5G Infrastructure Market Size, Share & COVID-19 Impact Analysis, By Communication Infrastructure (RAN, Transport Technology, and Core Technology), By Spectrum Band (Low Band (<1 GHz), Mid Band (1-6GHz), and High Band (24-40 GHz)), By Network Architecture (Non-standalone and Standalone), By End User (Residential, Commercial, Industrial, and Government), and Regional Forecast, 2023-2030

The global 5G infrastructure market size was valued at USD 20.19 billion in 2022. The market is projected to grow from USD 25.69 billion in 2023 to USD 348.76 billion by 2030, exhibiting a CAGR of 45.2% during the forecast period.

5G infrastructure comprises Radio Access Network (RAN), core, and transport technology to offer high throughput, low latency, high mobility, and high connection density. The emergence of 5G is expected to create several business opportunities for telecom operators, enterprises, stakeholders, as well as consumers. For instance, deploying 5G is expected to assist telecom operators in adopting advanced connectivity and collaborating with various sectors, such as retail, finance, healthcare, and transport to deliver enhanced services to businesses and consumers.

Emerging technologies, such as Virtual and Augmented Reality, Artificial Intelligence, Internet of Things (IoT), and connected cars, among others, need a fast and efficient communication infrastructure. This is supporting the growth of 5G network solutions across the globe. Considering the 5G capabilities, hardware companies are focusing on providing 5G-enabled devices. For instance, according to predictions by GSMA Intelligence, new 5G networks were expected to be deployed in over 30 countries in 2023 and the number of 5G connections is anticipated to be doubled by 2025.

COVID-19 IMPACT

COVID-19 Pandemic-related Restrictions Slowed the Rollout of 5G Infrastructure

The pandemic halted the progression of 5G in several countries. The measures taken to curb the spread of the disease affected the timing of the finalization of standards for this infrastructure and were expected to be held at the end of 2020. The challenges associated with the pandemic prompted several countries, such as Spain, France, India, Austria, and the U.S. to postpone their auction for the 5G spectrum. For instance, India’s Department of Telecommunications postponed its spectrum auction for 2021. This development had adversely affected numerous vendors and telecommunication operators present in the market.

 A few vendors started focusing on creating an aggressive 5G rollout plan in 2020-2021 owing to the capabilities of 5G technologies to serve various sectors during the crisis. In the healthcare sector, a 5G smart robot can assist medical professionals in conducting remote treatments. For instance, in Wuhan, China, several hospitals started using a 5G network to provide real-time assistance to patients in remote areas. Thus, 5G showcased vast potential to support the medical and other sector during the pandemic. However, delay in the deployment of 5G network limited its use. The market is expected to gain exponential growth post the pandemic period.

LATEST TRENDS

Network Slicing to Pave Way for Adoption of 5G Network

Network slicing is the use of network virtualization to split single network connections into several virtual connections to deliver different volumes of resources to different types of traffic. They assist mobile operators and telecom vendors in providing portions of their networks for specific customer use cases, such as IoT factories, smart homes, smart energy grids, and connected cars, among others. Network slicing is a key tool for providers to address the different requirements of enterprises. The technique allows the provider to create a dedicated virtual network as per specific use cases or customer service needs. For instance, the network requirement for healthcare providers will be vastly different from those of the agriculture sector. Network slicing also provides higher security for mission-critical services. When the network slices are reserved for specific services, they enhance their reliability and offer simplification.

According to the GSMA Intelligence, network slicing technology is significantly adopted in the global IoT network as it supports several connected devices with diverse accessibility and mobility requirements. Thus, these capabilities of network slicing are likely to propel the 5G infrastructure market growth.

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DRIVING FACTORS

Growing Use of IoT Connected Devices to Augment Demand for 5G Technology

The Internet of Things (IoT) technology was expected to connect 50 billion devices by 2020, according to a report by the Alliance for the Internet of Things Innovation (AIOTI). The technology has a vast scope across several industry verticals, including manufacturing, smart city, logistics, healthcare, and automotive, among others. IoT requires an efficient communication infrastructure along with reliable connections and minimum latency. Nowadays, deployment of 5G networks is capable of providing the required modern infrastructure with their respective strengths and weaknesses. Thus, the introduction of 5G is expected to cater to the growing demand for advanced infrastructure.

5G offers techniques, such as network function virtualization and network slicing that help in providing customer-specific networks. Thus, 5G architecture can offer customized infrastructure for IoT applications to boost the efficiency of the industry. For instance, Industry 4.0 fully depends on robotics to increase the efficiency of a manufacturing plant. With the adoption of 5G, IoT-connected devices can use a dedicated network line with a high wireless data transfer that offers real-time information. This will automate the shop-floor operations and enhance the efficiency of the manufacturer. Similarly, it also has various applications, such as precision livestock farming, intelligent emergency response systems, automated valet parking, and communication in car manufacturing. Thus, the growing IoT implementation is likely to boost the demand for 5G network solutions.

Need for Ultra-Low Latency Expected to Drive Market Growth

The implementation of advanced technologies, such as Internet of Things (IoT), connected devices, Artificial Intelligence, Augmented & Virtual Reality, among others, is rapidly increasing. However, many industries are not able to utilize the full potential of these technologies owing to the high latency issue. 5G offers ultra-low latency capabilities to provide an advanced user experience.

The low latency capabilities of 5G are boosting its demand in mission-critical applications. One of the major applications of low latency can be telemedicine, where hospitals and healthcare providers can access real-time data without any delay during a critical situation.  The low latency rate of this technology is likely to make remote robotic surgeries a reality in the future. Similarly, in the manufacturing industries, 5G can help manufacturers scale-up their connected robotic workforce. This is expected to boost the efficiency of Industrial IoT devices and connected machines.

5G is expected to improve assisted driving and transport services with real-time data alerts. The technology will provide data regarding the traffic situation and enhance safety during assisted driving.  Besides, the low latency can be a game-changer in virtual and augmented reality applications. The technology is expected to provide a highly immersive experience to the user with its fast data transmission features. This is likely to fuel the demand for 5G infrastructure.

RESTRAINING FACTORS

Increasing Cybersecurity Threats to Hamper Market Growth

The chances of cybersecurity threats are likely to increase with the rapid adoption of 5G technology. The increasing use of connected devices and machines will lead to an increase in cyberattacks. Also, unlike traditional technologies, 5G offers a direct connection to the cellular network that further increases the risk of direct attacks. The attackers can take advantage of such security gaps and come up with advanced strategies to hack into a network. Thus, increasing 5G implementation is expected to raises the number of potential threats. This is likely to hamper the market growth.

SEGMENTATION

By Communication Infrastructure Analysis

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Rapidly Growing Data Traffic to Augment Demand for 5G RAN

Based on communication infrastructure, the market is categorized as RAN (Radio Access Network), transport technology, and core technology.

The RAN segment is expected to hold the maximum 5G infrastructure market share as this infrastructure can cater to a wide range of spectrum bands. RAN is further segmented into C-RAN/V-RAN, small cell, and massive MIMO. The small cell segment is expected to grow exponentially owing to its capability of increasing network capacity. 5G small cell helps the operator connect maximum number of smartphones in a high user density area.

The rising mobile data traffic and increasing demand for high-bandwidth will subsequently lead to an increase in the demand for small cells. Similarly, the growing demand for new wireless network architecture is likely to drive the demand for cloud-RAN. Virtual-RAN offers a better user experience by providing improved network performance. This is expected to boost the demand for C-RAN and V-RAN in 5G infrastructure.

The transport technology segment is further bifurcated into Software-Defined Networking (SDN) and network slicing. Software-Defined Networking segment is expected to lead the market. The centralized control plane capabilities of SDN provide end to end visibility of network resources, which helps in maintaining and establishing optimized connectivity. Likewise, the capability of network slicing to provide a customer-specific network to support new business models is likely to drive its growth.

