5G Market

Growing number of 5G enable smartphones is driving the market growth

Market CAGR for 5G is driven by the rising number of 5G enabled smartphones. Over 650 5G smartphone models have been released, making up 50% of all 5G devices by form factor, according to a report. Shipments of 5G devices topped 615 million units in 2021, more than double the previous year. Smartphone standalone (SA) capability, including 3CC New Radio (NR) carrier aggregation, is receiving more attention. Shipments of smartphones increased globally by 6% in 2021 compared to 2020. A greater variety of 5G smartphone models are now accessible in the mid-tier pricing range, in addition to enhanced device capabilities.

This indicates that 5G cell phones are becoming more accessible to a wider range of market sectors. As more consumers can afford the device and access the 5G network, this will fuel the market for 5G.

IDC predicts that by 2021, investments in smart city technology will total $135 billion. The next generation of wireless infrastructure within a smart city is projected to be driven by small cell networks built on top of 5G technologies, which is anticipated to generate a lucrative potential for the 5G market over the forecast period. Furthermore, it is anticipated that 5G technologies will encourage innovation and the uptake of cutting-edge technology in smart cities. Increased expenditures in smart city infrastructure would present a substantial potential for deploying 5G technologies, aiding in the expansion of the 5G industry.

Thus, driving the 5G market revenue.

The Global 5G Market Industry is projected to experience remarkable growth over the coming years, with a compound annual growth rate (CAGR) of 40.59% anticipated from 2025 to 2035. This growth trajectory is indicative of the increasing adoption of 5G technology across various sectors, including telecommunications, healthcare, and transportation. As more industries recognize the transformative potential of 5G, investments in infrastructure and technology are expected to escalate. The market's expansion reflects a broader trend towards digital transformation, positioning the Global 5G Market Industry as a critical component of future technological advancements.

The proliferation of Internet of Things (IoT) devices is a key driver for the Global 5G Market Industry. With billions of devices expected to be connected by 2030, the need for a robust and efficient network infrastructure becomes paramount. 5G technology offers the necessary bandwidth and low latency to support diverse IoT applications, including smart homes, industrial automation, and healthcare monitoring. As industries increasingly integrate IoT solutions, the Global 5G Market Industry is likely to witness substantial growth, potentially reaching 637.6 USD Billion by 2035. This expansion underscores the critical role of 5G in enabling seamless communication between devices.

The Global 5G Market Industry is significantly influenced by the exponential growth of mobile data traffic. As more consumers engage in data-intensive activities such as streaming, gaming, and video conferencing, the existing networks face challenges in meeting these demands. 5G technology, with its enhanced capacity and speed, is designed to accommodate this surge in data consumption. By 2024, the market is anticipated to reach 15.0 USD Billion, reflecting the urgent need for advanced mobile networks. This trend indicates that the Global 5G Market Industry is not only responding to current demands but is also preparing for future data traffic increases.

The emergence of advanced technologies such as artificial intelligence, machine learning, and edge computing is driving innovation within the Global 5G Market Industry. These technologies require high-speed, low-latency networks to function effectively, and 5G provides the necessary infrastructure. As businesses adopt these technologies to enhance operational efficiency and customer experiences, the demand for 5G connectivity is expected to rise. This trend suggests that the Global 5G Market Industry will continue to evolve, with projections indicating a market size of 637.6 USD Billion by 2035, as organizations leverage 5G to unlock new capabilities and efficiencies.

Government initiatives play a pivotal role in the advancement of the Global 5G Market Industry. Many countries are investing heavily in 5G infrastructure to enhance national competitiveness and foster economic growth. For instance, various governments are allocating funds to support research and development in 5G technologies, as well as to facilitate the deployment of necessary infrastructure. These initiatives not only stimulate market growth but also encourage private sector participation. As a result, the Global 5G Market Industry is expected to benefit from these investments, leading to a more robust and widespread adoption of 5G technology across different regions.

The Global 5G Market Industry is experiencing a surge in demand for high-speed connectivity, driven by the increasing reliance on digital services across various sectors. As businesses and consumers alike seek faster internet speeds, the market is projected to reach 15.0 USD Billion in 2024. This demand is particularly evident in urban areas, where smart city initiatives are being implemented. Enhanced connectivity supports applications such as autonomous vehicles, telemedicine, and augmented reality, which require low latency and high bandwidth. Consequently, the Global 5G Market Industry is poised for significant growth as it adapts to these evolving connectivity needs.

By region, the report provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American 5G market area will dominate this market. Increased spending by these businesses to offer 5G services in important nations like the U.S. and Canada is anticipated to fuel market expansion. For instance, AT&T started providing 5G services in certain areas of Tampa, Florida, including the Tampa Airport and the Channel District, in January 2021. By connecting more people and devices, 5G services will provide the fastest bandwidth.

Further, the leading countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.

Figure 4: 5G MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Asia-Pacific 5G Market accounts for the second-largest market share. One of the biggest regional investments in 5G technologies is China. More money is being invested in the market due to the Chinese government's, telecom operators, and suppliers' rising efforts to install 5G. Several well-known 5G telecom infrastructure providers are based in the nation. 40–50% of Chinese mobile consumers may be utilizing 5G by 2025. The nation is gaining more in terms of network convergence, virtualization, and slicing. Moreover, China’s 5G market held the largest market share, and the Indian 5G market was the fastest-growing market in the Asia-Pacific region.

Europe’s 5G market is estimated to expand at a rapid rate from 2023 to 2032 due to the region's expanding use of fifth-generation services. For instance, 24 of the EU's 27 member states, including Austria, France, Belgium, Germany, and Greece, will have commercial 5G services in place by the end of March 2021. Further, the German 5G market held the largest market share, and the UK 5G market was the fastest-growing market in the European region.

Leading market players are largely investing in research and development to expand their product lines, which will help the 5G market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their presence. The 5G industry must provide affordable products to grow and thrive in a more competitive and challenging market environment.

One of the primary business strategies manufacturers use in the 5G industry to increase market sector and benefit customers is local manufacturing to lower operational costs. In recent years, the 5G industry has stipulated some of the most important medicinal benefits. Major players in the 5G market, including Alcatel-Lucent (France), LM Ericsson (Sweden), Bharti Airtel Limited (India), Verizon Wireless (U.S.), and others, are investing in research and development operations to improve market demand.

Reliance Jio is an Indian telecom and broadband service provider headquartered in Mumbai. The company operates its mobile and broadband networks using Long-Term Evolution (LTE) technology, and its media services include collections and programs of recorded and live music, sports, live and catch-up television, movies, and events. In October 2022, Reliance Jio selected Nokia as a key supplier to offer 5G Radio Access Network (RAN) gear from its AirScale portfolio nationwide in a multi-year agreement.

A base station, high-capacity 5G Massive MIMO antenna, Remote Radio Heads (RRH) that handle several frequency bands and self-organizing network software will all be provided by Nokia under the terms of the agreement.

Cisco provides its customers with Internet Protocol (IP)-based networking technologies. Networking software, routers, video, wireless, security, voice and unified communication, telepresence, collaboration, webex, data center, virtualization, and unified computing systems are the company's goods and services. In June 2022, Cisco announced an expanded relationship with General Dynamics Information Technology (GDIT), a commercial unit of General Dynamics, to supply Cisco Private 5G services to a wide range of government agencies.

Cisco's dependable and secure private 5G service will be combined with GDIT's extensive experience, in-depth knowledge of use cases for government agencies, and expertise in cybersecurity, artificial intelligence, edge computing, and IoT devices to provide each customer with an end-to-end tailored solution to achieve their desired mission outcomes.