Press release
5G Infrastructure Market Size, Value Projected To Expand By 2022-2030
The global 5G Infrastructure markets growth is attributable to the growing usage of IoT connected devices, emerging technologies, demand for ultra-low latency, and the existence of large-scale companies in the sector
A recent study by the strategic consulting and market research firm; Report Ocean revealed that the global 5G Infrastructure market was worth USD 2,958.1 Million in 2021 and is anticipated to reach USD 39,283.8 Million by 2028 at a CAGR of 44.9% (2022-2028). Owing to the tremendous potential of 5G technology to deliver improved user experience for several cases, such as Ultra-high Definition (UHD) video, seamless video calling, Virtual Reality (VR) / Augmented Reality (AR) gaming, etc. The key players are constantly emphasizing on improving overall productivity, operational efficiency, and reducing costs. Owing to this, 5G infrastructure is expected to receive a boost during the forecast period.
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Adoption Of Futuristic Technologies Coupled With Stable Network Connectivity Demand Driving The Market Growth
The large-scale integration of the latest technologies like Artificial Intelligence, Internet of Things, Machine Learning, cloud computing technologies, AR/VR gaming, etc. requires an uninterrupted network with faster internet connectivity and greater bandwidth. uninterrupted network with faster internet connectivity and greater bandwidth. The seamless 5G network is efficient in addressing the issues of these technologies. Moreover, the 5G infrastructure market is anticipated to transform various broadband services and strengthen connectivity across different end-user verticals. Major key companies are making massive investments in the development of 5G core services and architecture that also plays a vital role in the growth of the 5G infrastructure market.
Frequency Band And Spectrum Availability Challenges Coupled With Data Concerns To Impede The Market Growth
With the transition from 4G to 5G, there is a growing demand for higher frequency bands and spectrums, thus reducing their availability and raising their prices. New use cases will emerge with the transition from 4G to 5G technology demanding for high-frequency bands. However, spectrum is being considered as a critical resource due to its availability and cost depending on which operators. Moreover, other factors like shortage of skilled labor, certain data privacy, and security concerns, etc. act as a challenge for the market growth of the 5G infrastructure market.
The 5G Standalone (NR + Core) Is Projected To Exhibit A Higher CAGR In 5G Infrastructure Market During The Forecast Period 2022-2028
Based on the network architecture, the 5G infrastructure market can be segmented into 5G NR Non-Standalone (LTE Combined) And 5G Standalone (NR + Core). Amidst the segmentation based on the network architecture, the 5G Standalone (NR + Core) is expected to have a higher growth rate in the coming years owing to 5G standalone being an independent network. The standalone network can interoperate with the existing 4G or LTE network in order to maintain a service continuum between these two network generations. The 5G non standalone accounted for the larger market share in 2021 due to the reason that it can leverage the existing 4G network infrastructure. It means that the providers can avoid completely reworking their core technologies to provide fast and reliable network.
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The Above 6 GHz Or mm Wave Projected to Grow with A Higher CAGR During The Forecast Period
Based on the operational frequency, the 5G infrastructure market can be segmented into Sub 6 Ghz And Above 6 Ghz. Amidst the segmentation based on the operational frequencies, the above 6 GHz is expected to have a higher growth rate in the coming years. Frequencies such as 26 GHz and 28 GHz bands in above 6 GHz band tend to support spectrum harmonization, and reduce handset complexity, economies of scale, and early equipment availability. The availability of harmonized 5G spectrum in these bands is essential to enable fast 5G speeds, low-cost devices, international roaming, and minimize cross-border interference. In terms of revenue, sub-6 GHz dominated the market for 5G infrastructure with larger market share in 2021.
Impact of COVID-19 on the 5G Infrastructure Market
The deadly COVID-19 pandemic has affected the global value and supply chains through bottlenecks in raw material access, production, and distribution. It had a disastrous effect on the global 5G Infrastructure market. The outbreak of COVID-19 led to the delay in the implementation of the 5G infrastructure. Moreover, due to the COVID-19 pandemic, key countries such as China and the U.S. saw a heavy decline in the exports of telecom equipment for 5G New Radios (NR) to the global market. The plans of major players in the sector were disrupted. For instance, Huawei declared delays in launching 5G mobile networks in Europe.
North America Dominates the 5G Infrastructure Market while Asia-Pacific to witness the highest growth during the forecast period
Amidst the segmentation based on region, North America accounted for the largest market share owing to extensive R&D activities. Furthermore, the high adoption rate of the latest and advanced technologies including Internet of Things (IoT), wearable technology, autonomous or connected cars make it a world leader in the field of 5G technology. On the other hand, the highest CAGR is anticipated to be exhibited bt the Asia-Pacific. It can be attributed to growing economies, growing demand for smart technologies supported by reliable 5G networks. The government of the counties are taking many initiatives to launch smart cities, which would be dependent on the 5G technology heavily for their smooth functioning. Moreover, the presence of numerous large-scale 5G providers such as Hitachi, Fujitsu, Panaso in countries such as India, China, and Japan are likely to contribute to the growth of Asia-Pacific region.
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Competitive Landscape
The 5G Infrastructure market is a fragmented market with numerous players serving the market. The key players dominating the global 5G Infrastructure market are Huawei, Nokia, Ericsson, ZTE, Samsung, NEC, Cisco, Qualcomm, Intel, Skyworks, Mediatek, Marvell, Qorvo, AT&T, Verizon Ltd., CommScope Inc., Corning Incorporated, Hewlett Packard Ent and other prominent players. The key marketing strategies adopted by the players are extensive investments in research and development, new and advanced product launches, collaborations, partnerships and acquisition to expand their customer reach.
Market Segment:
By Communication Infrastructure: (Small Cell, Macro Cell And Others)
By Core Network Technology (Software-Defined Networking (SDN) And Network Function Virtualization (NFV))
By Network Architecture (5g Nr Non-Standalone (LTE Combined) And 5g Standalone (Nr + Core))
By Operational Frequency (Sub 6 GHZ And Above 6 GHZ)
By End-User (Residential, Commercial, Industrial And Government)
By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa)
Key Questions Answered in The Report:
What are the strengths and weaknesses of the key vendors?
Who are the Leading key gamers and what are their Key Business plans in the close to future?
What will be the market increase price and measurement in the coming year?
What are the principal key elements riding the market?
What are the key market tendencies impacting the increase of the world Market?
Which are Trending elements influencing the market shares of the pinnacle areas throughout the globe?
What is the have an effect on of The Russia-Ukraine Crisis on the modern industry?
Who are the key gamers and what are their strategies in the international Market?
What are the market opportunities and threats confronted by using the carriers in the world Market?
What industrial trends, drivers, and challenges are manipulating its growth?
What are the key consequences of the 5 forces evaluation of the world industry?
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