5G Infrastructure Market Analysis: A High Double-Digit CAGR Expected
The global 5G infrastructure market has achieved a remarkable milestone by surpassing the $5 billion mark in revenue in 2022. Market experts predict a robust Compound Annual Growth Rate (CAGR) in terms of value as the industry continues to evolve and expand throughout the forecast period.
Market Analysis in Brief
The global 5G infrastructure market is poised for substantial revenue growth from 2021 to 2027, driven by numerous advantages, including enhanced network performance, increased capacity, faster data speeds, and reduced latency. The global demand for 5G infrastructure is on the rise, driven by the proliferation of high-end smartphones and wireless devices. Many companies are actively building a solid subscriber base by expanding their offerings with value-added services and competitive pricing.
Key Report Findings
- The global 5G infrastructure market crossed the $5 billion threshold in 2022.
- Anticipates a high double-digit CAGR through the forecast period.
- High-speed data connections are a primary driver of the 5G infrastructure market.
- Asia Pacific presents significant opportunities despite North America’s ongoing leadership.
- Leading companies in the 5G infrastructure industry include Nokia, Ericsson, Huawei, Cisco, and NEC.
Growth Drivers
Industry 4.0 to Play a Key Role
5G not only promises faster data transfer rates but also brings improvements in spectral efficiency, allowing more users and devices to connect simultaneously without sacrificing quality. This reduction in latency and increased bandwidth capacity, up to 1 Gbps, will enable various industries to embrace automation and innovative business models such as ‘Industry 4.0.’ This collaborative networking approach will lead to improved customer satisfaction, cost reduction for operators, and faster response times.
The massive amount of data generated within the 5G infrastructure necessitates AI-driven automation and analytics, with cognitive computing at the forefront. This adoption of Artificial Intelligence is set to maximize the value derived from IoT environments and applications.
A Mass Shift from 2G/3G/4G Underway
Operators worldwide are upgrading their networks from 2G/3G/4G to 5G to keep pace with the increasing penetration of smartphones and IoT devices among consumers. This shift towards 5G technology is expected to further boost the 5G infrastructure market.
Massive Growth in Demand for High-speed Connections
The demand for high-speed connections, particularly in urban areas, is driving the development of 5G infrastructure. IoT devices are projected to generate an astonishing 2.9 quintillion bytes of data daily by the end of 2021. With 5G speeds nearly 100 times faster than 4G LTE, companies like Huawei and ZTE are developing chipsets tailored for IoT devices, expanding the potential growth of the 5G infrastructure market.
Telecom Companies Seek High-speed Broadband
Telecom companies are investing heavily in 5G infrastructure to meet the rising demand for high-speed broadband. Operators worldwide are introducing 5G to revolutionize the mobile industry, catering to voice and data services at higher speeds.
Growth Challenges
While the future is promising, there are challenges to overcome before 5G technology becomes mainstream. Early adopters may have to wait until 2025 to experience next-generation connectivity speeds.
Growth Opportunities Across Regions
North America’s Lead Prevails
North America is expected to dominate the 5G infrastructure market from 2021 to 2027, thanks to leading telecom operators such as AT&T, Sprint, T-Mobile, and Verizon, who are actively upgrading their networks to 5G using advanced equipment. The presence of network connectivity solutions under a managed service model further contributes to North America’s leadership.
Opportunities Flourish in Asia Pacific
The Asia Pacific region is poised for significant growth due to the increasing adoption of smartphones and wireless devices among consumers. The presence of 4G LTE networks in major countries like China, Japan, Australia, Korea, and India will further drive the development of 5G infrastructure.
Players on Deployment of 5G Standalone Infrastructure
The initial deployment of standalone 5G infrastructure is set to occur in 2020 and 2021, ushering in a new era of connectivity. This deployment is expected to influence the growth of the 5G infrastructure market significantly, with various equipment makers and operators seeing value in launching 5G with standalone features.
5G Infrastructure Market Competition
The global race for 5G wireless technology is intensifying, with companies like AT&T, Verizon, and China’s government actively participating. The evolution to higher frequency bands and new network architecture is expected to drive radical changes in wireless communication networks, boosting the 5G infrastructure market.
Vendor Landscape
Key players in the global 5G infrastructure market include Nokia Corporation, Cisco Systems, Incorporated, Ericsson AB, Huawei Technologies Co., Ltd., NEC Corporation, Qualcomm Incorporated, and ZTE Corporation, among others.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/5g-infrastructure-market
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