5G Network Equipment Market

5G Network Equipment Market Study by Small Cells, Active Antenna Units, Baseband Units, Energy Supply Equipment, Macro Cells, Remote Radio Units, RF Filters, and Phase Shifters from 2024 to 2034

Analysis of 5G Network Equipment Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

5G Network Equipment Market Outlook (2024 to 2034)

The global market for 5G network equipment is poised to reach US$ 3.31 billion in 2024. As per the latest report by Fact.MR, sales of 5G network equipment are projected to increase at a 19.4% CAGR and reach US$ 19.5 billion by 2034-end.

Demand for 5G network equipment is on a steady rise, driven by several key factors. Primarily, the exponential increase in data consumption and the expanding IoT ecosystem necessitate robust infrastructure capable of handling massive volumes of data with low latency.

The promise of enhanced connectivity and revolutionary advancements in areas like autonomous vehicles, remote healthcare, and smart cities drives the urgency for 5G deployment. The competitive landscape among telecom operators fuels the need for infrastructure upgrades to offer high-speed, reliable 5G services. This escalating demand underscores the critical role 5G network equipment plays in shaping the future of telecommunications.

Cities across the world are embracing the concept of smart cities, harnessing technology to enhance urban living. Central to these initiatives are IoT sensors and data analytics, which empower municipalities to optimize services and improve efficiency. However, the success of such projects hinges on robust connectivity, and here's where 5G networks come into play. With their high-speed, low-latency capabilities, 5G networks are indispensable for the seamless operation of smart city infrastructure, facilitating real-time data transmission and analysis.

The healthcare sector is undergoing a transformation with the adoption of telemedicine and remote healthcare services. These innovative approaches rely heavily on stable, high-speed connections to enable remote consultations, diagnostics, and monitoring. As the demand for such services continues to grow, so does the need for reliable connectivity. 5G technology emerges as a critical enabler, providing the bandwidth and reliability necessary to support telemedicine applications effectively.

In essence, the convergence of smart city initiatives and advancements in healthcare is driving the demand for 5G technology. Municipalities recognize the importance of robust networks for their smart city ambitions, while the healthcare sector relies on 5G to deliver accessible and efficient remote healthcare services. As 5G networks continue to expand, they promise to revolutionize urban living and healthcare delivery on a global scale.

Report Attributes Details
5G Network Equipment Market Size (2024E) US$ 3.31 Billion
Forecasted Market Value (2034F) US$ 19.5 Billion
Global Market Growth Rate (2024 to 2034) 19.4% CAGR
Canada Market Growth Rate (2024 to 2034) 21.5% CAGR
China Market Value (2034F) US$ 3.32 Billion
North America Market Share (2024E) 30.8%
East Asia Market Share (2034F) 29.7%
Key Companies Profiled
  • ZTE Corporation
  • Nokia Corporation
  • Samsung Electronics
  • Verizon Communications
  • NEC Corporation
  • SK Telecom
  • China Mobile

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Which Aspects are Influencing the Market for 5G Network Equipment?

“Increasing IoT Deployment Necessitating Low-Latency Connections”

Demand for 5G network equipment is being significantly influenced by several key factors, among which the deployment of the Internet of Things (IoT) stands out prominently. As IoT devices become increasingly ubiquitous across various sectors, from smart homes to industrial automation, there is a critical need for networks capable of supporting these devices efficiently.

Proliferation of IoT devices brings with it a requirement for low-latency connections. Many IoT applications, such as real-time monitoring in healthcare or instantaneous data transmission in autonomous vehicles, demand minimal delay in data transfer. This necessity for low-latency communication is pushing the adoption of 5G networks, which offer significantly reduced latency compared to previous generations.

Telecom operators and network equipment manufacturers are increasingly focusing their efforts on developing and deploying 5G infrastructure to meet the evolving needs of IoT applications. This trend not only drives the expansion of the market but also paves the way for a more connected and technologically advanced future.

“Smart City Initiatives with Escalating Demand for Data Usage”

Smart city projects, ranging from intelligent traffic management to environmental monitoring, entail a significant escalation in data usage. This surge in data demands high-speed, low-latency connectivity, precisely what 5G networks offer. With their capability to handle massive data volumes efficiently and provide ultra-fast communication, 5G networks are indispensable for the seamless operation of smart city infrastructure.

