Home / IT & Telecom / 5G Infrastructure Market by Communication Infrastructure (Small Cell, Micro Cell, Femto Cell) by Core Network Technology (Software-Defined Networking, Network Function Virtualization) by Network Architecture (5G NR Non-Standalone, 5G Standalone) by Operational Frequency (Sub 6 GHz, Above 6 GHz) by End User (Residential, Commercial, Industrial, Government) : Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

5G Infrastructure Market by Communication Infrastructure (Small Cell, Micro Cell, Femto Cell) by Core Network Technology (Software-Defined Networking, Network Function Virtualization) by Network Architecture (5G NR Non-Standalone, 5G Standalone) by Operational Frequency (Sub 6 GHz, Above 6 GHz) by End User (Residential, Commercial, Industrial, Government) : Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

Published: Oct 2021 | Report Code: 60434-10-21

5G Infrastructure Market Analysis

A 5G infrastructure, which is a widespread mobile ultra-broadband network, will power the future internet. A 5G network efficiently allows everyone and everything, including machines, automobiles, smart objects, and robots, to gain access to new ultra-reliable, trustworthy, secure, privacy-preserving, and time-critical services. Adoption of new service models such as "Anything as a Service" will ensure the economic viability of 5G infrastructures. "Anything as a Service," in particular, is a paradigm in which gadgets, machines, smart things, or robots will be transformed into "tools" for developing and consuming business and pleasure applications, services, and data. This will have a significant impact on the development of the Digital Economy, which will be based on robots collaborating with humans, relieving people of a wide range of cognitive tasks and creating new jobs. Currently, 5G faces several challenges in meeting the desired performance parameters, particularly in terms of latency, reliability, and spectrum utilisation. The 5G infrastructure market was valued at US$ 1.4 billion in 2020, and it is expected to reach over US$ 50.2 billion by 2027. The market is expected to grow at a CAGR of 67.2% over the forecast period.

Global 5G Infrastructure Market

Interesting Facts About 5G Infrastructure Market

  • China has largest investment in 5G infrastructure, which equals to around 49% of total world investment
  • Download speed if 5G network is way more than 4G network (around 15 to 50 times faster than 4G)
  • Over 1.5 billion people are expected to have access to 5G
  • 5G is not just upgrade to faster network but it will revolutionise industries with rising adoption of Industry 4.0, IoT, virtual and augmented reality
  • In order to boost the 5G infrastructure, SpaceX has signed an agreement to launch 12,000 Starlink internet satellites  

COVID-19 Impact on 5G Infrastructure Market

The introduction of COVID-19 is almost certain to cause a delay in the construction of 5G infrastructure due to delays in future trials and testing required to confirm the stability and processing capabilities of 5G standalone networks. The current pandemic has had an especially negative impact, with telecom regulatory authorities delaying preparations for a 5G spectrum auction, stifling sector growth. For the time being, governments in a few key countries, including France, Spain, and Australia, have delayed spectrum auctions on a variety of frequencies, including Sub-6 GHz and mmWave. Furthermore, due to the COVID-19 pandemic, major countries such as China and the United States have seen a significant decrease in telecom equipment exports to the global market for 5G New Radios (NR). The aforementioned concerns are expected to stymie market growth, particularly in the coming years.

Increasing demand high speed internet for machine to machine connectivity

Massive machine-type communication (mMTC) is a 5G feature that promises to wirelessly connect tens of billions of network-enabled devices. Several MTC applications can already be handled by today's communication technology. However, new approaches and concepts are required due to the unique characteristics of mMTC, such as the large number of devices and small payload sizes. With 5G, device density of one million per square kilometre is possible. 5G will be able to carry far more data and deliver it much faster than 4G LTE; however, in the world of the Internet of Things (IoT), faster isn't always better or even necessary, especially because it requires more power on the end device. As a result, as part of the 5G NR standard, new device types such as Cat-M1 and narrow band will be introduced (NB-IoT). With extended discontinuous reception (eDRX) and power-saving mode (PSM) capabilities, both NB-IoT and Cat-M1 devices can sleep for extended periods of time, significantly reducing device power consumption. This will enable the use of low-power and battery-powered devices. 5G will enable real-time wireless sensor networks with location and asset monitoring in industrial automation. In the future, even the most demanding applications, such as automation control and high-throughput vision systems, will be able to use 5G networks to replace wired connections.

Asia Pacific to exhibit rapid CAGR over the forecast period

Asia Pacific region is anticipated to grow with the highest CAGR throughout the forecast period. This is due to key communication service providers such as China Mobile Limited, KT Corporation, and NTT Docomo Inc. accelerating the deployment of 5G New Radio infrastructure. Furthermore, governments in Japan, China, and South Korea are putting significant effort into the release of sub-6GHz and mmWave frequencies to meet the growing demand for high-speed data connections among subscriber bases. As a result, the market in the region is expected to grow rapidly in the coming years.

Extensive Research and Collaborations to set-up 5G infrastructure

Alpha Networks, CISCO, Comba Telecom Systems, CommScope, Ericsson, Huawei, Mavenir, NEC, Nokia Networks, Samsung, Siklu Communication, and ZTE are among the major players in the global 5G infrastructure market. Increased collaborations, mergers, and acquisitions, as well as product development and launches, are expected to maximise environmental and economic benefits by developing and implementing innovative and creative ideas and technologies. Samsung has secured an agreement with Vodaphone for the development of 5G infrastructure in Europe. Huawei Technologies is one of the leading player in 5G infrastructure industry and have entered into contract with several national governments for the development 5G infrastructure.

Frequently asked questions about global 5G Infrastructure market

The 5G Infrastructures market is expected to grow from US$ 1.4 billion in 2020 to US$ 50.2 billion by 2027, with a CAGR of 67.2% from 2020 to 2027.

Growing demand from various industry verticals and the expansion of IoT technology, which would open up new possibilities for 5G infrastructure, are two of the market's major prospects.

Growing mobile data traffic, expanded use of virtual networking architecture in telecommunications, and increased M2M connections across multiple industries are some of the market's driving forces.

North America is expected to have the largest market share throughout the forecast period.

Some of the market's obstacles include technological design issues, deployment, and coverage.

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