5G Services Market
5G Services Market Analysis By Vertical (Mining, Public Safety, IT & Telecom, Healthcare & Social Work, Agriculture, Manufacturing, Aerospace & Defense, Government, Transportation & Logistics, BFSI, Oil & Gas), By Communication Type (FWA, eMBB, mMTC, uRLLC) – Global Forecast 2022-2032
Global 5G Services Market Outlook (2022-2032)
The global 5G services market size is anticipated to procure a market value of US$ 48 Bn in 2022 and is likely to reach US$ 3,827.64 Bn while expanding at a CAGR of 55% from 2022 to 2032.
Estimated Market Value in 2022
USD 48 Bn
Estimated Market Value in 2032
USD 3,827.64 Bn
Expected CAGR from 2022 - 2032
Key Players of the Global 5G services Market
The 5G market is likely to experience robust growth in the coming time due to the rapid development in virtualization in the networking domain. The low latency offered and the faster data speeds are predicted to enhance the user experience, thereby growing the market considerably. The 5G services will find significant demand in the field of Virtual Reality (VR), Augmented Reality (AR), Ultra-High Definition (UHD) videos, among others.
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Global 5G Services Market Analysis from 2015-2021 Vs Future Market Outlook for 2022-2032
According to Fact.MR- a market research and competitive intelligence providers, demand for 5G services experienced a substantial incline from 2015 to 2021, registering a CAGR of 28%. Extensive deployment of advanced communication and technology infrastructure has greatly elevated growth prospects of the market.
With extensive reliance on the virtual space increasing during the COVID-19 pandemic, the need for deploying advanced 5G infrastructure became of paramount importance. Increased migration frequency of business operations to the cloud and other virtual spaces has prompted investments in robust connectivity platforms.
In the aftermath of the pandemic crisis, this trend is anticipated to remain, as businesses and enterprises are unlikely to revert to the conventional mode of operations. Furthermore, as business requirements become increasingly disparate, enterprises are attempting to unify the same, impelling the need for 5G infrastructure. From 2022 to 2032, the market is scheduled to expand almost 80x in terms of value.
What are the factors boosting the Global 5G Services Market?
Growing Demand from IoT to offer Opportunities to 5G Industries
The increasing demand for 5G technology from the Internet of Things (IoT) is expected to provide significant momentum to the 5G services market in the forecast period. As per the data released by the Federation of Indian Chambers of Commerce and Industry (FICCI), the global revenue for the IoT is anticipated to procure USD 1.1 trillion by the end of 2025.
In addition, AI-powered devices are likely to pose a lucrative opportunity to the 5G market. The growing commercial application of 5G services is increasing at a rapid rate, thereby bolstering the market considerably. In addition, the increasing usage of AR/ VR is projected to further boost the demand for 5G technology since it offers low latency and wide coverage, which can benefit the market in the forecast period.
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What are the factors hindering the Global 5G Services Market?
High Expenses associated with 5G Mobile Broadband to Hamper the Market Growth
The high cost associated with the 5G network mobile phone subscription is expected to hinder the market growth in the forecast period. The high cost of production would result in expensive 5G smartphones which is likely to limit the market growth in the coming time. In addition, the outbreak of COVID-19 has brought a temporary halt in the spectrum auctions in countries such as; the U.S, the U.K, and France.
The lockdown imposed globally hampered the manufacturing of 5G smartphones. Furthermore, launching 5G services in developing countries such as; India would face major challenges, which would hinder the market expansion in such nations. Challenges such as; low speed of data, and lack of regulatory bodies are likely to impede the 5G Industry growth in the forecast time.
What are the opportunities for market expansion in Asia-Pacific?
Active Participation of Key Players to Augment 5G Business in the Region
As per the evaluation, APAC is anticipated to have procured about 38% of the market share in 2022. 5G market in the region is likely to grow at the fastest CAGR in the forecast period. The reason for the rapid growth of the 5G technology in APAC can be attributed to the active participation of established key players in the region.
