5G Infrastructure Market Analysis

5G Infrastructure Market Overview

The 5G Infrastructure Market size is projected to grow from USD 59.51 Billion in 2024 to USD 271.20 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.87% during the forecast period (2024 - 2032). Additionally, the market size for 5G infrastructure was valued at USD 49.23 Billion in 2023.

5G Infrastructure, Lower latency in 5G fueling its adoption and M2M connections across various industries are the key market drivers boosting the growth of the 5G Infrastructure market.

Figure 1: 5G Infrastructure Market Size, 2022-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

5G Infrastructure Market Trends

• Lower latency in 5G fueling its adoption is expected to drive market growth.

Lower latency refers to faster response times, which is critical for applications requiring real-time data processing, such as remote surgery, autonomous driving, and virtual reality. 5G technology also offers significantly higher bandwidth and faster data transfer speeds than its predecessor, 4G. This makes supporting many new applications and services possible, including high-definition video streaming, cloud gaming, and the Internet of Things (IoT). The increased demand for 5G infrastructure creates opportunities for companies that provide the necessary equipment and services, including telecom equipment manufacturers, network infrastructure providers, and mobile network operators. These companies invest heavily in 5G infrastructure to meet the growing demand and stay competitive. Similarly, in India, to boost Smart Cities & Smart Village missions, make in India, and digital India, the government has launched a 5G India 2020 forum. Thus, the lower latency and other advanced capabilities offered by 5G technology drive its adoption and fuel demand for 5G infrastructure, which is expected to grow in the coming years.

5G Infrastructure Market Platform Segment Insights

5G Infrastructure Type Insights

Based on type, the 5G Infrastructure Market segmentation includes communication infrastructure (microcell, femtocell, and picocell}, core technology (macro cell {software-defined networking (SDN), and network function virtualization (NFV)}). The communication infrastructure held the majority share in 2022, contributing around ~55% to the market revenue. Communication infrastructure is a key component of the 5G infrastructure market, as it is the backbone of the 5G network. 5G networks require a complex and extensive communication infrastructure, including macro and small cell towers. To support the deployment of 5G infrastructure, significant investments are being made in communication infrastructure, including the installation of new towers and small cells and the upgrading of existing infrastructure to support 5G technology. This infrastructure is required to provide high-speed connectivity, low latency, and improved reliability, which are critical for 5G networks.

Figure 2: 5G Infrastructure Market, by Type, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

5G Infrastructure Connectivity Operational Frequency Insights

Based on the operational frequency, the 5G Infrastructure Market segmentation is 5G NR Sub-6Ghz and 5G NR mmWave. 5G NR Sub-6Ghz dominated the market in 2022. Sub-6GHz frequencies are part of the 5G NR (New Radio) standard and are typically used in lower frequency bands. The sub-6GHz frequencies offer good coverage and can penetrate walls and other obstacles, making them suitable for wide-area coverage. For instance, in December 2019, T-Mobile launched its 5G network using the Sub-6GHz frequency band. T-Mobile's 5G network initially covered over 200 million people in more than 5,000 cities and towns across the United States. The network uses both Sub-6GHz and mmWave frequencies, but most of the coverage is provided by the Sub-6GHz frequencies, offering wider coverage and better indoor penetration.

5G Infrastructure Network Architecture Insights

Based on application, the 5G Infrastructure Market segmentation includes 5G Non-Standalone, and 5G Standalone.5G Non-Standalone dominated the market in 2022. The 5G non-standalone (NSA) network architecture is a transitional architecture that uses existing 4G LTE networks as an anchor to provide initial 5G coverage and services. The NSA architecture allows for a faster rollout of 5G networks and services by leveraging the existing 4G LTE infrastructure. In the 5G NSA network architecture, the 5G radio access network (RAN) is connected to the 4G LTE core network, which provides a control plane and user plane functionality. This allows the 5G RAN to use the existing 4G LTE infrastructure to provide initial 5G coverage and services. The main advantage of the 5G NSA network architecture is that it allows for a faster and more cost-effective rollout of 5G networks and services, as it leverages the existing 4G LTE infrastructure. It also enables mobile network operators to offer initial 5G services, such as enhanced mobile broadband (eMBB) and some Internet of Things (IoT) applications. At the same time, they continue to build out their 5G standalone (SA) networks. However, it only provides part of the benefits of a standalone 5G network.

5G Infrastructure Connectivity End User Insights

Based on the end user, the 5G Infrastructure Market segmentation is residential, commercial, industrial, and government. Commercial dominated the market in 2022. Several companies have been developing and adopting 5G infrastructure in the commercial sector for various use cases. For instance, in 2020, AT&T launched its 5G network nationwide, expanding its coverage to over 14,000 cities and towns across the US. The company has worked with various industries, including healthcare, manufacturing, and entertainment, to develop new 5G use cases and applications. Similarly, in 2021, Verizon announced the expansion of its 5G Business Internet service, which provides high-speed internet connectivity to small and medium-sized businesses using its 5G network. The service is available in 24 US cities and provides up to 400 Mbps download speeds.

5G Infrastructure Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific 5G infrastructure market accounted for ~80% in 2022—the increasing demand for high-speed connectivity and the need for digital transformation across various industries. Several countries in the region are investing heavily in 5G infrastructure, including China, South Korea, Japan, and Australia. China, in particular, has been at the forefront of 5G infrastructure development. Its three major telecom operators, China Mobile, China Unicom, and China Telecom, are launching 5G networks in major cities nationwide. Thus, the Asia-Pacific 5G infrastructure market is expected to grow rapidly in the coming years, driven by increasing investments and deployments by telecom operators and governments and the growing adoption of 5G-enabled applications and services.

Figure 3: 5G INFRASTRUCTURE MARKET SIZE BY REGION 2022&2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil. 

North America's 5G Infrastructure market accounts for the second-largest market share. The increasing demand for high-speed data connectivity, the adoption of emerging technologies such as IoT and AI, and the growing investments in deploying 5G networks by major telecom operators. Major telecom operators such as Verizon, AT&T, T-Mobile, Rogers Communications, Bell Canada, and Telus have deployed 5G networks in several cities. They are investing heavily in expanding their networks to provide nationwide coverage. For instance, in January 2021, Verizon announced that it had completed the first end-to-end virtualized 5G data session in the United States using its 5G network and Samsung's virtualized RAN (vRAN) solutions. The virtualization of the RAN allows for greater flexibility and scalability in deploying 5G networks and is expected to accelerate the deployment of 5G networks in the US. Thus, the North American 5G infrastructure market is expected to grow significantly in the coming years as operators continue to invest in deploying 5G networks and adopting emerging technologies. 

The European 5G Infrastructure Market is expected to grow at the fastest CAGR between 2022 and 2032. The increasing demand for high-speed data connectivity, the adoption of emerging technologies such as IoT and AI, and the growing investments in deploying 5G networks by major telecom operators and governments. Countries such as the UK, Germany, France, and Italy are leading the way in deploying 5G networks, with operators such as Vodafone, Telefónica, and Deutsche Telekom making significant investments in the development of 5G infrastructure.

5G Infrastructure Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the 5G infrastructure market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The 5G Infrastructure market is highly competitive, with many vendors offering similar products and services. 

The major players in the market include Ericsson, Huawei, Nokia Networks, and Samsung. Ericsson's growth strategy is focused on expanding its 5G wireless communication solutions and services, increasing its market share in the telecommunications industry, and driving innovation in areas such as cloud computing, edge computing, and artificial intelligence.

The 5G Infrastructure Market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the 5G Infrastructure market include

• Ericsson


• Huawei


• Nokia Networks


• Samsung


• ZTE


• NEC


• Cisco


• Commscope


• Comba Telecom Systems


• Alpha Networks


• Siklu Communication

5G Infrastructure Industry Developments

• In October 2022, Reliance Jio stated that it had chosen Nokia (Finland) as a key supplier to provide 5G Radio Access Network (RAN) hardware over the whole country in a multi-year agreement. As part of the agreement, Nokia will provide base stations, high-capacity 5G Massive MIMO antennas, Remote Radio Heads (RRH) that handle several frequency bands, and self-organizing network software. In addition to its current 4G network, Reliance Jio intends to develop a standalone 5G network.


• In October 2022, To roll out a 5G Standalone across the nation, Reliance Jio Infocomm Ltd., an Indian supplier of communications services, and Ericsson engaged in a long-term strategic 5G deal. Jio and Ericsson are working together for the first time to develop nationwide radio access networks.

5G Infrastructure Market Segmentation

5G Infrastructure Type Outlook

• Communication Infrastructure


• Small Cell


• Femtocell


• Picocell


• Macro Cell


• Microcell


• Core Technology


• Software-Defined Networking (SDN)


• Network Function Virtualization (NFV)

5G Infrastructure Network Architecture Outlook

• 5G Non-Standalone


• 5G Standalone

5G Infrastructure Operational Frequency Outlook

• 5G NR Sub-6Ghz


• 5G NR mmWave

5G Infrastructure End User Outlook

• Residential


• Commercial


• Industrial


• Government

5G Infrastructure Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America