5G Network Equipment Market Overview
As per MRFR analysis, the 5G network equipment market size was estimated at 19.96 (USD Billion) in 2022. The 5G network equipment market is expected to grow from 24.15 (USD Billion) in 2023 to 134.18 (USD Billion) by 2032. The 5G network equipment market CAGR (growth rate) is expected to be around 20.99% during the forecast period (2024-2032).
Key 5G Network Equipment Market Trends Highlighted
The deployment of 5G networks is accelerating rapidly, driven by the need for increased bandwidth, reduced latency, and enhanced mobile broadband services. Key market drivers include the proliferation of IoT devices, the increasing popularity of streaming media, and the development of new 5G use cases such as autonomous vehicles and industrial automation. This has led to a surge in demand for 5G network equipment, particularly base stations, small cells, and core network equipment.
Opportunities for market growth lie in the expansion of 5G networks into rural and underserved areas, the development of new 5G applications, and the potential for 5G to enable new industries and business models. Recent trends include the emergence of open RAN (Radio Access Network) architectures, which allow operators to mix and match equipment from different vendors, and the increasing use of artificial intelligence (AI) and machine learning (ML) to optimize network performance.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Network Equipment Market Drivers
Rising Demand for Enhanced Mobile Broadband Services
The increasing adoption of smartphones, tablets, and other mobile devices has led to a surge in demand for high-speed mobile broadband services. 5G networks offer significantly faster speeds and lower latency than previous generations of wireless technology, making them ideal for streaming video, gaming, and other bandwidth-intensive applications. As more and more consumers demand access to these services, the market for 5G network equipment is expected to grow rapidly over the coming years.
In addition to consumers, businesses are also increasingly adopting 5G networks to improve their operations. 5G can be used to connect sensors, machines, and other devices to the internet, enabling real-time data collection and analysis. This can help businesses to improve efficiency, productivity, and safety.
The rising demand for enhanced mobile broadband services is one of the key drivers of growth in the 5G network equipment market. As more and more consumers and businesses adopt 5G networks, the demand for 5G network equipment is expected to increase significantly over the coming years.
Government Initiatives to Promote 5G Deployment
Many governments worldwide recognize the significance of 5G networks for economic growth and innovation. Therefore, many governments implement policies and initiatives that should foster the deployment of 5G networks. For instance, the US government has provided billions of dollars to support the development and deployment of 5G networks. The European Union has also implemented numerous initiatives to promote the investment in and deployment of 5G networks.
The above-presented facts imply that the government initiatives to promote the deployment of 5G contribute to the growth of the global 5G network equipment market. Hence, as many governments invest in 5G networks, the demand for 5G network equipment will keep increasing in the future.
Advancements in 5G Technology
5G standard work in progress meaning that new features and capabilities being added on a regular basis. Improvements in 5G technology are rapidly making 5G networks more attractive to both consumers and businesses. For example, the latest version of the 5G standard is Release 16. It includes support for new features such as network slicing and edge computing. Slicing enables operators to create virtual networks with different performance characteristics, which can be used to support different types of applications.Edge computing allows for bringing computing resources closer to the user. As a result, for example, latency can be reduced and performance increased dramatically in applications such as AR and VR. The key driver of growth in the 5G network equipment market is also advancements in 5G technology. As the 5G network is improved and becomes more capable and versatile, the demand for 5G network equipment is expected to rise dramatically in the years to come.
5G Network Equipment Market Segment Insights
5G Network Equipment Market Network Type Insights
The 5G network equipment market is segmented by network type into standalone 5G and non-standalone 5G. In 2023, the standalone 5G segment accounted for a market share of 45%. The non-standalone 5G segment is expected to grow at a CAGR of 25.3% from 2024 to 2032.
Standalone 5G is a network type that does not rely on existing 4G infrastructure. It offers several advantages over non-standalone 5G, including higher speeds, lower latency, and improved security. Standalone 5G is expected to be the dominant network type in the future, as it is necessary for the development of new 5G applications and services.
Non-standalone 5G is a network type that relies on existing 4G infrastructure. It offers some of the benefits of 5G, such as higher speeds and lower latency, but it is not as fast or as reliable as standalone 5G. It is expected to be a transitional technology, as it will eventually be replaced by standalone 5G.
The growth of the standalone 5G segment is being driven by several factors, including the increasing demand for high-speed and low-latency wireless connectivity, the growing adoption of 5G-enabled devices, and the government initiatives to promote the development of 5G networks.
The non-standalone 5G segment is also expected to grow, but at a slower pace than the standalone 5G segment. Overall, the Global 5G Network Equipment Market is expected to grow significantly in the coming years, driven by the increasing demand for 5G connectivity. The standalone 5G segment is expected to be the dominant network type in the future, as it offers several advantages over non-standalone 5G.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Network Equipment Market Frequency Band Insights
The market is segmented by Frequency Band into low band, mid band, and high band. Low band delivers higher coverage and better building penetration, making it ideal for rural regions and IoT applications. Mid band provides a good balance between coverage and capacity, meeting the requirements of suburban and urban areas.
High band ensures extremely high speeds and ultra-low latency, suitable for urban areas with high population density, as well as large-capacity applications. Therefore, as the 5G network is expanding through the deployment of the 5G network infrastructure, the demand for the 5G equipment accommodating different frequency bands is projected to drive the market in the forthcoming period.
5G Network Equipment Market Equipment Type Insights
The global 5G network equipment market is segmented based on equipment type into radio access network (RAN), core network, and transport network. The radio access network (RAN) segment is expected to hold the largest market share in 2023, owing to the increasing demand for high-speed and low-latency connectivity.
The core network segment is expected to grow at the highest CAGR during the forecast period, due to the increasing adoption of 5G core network technologies. The growth is attributed to the increasing demand for 5G network infrastructure, the rising adoption of 5G devices, and the increasing government initiatives to promote 5G technology.
5G Network Equipment Market Deployment Mode Insights
The 5G network equipment market is segmented based on deployment mode into macrocells, small cells, and massive MIMO. In 2023, the Macrocells segment held the largest market share, accounting for over 60% of the market revenue.
Macrocells are large, high-power base stations that provide coverage over a wide area. They are typically used in rural and suburban areas where there is less population density. Small Cells are smaller, low-power base stations that provide coverage over a smaller area. They are typically used in urban areas where there is a high population density.
Massive MIMO is a technology that uses multiple antennas to increase the capacity and performance of 5G networks. It is expected to be a major growth driver for the Global 5G Network Equipment Market in the coming years. The Small Cells segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing demand for high-speed data services in urban areas.
5G Network Equipment Market Technology Insights
By technology, the market for 5G network equipment is classified into orthogonal frequency division multiplexing (OFDM), MIMO, and beamforming. OFDM enables efficient data transmission by dividing the signal into multiple subcarriers. MIMO enhances spectral efficiency by using multiple antennas to transmit and receive data simultaneously.
Beamforming focuses the signal on specific devices, improving signal strength and reducing interference. These technologies contribute significantly to the Global 5G Network Equipment Market revenue, which is projected to reach USD 134.18 billion by 2032, growing at a CAGR of 20.99%.
The increasing demand for high-speed data connectivity, cloud-based services, and IoT applications is driving the growth of this market segment. Additionally, government initiatives to upgrade network infrastructure and promote 5G adoption are expected to further boost the demand for OFDM, MIMO, and Beamforming technologies in the coming years.
5G Network Equipment Market Regional Insights
The global 5G network equipment market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa. Among these regions, North America is expected to hold the largest market share in 2023, accounting for over 30% of the global revenue. This dominance is attributed to the presence of major telecom operators, such as AT, Verizon, and T-Mobile, which are actively investing in 5G network infrastructure.
Europe is expected to be the second-largest market, followed by Asia Pacific, which is anticipated to witness significant growth over the forecast period due to rising demand for 5G services in emerging economies like China and India. South America and the Middle East and Africa are expected to contribute a smaller share to the global market, but they are expected to experience steady growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Network Equipment Market Key Players and Competitive Insights
Major players in the 5G network equipment market are continuously investing in research and development to enhance their product portfolios and gain a competitive edge. Leading players are adopting strategies such as partnerships, collaborations, and acquisitions to expand their market reach and strengthen their positions in the industry.
The 5G network equipment market is characterized by intense competition, with key players vying for market share and dominance. To stay ahead in the competitive landscape, companies are focusing on innovation, product differentiation, and customer-centric approaches.
Nokia has established itself as a global leader in the telecommunications industry. The company offers a comprehensive range of 5G network solutions, including base stations, core network equipment, and radio access networks.
