5G Infrastructure Market

5G Infrastructure Market Size:

The global 5G infrastructure market size reached US$ 10.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 258.0 Billion by 2032, exhibiting a growth rate (CAGR) of 42.94% during 2024-2032. The market is experiencing steady growth driven by the escalating demand for high-speed internet with low latency, increasing automation of industrial operations to improve efficiency, and rising implementation regulations and policies to improve connectivity situations.

5G Infrastructure Market Analysis:

• Market Growth and Size: The 5G infrastructure market is experiencing robust growth on account of the increasing demand for high-speed internet connection with low-latency connectivity.
• Major Market Drivers: Key drivers include the exponential growth in data demands, the adoption of Industry 4.0 practices, and the emergence of transformative applications in various industries.
• Technological Advancements: Technological advancements in 5G infrastructure include network slicing, edge computing integration, and enhanced mobile services, such as network function virtualization (NFV) and software-defined networking (SDN).
• Industry Applications: 5G technology finds applications in automotive, healthcare, energy and utilities, and smart home solutions. It enables real-time data analytics, remote monitoring, and automation, revolutionizing industries and enhancing efficiency.
• Key Market Trends: Key trends include the integration of 5G with edge computing, rising emphasis on reducing energy consumption per unit of data transmitted, aligning with global green initiatives, and adoption of 5G is driving Industry 4.0.
• Geographical Trends: Asia Pacific leads the market driven by the increasing demand for high-speed internet. However, North America is emerging as a fast-growing market on account of the rising automation of various industrial operations.
• Competitive Landscape: Key players are investing in research and development (R&D), expanding network coverage, and collaborating with various industries. They are addressing security concerns and regulatory requirements to ensure the trustworthiness of 5G networks.
• Challenges and Opportunities: Challenges include the need for extensive infrastructure development, regulatory complexities, and socioeconomic disparities. Nonetheless, opportunities for advancing digitalization, bridging the digital divide, and unlocking the transformative potential of 5G technology across industries are projected to overcome these challenges.

5G Infrastructure Market Trends:

Increasing data demands

The rise in data consumption is propelling the growth of the market. The modern digital landscape is marked by an ever-increasing demand for high-speed and low-latency connectivity. This demand is fueled by a myriad of factors, including the proliferation of smart devices, the rapid expansion of Internet of Things (IoT) applications, and the adoption of data-intensive technologies like augmented reality (AR) and virtual reality (VR). Smartphones, tablets, and wearable devices have become integral parts of our lives, and they rely heavily on seamless connectivity. Moreover, the IoT ecosystem continues to expand as more devices become interconnected, from smart home appliances to industrial sensors. These devices create massive amounts of data that need to be transmitted swiftly and reliably, driving the need for robust 5G infrastructure. Additionally, AR and VR technologies are gaining traction in various industries, such as gaming, healthcare, and education. These applications demand high bandwidth and ultra-low latency to provide users with immersive experiences. As a result, the capabilities of 5G are indispensable in meeting these performance requirements.

Industry 4.0 and automation

The adoption of Industry 4.0 practices and the pursuit of automation across industries are supporting the market growth. Industry 4.0, often referred to as the fourth industrial revolution, is characterized by the addition of digital technologies into various industrial processes. 5G plays a pivotal part in enabling the tenets of Industry 4.0, which include real-time data analytics, remote monitoring, and automation. These capabilities are instrumental in enhancing operational efficiency and productivity across diverse sectors, including manufacturing, logistics, and agriculture. In manufacturing, for instance, 5G facilitates the implementation of smart factories where machines and devices are interconnected and communicate seamlessly. This connectivity enables predictive maintenance, reducing downtime and optimizing production processes. Real-time data analysis ensures that decisions can be made swiftly, improving overall efficiency and product quality. Furthermore, in the logistics and supply chain management sector, 5G supports remote monitoring and tracking of goods and vehicles. It enables real-time updates on shipment status, enhancing transparency and enabling more efficient routes and delivery schedules. In agriculture, the integration of 5G allows for precision farming, where sensors and drones collect data on soil conditions, weather, and crop health in real-time. This data-driven approach enhances crop yield and reduces resource wastage.

Government initiatives and regulations

Governments worldwide are actively promoting the deployment of 5G infrastructure due to its strategic importance. Recognizing its potential to drive economic growth, innovation, and competitiveness, governments are implementing initiatives to support its expansion. These initiatives often include spectrum allocation, financial incentives, and regulatory frameworks that facilitate 5G network deployment. Governing agencies of various countries are also taking steps to streamline the permitting and approval processes for the installation of 5G infrastructure, reducing barriers for telecom companies and infrastructure providers. These favorable conditions encourage investment in 5G networks and contribute significantly to market growth. Moreover, some countries are using 5G deployment to advance their technological leadership and establish themselves as global leaders in connectivity. This competitive drive among nations further accelerates the adoption of 5G infrastructure. Moreover, government of several nations are planning to construct smart cities, which heavily rely on high-speed internet connectivity for various aspects.

