5g Infrastructure Market

According to Stratistics MRC, the Global 5G Infrastructure Market is accounted for $6.46 billion in 2022 and is expected to reach $41.29 billion by 2028 growing at a CAGR of 36.2% during the forecast period. The infrastructure required for fifth-generation cellular networks, or 5G, is made up of a network of small-cell and macrocell base stations. The standalone and non-standalone (NSA) infrastructures are typically the two options available for the 5G network. A non-standalone infrastructure among these is dependent on the current 4G LTE network in part, but a standalone infrastructure is independent of LTE networks. The functionality of 5G technology depends on the edge computing capabilities of both of these infrastructures. It provides low latency coverage for data streams connected to applications like augmented reality, IoT devices, and semi-autonomous vehicles. Businesses are quickly adopting 5G technology because it offers them a very reliable type of speed and capacity for wireless connectivity.

According to the GSMA, 5G networks have achieved 45% urban coverage in early deployment trials. According to the Federal Network Agency of Germany's 5G frequency mandates, 98% of German households must have fast mobile internet by 2022.



Market Dynamics:

Driver:

Growing adoption of virtual networking architecture in telecommunications

Currently, networks are set up using a variety of devices created specifically for specific applications. Such specialized hardware is expensive to handle and maintain and unable to scale up. The lifespan of such application-specific hardware is constrained by technological developments. Given that it is anticipated that millions of devices will connect to the 5G infrastructure in order to communicate with one another, it is essential to create a network architecture that can provide flexibility and scale-up choices. Additionally, 5G network slicing will enable network operators to just install the features required to serve a particular customer base and niche market. Due to their ease of implementation and effective use, these software-driven network technologies would further propel the market for 5G infrastructure.

Restraint:

Delay in standardization of spectrum allocation

A significant benefit in the construction of the 5G network is the utilisation of higher frequencies. However, all high frequencies are already in use for a variety of purposes, including telecommunications and government operations. The development of 5G infrastructure depends on having access to these high-frequency spectrums. There is a conflict in accessing certain frequency bands because they have already been designated for various uses. Different government entities are currently establishing various legislation throughout the world. The development of 5G infrastructure depends heavily on the standardisation of spectrum allocation across regions and nations since it affects economies of scale and provides clarity for equipment providers to create appropriate products.

Opportunity:

Growth of IoT technology

The Internet of Things (IoT), which connects numerous kinds of gadgets, appliances, systems, and services, is among the factors revolutionising various sectors. IoT is one of the use cases that a 5G network will serve; for example, it makes it possible for a lot of sensors and linked devices to communicate with one another. Applications for mobile video surveillance, fall into the categories of high-power, low-latency, low-power, and long-range IoT applications (e.g., smart cities and smart factories). The 5g infrastructure market is anticipated to grow in order to satisfy these needs of growing IoT applications, which are classified as huge machine-type communication and mission-critical applications. Additionally, the market for 5G infrastructure is expanding due to the requirement to maintain internet connectivity for the growing number of devices while also consuming less power.

Threat:

Deployment and coverage challenges

By placing an undue burden on operators in terms of administrative and financial burden, regulations and local authority policies have hindered the deployment of small cells and decreased investment. Among the main obstacles to deploying tiny cells are drawn-out permitting procedures and purchasing procedures. Delays occur because it can take months for municipal authorities to accept planning requests for small cell deployments. Another significant obstacle to the rollout of 5G networks is the high costs that local governments charge businesses to use street furniture like utility poles. Even though 5G has extremely fast speeds and bandwidth, its short range necessitates the construction of new infrastructure. Although 5G antennas can handle more users and data, they are limited in how far they can beam out radio waves. This will result in the addition of more repeaters being put in place to disperse the waves across a wider area.

Covid-19 Impact

The global rollout of 5G has been affected by the COVID-19 epidemic in a number of ways, including investments, delays in spectrum allocations, supply chain disruption, and more. The start of 5G network service trials and rollouts by telecom industry stakeholders like Communications Service Providers (CSPs), while many nations around the world were busy preparing for rollouts through spectrum auctions, releasing tendes for infrastructure contracts, and other readiness initiatives involved. Due to the pandemic crisis, all of the aforementioned precautionary measures had an influence on the market for 5G infrastructure, primarily because spectrum auctions were postponed and funding for digital transformation were cut.

