5G Technology Market

Rising Demand For Mobile Broadband Services

With the emergence of 5G, mobile bandwidth is expected to expand, ushering in a new era of immersive experience and connectivity. The next generation of mobile broadband, 5G, is expected to augment 4G LTE connection and offer faster download and upload speeds. The race for rolling out 5G wireless service is not limited to mobile devices but also includes home broadband services.

Mobile broadband is a solution for business travelers who spend a lot of time commuting and for people who live in temporary accommodation for a few days or months who may not want to spend on expensive yearly home-based Internet connections. Moreover, 5G technology in mobile broadband services is expected to use high-frequency bands which would have a wider spectrum and higher traffic capacity and faster download speeds than LTE.

Furthermore, as emerging markets are realizing the social benefits of advanced technologies, many nations are developing broadband plans from a strategic perspective to speed up the deployment of fixed and mobile broadband infrastructure.

The Global 5G Technology Market Industry is projected to experience remarkable growth, with estimates indicating a market value of 10031.0 USD Billion by 2035. This growth trajectory is underpinned by a compound annual growth rate (CAGR) of 40.23% from 2025 to 2035. Such projections highlight the increasing reliance on 5G technology across various sectors, including telecommunications, healthcare, and transportation. As more industries adopt 5G solutions, the market is expected to expand significantly, driven by innovations and advancements in technology. The anticipated growth reflects the transformative potential of 5G in reshaping how businesses and consumers interact with technology.

The Global 5G Technology Market Industry is bolstered by government initiatives and support aimed at accelerating the deployment of 5G networks. Many governments are recognizing the strategic importance of 5G for economic growth and competitiveness. They are implementing policies that promote investment in telecommunications infrastructure and provide funding for research and development. For example, various countries have established regulatory frameworks to facilitate spectrum allocation for 5G services. This supportive environment is likely to encourage private sector participation, leading to faster network rollouts and increased market penetration, ultimately contributing to the overall growth of the industry.

The Global 5G Technology Market Industry is significantly influenced by the increased adoption of smart city initiatives worldwide. Cities are leveraging 5G technology to enhance urban living through improved public services, traffic management, and energy efficiency. For example, smart traffic systems powered by 5G can optimize traffic flow and reduce congestion, leading to lower emissions. As urban populations continue to grow, the demand for smart city solutions is expected to rise, further driving the need for 5G infrastructure. This trend not only supports sustainability goals but also positions cities to attract investments, thereby contributing to the overall market growth.

The Global 5G Technology Market Industry is experiencing a surge in demand for high-speed connectivity, driven by the proliferation of smart devices and the Internet of Things. As of 2024, the market is valued at approximately 243.2 USD Billion, reflecting a growing reliance on fast and reliable internet services. This demand is not only evident in urban areas but also in rural regions, where enhanced connectivity can bridge the digital divide. The increasing number of connected devices, projected to reach billions by 2035, further underscores the necessity for robust 5G infrastructure to support seamless communication and data transfer.

The Global 5G Technology Market Industry is witnessing the emergence of new applications and services that capitalize on the capabilities of 5G technology. Industries such as healthcare, automotive, and entertainment are exploring innovative solutions that require high-speed, low-latency connections. For instance, telemedicine applications are becoming more prevalent, allowing for remote consultations and real-time monitoring of patients. Additionally, the automotive sector is advancing towards autonomous vehicles, which rely on 5G for vehicle-to-everything communication. As these applications gain traction, they are expected to drive substantial growth in the market, with projections indicating a market value of 10031.0 USD Billion by 2035.

The Global 5G Technology Market Industry benefits from significant advancements in telecommunications infrastructure, which facilitate the deployment of 5G networks. Governments and private entities are investing heavily in upgrading existing infrastructure to accommodate the new technology. This transition is expected to enhance network capacity and reduce latency, thereby improving user experience. For instance, initiatives to install small cells and fiber optic networks are underway globally, enabling faster rollout of 5G services. As these advancements continue, the market is likely to expand rapidly, with a projected CAGR of 40.23% from 2025 to 2035, indicating a robust growth trajectory.

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Asia-Pacific is expected to hold largest market share in 2021. Asia-Pacific is home to some of the world's most advanced 5G marketplaces, including Australia, China, Japan, Malaysia, Singapore, and South Korea, all striving to be 5G leaders. By 2025, telecom providers in Asia-Pacific hope to add 663 billion new mobile internet customers. This rise in connection is assisting the mobile sector to have a greater influence on all UN SDGs.

Countries such as China, Japan, South Korea, and Taiwan are leaders in the 5G network infrastructure. For instance, South Korea successfully demonstrated the technology at the Winter Olympics in South Korea in the recent past, where 5G was used to stream real-time, 360-degree videos of athletes in action. The 5G technology market in Asia-Pacific is also expected to flourish due to huge investments and favorable government policies encouraging the growth of this industry.

Furthermore, the 5G technology market growth in North America is fuelled by the rising demand for 5G-enabled consumer electronic devices such as smartphones, tablets, and AR/VR devices. The presence of key players such as Cisco, Qualcomm, and Verizon investing heavily in the development of the 5G technology is also responsible for the tremendous growth of the 5G technology in this region. By the conclusion of Q3 2020, North America had 3.4 billion 5G connections and over half a billion LTE connections.

This amounts to a 47 percent quarterly increase in 5G in the area, with over 1 billion new 5G connections added during the quarter. It also marks a 3% increase in LTE connections, a gain of 14 billion over the quarter, as LTE continues to extend its long tail of growth.

FIGURE 3: 5G TECHNOLOGY MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The 5G technology industry is extremely competitive due to the existence of 5G infrastructure equipment, software and service providers, and communication service providers. The growth of market players depends on market conditions, favorable government regulations, and industry development. The increasing demand for mobile broadband services, growing application of IoT, and rising demand for connected cars and machine-to-machine communication are some of the factors expected to fuel the market's growth. Thus, players are focusing on research and development to maintain their positions in the market.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the 5G Technology market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new service launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the 5G Technology industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.