5G Infrastructure Market Size is Projected to grow at 54.4% CAGR between the Forecast period.
The 5G infrastructure market was valued at USD 1.37 billion in 2020 and is projected to reach USD 42.84 billion by 2030, growing at a CAGR of 54.4% from 2020 to 2030. The increasing demand for high-speed internet connectivity, rising adoption of IoT devices, and the growing need for reliable and low-latency communication networks are some of the major drivers of the 5G infrastructure market.
With the increasing use of mobile devices for data-intensive activities such as video streaming, online gaming, and social media, there is a growing demand for higher bandwidth and faster data speeds. 5G technology is expected to meet these demands. Many governments around the world are investing in the development of 5G infrastructure to support economic growth and technological innovation. This includes initiatives to deploy 5G networks in rural areas, as well as funding for research and development of 5G technology.
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While 5G networks offer faster speeds and lower latency, the coverage area of 5G networks is still limited compared to previous generations of wireless technology. This may limit the adoption of 5G services in some areas, particularly in rural and remote locations. The increased complexity of 5G networks may introduce new security risks, particularly in areas such as network slicing and edge computing. Ensuring the security of 5G networks will be a critical challenge for network operators and may require additional investment in security measures.
Market Dynamics
The deployment of 5G infrastructure may be subject to regulatory challenges, particularly in areas such as spectrum allocation and planning permission for new infrastructure. These regulatory hurdles could slow down the pace of deployment and increase the costs of deployment.
The high speeds and low latency of 5G networks enable real-time communication and collaboration, which can increase productivity and efficiency in various industries such as healthcare, manufacturing, and logistics. 5G networks can support the development of smart cities and the Internet of Things (IoT) by providing high-speed, low-latency connectivity to a large number of devices and sensors. This can enable the development of new applications in areas such as traffic management, public safety, and environmental monitoring.
The 5G infrastructure market also includes a range of services such as consulting, system integration, and maintenance services that are necessary for the deployment and operation of 5G networks.
Chipsets are a key component of 5G infrastructure, providing the necessary processing power for devices to connect and communicate with 5G networks. Fibre optic cable provides the backbone for high-speed data transfer in 5G networks. As a result, the demand for fibre optic cable is expected to grow significantly with the deployment of 5G infrastructure. Other components of the 5G infrastructure market include testing equipment, network security solutions, and mobile edge computing technologies.
The spectrum outlook for the 5G infrastructure market is expected to evolve over time, with new frequency bands being added and existing bands being re-allocated or shared. The demand for spectrum is also expected to increase significantly as more devices and applications become connected to 5G networks.
In terms of market segmentation, the spectrum outlook is particularly relevant for companies involved in the development and deployment of 5G infrastructure, including network operators, equipment manufacturers, and chipset suppliers. These companies will need to carefully monitor spectrum availability and allocation in order to ensure the successful deployment and operation of 5G networks.
Regional Analysis
Asia-Pacific is expected to be the largest market for 5G infrastructure, driven by the large population, rapid economic growth, and increasing demand for high-speed internet access. Countries such as China, South Korea, and Japan have made significant investments in 5G infrastructure and are expected to be early adopters of 5G technology.
Some of the major players in the 5G infrastructure market include Huawei Technologies Co., Ltd., Nokia Corporation, Ericsson, Samsung Electronics Co., Ltd., and Qualcomm Technologies, Inc., among others. These players are focusing on expanding their market presence by investing in R&D activities and entering into partnerships and collaborations with other players in the market. Huawei, Nokia, and Ericsson are currently the top three players in the global 5G infrastructure market, with a combined market share of around 70%. These companies have significant expertise and resources in the development of telecommunications equipment and have been heavily involved in the deployment of 5G networks around the world.
Competitive Analysis
Other major players in the market include Samsung Electronics, ZTE Corporation, and Cisco Systems. These companies are also investing heavily in 5G technology and are expected to be key players in the global 5G infrastructure market in the coming years.
In 2020, T-Mobile completed its merger with Sprint, creating a combined company with a significant presence in the US 5G infrastructure market. In September 2020, Ericsson announced its acquisition of Cradlepoint, a US-based provider of wireless edge solutions for 5G and other networks. In February 2020, Nokia announced its acquisition of Elenion Technologies, a US-based developer of silicon photonics technology for high-speed data transfer.
In January 2021, Qualcomm announced its acquisition of Nuvia, a US-based developer of high-performance CPUs for use in 5G infrastructure and other applications. In September 2020, Verizon announced its acquisition of Tracfone, a US-based provider of prepaid wireless services, to expand its presence in the 5G infrastructure market.
Huawei has been investing heavily in the development and deployment of 5G infrastructure, including the establishment of research centers and partnerships with other companies and governments around the world. Samsung has also been investing heavily in the development of 5G infrastructure, including the launch of its 5G network equipment and partnerships with other companies to expand its presence in the market.
Segmentation Analysis of The Global 5G Infrastucture Market 2020-2030
The report forecasts revenue growth at global, regional, and country matrics and analyzes the latest industry trends in each of the sub-segments ranging from 2020-2030. For this, CDI has segmented the global 5G Infrastructure market report based on capacity, vehicle, application, and propulsion type along with regional analysis.
Component Outlook (Revenue, USD Million, 2020 - 2030)
- Hardware
- Radio Access Network (RAN)
- Core Network
- Backhaul & Transport
Services
- Consulting
- Implementation & Integration
- Support & Maintenance
- Training & Education
Spectrum Outlook (Revenue, USD Million, 2020 - 2030)
- Sub-6 GHz
- Low Band
- Mid Band
- mmWave
Network Architecture Outlook (Revenue, USD Million, 2018 - 2030)
- Standalone
- Non-standalone
Vertical Outlook (Revenue, USD Million, 2018 - 2030)
- Residential
- Enterprise/Corporate
- Smart City
- Industrial
- Energy & Utility
- Transportation & Logistics
- Public Safety and Defense
- Healthcare Facilities
- Retail
- Agriculture
- Others
Regional Outlook (Revenue, USD Million, 2018 - 2030)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- France
- Italy
- Spain
- UK
- Nordic Countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia-Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America