5G Infrastructure Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on communication infrastructure, network technology, network architecture, frequency, and end user.

Breakup by Communication Infrastructure:

• Small Cell
• Macro cell
• Radio Access Network (RAN)
• Others
   

Radio access network (RAN) accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the communication infrastructure. This includes small cell, macro cell, radio access network (RAN), and others. According to the report, radio access network (RAN) represented the largest segment.

The radio access network (RAN) is the largest and fundamental segment of the communication infrastructure, serving as the interface existing between mobile devices and the core network. RAN includes both small cells and macro cells and is responsible for managing wireless connections, signal transmission, and data traffic. RAN is a pivotal component in the 5G ecosystem, as it facilitates the deployment of advanced features like beamforming, network slicing, and low-latency communication. The significance of RAN lies in its ability to provide seamless connectivity, reduce latency, and support a multitude of devices, making it the cornerstone of modern wireless communication networks. It enables the deployment of 5G services, internet of things (IoT) connectivity, and innovative applications.

Small cell infrastructure comprises compact, low-power base stations designed to enhance network capacity and coverage in densely populated urban areas or areas with high data demand. Small cells are crucial for improving the quality of service in crowded locations, such as stadiums, shopping malls, and urban centers. Their small footprint and scalability make them ideal for addressing localized congestion and delivering high-speed connectivity in areas where macro cells may struggle to meet the demand.

Macro cell infrastructure represents the traditional backbone of wireless networks, consisting of large, high-power cell towers that cover broader geographic areas. These towers provide wide-area coverage, making them essential for connecting suburban and rural regions. Macro cells are particularly suited for voice communication and data transmission over long distances. They play a critical role in providing extensive network coverage and ensuring network continuity, especially in less densely populated areas where the deployment of small cells may be less feasible.

Breakup by Network Technology:

• Software-Defined Networking
• Network Function Virtualization
• Others
   

Network function virtualization holds the largest share in the industry

A detailed breakup and analysis of the market based on the network technology have also been provided in the report. This includes software-defined networking, network function virtualization, and others. According to the report, network function virtualization accounted for the largest market share.

Network function virtualization (NFV) represents a paradigm shift in network infrastructure. NFV involves replacing traditional hardware-based network appliances with virtualized instances running on standard servers and cloud-based platforms. This approach allows for the virtualization of network functions like firewalls, load balancers, and routers, making networks more agile and cost-effective. NFV is especially appealing for telecom operators and service providers aiming to reduce capital expenditures, accelerate service deployment, and increase network scalability. Its impact extends beyond telecommunications, with applications in cloud computing, edge computing, and internet of things (IoT).

Software-defined networking (SDN) is a network architecture that separates the control plane from the data plane, enabling centralized control and programmability of network resources. SDN simplifies network management and allows for dynamic configuration and optimization of network services. This technology is particularly beneficial for enterprises and data centers seeking to enhance network agility, scalability, and efficiency.

Breakup by Network Architecture:

• Standalone
• Non-Standalone
   

The report has provided a detailed breakup and analysis of the market based on the network architecture. This includes standalone and non-standalone.

Standalone 5G network architecture represents a fully independent and self-contained infrastructure, where both the 5G core (5GC) and the 5G new radio (NR) are deployed as standalone networks. SA architecture offers the complete set of 5G features and capabilities, enabling the full potential of 5G technology. It is particularly suited for scenarios where a greenfield deployment of 5G is feasible or in cases where a complete network overhaul is required. SA architecture provides lower latency and enhanced performance compared to NSA, making it ideal for applications demanding the utmost reliability and efficiency, such as autonomous vehicles and critical internet of things (IoT) services.

Non-standalone 5G network architecture is an initial implementation of 5G that relies on existing 4G LTE infrastructure for certain functionalities. In NSA, the 5G NR is deployed alongside the existing LTE network, utilizing the LTE core network for control signaling. NSA architecture serves as an interim solution to quickly introduce 5G services while leveraging the existing LTE infrastructure. It allows for faster 5G deployment and offers compatibility with existing LTE devices.

Breakup by Frequency:

• Sub-6 Ghz
• Above 6 Ghz
   

Sub-6 Ghz exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the frequency have also been provided in the report. This includes sub-6 Ghz and above 6 Ghz. According to the report, sub-6 Ghz accounted for the largest market share.