The core technology is further bifurcated into Network Function Virtualization (NFV) and mobile edge computing. The growing requirement of low latency for essential IoT applications is expected to drive the growth of the mobile edge computing segment during the forecast period.

By Spectrum Band Analysis

Increasing Demand for Enhanced Coverage Likely to Fuel Need for Mid Band Spectrum

Based on spectrum band, the market is divided into low band (<1 GHz), mid band (1-6GHz), and high band (24-40GHz).

The mid band (1-6GHz) segment is expected to capture the maximum share during the forecast period. Mid band spectrum offers better indoor and outdoor coverage with high data rates. For the initial deployment of 5G, this spectrum holds vast potential for international harmonization. The mid band is suitable for shorter network coverage, such as the city’s mobile network coverage and along the interstate highways.

The high band (24-40GHz) segment is expected to experience rapid growth during the forecast period owing to its potential to support the ultra-high speed of 5G. This spectrum caters to the requirements of a high concentration of users over a short distance. The high band is suitable for outdoor environments, such as train & bus stations, sports venues, manufacturing plants, hospitals, landmarks, and more.

Owing to exceptional coverage, the low band (<1 GHz) segment is likely to showcase steady growth during the forecast period.

By Network Architecture Analysis

Growing Demand for Higher Bandwidth and Data Speed to Propel Adoption of 5G Non-Standalone Architecture

Based on network architecture, the market is bifurcated into non-standalone and standalone.

The Non-standalone Architecture (NSA) segment, which consists of a 5G network (LTE combined), is expected to hold the maximum share as the first rollouts of 5G networks are NSA deployments. NSA focuses on providing higher data bandwidth and reliable connectivity to telecom service providers. Thus, in the beginning, majority of the service providers who want to offer 5G services are relying on non-standalone architecture.

However, the standalone segment is anticipated to record a significant CAGR during the forecast period to provide true 5G speed. The standalone architecture consists of New Radio and Core. The 5G core uses a cloud-aligned service-based architecture. It plays a vital role in supporting service discovery, control plane function interaction, and flexible connections.

By End User Analysis

Increasing Demand for High-Speed Internet to Fuel Growth of 5G Technology in Residential Sector

By end user, the market is categorized into residential, commercial, industrial, and government.

The residential segment holds the maximum share of the market as along with digital revolution, the demand for high speed internet connectivity has significantly increased among individuals for various applications. These applications include, streaming full HD & 4K content videos, gaming, video calls & meetings, and smart home applications.

The industrial segment is anticipated to record the highest CAGR in the upcoming years owing to the growing demand for Industry 4.0. This technology includes process automation in various manufacturing and process industries. To execute all the processes seamlessly and efficiently in these industries, the flow of information at the right place and the right time is quite important. Implementation of 5G network infrastructure in these industries plays a vital role in achieving high speed and accuracy.

REGIONAL INSIGHTS

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By region, the market has been analyzed across five major regions, North America, South America, Europe, the Middle East and Africa, and Asia Pacific.

Asia Pacific is expected to dominate with the market share and the highest growth rate during the forecast period. The presence of several 5G and communication service providers is expected to drive the product demand in the region. China dominated the market and accounted for over half of the overall market share in 2020. According to a report by the GSMA, China is projected to install 450 million 5G connections by 2025. Similarly, China Mobile and China Unicom were expected to achieve large-scale commercialization by the end of 2020. The country, with its initiative “Made in China 2025”, aims to use advanced technologies, such as industrial IoT, cloud computing, and AI. This is expected to fuel the demand for 5G infrastructure in the region during the forecast period.

According to the GSM Association, China aims to invest USD 184 billion in 5G by 2025. Japan is expected to grow exponentially during the forecast period owing to massive investments in 5G technology. In May 2023, Ericsson and KDDI engaged in a partnership to deploy Japan’s first Vault 5G Base stations to enhance urban connectivity. Moreover, in India, to give a boost to Digital India, Make in India, and Smart Cities & Smart Village missions, the government launched the 5G India 2020 forum.