Nokia's strong brand reputation, technological expertise, and global presence have contributed to its success in the 5G network equipment market. The company's commitment to research and development has enabled it to stay at the forefront of 5G technology and provide innovative solutions that meet the evolving needs of customers.
Ericsson is another major player in the industry. The company has a strong focus on innovation and has developed a wide range of 5G products and solutions. Ericsson's 5G portfolio includes base stations, core network equipment, and radio access networks, as well as software and services.
The company's global presence and partnerships with leading telecommunications providers have contributed to its success in the 5G Network Equipment Market. Ericsson's commitment to developing cutting-edge 5G technology and providing tailored solutions has enabled it to secure a strong position in the market.
Key Companies in the 5G Network Equipment Market Include
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Qualcomm
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Nokia
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Huawei
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Fujitsu
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ZTE
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ADVA Optical Networking
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Juniper Networks
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Ciena
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NEC
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Ericsson
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Intel
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MediaTek
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Samsung
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Cisco
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HPE
5G Network Equipment Market Developments
The global 5G network equipment market is projected to reach USD 134.18 billion by 2032, exhibiting a CAGR of 20.99% during the forecast period. The market growth is attributed to the increasing adoption of 5G technology, government initiatives to promote 5G infrastructure development, and the growing demand for high-speed internet connectivity. Recent news developments in the market include:
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Ericsson and Qualcomm collaborated to develop 5G network equipment for enterprise and industrial applications.
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Nokia launched a new 5G portfolio, including base stations, core network products, and network management systems.
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Huawei announced plans to invest $10 billion in 5G research and development over the next five years.
These developments indicate the growing momentum and investment in the 5G Network Equipment Market, driven by the increasing demand for faster and more reliable connectivity solutions.
5G Network Equipment Market Segmentation Insights
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5G Network Equipment Market Network Type Outlook
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Standalone 5G
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Non-Standalone 5G
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5G Network Equipment Market Frequency Band Outlook
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5G Network Equipment Market Equipment Type Outlook
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5G Network Equipment Market Deployment Mode Outlook
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Macrocells
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Small Cells
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Massive MIMO
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5G Network Equipment Market Technology Outlook
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5G Network 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
| Report Attribute/Metric |
Details |
| Market Size 2022 |
19.96 (USD Billion) |
| Market Size 2023 |
24.15 (USD Billion) |
| Market Size 2032 |
134.18 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
20.99% (2024-2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Qualcomm, Nokia, Huawei, Fujitsu, ZTE, ADVA Optical Networking, Juniper Networks, Ciena, NEC, Ericsson, Intel, MediaTek, Samsung, Cisco, HPE |
| Segments Covered |
Network Type, Frequency Band, Equipment Type, Deployment Mode, Technology, Region |
| Key Market Opportunities |
Growth in mobile data traffic Expansion of 5G networks Demand for highspeed and low latency connectivity Deployment of 5G network infrastructure Growing demand for cloud-based services |
| Key Market Dynamics |
Rising demand for highspeed connectivity Growing adoption of cloud and edge computing Increase in mobile data traffic Government initiatives and support Technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global 5G network equipment market was valued at USD 24.15 billion in 2023 and is expected to reach USD 134.18 billion by 2032, growing at a CAGR of 20.99% from 2023 to 2032.
North America and Asia-Pacific are the key regions contributing to the growth of the market due to the increasing adoption of 5G technology and the presence of major telecommunication companies in these regions.
Major applications of 5G network equipment include enhanced mobile broadband, fixed wireless access, mission-critical communications, and the Internet of Things (IoT).
Key competitors in the market include Huawei, Nokia, Ericsson, ZTE, and Samsung.
Key growth drivers of the market include the increasing demand for high-speed connectivity, the growing adoption of cloud and edge computing, and the expansion of the IoT ecosystem.
Challenges faced by the market include the high cost of 5G network deployment, the need for spectrum harmonization, and the security concerns associated with 5G technology.
The global 5G network equipment market is expected to grow at a CAGR of 20.99% from 2023 to 2032.
Emerging trends in the market include the adoption of open RAN architectures, the use of artificial intelligence (AI) and machine learning (ML) for network optimization, and the development of new applications for 5G networks.
The deployment of 5G network equipment is transforming the telecommunications industry by enabling new services and applications, such as self-driving cars, remote surgery, and smart cities.
Opportunities for growth in the market include the expansion of 5G networks into new markets, the development of new 5G-enabled devices and applications, and the increasing demand for network capacity.