As municipalities strive to enhance efficiency, sustainability, and citizen well-being, the demand for 5G network equipment continues to rise. Telecom operators and equipment manufacturers are thus compelled to ramp up their efforts in deploying and expanding 5G infrastructure to meet the burgeoning needs of smart cities. This symbiotic relationship between smart city initiatives and the demand for 5G network equipment heralds a future of interconnected, technologically empowered urban environments.

What are the Challenges Encountered by 5G Network Equipment Providers?

“High Initial Investment for 5G Deployment and Limited Availability of Skilled Workforce”

For 5G network equipment companies, the road to success is fraught with challenges, with the foremost being the substantial initial investment required coupled with the intricate technological landscape. The development and deployment of 5G infrastructure demand considerable upfront capital investment, spanning research, development, and widespread infrastructure rollout. This financial burden poses a significant challenge, particularly for smaller companies with limited resources, hindering their ability to compete effectively in the market.

The technological complexity inherent in 5G deployment is restricting 5G network equipment market growth. The advent of 5G technology introduces a slew of new network architectures and standards, such as massive MIMO (multiple-input multiple-output) and network slicing, which require specialized expertise to design, implement, and manage. Navigating this complexity demands a skilled workforce and ongoing training initiatives, adding to the operational costs and resource allocation for companies.

Despite these challenges, companies in the 5G network equipment sector are doubling down on their efforts to overcome these obstacles. By streamlining operations, fostering innovation, and forging strategic partnerships, they aim to navigate the high initial investment and technological complexity effectively, positioning themselves for success in the dynamic landscape of 5G telecommunications.

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Country-wise Insights

Why are Sales of 5G Network Equipment High in the United States?

“Heavy Investments by Telecom Operators in Upgrading Infrastructure for 5G Support”

Attribute United States
Market Value (2024E) US$ 634.1 Million
Growth Rate (2024 to 2034) 20.3% CAGR
Projected Value (2034F) US$ 4.01 Billion

In the United States, the increased sales of 5G network equipment are largely attributed to the pivotal role of telecommunication infrastructure modernization. As demand for high-speed connectivity skyrockets, telecom operators are investing heavily in upgrading their infrastructure to support 5G networks. This includes deploying new base stations, enhancing existing infrastructure, and adopting advanced network equipment.

With the competitive landscape driving the need for faster and more reliable networks, telecommunication infrastructure modernization emerges as a crucial factor in meeting the escalating demand for 5G technology across the country, resulting in a significant 5G network equipment market share.

Will 5G Network Equipment Companies Thrive China?

“Government Support for 5G Deployment Through Funding, Subsidies, and Regulations”

Attribute China
Market Value (2024E) US$ 603.6 Million
Growth Rate (2024 to 2034) 18.6% CAGR
Projected Value (2034F) US$ 3.32 Billion

5G network equipment companies are increasingly drawn to China, enticed by a combination of government support, favorable policies, and emerging application opportunities. China's government has prioritized 5G technology as a strategic imperative, providing significant support and incentives to companies involved in its development and deployment. This includes funding programs, subsidies, and regulatory measures aimed at accelerating the rollout of 5G networks nationwide.

China's focus areas encompass smart cities, autonomous vehicles, and remote healthcare. This presents lucrative opportunities for network equipment companies seeking to capitalize on the vast market potential. By leveraging government support and tapping into the diverse array of emerging applications, 5G network equipment companies are positioning themselves to thrive in China's dynamic telecommunications ecosystem.

The country continues to attract significant investments and attention from players in the industry, solidifying its position as a key market player in the global 5G landscape.

Category-wise Evaluation

Which 5G Network Equipment is Projected to Hold Significant Market Share?

“Small Cells Account for Leading Market Share Due to Their Scalability and Cost-effectiveness”

Attribute Small Cells
Segment Value (2024E) US$ 734.8 Million
Growth Rate (2024 to 2034) 19.9% CAGR
Projected Value (2034F) US$ 4.52 Billion

One of the primary drivers behind the projected dominance of small cells is the demand for enhanced network performance and capacity in the 5G era. With the exponential growth in data consumption and the proliferation of connected devices, small cells offer a scalable and cost-effective solution to meet the burgeoning demand for data-intensive applications and services.

