5G Technology Market Share

5G Technology Market Overview

5G Technology Market Size was valued at USD 171.7 billion in 2023. The 5G Technology market industry is projected to grow from USD 243.2 billion in 2024 to USD 3640.0 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 40.2% during the forecast period (2024 - 2032). Rising demand for mobile broadband services and the growing application of IoT are the major drivers of the market.

FIGURE 1: 5G TECHNOLOGY MARKET 2024-2032

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

Covid-19 Analysis

COVID-19 has undeniably influenced the 5G rollout. While governments battle the pandemic and its escalating repercussions, the euphoria surrounding 5G has been muted by a trade war with China over claims of unfair trade practices and data espionage, resulting in limitations on several Chinese tech firms Huawei. Growing mobile data consumption has resulted in greater revenue for mobile network operators (MNOs) and internet service providers (ISPs). This advantage is distributed across the telecommunications distribution network. Lockdown and social distancing policies have led to a growing reliance on digital tools, which has increased the demand for telecommunications services. However, in 2019, numerous CSPs (communication service providers) worldwide began testing and deploying 5G networks, with several nations preparing for the rollouts through spectrum auctions, infrastructure contracts, and other activities.

5G Technology Market Trends

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.

5G Technology Market Segment Insights

5G Technology Component Insights

The 5G Technology market segmentation, based on Component, includes Hardware, Software, and Services. 5G technology has gained significant prominence across the globe; therefore, infrastructure equipment/hardware demand is growing exponentially. Software solutions are used by communication providers to full potential 5G standalone services to the end-users. With the introduction of standalone 5G networks, the demand for software has grown significantly across the globe. The 5G infrastructure providers offer several services to the communication providers/MNOs to deploy 5G infrastructure. These services can be categorized into professional services and managed services.

November 2020: Huawei released its new 5GtoB Suite Solution to power the operator industry network services. 5GtoB Suite provides industry networks with intelligent and precise planning, simplified on-demand provisioning, and proactive network O&M to plan, construct, maintain, and optimize ToB networks. Its implementation will further the momentum and impact of 5G wireless network services in the operator industry.

February 2020: Huawei launched new 5G products and solutions at the product and solution launch in London. The company also launched its 5G partner innovation program to build a thriving 5G ecosystem to make 5G a commercial success. The product launch included Huawei’s Blade AAU, which can work under all sub-6 GHz frequency bands and support 2G, 3G, 4G, and 5G networks.

FIGURE 2: 5G TECHNOLOGY MARKET SHARE BY COMPONENT 2021 (%)

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

5G Technology Insights

Based on Technology, the Enhanced Mobile Broadband [eMBB] segment accounted for the largest market share. eMBB enables significant improvements in connection speeds, supporting speeds 10 to 20 times faster than today's 4G. Whereas, URLLC provides high reliability and low latency, cutting the time needed to send a signal and receive a response to 10 milliseconds or less. Commonly known as mission-critical services (MCS), this 5G feature offers a highly available and reliable network. Furthermore, massive machine type communication [MMTC] is expected to register a highest CAGR.

5G Technology Spectrum Insights

Based on the spectrum, the market has been classified into 5G NR Sub-6GHz and 5G NR mmWave. 5G NR Sub-6GHz holds an exponential share within the 5G technology market. This can be attributed to the difficulties associated with mmWave means standards organizations and mobile operators are continuing to rely heavily on the sub-6 GHz spectrum. Moreover, 5G NR mmWave segment holds a comparatively smaller share within the 5G technology market. However, the segment is expected to exhibit the fastest CAGR rate during the projected period. Since it likely takes one to two years or more to be developed and to harmonize the availability of the new spectrum bands.

5G Technology Application Insights

Based on the application, the market has been segmented into consumer and enterprises. 5G technology for the consumer segment is expected to exhibit the fastest CAGR rate during the projected period. There are several digital services through which communication service providers are earning revenue. Enhanced video, augmented reality & virtual reality, cloud gaming, digital advertising, M-commerce, consumer IoT, music, in-venue digital services, live sports streaming, and mobile gaming, among other services. Enterprise's segment is the most lucrative segment for the 5G technology market. This is because the most substantial value of 5G will not come from connecting people but from its ability to provide seamless connectivity to machines, infrastructures, and things.

5G Technology Regional Insights

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, MRFR Database and Analyst Review

5G Technology Key Market Players & Competitive Insights

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.

Key Companies in the 5G Technology market include

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  AT&T, Inc.

  
  


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  BT Group plc

  
  


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  China Mobile Ltd.

  
  


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  China Telecom Corporation Ltd.

  
  


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  Bharti Airtel Ltd.

  
  


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  NTT Docomo

  
  


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  KT Corp.

  
  


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  Saudi Telecom Company

  
  


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  Vodafone Group

  
  


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  Deutsche Telekom AG

  
  


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  SK Telecom Co., Ltd.

  
  


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  Verizon Communications, Inc.

  
  


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  T-Mobile USA, Inc.

  
  


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  Rakuten Mobile Inc.

  
  


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  Telefonaktiebolaget LM Ericsson

  
  


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  Huawei Technologies Co. Ltd.

  
  


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  Qualcomm Technologies Inc.

  
  


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  Cisco Systems Inc.

  
  


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  MediaTek Inc.

  
  


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  Samsung Electronics Co. Ltd.

  
  

5G Technology Industry Developments

July 2021: AT&T and Google Cloud have added additional enterprise services to their 5G collaboration. Both firms have launched a new set of services to assist enterprises in developing new 5G-enabled apps and deploying them on-premises or at the network edge. Business clients will be able to create and operate apps utilizing Google Cloud features such as AI, Kubernetes, and data analytics with the initial service. AT&T's 5G and Multi-access Edge Compute (MEC) services are used to deploy the apps on-premise. Enterprises will be able to install apps at Google edge points of presence (POPs), which will be connected to AT&T's 5G and fiber networks.

July 2021: Microsoft is set to acquire AT&T’s network cloud technology and intellectual property. In return, AT&T will move its 5G mobile network to Azure. The companies will start with AT&T’s 5G core and will expand from there. The partnership builds on an existing USD 2 billion deal where AT&T moved its back-end office to Microsoft Azure.

July 2021: Nokia and AT&T have established a five-year collaboration to use Nokia's C-Band Solutions Portfolio. The C-Band portfolio, which includes Nokia's 5G technology, will be rolled out to AT&T customers across the US in phases, with the first phase launching in late 2021. Nokia's MIMO antenna solutions, macro remote radio heads, and next-generation AirScale baseband equipment, all of which are part of its C-Band portfolio, will be included in the agreement to assist AT&T in improving its network capacity to enable 5G coverage, both inside and outdoor.

5G Technology Market Segmentation

5G Technology Component Outlook

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  Hardware

  
  


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  Software

  
  


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  Services

  
  

5G Technology Outlook

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  Enhanced Mobile Broadband [eMBB]

  
  


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  Ultra-Reliable Low Latency Communication [URLLC]

  
  


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  Massive Machine Type Communication [mMTC])

  
  

5G Technology Spectrum Outlook

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  5G NR Sub-6GHz

  
  


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  5G NR mmWave

  
  

5G Technology Application Outlook

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  Consumer

  
  


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  Enterprises

  
  

5G Technology Regional Outlook

Intended Audience

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  Technology Investors

  
  


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  Regulatory Industries

  
  


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  Government Bodies

  
  


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  Gaming Industry

  
  


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  IoT Industry