The global 5G infrastructure market is estimated to witness a robust growth rate of over 50% over the period of 2019-2028. The growing demand for high-speed data with low latency and rapidly increasing use of services and data-heavy applications has bolstered the demand for 5G networks and hence the demand for 5G infrastructure by telecom operators. Demand for higher data speed is primarily being driven by the growing use of both the consumer electronics segment and business-to-business communication systems that are currently being used for data-intensive applications.
Moreover, the increasing data traffic due to interconnected devices at home and businesses has again led to the demand for higher bandwidth. The rapid rise in the demand for higher bandwidth by consumers and businesses for various applications such as entertainment, virtual meetings, IoT, cloud-based services, and others has boosted the market growth.
Network Function Virtualization (NFV) is a widely preferred core network technology
On the basis of core network technology, the market is segmented into network function virtualization (NFV) and software-defined network (SDN). NFV technology is dominating the global 5G infrastructure market. The service providers of 5G networking across the globe are occupied with building and expanding their network footprint. NFV plays a major role as an integral part of the 5G infrastructure. The NFV creates and manages virtual network functions and scales the network. The technology is also used in 5G wireless networks as it can provide cost-efficient and energy-saving solutions. It provides standard IT virtualization to consolidate multiple network equipment types onto switches, storage devices, and industry-standard high-volume servers.
Moreover, NFV enables the delivery of networking functionalities without installing hardware equipment every time during a new service, which helps to cut down the overall expenditures. The migration of standard networking appliances in the 5G era from one platform to another is also possible while using NFV technology.
Asia-Pacific held the largest share in the global 5G infrastructure market
Geographically, the market is analyzed into North America, Western Europe, Eastern Europe, Asia-Pacific, Latin America, Middle East, and Africa. Asia-Pacific accounts for the majority of shares in the 5G infrastructure market and is expected to hold its dominant position during the forecast period. This is primarily attributed to the rapid roll-out of 5G network plans by public and private players coupled with the rising number of 5G network solutions manufacturers and component providers in the region.
The growing adoption of technologically advanced devices and rising internet penetration in the Asia-Pacific region is further expected to boost the growth of the market in the future. The adoption of the digital ecosystem in the Asia-Pacific region has witnessed vital responses due to the COVID-19 outbreak. The users are continuously focused on developing quality-based services such as online collaboration tools, video calling services for businesses & educational purposes, e-commerce & mobile payment applications, live and on-demand video streaming, and others that are further expected to propel the market growth. Such initiatives and growing ease for better advancement in the digital world are expected to drive the 5G infrastructure market growth in the Asia-Pacific region.
Market Structure and Competition Landscape
The global 5G infrastructure market is characterized by the presence of various players operating in the market. Some of the prominent players that contribute significantly to the market growth include Qualcomm Inc., Huawei Technologies Co. Ltd., Telefonaktiebolaget LM Ericsson, Nokia Corp., Vodafone Group PLC, Intel Corp., Samsung Electronics Co. Ltd., IBM Corp., Siemens AG, Cisco Systems Inc., NEC Corp., Fujitsu Ltd. among others. These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers & acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players. Some of the key developments in the global 5G infrastructure market include,
- In December 2021, Sidewalk Infrastructure Partners announced to acquire a majority stake in Dense Air, a RAN-as-a-Service company that uses shared infrastructure to extend and enhance carrier networks. The aim of this acquisition is to make connectivity more open, shared, and inclusive through public-private partnerships.
- In November 2021, Ericsson announced to acquire Vonage for US$ 6.2 billion. Vonage is a New Jersey-based communication platform as a service (CPaaS) provider. Through this acquisition, Ericsson would be offered tools for embedding communication services in 5G applications. This would further enhance Ericsson’s foothold in the 5G market.
- In March 2021, Cisco Systems, Inc. announced to invest some part of its US$ 5 billion fund projects for 5G services globally in India. This is to help India’s telecom operators build crucial components of wireless networks comprising core, transport, mobility, and security solutions.
Key Market Segmentation
RationalStat has segmented the global 5G infrastructure market on the basis of communication infrastructure, core network technology, network infrastructure, operational frequency, end-use, and region.
- By Communication Infrastructure
- Small Cell
- Micro Cell
- Pico Cell
- Macro Cell
- Radio Access Network (RAN)
- Distributed Antenna System (DAS)
- Small Cell
- By Core Network Technology
- Software-Defined Networking (SDN)
- Network Function Virtualization (NFV)
- By Network Infrastructure
- 5G Standalone
- 5G Non-Standalone
- By Operational Frequency
- Less than 6GHz
- More than 6GHz
- By End-Use
- IT & Telecom
- Consumer Electronics
- Energy & Utilities
- Others (Media & Entertainment, Transportation, Logistics, etc.)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia-Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, 5G Infrastructure Association, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for 5G service providers, telecom operators, 5G components manufacturers, smartphone manufacturers, government organizations, educational organizations, regulatory agencies, research organizations, and market research firms, among others. The report provides an in-depth analysis of the 5G Infrastructure market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The expected CAGR of the global 5G infrastructure market is 50% during 2022-2028.
The market value of the global 5G infrastructure market is expected to reach US$ 70 – 75 billion.
- 5G networks are anticipated to have more than 1.5 billion subscribers worldwide by 2028.
- The current trend at the macro level is the use of beamforming and active antenna systems.
The leading region in the global 5G infrastructure market is APAC in 2022.
Leading companies operating in the global 5G infrastructure market are Huawei, Ericsson, and Nokia.