5G Services Market Forecasts to 2028 - Global Analysis By Product, Communication Technology, Application, End User and Geography

According to Stratistics MRC, the Global 5G Services Market is accounted for $107 billion in 2022 and is expected to reach $455 billion by 2028 growing at a CAGR of 27.3% during the forecast period. A completely mobile and connected environment is made possible by 5G wireless mobile services, which offer customers a variety of use cases and business models. Additionally, the 5G technology's faster data rates and exceptionally low latency would improve the user experience when using 5G services for a variety of use cases, including seamless video calling, Ultra-High Definition (UHD) videos, virtual reality (VR), and augmented reality (AR) gaming.

According to Ericcson's Mobility Report from June 2019, the region will have over 270 million 5G subscriptions, accounting for roughly 60% of all mobile subscriptions. This indicates that 5G services in the region have a lot of potential.

Market Dynamics:

Driver:

Growing R&D and deployment

The projected time is anticipated to grow due to item improvements, more R&D, and ground-breaking inventions. With China's 5G testing completed, the company's commanding position in test completion and the most recent findings will hasten the advancement of 5G technology research and development and help to create a set of universally accepted international standards. Vendors must provide wireless test equipment that can efficiently handle 5G technologies in order to advance their businesses. Throughout the forecast period, all of these factors will favourably affect the market.

Restraint:

High deployment cost of 5G technology

The cost of purchasing 5G technology will be quite expensive. Small cell network installation prices that are too high and the lack of security for outdoor power systems that are placed far away are two issues that are anticipated to restrain the expansion of the global 5G test equipment market. Large businesses in the sector are obligated to abide by stringent rules established by telecommunications standards groups. Corporate profit margins are being impacted by the ongoing need for competitive pricing from customers. A problem is anticipated for the market as a result of the high cost of new frequency spectrum releases.

Opportunity:

Strategic collaboration among market players

Market participants are aggressively investing in his 5G technology across a number of sectors, including information technology solutions, communication network infrastructure, utilities, and semiconductor integrated circuits (ICs). Along with market participants, numerous governments are accelerating the development of 5G networks. Compared to 4G networks, 5G technology can offer network transmission speeds that are an order of magnitude faster. The end-user industry's adoption of HMI technology has increased demand for networks that can accommodate high-bandwidth, low-latency applications. As a result, a rising number of businesses are concentrating on creating networks and 5G-compatible products as a component of the 5G network ecosystem.

Threat:

Small cell installations

The rapid and affordable installation of small cell networks is one of the main requirements for 5G deployments. But numerous locations around the world face significant financial, governmental, and administrative challenges with installing tiny cells, further delaying the adoption of 5G technology. Small cell installations are therefore limiting the growth of the global 5G services market.

COVID-19 Impact:

The global economy might be impacted by COVID-19 in three distinct ways: directly via production and demand, indirectly through supply chains and marketplaces, and financially through its effects on businesses and financial markets. The COVID-19 outbreak prevented multiple 5G cores and base station equipment from being installed in 2020, and various federal governments in significant countries postponed the spectrum auction for 5G services, which slowed the market's expansion.

The enhanced Mobile Broadband (eMBB) segment is expected to be the largest during the forecast period

The enhanced Mobile Broadband (eMBB) segment is estimated to have a lucrative growth. The large proportion is ascribed to 5G network operators' initial focus on offering better internet capabilities for applications like fast cloud gaming, augmented reality and virtual reality, UHD video, and continuous video conversations. It is anticipated that the initial rollout phase would concentrate on 5G wireless non-standalone deployment architecture. For both home and business use, eMBB offers very fast broadband speeds. In order to support a variety of use cases, including in-vehicle entertainment, 4K video access, and virtual meetings, eMBB is anticipated to be a key factor in the segment's growth.

The Enterprises segment is expected to have the highest CAGR during the forecast period

The Enterprises segment is anticipated to witness the fastest CAGR growth during the forecast period. 5G's ability to seamlessly connect infrastructures, devices, and things rather than connecting people will provide the technology with its most significant advantages. 5G will serve as the fundamental framework for a variety of new applications in sectors including manufacturing, transportation, and healthcare. In order to unlock a new universe of corporate services, the standards and capabilities are now being established. Commercial 5G corporate applications, such as Industry 4.0 factories, autonomous driving cars, and robotic surgery, are therefore now in the implementation stage. Edge computing paired with 5G network slicing would be especially beneficial for telerobotics and autonomous driving applications that demand low latency and rapid reaction times.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period. To begin rolling out 5G services in Europe, the European Union has created a 5G action plan. The huge need for continuous 5G coverage in European cities is fostering market expansion. Strong demand for broadband network services is prevalent in European nations including the United Kingdom, France, and Germany, and this is projected to favourably affect the expansion of the 5G service market.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to considerable network infrastructure advancements. The 5G network service was first adopted in North America. In order to enable significant market development, a number of telecom providers have already announced plans to roll out 5G services throughout the area. The adoption of internet of things (IoT)-based apps and smart infrastructure initiatives is leading the way in North America.

Key players in the market:

Some of the key players profiled in the 5G Services Market include Qualcomm Inc., Samsung Electronics Co. Ltd., LG Electronics Inc., Nokia Corporation, Intel Corporation, Cisco Systems Inc., Huawei Investment and Holding Co. Ltd., Bell Canada, Nippon Telegraph and Telephone Corp., Vodafone Group, BT Group and Airtel.

Key Developments:

In February 2021, Starhub and Nokia Corporation announced a partnership for the deployment of a new cloud-based 5G core network aimed to manage rapidly growing 5G standalone (SA) bandwidth demand.

Products Covered:

• Managed Services
• Professional Services
• Other Products

Communication Technologies Covered:

• Enhanced Mobile Broadband (eMBB)
• Ultra Reliable and Low Latency Communications (URLLC)
• Fixed Wireless Access (FWA)
• Massive Machine-Type Communications (Mmtc)
• Other Communication Technologies

Applications Covered:

• Industrial
• Energy & Utilities
• Retail
• Healthcare
• Automotive
• Consumer Electronics
• IT & Telecommunication
• Construction
• Government & Public Safety
• Oil & Gas
• Agriculture
• Other Applications

End Users Covered:

• Enterprises
• Consumers
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances