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Enterprise market size was valued at USD 1,682 Million in 2020, and is projected to reach USD 16,846 Million by 2028, growing at a CAGR of 33.9% from 2021 to 2028 | Valuates Reports.
The booming telecom industry with smart infrastructural support will fuel the expansion of the 5G enterprise market. In addition to it advanced technologies such as AI, and IoT will contribute further to the growth.The booming telecom industry with smart infrastructural support will fuel the expansion of the 5G enterprise market. In addition to it advanced technologies such as AI, and IoT will contribute further to the growth.
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Moreover, investments in mobile computing solutions and demand for low latency connectivity options will propel the market forward in the coming years. However, huge costs and security issues will hamper the market penetration during the forecast period.
Trends Influencing the Growth of 5G Enterprise Market
Network slicing and mobile usage
Smartphones and connected devices are raising the need for better bandwidth and lower network disruption. The 5G infrastructure depends on network slicing for allocating the data speed as per the requirements of a particular application or customer. This solves the issue of greater spectrum and bandwidth. Network slicing supports 5G connections for a variety of services. Similar service delivery across all verticals has become obsolete. The efficient alignment of resources from one virtual network to another is crucial. This will spur the growth of the 5G enterprise market in the coming years.
Smart infrastructure
Enterprises are adopting next-generation telecom communication services. AI, IoT, and wireless connectivity are becoming essential for gaining a competitive edge and staying relevant. The improvements in performance are vast with faster speeds, enhanced data capacity, low latency, greater device density, and detailed location sensing. The massive influx of data from people to machines will give rise to smart cities, hospitals, campuses, etc. Factories will be able to rearrange their equipment in real-time and produce critical resources at the most precise moment. These factors will drive the growth of the 5G enterprise market in the future.
Mobile edge computing
The world is moving rapidly towards cloud storage and online operations. Facebook, Twitter, Youtube, Netflix and google maps store their content on the cloud. The reliance on mobile applications for heavy computing, and storage requires transferring to the cloud for better performance and longer battery life. Both personal and business-related tasks would become difficult without bringing the cloud closer to the edge of the network. Hence organizations and mobile operators are scaling up their resources on mobile edge computing for enabling low latency, and high data computation power. This will significantly boost the demand for the 5G enterprise market during the forecasted period.
Cost inefficiency
5G infrastructure has gained momentum but it is still costly to deploy and operate. Moreover, the installation processes are complex leading to data security concerns. Businesses need to adapt and wade through the complicated systems for achieving operational efficiency. The number of cyberattacks will increase with specialized bots, privacy violations, and easy data sharing. These factors will create obstacles to the growth of the 5G enterprise market in the near future.
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5G Enterprise Market Share
Based on frequency, the sub-6GHz segment is expected to provide lucrative opportunities for growth in the 5G enterprise market share due to the growing adoption of 5G for a wide coverage area. However, the mmWave 5G technology will grow the fastest due to the ability to provide connectivity to a large number of users in densely populated areas and low data cost.
Based on the spectrum, the licensed segment will witness considerable growth in the 5G enterprise market share due to high-quality connectivity, and security. While the unlicensed segment will grow the fastest due to the rapid spread of unlicensed infrastructure and the ability to operate independently.
Based on organization size, the large-scale organizations will dominate in the 5G enterprise market share owing to huge investments into 5G technology. On the other hand, the small and medium scale enterprises will grow the fastest due to the increasing use of IoT and digitization.
Based on the industry vertical, the manufacturing segment will grow rapidly in the 5G enterprise market share due to the need for high bandwidth and integration of AR/VR into 5G technology.
Based on network type, the private network is expected to grow the highest in the 5G enterprise market share as it reduces dependency on service providers and organizations can customize the network as per their needs.
Based on region, North America is expected to maintain dominance in the 5G enterprise market share due to the growing penetration of smart connected devices and technological developments. While the Asia-Pacific region will grow the fastest owing to economic growth and deployment of 5G technologies by emerging economies.
5G Enterprise Market Segmentation
Based On Frequency
• Sub-6Ghz
• mmWave
Based On Spectrum
• Licensed
• Unlicensed/Shared
Based On Network Type
• Hybrid Networks
• Private Networks
• Enterprise Network
• CSP Network
Based On Organization Size
• Small and medium-sized enterprises
• Large enterprises
By Industry Veritcal
• BFSI
• Healthcare
• Retail & E-commerce
• IT & Telecom
• Manufacturing
• Government and Public Sector
• Energy and Utility
• Media & Entertainment
• Others
By Region
• North America
o U.S.
o Canada
• Europe
o UK
o Germany
o France
o Italy
o Spain
o Rest of Europe
• Asia-Pacific
o China
o India
o Japan
o South Korea
o Australia
o Rest of Asia-Pacific
• LAMEA
o Latin America
o Middle East
o Africa
Key Players
• AT&T
• Ericsson
• Huawei Technologies co. Ltd.
• Juniper Network,
• NEC corporation
• Nokia Corporation
• Samsung
• SK Telecom,
• Verizon Communications LTD
• ZTE corporation.
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