Global 5G Technology Market is segmented By Connectivity (Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low Latency Communication (URLLC), Massive Machine Application Communication (mMTC), Others), By Application (Commercial, Connected Vehicles, VR & AR, Enhanced Video Services, Others), By End-User (Industrial, IT & Telecom, Automotive, Government, Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
5G Technology Market Size
The Global 5G Technology Market size reached US$ 19.1 billion in 2022 and is expected to reach US$ 357.1 billion by 2031 growing with a CAGR of 44.2% during the forecast period 2024-2031. The market for 5G technology is expanding as a result of rising demand for IoT-connected devices, rising mobile broadband penetration, growing device-to-device communication and quick innovation in networking virtualization.
Network slicing and function virtualization are two 5G approaches that support creating networks that are individualized for each user. In order to increase industry productivity, 5G networks can provide tailored infrastructure for IoT applications.
For instance, to increase industrial productivity, industry 4.0 totally depends on robotics and mobile robots. In 2023, Qualcomm Technologies, Inc., Schneider Electric and Capgemini announced a collaboration to speed up 5G industrial automation. At Schneider Electric's hoisting lab in Grenoble, France, the companies worked jointly on the design and installation of the 5G-enabled automated hoisting solution.
5G Technology Market Summary
| Metrics | Details |
| CAGR | 44.2% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Connectivity, Application, End-User, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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5G Technology Market Growth Trends
Rising Demand for 5G Technology in Smartphones
The IoT is more efficient and reliable owing to the 5G technology. With the advent of 5G, the Internet of Things was able to increase the capabilities of sensors, actuators, robots and drones. It enables human work execution with minimal latency, distributed coordination and dependability. The IoT's ability to connect with other IoT devices, smartphones, tablets, computer programmes and other electronic equipment is also essential to its commercial success.
A new wave of 5G rollouts in significant economies with middle-class populations, according to GSMA, could lead to the mass production of 5G devices that are more affordable for low-income individuals. A 5G phone's average retail cost has since dropped below US$ 500 and some vendors, like Realme, are now selling smartphones for less than US$ 150. It promotes the use of 5G in less developed areas and generates demand for the technology, driving the expansion of the global 5G technology market.
High Cost of the Technology and Growing Cybercrimes
The installation of new infrastructure, such as towers and next-generation radio-access technologies, is necessary for the 5G technology to function properly. Small and medium-sized businesses do not choose 5G due to the high cost (US$30,000–US$50,000) of a small tower and 5G cell site. The price of base stations, the necessary throughput density and the relevant interest rate all have an impact on the high cost of 5G.
Investments need to be made in critical components such as spectrum, locations, power distribution and durable strength fiber for a 5G network's coverage. Therefore, developing and underdeveloped nations cannot afford the prices of infrastructure. The business must consider its budget for the enterprise market and 5G networking security is currently being monitored.
5G Technology Market Segmentation Analysis
The global 5G technology market is segmented based on connectivity, application, end-user and region.
The Capability of 5G Technology to Revolutionize the IT & Telecom Sector
The major end-user of 5G technology is likely to be the IT and telecom sector, accounting for more than 1/3rd of the market in 2022. The 5G technologies are expected to cause significant changes in the IoT-powered industries because of features like speed, large capacity and extremely low latency. Mobile broadband, URLLC and massive machine type communication (MMTC) are the three connection categories on which the telecom industry is based.
International Data Corporation estimates that in 2021, 70% of G2000 enterprises spent US$ 1.2 billion on connectivity management solutions as a result of 5G's widespread IoT use case enablement. Some of the key benefits of 5G in the IT and telecom sector include connected automobiles, VR and AR, better video services and other areas.
Source: DataM Intelligence Analysis (2023)
5G Technology Market Geographical Share
The Rising Need of Major Players for Market Expansion in Asia-Pacific
The largest market share for 5G technology is expected to be held by Asia-Pacific in 2022, approximately more than 35.0%. Owing to their large populations, China and India have a higher number of people using 5G technology. China and India are seeing an increase in demand for IT and telecom services, massive machine-type communication (MMTC) and mobile broadband.