Players such as; China Mobile, KT Corp, and China Telecom are making considerable investments to launch 5G infrastructure in China, Japan, and South Korea. Furthermore, the increasing demand for smartphones with high-speed data in developing countries like India, China, and Japan has provided a significant boost to the 5G Technology market in the region.
In addition to these, the application of next-generation in healthcare, manufacturing, media & entertainment is expected to propel the industry considerably in the times to come.
What are the Probable Challenges to be faced by India in deploying the 5G Services?
Technological and Operational Challenges to Hamper 5G Technology Deployment in India
India is likely to face various challenges in deploying 5G technology due to various reasons. The major challenge is the pricing of the spectrum. Department of Telecommunications (DoT) will price the spectrum, however, heavy investment associated with 5G technology is likely to increase the price of spectrum. The other challenge is in the technological and operational sphere.
Most of the operators have nearly 20-25% fiberization, whereas 5G technology demands about 80% of fiberization. In addition, the telecom operators are still trying to deploy the 4G services completely, the introduction of 5G will demand an aggressive investment and a long payback period.
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What is the participation of IT & Telecom Segment in Boosting the Global 5G Services Market?
Increasing Demand for Efficient 5G Broadband Plans to Boost IT & Telecom Segment
According to Fact. MR, the IT & Telecom segment dominated the global market in 2022 and procured the maximum market revenue in 2021. The segment is anticipated to have acquired 20% of the global market share.
The increasing demand for higher data speeds for commercial and residential applications is likely to be the key factor elevating the segment. In addition, the key players of IT & Telecom are making significant investments to innovate technologies, which is expected to boost the market growth in the coming time.
Furthermore, the surging demand for efficient broadband to conduct seamless virtual corporate meetings is likely to augment the segment expansion in the forecast period.
What is the Role of the Manufacturing Sector in Expanding the Global 5G Services Market?
Rapid Digitization of Manufacturing Sector to Boost 5G Technology Demand
As per the analysis, the manufacturing segment is expected to witness the fastest CAGR of 30% during the forecast period. Sectors such as; healthcare are likely to deploy the 5G technology to provide efficient telehealth services during the COVID-19 period.
The rapid digitization in the manufacturing sector has enhanced the demand for efficient technology. The sector is adopting technologies to provide a seamless experience, which is likely to boost the demand for 5G technology in various manufacturing sectors.
Key players of the market adopt various strategies to expand their reach in the global market and secure the forefront position in the market. Methods such as; acquisition, partnership, and collaboration are adopted to strengthen their position in the global space.
Some of the recent developments among the key players are:
- In January 2021, T-Mobile with Ericsson and Nokia signed an agreement to deliver 5G technologies across various countries. It was a multi-billion dollar agreement.
- In February 2022, AT&T announced that they would own 71% of the new WarnerBros.Discovery Company. The company will also receive 0.24 shares of Warner Bros.Discovery for every AT&T share.
- In January 2022, KT, a Korean Carrier KT, and Japanese Tech Company Fujitsu accomplished the verification at KT Research and Development Center in South Korea. The two companies leveraged Fujitsu’s Open RAN-based 5G base station equipment to test call connections for open fronthaul. NTT Docomo, the Japanese player will provide Fujitsu with technical support during the project. With the advent of this new facility, KT has the objective to fasten the introduction of O-RAN technology to the 5G network in Korea.
Key Segments Covered in the Global 5G Services Industry Report
By Vertical :
- 5G Services for Mining
- 5G Services for Public Safety
- 5G Services for IT & Telecom
- 5G Services for Healthcare & Social Work
- 5G Services for Agriculture
- 5G Services for Manufacturing
- 5G Services for Aerospace & Defense
- 5G Services for Government
- 5G Services for Real Estate
- 5G Services for Retail
- 5G Services for Transportation & Logistics
- 5G Services for BFSI
- 5G Services for Oil & Gas
- 5G Services for Construction
By Communication Type :
- FWA 5G Services
- eMBB 5G Services
- mMTC 5G Services
- uRLLC 5G Services
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