The global industrial 5G market is expected to witness a robust growth rate of more than 21% during the forecast period of 2022-2028. Manufacturers, supply chain companies, and other enterprises are increasingly looking at 5G networks to offer flexible enterprise-grade industrial connectivity. 5G has the potential to solve many of the connectivity issues faced by industries such as manufacturing, transport hubs, logistics, energy, and utilities.
Technology upgradation, effectiveness for industries, high performance with security and safety, and affordability of the network coupled with the increasing trend of smart cities and autonomous driving are some of the key factors anticipated to fuel the demand for the global industrial 5G market during the forecast period. Moreover, the increase in demand for high latency and low latency across various industries coupled with the surge in M2M connections across various industries are expected to further drive the demand for Industrial 5G globally.
The hardware segment is dominating the market and is expected to continue its dominance during the forecast period
The hardware segment dominates the industrial 5G market and is expected to lead the global industrial 5G market during the forecast period. Due to the rapid increase in the use of sensors, antenna controllers, towers, small cells, and others, the hardware segment is generating significant revenue. With the growing demand for industrial 5G, the 5G module acts as one of the major components in the industrial 5G market. Further, bringing new products to the market by key players further gives a boost to the segmental growth of the market. Moreover, the market for creating 5G IOTs components has experienced tremendous growth as a result of the growing interest in 5G industrial IoT. The primary components of hardware include 5G modules, sensors, semiconductors, and gateways. These parts are employed in numerous production processes.
North America Dominates the Industrial 5G Market
Geographically, North America dominates the industrial 5G market owing to the high penetration of industrial 5G coupled with the wide adoption of AI and other smart connected devices across various industry verticals in the region. Moreover, the presence of key players in the region further gives a boost to the regional growth of the market. The key market players are bringing new products to the North American market, augmenting the regional growth of the market.
- For instance, in September 2022, Nokia announced to extend its Industrial portfolio of user equipment to facilitate private wireless network connectivity in North America. The Nokia Industrial 5G fieldrouter and 5G dongle can be deployed in Citizen Broadband Radio Service (CBRS) 3.5 GHz spectrum in the US and Canada.
In Asia Pacific, China is dominating the regional market, due to increased R&D investment and the local presence of global players. 5G organizations will convey quicker and more dependable administrations that open ways to new businesses amazing open doors in the Internet of Things (IoT), independent driving, and broadband fixed remotely among others. In Europe, some manufacturers do not prefer to use wireless networks like 4G for extensive networking, because of their slower and less reliable transfer rates. However, the high bandwidth of 5G allows for large amounts of data to be transferred reliably in real-time, with its capacity to support a thousand times the bandwidth of 4G.
Market Structure and Competitive Landscape
The global industrial 5G market is fragmented in nature with the presence of many players in the market. Some of the prominent players operating in the global industrial 5G market include Nokia Corporation, Qualcomm Technologies Inc., NEC Corporation, Ericsson, Samsung, Verizon Communications Inc., ZTE Corporation, IBM Corporation, Siemens AG, and others.
These players adopt various strategies including mergers and acquisitions, partnerships and collaborations which directly results in propelling the growth of the global industrial 5G market. To meet this demand and fully realize the value of 5G, collaboration between the mobile industry and other industry sectors is crucial. Some recent developments in the market include,
- In September 2022, Nokia launched the Industrial 5G fieldrouter to extend private wireless capabilities and simplify connectivity in North America.
- In July 2022, Ericsson completed the acquisition of Vonage Holdings Corp. to leverage technology leadership to grow its mobile network business and expand into enterprise.
- In February 2022, Qualcomm Technologies, Inc. and Bosch Rexroth AG, announced the evolution of their joint research collaboration focused on 5G technology applications for Industrial Internet of Things (IIoT).
Key Market Segmentation
RationalStat has segmented the global industrial 5G market on the basis of components, organization size, communication type, end user, and region.
- By Component
- By Organization Size
- Large Enterprises
- By Communication Type
- Enhanced Mobile Broadband (eMBB)
- Ultra-reliable Low-Latency Communication (URLLC)
- Massive Machine-Type Communication (mMTC)
- By End User
- Process Industries
- Discrete Industries
- Automotive and Transportation
- Industrial Machinery & Heavy Equipment’s
- High-Tech & Consumer Electronics
- Consumer Electronic Devices
- Semiconductor & IT Equipment
- Others (Aerospace & Defense, etc.)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- 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, forecasts, 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, 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 Industrial 5G network providers, the telecom industry, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, 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 global Industrial 5G market is expected to grow at a CAGR of over 22% during the forecast period 2022-2028.
North America is dominating the global Industrial 5G market in 2021.
The global Industrial 5G market is estimated at around US$ 12.5 billion in 2020.
The increasing trend of smart cities and autonomous driving are the key drivers of the global Industrial 5G market.
Major companies operating in the global Industrial 5G market include Nokia Corporation, Qualcomm Technologies Inc., NEC Corporation, Ericsson, Samsung, Verizon Communications Inc., ZTE Corporation, IBM Corporation, Siemens AG, and others.