5G Equipment Market Overview
As per MRFR analysis, the 5G Equipment Market Size was estimated at 10.56 (USD Billion) in 2022. The 5G Equipment Market Industry is expected to grow from 13.46 (USD Billion) in 2023 to 119.4 (USD Billion) by 2032. The 5G Equipment Market CAGR (growth rate) is expected to be around 27.45% during the forecast period (2024 - 2032).
Key 5G Equipment Market Trends Highlighted
The 5G Equipment Market exhibits dynamic growth, driven by the proliferation of 5G networks. Increasing demand for enhanced mobile broadband speeds, low latency, and improved network capacity fuels the market. The convergence of technologies, such as network slicing and edge computing, creates new opportunities for innovation.Key market drivers include government initiatives promoting 5G adoption, the growing popularity of cloud and IoT services, and the expansion of smart cities. The emergence of private 5G networks in enterprise settings presents significant opportunities for targeted connectivity solutions.Recent trends include the integration of artificial intelligence (AI) and machine learning (ML) into 5G equipment to optimize network performance. Virtualization and software-defined networking (SDN) are gaining traction, enabling flexible and scalable network architectures. Additionally, the development of open radio access network (O-RAN) standards fosters interoperability and cost reduction, driving market growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Equipment Market Drivers
Increasing Demand for Enhanced Mobile Broadband Services
The increasing demand for enhanced mobile broadband services is a major driver of the 5G Equipment Market Industry. 5G technology offers significantly faster speeds, lower latency, and increased capacity compared to previous generations of mobile networks. This makes it ideal for a wide range of applications, including streaming high-definition video, gaming, and virtual reality. As more and more consumers and businesses adopt these applications, the demand for 5G equipment will continue to grow.In addition, the growing popularity of mobile devices is also driving the demand for 5G equipment. Smartphones, tablets, and other mobile devices are becoming increasingly powerful and capable, and many of them are now equipped with 5G modems. This is making it easier for consumers to access 5G services, which is further fueling the growth of the market. Overall, the increasing demand for enhanced mobile broadband services is a major driver of the 5G Equipment Market Industry.As more and more consumers and businesses adopt 5G devices and applications, the demand for 5G equipment will continue to grow.
Government Initiatives to Promote 5G Deployment
Another key driver of the 5G Equipment Market Industry is government initiatives to promote 5G deployment. Governments throughout the world are coming to appreciate the importance of 5G for driving economic growth and innovation. As a result, many governments are rolling out policies and programs to encourage the deployment of 5G networks. For example, the U.S. government has set the target of having 5G coverage throughout the U.S. by 2025.To help achieve this target, the U.S. government is investing to fund 5G R, and it is partnering with U.S. firms to develop new 5G technologies and applications. The U.S. is not alone in making a push for 5G. The Chinese government has also declared 5G central to its economic development plans. The Chinese Ministry of Industry and Information Technology is spending billions on 5G infrastructure, and it is working with Chinese firms to develop 5G-enabled devices and applications.Given these trends, it is clear that government initiatives to promote 5G deployment are a key driver of the 5G Equipment Market Industry. As governments across the world make further investments in 5G, demand for 5G equipment will continue to grow.
Technological Advancements in 5G Equipment
Technological advancements in 5G equipment are also driving the growth of the 5G Equipment Market Industry. 5G technology is constantly evolving, and new advancements are being made all the time. These advancements are making 5G equipment more affordable, more efficient, and more capable. For example, the development of new chipsets is making it possible to produce 5G equipment that is smaller, cheaper, and more power-efficient. This is making it easier for network operators to deploy 5G networks in a wider range of locations.In addition, the development of new antenna technologies is improving the performance of 5G networks. These new technologies are making it possible to achieve higher speeds, lower latency, and increased capacity. This is making 5G networks more attractive to consumers and businesses alike. Technological advancements in 5G equipment are creating new opportunities for the 5G Equipment Market Industry. As 5G technology continues to evolve, the demand for 5G equipment will continue to grow.
5G Equipment Market Segment Insights
5G Equipment Market Component Insights
The component segment of the 5G Equipment Market is categorized into Radio Access Network (RAN), Core Network, and Transport Network. Among these, the RAN segment held the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. This growth is attributed to the increasing demand for RAN equipment, such as base stations and antennas, to support the expansion of 5G networks. The Core Network segment is expected to witness significant growth during the forecast period due to the rising need for network modernization and the adoption of virtualized core network solutions.The Asia-Pacific region is expected to hold the largest market share, followed by North America and Europe. Key factors driving the growth of the 5G Equipment Market include the increasing adoption of 5G technology, government initiatives to promote 5G infrastructure development, and the growing demand for high-speed and reliable connectivity. However, factors such as the high cost of 5G equipment and the lack of skilled professionals may hinder the market growth to some extent.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Equipment Market Frequency Band Insights
The frequency bands have been divided into low-band, mid-band, and high-band with mid-band projected to provide the biggest revenue share over the foreseeable future. It demonstrates an optimal balance between coverage and capacity as it is suitable for all 5G applications, including enhanced mobile broadband, fixed wireless access, and the Internet of Things; in addition to this, mid-band spectrum is less congested than low-band sub-1 GHz spectrum that the deployed 4G networks heavily exploit. As such, low-band is due to gain substantial momentum in the next years as it allows for incredibly wide coverage and is adept at penetrating buildings, which makes it preferable for rural and in-building use.High-band is likely to remain limited in the long run as it offers the highest capacity and data rates, allowing it to cater to the stringent requirements of such applications as virtual reality and augmented reality.
5G Equipment Market Deployment Model Insights
The Deployment Model segment of the 5G Equipment Market is classified into Traditional Macrocell, Small Cell, and Massive MIMO. Traditional Macrocells are the most widely deployed type of 5G equipment, accounting for around 60% of the 5G Equipment Market revenue in 2023. Traditional Macrocells are large, high-power base stations that provide coverage over a wide area. Small Cells are smaller, low-power base stations that are deployed in dense urban areas to provide additional capacity and coverage. Small Cells are expected to grow rapidly in the coming years, as they are essential for supporting the increasing demand for mobile data traffic.Massive MIMO is a technology that uses multiple antennas to improve the performance of 5G networks. Massive MIMO is expected to be deployed in urban areas where there is a high demand for mobile data traffic. The 5G Equipment Market is expected to grow significantly in the coming years, driven by the increasing demand for mobile data traffic and the rollout of 5G networks. The Deployment Model segment is expected to grow at a CAGR of around 27% over the forecast period.
5G Equipment Market Application Insights
Enhanced Mobile Broadband (eMBB) dominated the 5G Equipment Market revenue in 2023, accounting for over 60% of the market. eMBB is expected to maintain its dominance throughout the forecast period, driven by the growing adoption of smartphones and other mobile devices that support high-speed data connectivity. Ultra-Reliable Low-Latency Communications (URLLC) is another key application segment, expected to witness significant growth in the coming years. URLLC is critical for applications such as autonomous vehicles, remote surgery, and industrial automation, which require extremely low latency and high reliability.Massive Machine-Type Communications (mMTC) is also expected to contribute to the growth of the 5G Equipment Market, driven by the increasing number of connected devices and the growing adoption of Internet of Things (IoT) applications.
5G Equipment Market Vertical Insights
The 5G Equipment Market is segmented by Vertical into Consumer, Enterprise, and Industrial. The Enterprise segment held the largest market share in 2023, accounting for nearly 60% of the revenue. The growth of this segment can be attributed to the increasing adoption of 5G networks by enterprises for various applications such as remote working, cloud computing, and IoT. The Consumer segment is expected to grow at a significant CAGR during the forecast period, driven by the increasing demand for 5G-enabled smartphones and other consumer devices.The Industrial segment is also expected to grow at a healthy CAGR, driven by the increasing adoption of 5G networks in industrial applications such as factory automation and remote monitoring.
5G Equipment Market Regional Insights
The 5G Equipment Market is segmented into North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. The growth of the North American market is attributed to the early adoption of 5G technology by major carriers in the region. Europe is the second-largest market for 5G equipment and is expected to witness significant growth in the coming years. The growth of the European market is driven by the increasing demand for 5G services from consumers and businesses.APAC is the third-largest market for 5G equipment and is expected to grow at a rapid pace in the coming years. The growth of the APAC market is attributed to the increasing demand for 5G services from emerging economies in the region. South America and MEA are relatively smaller markets for 5G equipment but are expected to witness significant growth in the coming years. The growth of these markets is attributed to the increasing investment in 5G infrastructure by governments and telecom operators in the region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Equipment Market Key Players And Competitive Insights
Investing in research and development has been a major investment strategy among the major players in the 5G Equipment Market. Additionally, the leaders in the 5G Equipment Market have also been entering into partnerships and alliances with other companies in order to consolidate their industry and market rating. In the future, the 5G Equipment Market expects to have a number of mergers and acquisitions as the companies develop new strategies in the intensively competitive mobile and technology industry. Moreover, the leaders in the 5G Equipment Market are also developing customer or market-based products that are technologically advanced and can handle and cater to the needs and expectations of the ever-changing customer needs. Increasing demand for high-speed mobile internet connectivity drives 5G Equipment Market development. The 5G network is expected to be 10 times faster than the current 4G network. The 5G network will provide improved speed, which will support new and innovative applications and services.Huawei is one of the major providers of 5G Equipment, as the company is one of the highest providers of 5G products in emerging markets such as China and other parts of the world. The company has a wide range of 5G Equipment products range, including base stations, antennae, core network equipment, and end-user devices such as modems and mobile phones. Huawei is also one of the leading researchers and developers in the 5G Equipment network.Ericsson is also one of the largest providers of 5G Equipment, with the company having a high concentration in Europe and the United States. Ericsson provides a wide range of 5G Equipment products, including base stations, antennae, core network equipment, and end-user devices such as mobile phones.Nokia is also one of the largest providers of 5G Equipment, the company is a major provider in Europe and the United States. Nokia also provides a wide range of 5G Equipment products, which include base stations, antennae, core network equipment, and end-user devices such as mobile phones.
Key Companies in the 5G Equipment Market Include
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Qualcomm
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Nokia
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Viavi Solutions
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Intel
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Mavenir
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Fujitsu
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Samsung
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ZTE
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Ericsson
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NEC
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Anritsu
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Huawei
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Keysight Technologies
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Cisco
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Airspan Networks
5G Equipment Market Industry Developments
The 5G equipment market is poised for significant growth over the coming years, driven by increasing demand for high-speed internet connectivity and the expansion of 5G networks worldwide. In 2023, the market is valued at approximately USD 14.3 billion and is projected to reach USD 119.4 billion by 2032, exhibiting a CAGR of 27.45%. Key market trends include the rise of virtual and augmented reality applications, the proliferation of Internet of Things (IoT) devices, and the increasing adoption of cloud and edge computing. Major players in the market include Huawei, Ericsson, Nokia, ZTE, and Samsung. Recent developments include the launch of 5G standalone networks, the deployment of millimeter-wave technology, and the growing demand for 5G-enabled smartphones.
5G Equipment Market Segmentation Insights
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5G Equipment Market Component Outlook
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5G Equipment Market Frequency Band Outlook
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Low-Band (Sub-1 GHz)
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Mid-Band (1-6 GHz)
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High-Band (Above 6 GHz)
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5G Equipment Market Deployment Model Outlook
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Traditional Macrocell
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Small Cell
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Massive MIMO
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5G Equipment Market Application Outlook
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Enhanced Mobile Broadband (eMBB)
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Ultra-Reliable Low-Latency Communications (URLLC)
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Massive Machine-Type Communications (mMTC)
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5G Equipment Market Vertical Outlook
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Consumer
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Enterprise
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Industrial
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5G Equipment Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2022
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10.56 (USD Billion)
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Market Size 2023
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13.46 (USD Billion)
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Market Size 2032
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119.4 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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27.45% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Qualcomm, Nokia, Viavi Solutions, Intel, Mavenir, Fujitsu, Samsung, ZTE, Ericsson, NEC, Anritsu, Huawei, Keysight Technologies, Cisco, Airspan Networks
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Segments Covered
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Component, Frequency Band, Deployment Model, Application, Vertical, Regional
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Key Market Opportunities
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Increasing demand for highspeed connectivityGrowing adoption of 5G networksGovernment initiatives to support 5G infrastructure developmentEmergence of new 5G applications and servicesExpansion of the Internet of Things IoT
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Key Market Dynamics
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Rising demand for high-bandwidth applicationsGovernment initiatives to support 5G deploymentTechnological advancements in 5G technologyIncreasing investments in RampDGrowing adoption of cloud and virtualization in networks
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The 5G Equipment Market size is expected to reach USD 119.4 Billion by 2032, exhibiting a CAGR of 27.45% during the forecast period. The growth of the market can be attributed to the rising demand for high-speed and reliable internet connectivity.
North America is expected to dominate the 5G Equipment Market throughout the forecast period. The region's dominance can be attributed to the presence of well-established telecom infrastructure, favorable government policies, and high adoption of advanced technologies.
5G Equipment finds applications in various sectors, including telecommunications, IT and networking, healthcare, manufacturing, and transportation. The equipment is used to provide high-speed internet connectivity, enable IoT devices, and support advanced technologies such as AI and ML
The key competitors in the 5G Equipment Market include Huawei, Ericsson, Nokia, ZTE, and Samsung. These companies offer a wide range of 5G equipment, including base stations, routers, and modems.
The growth of the 5G Equipment Market is driven by several factors, including the increasing demand for high-speed internet connectivity, the rising adoption of IoT devices, and the growing popularity of cloud and edge computing. Additionally, government initiatives and investments in 5G infrastructure are also contributing to the market growth.
The 5G Equipment Market faces challenges such as high equipment and deployment costs, security concerns, and the availability of skilled professionals. Additionally, the market is subject to intense competition and technological advancements, which can impact vendor profitability.
The COVID-19 pandemic had a significant impact on the 5G Equipment Market. The initial outbreak led to supply chain disruptions, project delays, and reduced demand for 5G equipment. However, the market has since rebounded, and the long-term growth prospects remain positive.
Emerging trends in the 5G Equipment Market include the adoption of open RAN architectures, the integration of AI and ML technologies, and the development of new applications and use cases for 5G networks. Additionally, there is a growing focus on sustainability and energy efficiency in the design and deployment of 5G equipment.
The future growth of the 5G Equipment Market is expected to be driven by the expansion of 5G networks, the growing demand for high-bandwidth applications, and the development of new technologies such as 6G. Additionally, the increasing adoption of IoT devices and the growing popularity of cloud and edge computing are expected to create new opportunities for 5G equipment vendors.
Key strategies adopted by vendors in the 5G Equipment Market include investing in research and development, expanding product portfolios, and forming partnerships with telecom operators and other industry players. Additionally, vendors are focusing on developing innovative solutions that meet the evolving needs of customers and addressing challenges such as cost and security.