Small cells are integral to the deployment of ultra-dense networks, where multiple small cells are deployed near support high-capacity and high-throughput connectivity. This approach not only improves network performance but also lays the foundation for future innovations such as 5G-enabled IoT and smart city applications, contributing to the overall expansion of the 5G network equipment market size.

Why is 5G Network Equipment More Extensively Deployed in the Commercial Sector?

“5G Uptake Entailing Fast Data Transmission and Supporting Bandwidth-Intensive Applications”

Attribute Commercial
Segment Value (2024E) US$ 850.7 Million
Growth Rate (2024 to 2034) 19.1% CAGR
Projected Value (2034F) US$ 5.05 Billion

The drive for competitiveness fuels the need for advanced technologies, including 5G networks, which offer unparalleled speed, reliability, and efficiency. Businesses are increasingly reliant on digital infrastructure to streamline operations, improve efficiency, and drive innovation. The adoption of 5G network equipment facilitates faster data transmission, seamless connectivity, and support for bandwidth-intensive applications, all of which are instrumental in boosting business productivity.

Evolving nature of work, with an increasing emphasis on remote collaboration, cloud-based services, and real-time data analytics, further underscores the importance of robust and high-performance network infrastructure. As businesses strive to stay ahead of the curve and meet the evolving demands of the digital economy, the demand for 5G network equipment continues to soar.

Know thy Competitors

Competitive landscape highlights only certain players
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Competitive Environment

Key players in the 5G network equipment industry such as Cisco Systems, Inc., Samsung Electronics, NEC Corporation, Huawei Technologies Co., Ltd., AT&T Inc., Verizon Communication, Qualcomm Technologies, Telefonaktiebolaget LM Ericsson, ZTE Corporation, and Nokia Corporation.

Leading companies employ diverse strategies for growth, including business expansion, introduction of new products, and forging strategic partnerships. These initiatives collectively contribute to the evolving 5G network equipment market trends, stimulating innovation and fostering the advancement of telecommunications infrastructure on a global scale, companies have also started focusing on network access control systems and network-attached storage to improve their network speed.

  • Moving to January 2021, Ooredoo Group, a prominent international telecommunications conglomerate based in Qatar, entered into a strategic agreement with Ericsson. Under this collaboration, Ooredoo Group plans to procure 5G core, radio, and transport systems along with associated integration and deployment services from Ericsson.
  • In February 2020, Samsung Electronics Co. Ltd. unveiled its latest innovation, the CDU50, marking a significant milestone in baseband unit technology. This cutting-edge device encompasses all LTE and 5G NR network frequencies within a single unit, surpassing its predecessor in terms of performance metrics.

Key Segments of 5G Network Equipment Market Research

  • By Product :

    • Small Cells
    • AAU (Active Antenna Units)
    • BBU (Baseband Units)
    • Energy Supply Equipment
    • Macro Cells
    • RRU (Remote Radio Units)
    • RF Filter
    • Phase Shifters
  • By End Use :

    • Commercial
    • Industrial
    • Government & Defense
    • Residential
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

How big is the 5G network equipment market in 2024?

Sales of 5G network equipment are estimated at US$ 3.31 billion in 2024.

What portion of the market in East Asia does Japan occupy?

Japan is estimated to account for an 18.9% share of the East Asian market in 2024.

What is the demand projection for 5G network equipment for 2034?

Demand for 5G network equipment is forecasted to reach a market value of US$ 19.5 billion by 2034-end.

At what rate is the market projected to expand in East Asia?

In East Asia, the market is projected to expand at a CAGR of 19% from 2024 to 2034.

How fast are network equipment sales projected to rise?

5G network equipment sales are forecasted to increase at 19.4% CAGR through 2034.

Who are the top suppliers of 5G network equipment?

Leading companies in the market are Nokia Corporation, Samsung Electronics, and Verizon.

- Also of Interest -

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5G Industrial IoT Market Forecast, Trend Analysis & Competition Tracking - Global Review 2021 to 2031

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5G Network Equipment Market

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