The non-standalone segment is expected to be the largest during the forecast period

The non-standalone segment is estimated to have a lucrative growth. The non-standalone network is typically installed in conjunction with the current LTE network. Global service providers now have access to a new revenue stream because to the quickly expanding industrial digitalization. An ultra-reliable high frequency with low latency connectivity is becoming more and more necessary to maintain constant contact between devices. Similar to this, the need for 5G infrastructure in the transportation and logistics sector is anticipated to be driven by the requirement for unified bandwidth capacity with minimal latency to establish seamless communication amongst autonomous vehicles. Therefore, it is projected that the rising need for faster data speeds across the aforementioned sectors will fuel the expansion of the non-standalone category.

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

The residential segment is anticipated to witness the fastest CAGR growth during the forecast period, as a result of a number of factors, including rising internet dependence and a rise in demand for rapid data. To meet the demands brought on by high-bandwidth household applications like video streaming, communication service providers (CSPs) are quickly implementing 5G networks throughout suburban areas and an increasing number of cities. The majority of the world's densely inhabited places are driving a demand for high-speed, high-bandwidth connectivity. As a result, 5G technology has been swiftly adopted by telecom carriers. Additionally, certain smartphone manufacturers, like Vivo, Xiaomi, and Samsung, are offering discounts on their 5G versions. These tactics are helping the market for 5G infrastructure around the world develops even further.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to significant investments on 5G infrastructure. The country-level market is anticipated to be led by the US, with Canada set to have the quickest growth over the forecast period. Due to its dominant position in the market for the deployment of 5G transport networks for more effective and rapid transportation, the US market is anticipated to have the greatest market share. Additionally, the presence of major companies in the region, including Cisco Systems, Inc. (US), CommScope, Inc. (US), Siklu Inc. (US), Mavenir (US), Airspan Networks (US), Hewlett Packard Enterprise Development LP (US), and F5, Inc., is expected to spur further growth in the North American market for 5G infrastructure (US). These companies are vying for customers by offering cutting-edge 5G networks that are future-proof, able to connect millions of devices, have improved network coverage, have low latency, and offer end-to-end solutions, among other things.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to major communication service providers like China Mobile Limited, KT Corporation, and NTT Docomo Inc. aggressively deploying 5G New Radio infrastructure. Additionally, governments in a number of nations, including China, South Korea, Japan, and others, are putting a lot of effort into releasing a variety of sub-6GHz and mmWave frequencies to meet the expanding need for high-speed data communication among subscriber bases. As a result, it is projected that the market in the area would increase strongly during the coming years.



Key players in the market

Some of the key players profiled in the 5G Infrastructure Market include ZTE Corporation, Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., Airspan Networks, CommScope Inc., Samsung Electronics Co., Ltd., Hewlett Packard Enterprise Development LP, Cisco Systems, Inc., Nokia Corporation, Mavenir, NEC Corporation, Altiostar, Fujitsu Limited, Casa Systems, Comba Telecom Systems Holdings Ltd., Aviat Networks, Inc., Ceragon, JMA Wireless and Parallel Wireless.

Key Developments:

In July 2020, Samsung Electronics Co. Ltd. launched 5G Radio Access Network (vRAN), a fully virtualized solution. This software-based 5G radio infrastructure offers cost savings, improved efficiencies, and management benefits to the mobile operator.

In June 2019, AT&T collaborated with IBM Corporation to provide 5G wireless networking and edge computing for businesses. IBM Corporation deployed AT&T’s 5G and multi-access edge computing at its Thomas J. Watson Research Center. Through this, the companies will process the data on the client’s site instead of the public network.

Communication Infrastructures Covered:
• Macro Cell
• Small Cell
• Distributed Antenna System (DAS)

Core Network Technologies Covered:
• Network Function Virtualization (NFV)
• Software-Defined Networking (SDN)
• Mobile Edge Computing (MEC)
• Fog Computing (FC)

Network Architectures Covered:
• Standalone
• Non-Standalone

Operational Frequencies Covered:
• Sub 6 GHz
• Above 6 GHz

Components Covered:
• Hardware
• Services
• Other Components

Chipset Types Covered:
• Millimeter-Wave Integrated Circuit
• Application Specific Integrated Circuit (ASIC)
• Field Programmable Gate Array (FPGA)
• Radio Frequency Integrated Circuit (RFIC)

End Users Covered:
• Industrial
• Residential
• Commercial
• Government
• Enterprise/Corporate
• Energy & Utility
• Smart City
• Transportation & Logistics
• Healthcare Facilities
• Public Safety and Defense
• Agriculture
• Retail
• Automation
• Consumer Electronics
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o 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
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances