Low-loss Materials for 5G Market Analysis By Material Type (Substrate Materials & Package Materials) By Frequency (Sub-6 GHz 5G & mmWave 5G) By End-use (Smartphones, Infrastructure & Customer Premise Equipment) By Region – Global Insights 2022 to 2032

Low-loss Materials for 5G Market Outlook (2022-2032)

The global low-loss materials for 5G market has reached a size of US$ 13.9 million in 2022. Worldwide demand for low-loss materials for 5G is expected to increase at an astonishing CAGR of 25.4% to reach a market valuation of US$ 133.6 million by the end of 2032.

Sales of substrate materials accounted for nearly 81.7% share of the global low-loss materials for 5G market at the end of 2021.

Sales Analysis of Low-Loss Materials for 5G (2017-2021) Vs. Market Outlook (2022-2032)

5G communication technology will drive the implementation of augmented reality (AR) and virtual reality (VR). While the 5G industry is going through a digital transformation, manufacturers are working behind the scenes to fulfill the demand for related equipment such as terminal devices, smartphones, and premise equipment that will facilitate the service for 5G networks for end users.

Market players are also focusing on making equipment with materials that help in preventing signal and data transmission loss and provide uninterrupted network services to users.

• Short Term (2022 Q2 to 2025): Rising number of 5G network installations will drive demand for low loss materials. Also, a growing base of smartphone users will complement market growth.
• Medium Term (2025-2028): ADAS (automated driver assistance system)-based vehicles are the future of cars. Launch of automated cars will be key to demand growth for various materials used in 5G networks to facilitate real-time data access for these vehicles.
• Long Term (2028-2032): Countries across the world are making or proposing smart city infrastructure, which will be key to sustaining the demand for low-loss materials in the long term.

Over the last four years, the global low-loss materials for 5G market expanded at a CAGR of 17.7%, as per an in-depth industry analysis by Fact.MR, a market research and competitive intelligence provider. Sales of low-loss materials for 5G are anticipated to increase faster at 25.4% CAGR between 2022 and 2032.

Regional market share and share based on end-use segment are provided in the above image. Under the end-use segment, demand for infrastructure dominates with 62.2% market share in 2022.

Why is Demand for Low-Loss Materials for 5G Set to Explode Over the Coming Years?

“Need for High Connectivity & Data Transmission without Signal Loss”

Future demand for high-level connectivity to make life easier as all the things around us like our homes, cars, and even cities are now getting smart. For enabling them to act as smart devices, there is a need for 5G connectivity that can sustain the faster speed of data transfer and also can minimize the noise involved. Such requirements are creating demand for low-loss materials that help prevent signal loss.

To facilitate the unprecedented upside change in mobile data traffic, it is required to shift networks from 4G to 5G. It is now becoming impossible to fulfill data transmission speed demand from this high mobile traffic with the current infrastructure.

5G networks not only provide connectivity and data transfer at high speed but also help in low latency and improved reliability. It is being said that high frequency depends on the type of application involved, but the truth is higher the data transfer rate, higher the probability of signal/transmission loss.

High frequency has certain limitations in penetrating materials with hard surfaces, due to which, demand for denser 5G networks as compared to earlier generations such as 3G and 4G networks, which were characterized by tower networks that were not densely installed, is high. These densely populated networks and system installations will require low-loss materials that help prevent signal and transmission loss.

“Growing Segment of Automotive Radar & ADAS (Automated Driver Assistance Systems)”

In general, low loss of transmission becomes a challenge over a frequency of 10GHz. Automotive radar and ADAS (automated driver-assistance systems) generally operate at 77GHz frequency, which creates huge transmission losses if the proper materials are not used in the making of devices deployed.

Materials such as PTFE with the extra cladding of copper are used as substrates for some safety applications. Road, weather, traffic, and various other information need real-time data transfer in autonomous vehicles, which can be possible only at high frequency and higher data transfer speeds, especially with driverless vehicles.

The automobile industry is keeping an eye on 5G developments as it would play a big role in deploying driverless vehicles with ultra-reliable low latency, which will ensure uninterrupted connections and shorter time for data transmissions - a very important aspect of self-driving vehicle technology.

What Do Low-Loss Materials for 5G Producers Need to Be Aware Of?

“Keep Up with Growing Demand for Low-Loss Materials in 5G Applications”

Various systems and equipment used in 5G technology require different low-loss materials for being effective in purpose solving while they are deployed in 5G systems. For example, PTFE (polytetrafluoroethylene) is used in high-frequency boards and connectors, which are required for high-frequency end users such as automotive radar systems.

LCPs (liquid crystal polymers) are used to make flexible boards that are used for smartphone antennas. There are various other low-loss materials used for making smartphones and types of equipment that are installed at customer premises for suitable 5G services.

Moving towards higher frequency will demand advanced packages, such as an antenna in package (AiP). It is expected that the size of the antenna will reduce and the arrays can be fitted in the antenna itself. Such a package will help in reducing transmission losses by shortening the RF paths. Antenna package development requires low-loss materials for EMI shielding, substrates, etc.

Low-loss material demand is characterized by various factors such as dielectric consent, controlling and absorbing moisture, dissipation, cost, and ways of manufacturing.

The 5G market is yet to grow at a fast pace and demand for low-loss materials will keep on rising as the deployment of 5G networks and applications will gain pace and will last for decades.

Country-wise Insights

Why is the U.S. at the Forefront in the Low-loss Materials for 5G Space?

Major U.S. telecom operators such as AT&T, Verizon, etc., have launched 5G networks and are working hard to provide nationwide 5G service availability on their networks.

The FCC (Federal Communications Commission) has launched a fund for 5G network establishment in rural America, which will help carriers make advanced 5G network services available in rural American regions, including tribal lands. FCC is also making an easier set of rules and regulations to make it easy for new companies to enter the market. This will help the U.S. government in faster deployment of 5G networks across the country.

This faster deployment will demand a higher quantity of equipment and installations at customer premises as 5G requires a denser network as compared to previous networks such as 3G and 4G.

The United States low-loss materials market for 5G is currently estimated at US$ 2.6 million and is expected to reach US$ 19.2 million by 2032.

Why is the Low-Loss Materials for 5G Market in China Expected to Be Highly Lucrative?

Rapidly growing 5G investments by private players and growing number of 5G base stations in China are creating demand for materials that help prevent signal and transmission loss at high-frequency levels. This provides the scope of high growth for manufacturers of CCL, PCB, and various other materials used in making 5G devices and equipment.

China has 1 million plus 5G base stations already commissioned and operating. However, according to the chairman of China Mobile, Mr. Yang Jie, they will keep installing 5G plus GB Fiber networks for deepening the multi-frequency collaboration and improving their 5G private networks.

• According to the European 5G observatory, China currently has 1,531 people for every base station as compared to 319 people in South Korea.

Beijing has prioritized the broadening of its 5G networks and is rapidly allocating the mid-band spectrum to its telecom service providers.

The China market for low-loss materials for 5G is currently valued at US$ 24.1 million in 2022.

Category-wise Insights

How Will Growing Smart City Infrastructure Drive demand for Low-Loss Materials?

Smart cities are places where general networks and services are made effective by using digital networks such as 5G and various other technologies for the benefit and ease of the life for the people living in these cities. They are digital ecosystems that connect the networks of mobile devices and various other things such as cars, home appliances, data centers, etc. The main purpose is to get everything done at the click of a button without putting in any physical effort.

It is being stated that the number of connected devices worldwide will grow to 75 billion by the year 2025. These devices will require IoT sensors and other equipment to facilitate real-time data transfer so that they can function effectively. Growing demand for this equipment will be the key driver for various low-loss materials to be used in making them facilitate reduced transmission loss.

Moreover, with the global economy growing, demand from the infrastructure segment is predicted to expand 12.3X by the end of 2032.

Will the Rise of mmWave 5G Drive demand for Low-Loss Materials for 5G?

The number of mobile users, especially smartphone users, is growing rapidly. People are using mobiles for almost everything they do, whether it is streaming videos, booking tickets, checking mails, doing office work, etc. They are now demanding for better speed of data transmission and are looking for a better network experience.

This growing number of users is creating a load on current 4G networks and making it difficult to provide uncut transmission and data services. This demand for establishing advanced 5G networks will facilitate the growing consumer base with ease and speed of data transmission. This can only be made possible with high frequency, i.e., mmWave5G. It can provide Gigabit speed and also can end the requirement for fibre.

mmWave5G is much valuable in densely populated areas where there is a large number of users using the network per base station or sq. km. Many countries are extending and auctioning high-band spectrums to facilitate and make high-frequency networks available to consumers.

These high-frequency levels are more prone to data and transmission loss as they are operating on more than 10 GHz levels. To prevent and reduce such losses, demand for low-loss materials used in making various equipment that is used in providing 5G services to customers will keep on rising in the long term.

Demand for low-loss materials for mmWave5G frequency will create an absolute $ opportunity of US$ 106.6 million by the end of the assessment period.

Competitive Landscape

Prominent low-loss material for 5G manufacturers are DuPont, Sartomer (Arkema), AGC Chemicals, Toray Industries, Mitsubishi Gas Chemicals, JSR Corp, Hitachi Chemicals, SABIC, Solvay, Kyocera, and Sumitomo Bakelite.

The topmost manufacturers of low-loss materials for 5G products are employing sustainable technologies and optimization systems for diverse end users. Key manufacturers are focusing on developing new product designs to address the problems of transmission loss on high-frequency bands and harsh operating environments.

Moreover, focus on planning, designing, and providing optimal materials are at the backbone of their marketing strategies.

Fact.MR has provided in-depth information about the pricing, sales, and scope of growth of key manufacturers of low-loss materials for 5G, positioned across regions, in the recently published report.

Segmentation of Low-Loss Materials for 5G Industry Research

• By Material Type :

  • Substrate Materials
    • Organic Materials
      • PTFE
      • LCP
      • Thermoset Resins
      • PPO
      • PPS
      • Polyimide
      • Others
    • Inorganic Materials
      • Glass
      • