5G Infrastructure Market

Market Overview 2023-2028:

The global 5G infrastructure market size reached US$ 7.1 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 77.1 Billion by 2028, exhibiting a growth rate (CAGR) of 45.9% during 2023-2028. The growing use of virtual reality (VR) and augmented reality (AR) applications in education, gaming, and professional training, rising need for high-speed internet to support data-heavy applications, and technological advancements in the field of communication and computing are some of the major factors propelling the market.

5G infrastructure refers to the hardware, software, and services that support the fifth generation of mobile networks. It provides higher data download and upload speeds, more reliable connections, and lower latency compared to 4G. It provides better and broader network coverage, reaching remote and underserved areas. It ensures quick content streaming and data transfers and better energy efficiency, which leads to longer battery life for devices and a reduced environmental footprint. It is used in telemedicine, remote surgeries, and patient monitoring and integrated into gaming and entertainment due to higher data speeds. It is also utilized in autonomous vehicles that ensure safer and more efficient driving.

The growing use of virtual reality (VR) and augmented reality (AR) applications in education, gaming, and professional training which requires robust and lag-free connections, is driving the demand for 5G infrastructure. Apart from this, various governments worldwide are actively promoting and investing in 5G deployment to stimulate economic growth, drive innovation, and enhance global competitiveness, which is offering a favorable market outlook. They are allocating suitable frequency spectrums for 5G rollout, facilitating the expansion of 5G networks and services. 5G provides uninterrupted streaming of high-definition content, on account of its optimal bandwidth and high speed.

5G Infrastructure Market Trends/Drivers:

Increasing demand for high-speed internet and broad network coverage

The growing need for high-speed internet to support data-heavy applications and the rising sales of smartphones, tablets, laptops, personal computers (PCs), and the Internet of Things (IoT) devices, represent one of the key factors positively influencing the market. Apart from this, rapid urbanization, the development of smart cities, and the rising emphasis on technologies that help manage traffic, energy, public safety, and other municipal services efficiently are favoring the market growth. 5G, on account of its high-speed and reliable connectivity, is increasingly used as an efficient infrastructure component in these settings.

Rising use of IoT and machine-to-machine (M2M) communications

The expanding landscape of the Internet of Things (IoT) is catalyzing the demand for more efficient and faster connectivity solutions. 5G supports up to a million devices per square kilometer, ensuring the seamless connection of multiple devices within a single network without interference. Additionally, the expanded spectrum bands in the millimeter-wave frequencies allow for larger data transmission at high speeds. Apart from this, the rising automation in industries requiring reliable and real-time communication is positively influencing the market. The low latency and high reliability of 5G aid in supporting advanced applications like remote machine control and real-time data analysis.

Technological advancements in the field of communication and computing

The rise of edge computing, which involves processing data closer to its source, necessitates high-speed connectivity. 5G, with its ability to support faster data transfers, is supporting the growth of edge computing solutions. Apart from this, advancements in technologies like network function virtualization (NFV) and software-defined networking (SDN) are simplifying network management and operation. These technologies, combined with 5G infrastructure, help optimize network performance, scalability, and flexibility and offer adaptive network architecture.

5G Infrastructure Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global 5G infrastructure market report, along with forecasts at the global, regional and country levels from 2023-2028. 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) dominates the market

A detailed breakup and analysis of the market based on the communication infrastructure has also been provided in the report. This includes small cell, macro cell, radio access network (RAN), and others. According to the report, radio access network (RAN) accounted for the largest market share. The increasing number of mobile users is leading to a significant rise in data traffic, which represents one of the key factors favoring market growth. Streaming services, online gaming, and cloud-based applications are driving the need for RAN as it facilitates efficient handling of increased mobile traffic and ensures smooth connectivity. Additionally, the integration of technologies, such as network function virtualization (NFV) into RAN offers flexibility, scalability, and cost savings. Apart from this, the widespread adoption of 5G infrastructure across the globe is catalyzing the need for the evolution and scaling of RAN. Apart from this, 5G provides faster speeds and higher densities of device connectivity, which is increasing the need for modernized RAN infrastructure.

Breakup by Network Technology:

• Software-Defined Networking
• Network Function Virtualization
• Others
   

Network function virtualization holds the largest market share

The report has provided a detailed breakup and analysis of the market based on the network technology. This includes software-defined networking, network function virtualization, and others. According to the report, network function virtualization represented the largest segment. Network function virtualization allows network services to be easily scaled up and down based on demand. Service providers can swiftly deploy new functions or expand existing ones without a major hardware overhaul, ensuring adaptability to changing needs. Additionally, it simplifies network management and orchestration. The centralized control of virtualized functions streamlines operations, leading to more efficient resource utilization and better service quality. Apart from this, launching new services becomes expedited with the agility offered by network function virtualization. Network operators can swiftly test and deploy new offerings and achieve a competitive edge. Furthermore, it reduces the need for specialized hardware and results in significant cost savings in procurement and maintenance.

