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2022

South East Asia 5g Private Network Market

South East Asia 5G Private Network Market Share by Component (Hardware, Software, and Services), Frequency Type (Sub 6Ghz and mmWave), Spectrum (Licensed Spectrum and Unlicensed Spectrum), Industry Vertical (Industry 4.0, Enterprise & Campus, Healthcare, Transport & Logistics, Smart City, Retail & E-commerce, Tourism, and Others): Opportunity Analysis and Industry Forecast, 2021-2030

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Author's: Shrawanty Yadav & Rachita Rake | Vineet Kumar
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South East Asia 5G Private Network Market Statistics: 2030

The South East Asia 5G private network market size was valued at $59.31 million in 2020, and is projected to reach $1939.60 million by 2030, growing at a CAGR of 41.9% from 2021 to 2030.

5G private network is based on the fifth generation wireless communication technology, which is upgraded from 4G wireless network. It is obtained by using high-frequency and short-range band of radio spectrum. 5G private network provides low latency and high internet speed. It delivers speed of network performance more than 1Gbps, which is 10 times faster than 4G network. 5G private network is a technology that allows businesses to enable various mmWaves, which will enable enterprises to setup their own private wireless platform to cover a large area and wide range of operations. It further provides high-speed wireless internet for Internet of Things, which is important in the implementation of Industry 4.0 and industrial automation.

Southeast-Asia-5G-Private-Network-Market

On the basis of South East Asia 5g private network market trends Depending on spectrum, the licensed segment dominated the Southeast 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 South East Asia 5G Private Network 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 South East Asia 5G private network market growth. 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.

Rest of Southeast Asia dominated the 5G private network market in 2020, and is expected to continue this trend during the forecast period. The growth is attributed to high penetration of 5G private network and rise in use of artificial intelligence (AI) & other smart connected devices in the region. Moreover, surge in need of next-generation network qualities and increase in need for high-speed internet due to shift of businesses toward digitization and availability of deployment of unlicensed and shared spectrum in 5G private network. However, Malaysia is expected to exhibit highest growth during the forecast period, owing to strong economic growth of Malaysia and ongoing development in the telecom sector, which drive organizations to focus on the deployment and implementation of the 5G private network to sustain growth and improve productivity. In addition, various key players in the country are taking initiative in the rapid deployment of 5G private network, which drives the market.

The report focuses on the growth prospects, restraints, and opportunities. The study uses Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and bargaining power of buyers on the Southeast Asia 5G private network market.

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.

Segment Review

The Southeast Asia 5G private network market is segmented into component, frequency type, spectrum, industry vertical, and country. By component, the market is segregated into hardware, software, and service. On the basis of frequency, it is bifurcated into sub-6Ghz and mmWave. Depending on spectrum, it is categorized into licensed and unlicensed spectrum. As per industry vertical, it is fragmented into industry 4.0, Enterprise & Campus healthcare, transport & logistics, smart city, retail & e-commerce, tourism, and others. Country wise, the market is analyzed across Nepal, Sri Lanka, Malaysia, Bangladesh, Cambodia, Indonesia, and rest of Southeast Asia.

Impact of COVID-19 on the Southeast Asia 5G private network market 

Post COVID-19, the South East Asia 5G private network market analysis 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 has drastically affected businesses across the world. However, it has a positive impact on the adoption of 5G private network solution, due to lockdown imposed by governments of different countries. This was attributed to the fact that employees had to work from home, which increased the usage of cloud infrastructure and adoption of remote workspace application. This, in turn, resulted in increase in internet traffic. On the contrary, implementation of lockdown restricted the auction of 5G spectrum, which delayed the implementation of 5G private network. Post COVID-19 situation, companies are focusing on the advanced technology such as augmented reality, virtual reality, and Internet of Things to perform contact-less operations in industry verticals such as manufacturing and energy & utility, which, in turn, is anticipated to foster the adoption of 5G private network solutions in Southeast Asia.

The COVID-19 pandemic is anticipated to result in surge in implementation of industrial automation across various industry verticals such as retails & e-commerce, manufacturing, healthcare, and oil & gas, which will drive the demand for 5G private network. In the first phase of COVID-19 pandemic, some countries such as Sri Lanka, Indonesia, and Cambodia from the Southeast Asian were critically hit by COVID-19, due to which 5G deployment plans were postponed or were likely to be delayed. Furthermore, detection of large number COVID-19-positive cases in the region negatively impacted several investment activities, which were focused on smart city infrastructure, thereby affecting the deployment of industrial automation technologies. Conclusively, the pandemic has had both positive as well as negative impact on the Southeast Asia 5G private network market. 

South East Asia 5G Private Network Market
By Component
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Service segment is projected as one of the most lucrative segments.

Top Impacting Factors    

The growth of the Southeast Asia 5G private network market impacted by factors such as surge in use of network slicing to deliver different 5G mmWaves, increase in penetration of smartphones among the all age groups, and development of smart telecommunication infrastructure. Moreover, the market growth is affected by security concerns associated with 5G core networks and heavy investment and high initial cost of 5G private network solutions. Furthermore, increase in investment in mobile computing and communication solution by several countries and surge in need for low latency connectivity influence the market growth. However, each of these factors is anticipated to have a definite impact on the growth of the South East Asia 5G private network market during the forecast period.

Increase in use of network slicing to deliver 5G services in Southeast Asia

Network slicing is one of the types of virtual networking architecture that is nearly same as software-defined networking (SDN) and network functions virtualization (NFV). These technologies are developed to achieve software-based automation in modern networks. 

South East Asia 5G Private Network Market
By Frequency Type
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MMwave segment is projected as one of the most lucrative segments.

Mobile operators and telecommunication vendors are preparing themselves for the implementation and adoption of commercial 5G private networks across Southeast Asia. . 5G networks present a revolution over last generation 4G networks in terms of capacity, performance, and spectrum-access in radio networks, and are designed for extremely flexible and highly programmable environment. Network slicing helps service providers to achieve these goals by allowing single network that can be used to offer various services, which is based on the requirements of users. Furthermore, it helps communication service operators to minimize capital expenditure and operational expense. 

For instance, in October 2020, Nokia Corporation launched first ever commercial network slicing for 5G network. It includes new network management, controller, and orchestration capabilities in its solution, by enabling mobile operators for the first time to rapidly deliver and assure network slicing services within minutes instead of hours. Moreover, in January 2021, Ericsson launched 5G network slicing-based radio access network service that will enable communications service providers to deliver customized 5G services with guaranteed high performance. Thus, all these factors collectively contribute toward the growth of the 5G private network market..

South East Asia 5G Private Network Market
By Country
2030
Malaysia 
Nepal
Sri Lanka
Bangladesh
Combodia
Indonesia
Rest of Southeast Asia

Malaysia is projected as one of the most lucrative Country.

Key Benefits For Stakeholders

  • The study provides an in-depth analysis of the South East Asia 5G private network market share along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restraints, and opportunities and their impact analysis on the market size is provided.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the South East Asia 5G private network market.
  • The quantitative analysis of the share from 2020 to 2030 is provided to determine the South East Asia 5G private network market potential.