Europe is expected to register a prominent CAGR during the forecast period owing to the increasing number of supportive government policies and associated regulations. For instance, in 2016, the European Commission launched 5G for the Europe Action Plan and established the 5G Infrastructure Public-Private Partnership. According to the GSMA, Europe is expected to achieve 203 million 5G connections by 2025.

North America is likely to hold a major market share following Asia Pacific. The U.S. is expected to witness rapid growth owing to the increasing demand for high bandwidth and rising data traffic. The presence of several key 5G infrastructure providers is likely to fuel the product demand in this region. The increasing adoption of technologies, such as artificial intelligence, augmented and virtual reality, and IoT, will aid the development of this market in the U.S.

The Middle East & Africa is expected to showcase significant growth during the forecast period. GCC is expected to lead the market owing to various government initiatives such as Abu Dhabi Vision 2030. The growing demand for driverless cars, IoT, and robotic & AI is boosting the demand for 5G in the Gulf region.

The increasing initiatives to deploy advanced technologies in South America are expected to enhance the growth of the market.

KEY INDUSTRY PLAYERS

Key Players are Focused on Offering Advanced 5G Infrastructure Solutions

Key players, such as Telefonaktiebolaget LM Ericsson, Qualcomm Technologies, Huawei Technologies Co., Ltd., Nokia Network, Dell EMC, and ZTE Corporation, are collaborating with other players to expand their global presence. The companies are offering advanced solutions and hardware, which will contribute to the growth of the market. For example, Samsung Electronics Co. Ltd. is expanding its 5G presence by strategically collaborating with infrastructure and network providers across the globe. The company is launching innovative solutions such as inter-band carrier aggregation, mobile NR core & integrated radio solutions, and more. It is also offering cloud-based deployment solutions for an efficient and fast connection.

November 2021 – ArcelorMittal, in partnership with Ericsson and Orange Business Services, launched the 5G Steel to test 4G/5G connectivity at its facility in France. The French government supported this initiative to stay ahead in the race of 5G network deployment.

LIST OF KEY COMPANIES PROFILED:

• Telefonaktiebolaget LM Ericsson (Sweden)


• Huawei Technologies Co., Ltd. (China)


• Nokia (Finland)


• ZTE Corporation (China)


• Samsung Electronics Co., Ltd. (South Korea)


• NEC Corporation (Japan)


• Mavenir (U.S.)


• Fujitsu (Japan)


• Qualcomm Technologies, Inc. (U.S.)


• Rohde & Schwarz (Germany)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 – Cisco Systems, Inc. and NTT Data Corporation launched private 5G services for healthcare, automotive, public, retail, and logistics sectors. This launch is expected to enhance the Industry 4.0 capabilities.


• February 2023 – Qualcomm Technologies, Inc. and Viettel jointly launched the initial versions of Viettel's 5G Radio Unit (RU) and Distributed Unit (DU) built on the Qualcomm QRU100 5G RAN Platform and Qualcomm X100 5G RAN Accelerator Card.


• February 2023 – Astella Technologies Limited launched 5G infrastructure software products at the Mobile World Congress 2023 in Barcelona. The product launch included 5G integrated small cells and 5G core network for sub-6 and mmWave frequency bands.


• September 2022 – Tata Communications launched a Private 5G Global Centre of Excellence (CoE) in Pune, India. The launch of this center is anticipated to speed up Industry 4.0 applications and competencies for enterprises in India.


• April 2022 – Ericsson and Valmont Industries, Inc. jointly acquired ConcealFab, a provider of 5G and small cell infrastructure. Through this acquisition, Ericsson aimed to accelerate 5G infrastructure development in the U.S. and strengthen its business.

REPORT COVERAGE

An Infographic Representation of 5G Infrastructure Market

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The report highlights leading regions across the world to offer a better understanding of the market. Furthermore, it provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

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