For instance, the multinational Japanese corporation SoftBank launched the 5G service in a few key areas of Japan on March 27, 2020. By 2025, the company hopes to have extended its network to about 64% of the country's inhabited areas for a cost of approximately US$ 1.9 billion. In addition to 3,855 base stations in the 28GHz band, it has plans to set up 7,355 base stations in the 3.7GHz and 4.5GHz frequency bands.
Source: DataM Intelligence Analysis (2023)
5G Technology Market Players
The major global players include AT and T Inc., BT Group plc., China Mobile Ltd., China Telecom Corporation Ltd., Bharti Airtel Ltd., NTT Docomo Kingspan, KT Corp., Saudi Telecom Company, Vodafone Group and Deutsche Telekom AG.
COVID-19 Impact on 5G Technology Market
COVID Impact
The COVID-19 pandemic has had a significant impact on the 5G technology sector globally. Due to COVID-19, connectivity has grown as a crucial component of infrastructure, enabling individuals to work, learn and socialize online in ways that were not previously possible. On the other hand, the pandemic brought to light the significance of dependable and fast connectivity for online activities such as telemedicine, distance learning and other online work.
For instance, the World Economic Forum highlighted several activities that contributed to the increased usage of 5G technology in its first 5G Outlook Series report in 2022, including a 490% increase in telemedicine emergency care visits, a 75% increase in online gaming and a 74% rise in global online transactions for retail.
AI Impact
The global 5G technology market could be significantly impacted by artificial intelligence (AI) in a number of ways. AI has a significant impact on 5G network efficiency and performance. In order to guarantee the best speed and quality of service, AI algorithms can analyze network data in real-time, spot bottlenecks, forecast network congestion and dynamically redistribute network resources.
Based on the cost, latency, rate and power requirements of the application, a 5G network links data centers and smart objects. Inexpensive smart networks and Internet of Things (IoT) devices can connect quickly, securely and everywhere because to the combined power of disruptive technologies (AI and 5G). It can improve user experience overall, network capacity and dependability.
Russia-Ukraine War Impact
The ongoing conflict between Russia and Ukraine may have a variety of repercussions on the world market for 5G technology. It caused an impact on the ICT market to change its investment goals and focus. Changes in the legislative and policy frameworks relating to 5G technologies may result from the conflict. Governments and regulatory organizations might reevaluate their ties to particular companies or nations, possibly enacting security measures that could have an influence on the global 5G market.
In a short-war scenario, global ICT spending will increase by 4.1% annually in 2022, which is a decrease from International Data Corporation’s February prediction (4.8%). According to the scenario, Russian ICT spending will decline by 25% in 2022–2021 while rising by 3.4% annually in the rest of Europe. In 2022, the ICT market in the rest of the globe will expand by 4.8%. It is predicted to have an impact on the Russian market for 5G technologies.
Key Developments
- A new generation of 5G Sub-6GHz and mmWave Modules, the FX170(W) Series, was launched on October 20, 2022, by Chinese communication device manufacturer Fibocom. It offers a wireless communication experience comparable to fiber with improved network coverage, faster throughout and more functionality and is powered by the Snapdragon X65 5G Modem-RF System.
- In February 2022, IBM and AT&T Inc., a global telecommunications holding corporation based in Whitacre Tower in Downtown Dallas, Texas, announced a joint initiative to demonstrate the prospects of 5G wireless networking and edge computing for the digital transformation. AT&T Inc. and IBM, an American multinational technology corporation headquartered in New York, have created a simulated environment for enterprise clients to physically experience the power of AT&T Inc. connectivity with hybrid cloud and IBM’s AI technology.
- In January 2022, AT&T Inc., an American multinational telecommunications holding company headquartered in Texas, launched its 5G+ services in some population areas and venues areas and venues across Tampa, like channel district Raymond James Stadium or Tampa International Airport in the U.S.
Why Purchase the Report?
- To visualize the global 5G technology market segmentation based on connectivity, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of 5G technology market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global 5G technology market report would provide approximately 61 tables, 62 figures and 206 pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