South East Asia 5G Private Network Market Report Highlights

Aspects Details
South East Asia 5G Private Network Market By Component
By Component
  • Hardware
  • Software
  • Service
South East Asia 5G Private Network Market By Frequency Type
By Frequency Type
  • Sub-6GHz
  • MMWave
South East Asia 5G Private Network Market By Spectrum
By Spectrum
  • Licensed
  • Unlicensed
South East Asia 5G Private Network Market By Industry Vertical
By Industry Vertical
  • Industry 4.0
  • Healthcare
  • Energy & Campus
  • Transportation & Logistics
  • Smart City
  • Retail & E-commerce
  • Tourism
  • Others
South East Asia 5G Private Network Market By Country
By Country
  • Nepal
  • Sri Lanka
  • Malaysia
  • Bangladesh
  • Cambodia
  • Indonesia
  • Rest of Southeast- Asia
South East Asia 5G Private Network Market By Key Market Players (Tire 1)
By Key Market Players (Tire 1)
  • Ericsson
  • Nokia Corporation
  • Cisco System Inc.
  • Samsung
  • ZTE Corporation
  • Verizon Communication
  • BT Group
  • Qualcomm Technologies Inc.
  • Deutsche Telekom
  • AT & T
South East Asia 5G Private Network Market By Key Market Players (Tire 2)
By Key Market Players (Tire 2)
  • Dialog Axiata PLC.
  • Axiata Group Celcom
  • DiGi
  • Bharti Airtel Lanka
  • U-Mobile
South East Asia 5G Private Network Market By 5G System Integrator Service Providers
By 5G System Integrator Service Providers
  • Enea Openwave
  • Cyient
  • HCL Technologies
  • Amdocs
  • Infosys Limited

Analyst Review

According to the several interviews which were conducted with top level CXOs of 5G private network provider companies, the adoption of 5G private network technology has increased over time to deliver reliable and consistent network mmWave for their subscribers. In addition, 5G private network solutions help businesses to reduce the cost of communication and internet data to run business operations effectively, which is driving its adoption among companies and increasing its popularity among end users. Furthermore, the industry verticals such as Industry 4.0, healthcare, transportation & logistics, smart city, retail & e-commerce, and tourism are focusing on 5G private network solutions to increase speed of internet and reduce network-related issues in organizations, which positively impact the growth of the market.

The CXOs further added that the market is expected to witness significant growth in the future, due to increase in use of 5G networks among domestic users and rise in adoption of Internet of Things-oriented business models among organizations. As per the CXOs, the Southeast Asia 5G Private Network Market is highly concentrated, and companies are focusing on leveraging new technologies for offering 5G private network solutions to meet the emerging requirements of users. Moreover, increase in investments in Internet of Things & industrial automation among every industry vertical is boosting the adoption of 5G networks.

Singapore is further anticipated to dominate the Southeast Asia 5G private network market in the upcoming years, as the need for high-speed internet and hassle-free communication has increased considerably due to technological advancement and major shift toward digital transformation. In the current market scenario, substantial growth has been experienced in the usage of 5G private network technology across Singapore. This is attributed to the fact that large population in this region has created an extensive pool of mobile subscribers for telecom companies.

Moreover, Southeast Asia is the largest contributor of IoT-based manufacturing units in the world, which requires high bandwidth network, and is expected to add more IoT users in the upcoming years. Southeast Asia is further anticipated to witness strong growth in deployments of 5G private network solutions in the upcoming years, due to major shift toward digital transformation and the initiative of deployment of 5G technology taken by countries, including India, Singapore, and Malaysia. For instance, in May 2021, the Department of Telecommunication (DoT), India approved the network of telecom mmWave providers such as Reliance Telecom, Bharti Airtel, Nokia Corporation, and Ericsson to take trial of 5G network in the country.

The presence of a large number of providers in the Southeast Asia 5G private network market increases the competition between key players. Therefore, 5G private network technology providers are differentiating themselves from competitors and driving revenue growth by incorporating new digital business technologies such as artificial intelligence, machine learning, and low-cost data into their offerings to gain a competitive lead and retain their market position. The market is considerably concentrated with major players garnering significant market share. The degree of concentration will remain the same during the forecast period. The vendors operating in the market are taking several initiatives such as new product launches and partnership to stay competitive in the market and to strengthen their foothold in the market..

Author Name(s) : Shrawanty Yadav & Rachita Rake | Vineet Kumar

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South East Asia 5g Private Network Market

Opportunity Analysis and Industry Forecast, 2021-2030