5G Infrastructure Market Research Report: Forecast (2023-2028)

Market Definition

Fifth generation (5G) wireless system, or fifth generation mobile network, is an advanced telecommunication technology that enables high-speed data transfer and high system spectral efficiency (implies larger data volume) with relatively low battery consumption, as well as offers the provision of connecting several devices simultaneously.

Market Insights

The Global 5G Infrastructure Market is projected to grow at a CAGR of around 65% during the forecast period, i.e., 2023-28. The market's growth is attributed to the rising adoption of 5G technology in automobiles due to the growing popularity of autonomous cars. Additionally, the ever-increasing application of the 5G network among verticals such as manufacturing, healthcare, aerospace & defense, industrial, automotive, and many other sectors is anticipated to propel the industry in the coming years. Besides, increasing technological evolution in the M2M and IoT industry has positively influenced 5G adoption in recent years.

Apart from these, the boost in demand for high-speed internet services from the end-users, rising investment by the communication service providers toward 5G infrastructure, and an exponential surge in the sales of smartphones, desktops, laptops, and other connected devices are also projected to place a positive impact toward the growth of the market in the forecast period.

Moreover, the burgeoning number of communication service providers (CSPs) worldwide has stiffened competition among mobile operators for 5G adoption. Numerous networking providers such as Telefonaktiebolaget, LM Ericsson, Cisco, Nokia, Huawei, and Samsung are relentlessly investing in offering an unparalleled experience to users. Further, because of rigorous investments, ongoing partnerships, and increasing R&D activities, countries such as Australia, China, Japan, and South Korea, enable the Asia-Pacific region to put a strong foothold in the forecast period. For instance, In December 2022, Bharti Airtel, in collaboration with Apollo Hospitals, conducted India’s first 5G-driven Artificial Intelligence (AI) guided Colonoscopy trial.

Market Dynamics:

Market Driver:

Expanding Virtual Networking Architectures in Telecommunications

Currently, the networks are being implemented using various hardware intended for purpose-specific applications. Besides exhibiting an inability to expand, these types of hardware are costly to maintain and manage. Moreover, the lifespan of devices is also minimal. Therefore, in the 5G infrastructure, it is crucial to create a flexible and agile network structure that is easily altered and built per the needs, enabling thousands of gadgets to connect in the future. This is possible via software-based networking techniques like virtualization of network functions (NFV) and software-defined network (SDN). SDN and NFV enable network flexibility by dividing networks into virtual elements. Additionally, the 5G network slicing can allow network operators to use only the features needed to serve specific clients and certain market segments. Therefore, these software-driven network technologies will accelerate the growth of the market for 5G infrastructure in terms of speed of deployment and the efficient operation of the 5G network.

Growth Restraints: 

Inadequate Standardization of Spectrum Allocation.

Using more frequencies is one of the considerable advantages of 5G networks. But, all bands (radio spectrum) are being used for different purposes, like telecom services and government agencies. And accessing these spectrums at high frequencies is vital to 5G technology development. However, because it's already allocated to various applications, there needs to be more clarity regarding access to such frequency bands. Moreover, there is yet to be a specific timeframe for when wireless companies will be granted access to these frequencies to establish 5G technology. Although various government agencies are proposing different rules in all regions to resolve such conflicts, these factors, until then, are expected to impede the market growth.

Market Segmentation

Based on the Application,

• Automotive
  • Autonomous Driving
  • Smart Navigation
  • Digitalized Logistics
• Energy & Power
  • Smart Grid
  • Smart Meters
• Industries
  • Machine to Machine (M2M) Communication
  • Remote Machinery
• Consumer Electronics
  • Smart Handheld Devices
  •  Immersive Technology Devices (AR & VR)

Amongst all, the industrial segment dominated the Global 5G infrastructure market in the historical period owing to the constant innovation in communication technologies such as IoT and M2M. Furthermore, the extensive demand for established continual communication among industrial applications has called for strengthening 5G Infrastructure in recent years.

Further, proliferating demand for critical industrial applications such as collaborative/cloud robots has positively influenced the industry. On the contrary, the automotive segment would also grow at an astronomical rate in the coming years. Furthermore, the introduction of 5G technology and an increase in the popularity of autonomous vehicles are anticipated to proliferate the 5G infrastructure market growth in the coming years.

Based on Communication Infrastructure,

• RAN
• Transport Network
• Core Network

Here, The Radio Access Network (RAN) acquired the largest market share in the historical period. It owes principally to the robust deployment of virtual and centralized RAN among network service providers to make the overall infrastructure cost-effective. In addition, the utilization of software-defined networking (SDN) technology is gradually expanding to enhance the operational efficiency of virtual RANs. For Instance,

In October 2022, Nokia signed a contract with Reliance Jio to deliver 5G Radio Access Network (RAN) equipment from its comprehensive AirScale portfolio. The agreement came after Reliance Jio announced its plans to deploy a 5G standalone network that will interwork with its 4G network.

Regional Projection

Geographically, the Global 5G Infrastructure Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Among all, North America acquired the leading position in the historical period and is expected to prevail in the same trend on account of steady investment by communication service providers toward 5G infrastructure across the US. The investment seeks to make wireless connectivity more flexible. Besides, the widespread adoption of advanced technologies such as autonomous or connected cars and the internet of things (IoT) is likely to encourage the upgradation in the industry. Other than this, the rapid innovation in mobile communication technology across the region has further intensified the industry's growth in the historical period.

On the other hand, the burgeoning 5G rollout in the private sector, paired with increasing R&D activities and government initiatives, has encouraged the adoption of 5G, necessitating the demand for concrete 5G infrastructure across Asian countries. Backed by these aspects, the industry across Asia-Pacific is likely to grow at a higher pace in the coming years.

Recent Developments in the Global 5G Infrastructure Market

• In October 2022, Ericsson entered into a long-term strategic 5G contract with Reliance Jio Infocomm Ltd. (Jio) to roll out a 5G Standalone in India. These companies came together for radio access network deployment in the country for the first time.
• In June, 2022, Cisco, announced its plan reagrding the delivery of Cisco Private 5G services to a broad set of government entities. For this, it expanded its relationship with General Dynamics Information Technology (GDIT).

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