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5G Technology Market by Component (Hardware, Software, and Services), Connectivity (Enhanced Mobile Broadband (eMBB), Massive Machine Type Communication (mMTC), Ultra-Reliable and Low-Latency Communication (URLLC)) -Global Forecast to 2029
Report ID: MRICT - 104641 Pages: 230 Aug-2022 Formats*: PDF Category: Information and Communications Technology Delivery: 24 to 72 Hours Download Free Sample ReportThe 5G technology market is driven by the massive growth in mobile data traffic volumes over the 4G network, the need for ultra-low latency network connectivity, and the growing investments in 5G technology. Further, connected factories, automation, and smart cities initiatives are expected to offer significant growth opportunities for the 5G technology market. However, delays in the standardization of spectrum allocation restrain the market's growth to some extent.
The COVID-19 pandemic adversely impacted the global economy. Nationwide lockdowns and social distancing norms across several countries negatively affected multiple industries, including the 5G technology industry. Numerous 5G technology providers were under immense pressure due to uncertainty regarding the duration of the lockdowns, making it difficult for the key market players to anticipate the recovery of the 5G technology market.
In March 2020, 3GPP (3rd Generation Partnership Project) announced a three-month delay in the timeline for completing 5G specifications due to the pandemic. [AD1] Delayed releases slowed down the commercial development of 5G deployments. Furthermore, supply chain disruptions and delays in the release of 5G technology adversely affected the 5G technology market in 2020–2021.
However, economies are shifting their focus from responding to the pandemic to economic recovery, and hence, various growth opportunities are expected to emerge for the 5G technology market players due to the growing adoption of virtual networking architecture in the telecommunications sector.
However, several businesses are exerting extensively to move the point-of-sale terminal market in the right direction. Local governments are also undertaking several relief steps to mitigate the negative impacts of the pandemic. As a result, the 5G technology market is expected to recover to its original track after 2023.
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5G technology helps manage mobile data traffic more efficiently, improving throughput, lowering network congestion, optimizing resource use, and enhancing service quality. The consistent growth and ever-changing 5G wireless devices accessing mobile networks globally are the primary factors responsible for growth in mobile data traffic. Mobile data traffic across the globe is also increasing due to the increasing penetration of smartphones and the easy availability of affordable high-speed network services. For instance, as per GSMA Intelligence, global smartphone penetration is expected to increase from 65% in 2019 to 80% by the end of 2025. According to Ericson, 5G networks will carry 45% of the global mobile data traffic by 2025. Thus, constant growth in mobile data traffic has created a need for 5G technology.
The deployment of cutting-edge technologies such as IoT, artificial intelligence, and augmented and virtual reality is rapidly increasing. However, several industries can still not utilize the full potential of these technologies due to high latency issues. In contrast, 5G technology offers ultra-low latency to provide an advanced user experience with its fast data transmission features, boosting its demand across mission-critical applications.
5G technology allows for ultra-reliable communication with low latency for vehicle-to-vehicle communication in crowded urban areas and high-speed scenarios. Thus, ultra-low latency is becoming a game-changer in virtual and augmented reality applications, fueling the 5G technology demand.
Based on component, in 2022, the hardware segment is expected to account for the largest share of the 5G technology market. The increasing need to reduce OPEX and CAPEX, the growing robust deployment of 5G RAN with several small cells and microcell base stations, and the increasing need to implement virtual RAN among network service providers to reduce network complexities are the factors expected to support the growth of this segment. The usability, criticality, and easy deployment of hardware solutions further support the growth of this segment. Owing to the benefits offered by this hardware, several providers are investing in R&D to make the solutions better and more affordable, even for small & medium-scale enterprises.
Based on connectivity, the Enhanced Mobile Broadband (eMBB segment is projected to register the highest CAGR during the forecast period. The rising penetration of smartphones and the need for high bandwidth to provide reliable communication to wireless devices are expected to support the growth of this segment.
In 2022, Asia Pacific is expected to account for the largest share of the 5G technology market, followed by North America, Europe, Latin America, and the Middle East & Africa. However, Asia-Pacific is expected to witness rapid growth during the forecast period. The presence of prominent key players mainly drives the rapid growth of this region. Besides, strong government initiatives, growing investment in 5G network technology, adoption of advanced technologies such as IoT and M2M communication, and the increasing prominence of SMEs are expected to help the region grow rapidly over the coming years.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the 5G technology industry over the last four years. The key players profiled in the 5G technology market are Nokia Corporation (Finland), Cisco Systems, Inc. (U.S.), Huawei Technologies Co., Ltd. (China), Telefonaktiebolaget LM Ericsson (Sweden), Qualcomm Technologies, Inc. (U.S.), Ciena Corporation (U.S.), Verizon Communications Inc. (U.S.), Intel Corporation (U.S.), Deutsche Telekom AG (Germany), Samsung Electronics Co., Ltd. (South Korea), Extreme Networks (U.S.), DISH Network Corporation (U.S.), NEC Corporation(U.S.), Parallel Wireless, Inc. (U.S.), AT&T (U.S.), Fujitsu Limited (Japan), Mavenir Systems, Inc. (U.S.), ZTE Corporation (China), Comba Telecom Systems Holdings Ltd. (China), and Crown Castle (U.S.).
The 5G technology market encompasses hardware, software, and services that enable high-speed, low-latency mobile networks, supporting innovations like IoT, automation, and enhanced mobile broadband.
The global 5G technology market is projected to reach $241.5 billion by 2029, driven by the growing demand for high-speed data and ultra-low latency connectivity across multiple industries.
The 5G technology market is forecast to grow at a CAGR of 42.2% from 2022 to 2029, driven by increasing mobile data traffic, smart city initiatives, and investments in advanced network infrastructure.
The market size is expected to reach $241.5 billion by 2029, driven by rising mobile data consumption, connected devices, and the growing demand for fast, low-latency connectivity solutions.
Key companies include Nokia, Huawei, Ericsson, Qualcomm, Cisco Systems, Samsung, Intel, Verizon Communications, and AT&T, among others, providing 5G hardware, software, and network services.
Market trends include increasing mobile data traffic, the rising need for low-latency networks, growing investments in 5G infrastructure, and the adoption of IoT and smart city technologies
Drivers include massive growth in mobile data traffic, the need for ultra-low latency networks, and increasing investments in connected devices, automation, and smart city projects.
The 5G market is segmented by components (hardware, software, services) and connectivity types such as Enhanced Mobile Broadband (eMBB), Massive Machine Type Communication (mMTC), and Ultra-reliable Low-latency Communication (URLLC).
The global 5G technology market is set for rapid growth due to increasing investments, the rise of connected devices, automation, and the push for ultra-fast data speeds across multiple industries.
The 5G technology market is expected to grow at a CAGR of 42.2% from 2022 to 2029, with massive expansion driven by increased mobile data traffic, IoT advancements, and smart city projects.
The market is projected to grow at a CAGR of 42.2% from 2022 to 2029, driven by advancements in mobile data services and increasing investments in 5G infrastructure globally.
Asia-Pacific holds the largest market share, driven by strong government initiatives, investments in 5G, and the presence of leading companies like Huawei and Samsung in the region.
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