Breakup by Network Architecture:

• Standalone
• Non-Standalone
   

A detailed breakup and analysis of the market based on the network architecture has also been provided in the report. This includes standalone and non-standalone.

Standalone (SA) architecture represents a comprehensive 5G setup where the core and the radio access network are based on 5G standards. It facilitates network slicing, wherein operators can create multiple virtual networks within a single physical 5G network. Apart from this, it helps in positioning networks for long-term evolution and advanced use cases like IoT and industrial automation.

Non-Standalone (NSA) architecture is an intermediate step toward full 5G deployment. In NSA, the 5G network is built upon existing 4G LTE infrastructures. It allows operators to leverage their existing 4G infrastructure, facilitating a quicker and more cost-effective 5G rollout. Additionally, it is used as a transitional phase towards full 5G deployment and assists operators focusing on introducing 5G services to the market swiftly while planning a gradual transition to SA.

Breakup by Frequency:

• Sub-6 Ghz
• Above 6 Ghz
   

Sub-6 Ghz accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the frequency. This includes sub-6 Ghz and above 6 Ghz. According to the report, sub-6 Ghz holds the largest market share. Sub-6 GHz frequencies have better propagation characteristics than higher millimeter-wave frequencies. This ensures broader network coverage and better penetration through buildings and obstacles, making it apt for urban and dense environments. Additionally, leveraging sub-6 GHz allows network operators to utilize existing 4G infrastructure with modifications, easing the transition to 5G and resulting in cost savings. Apart from this, many countries are allocating spectrum in the sub-6 GHz range for 5G deployments. This widespread allocation facilitates more consistent global rollouts and interoperability. Furthermore, sub-6 Ghz strikes a balance by providing commendable data rates while maintaining a substantial coverage area, which is offering a favorable market outlook.

Breakup by End User:

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

Home user exhibits a clear dominance in the market

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes automotive, energy and utilities, healthcare, home user, and others. According to the report, home user accounted for the largest market share. The rising reliance of individuals on smartphones, laptops, tablets, and smart appliances, represents one of the key factors catalyzing the demand for 5G infrastructure among home users as it ensures seamless interaction between devices without network congestion. Additionally, rise of OTT platforms and online gaming are catalyzing the need for faster and more reliable internet. 5G, with its high-speed data transfer rates, supports ultra-high-definition content streaming and real-time gaming experiences without lag. Apart from this, the global shift towards remote work and online education is driving the need for dependable internet. 5G ensures uninterrupted video conferencing, faster file downloads, and smoother online collaborations.

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 exhibits a clear dominance, accounting for the largest 5G infrastructure market share

The 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.

Rapid urbanization and the development of smart cities in the Asia Pacific region represent one of the key factors positively influencing the market. Additionally, many cities in the region are among the most densely populated cities in the world. 5G, with its ability to support massive device connectivity, addresses high user density, ensuring consistent service delivery. Apart from this, the rising digital economy of the region, spanning e-commerce, online entertainment, and the development of fintech is driving the need for reliable and fast connectivity provided by 5G. Furthermore, governments of various countries in the region are actively investing in and promoting the development of 5G infrastructure to drive economic growth and modernization.

Competitive Landscape:

Companies are scaling their production capabilities to meet the increasing demand for 5G equipment, such as base stations, antennas, and routers. Additionally, many companies are investing in training programs to equip their workforce with relevant expertise. They are actively engaged in awareness campaigns, educating potential clients about the benefits and applications of 5G. Apart from this, they are working closely with regulatory bodies to shape policy frameworks conducive to 5G development and ensure adherence to standards. Furthermore, some leading companies are forming alliances and partnerships with other tech firms, network operators, and local governments to accelerate the 5G rollout and devise solutions tailored to specific regional needs.

The report has provided a comprehensive analysis of the competitive landscape in the market. 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

Recent Developments:

• In June 2023, Orange SA and Telefonaktiebolaget LM Ericsson signed a collaboration agreement and secured contracts for the installation and maintenance of 5G network infrastructure on high-speed rail lines across Spain.
• In June 2022, Cisco Systems Inc. joined forces with General Dynamics Information Technology (GDIT) to deliver private 5G to government agencies.

5G Infrastructure Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s 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 2017-2028.
• The research study 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 assist 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.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.