licensed segment is expected to witness the highest growth rate in the near future.
- Depending on industry vertical, the Industry 4.0 segment generated the highest revenue in 2020. However, the Smart City segment is expected to witness the highest growth rate in the near future
- Country-wise, the South East Asia 5G private network market was dominated by Rest of Southeast Asia in 2020. However, Malaysia is expected to witness significant growth in the coming years.
The report further analyzes the market’s competitive landscape and offers information on several market vendors such as Ericsson, Nokia Corporation, Cisco System Inc., Samsung, ZTE Corporation, Verizon Communication, BT Group, Qualcomm Technologies Inc., Deutsche Telekom, AT & T, Dialog Axiata PLC, Axiata Groups Celom, DiGi, Bharti Airtel Lanka, and U-Mobile as well as system integrator companies such as Enea Openwave, HCL Technologies, Amdocs, and Infosys Limited.