Sub-6 GHz frequency bands encompass the range below 6 GHz, including spectrum in the mid-band (around 3.5 GHz) and the low-band (below 1 GHz). Sub-6 GHz 5G networks offer a good balance between coverage and capacity, making them appropriate for widespread deployment, including in rural and suburban areas. They provide improved data speeds and capacity compared to 4G networks while requiring fewer base stations for coverage. Sub-6 GHz 5G is a key driver for enhanced mobile broadband, supporting applications like high-definition video streaming, online gaming, and general internet access, making it the go-to choice for network operators aiming to deliver 5G services to a broad user base.

Above 6 GHz frequency bands are a crucial segment in the 5G market, known for their ability to deliver extremely high data rates and low latency. These frequency ranges, often referred to as millimeter wave (mmWave) spectrum, typically fall within the 24 GHz to 100 GHz range. Above 6 GHz 5G networks are ideal for dense urban environments and locations with exceptionally high data demand, such as stadiums and city centers. They can achieve multi-gigabit data speeds but have a relatively limited coverage area per base station due to higher propagation losses.

Breakup by End User:

• Automotive
• Energy and Utilities
• Healthcare
• Home User
• Others
   

Home user dominates the market

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, energy and utilities, healthcare, home user, and others. According to the report, home user represented the largest segment.

Home users represent the largest segment in the 5G market, driven by the demand for high-speed internet connectivity and smart home applications. 5G technology enables gigabit-speed internet access, making it attractive for residential users who require fast and reliable broadband connections. Home users benefit from the ability to support multiple devices simultaneously, enabling seamless streaming, online gaming, and smart home automation. The deployment of 5G fixed wireless access (FWA) solutions further expands broadband availability, especially in areas with limited traditional broadband options.

Automotive end users represent a significant segment in the market, driven by the increasing integration of 5G technology into vehicles. 5G enables advanced features like vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, which are essential for autonomous and connected vehicles. These capabilities enhance road safety, traffic management, and overall driving experiences.

Energy and utilities companies are adopting 5G technology to improve the efficiency and reliability of their operations. 5G facilitates the monitoring and control of critical infrastructure, such as smart grids and pipelines, enabling real-time data collection and analysis. It enhances the management of energy distribution and ensures the resilience of utility networks.

Healthcare benefits from the high-speed, low-latency connectivity that 5G provides. It enables telemedicine, remote patient monitoring, and the transmission of large medical files with minimal delay. Healthcare professionals can conduct surgeries and consultations from a distance, improving the access to healthcare services, especially in remote or underserved areas.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest 5G infrastructure market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific 5G infrastructure market is driven by the rising construction of smart cities and the integration of automation in various industrial operations.

North America maintains a strong presence driven by the widespread rollout of 5G networks, with major telecom operators investing heavily in infrastructure.

Europe stands as another key region in the market, driven by the increasing focus on enhancing connectivity for both urban and rural areas.

Latin America exhibits growing potential in the 5G infrastructure market, fueled by increased internet access and smartphone usage.

The Middle East and Africa region show a developing market for 5G infrastructure, driven by the increasing investments in 5G infrastructure to enable advanced connectivity.

Leading Key Players in the 5G Infrastructure Industry:

Key players in the 5G market are actively engaged in several strategic initiatives. They are heavily investing in research and development (R&D) efforts to advance 5G technology, focusing on improving network infrastructure, enhancing spectral efficiency, and developing innovative use cases. Top companies are also working on expanding their 5G network coverage to provide seamless connectivity to a broader user base. Additionally, they are actively engaging in collaborations with industries like automotive, healthcare, and manufacturing to unlock the full potential of 5G in enabling transformative applications. Moreover, 5G players are addressing security concerns and compliance with regulatory requirements to ensure the reliability and trustworthiness of their networks and services.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Airspan Networks Inc.
• AT&T Inc.
• Cisco Systems Inc.
• Comba Telecom Systems Holdings Limited
• Hewlett Packard Enterprise Company
• Huawei Technologies Co. Ltd.
• Mavenir Systems Inc. (Comverse Technology)
• NEC Corporation
• Nokia Oyj
• Oracle Corporation
• Telefonaktiebolaget L M Ericsson
• ZTE Corporation
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• January 2023: Airspan Networks Inc. announced plans to expand its 5G Innovation Lab initiative in Tokyo to incorporate accelerating network adoption and scaling in the Asia-Pacific region.
• December 2023: AT&T Inc. announced plans to collaborate with Ericsson to lead the United States in commercial scale open radio access network (Open RAN) deployment and build a more robust ecosystem of network infrastructure providers and suppliers.

5G Infrastructure Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the 5G infrastructure market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global 5G infrastructure market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the 5G infrastructure industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.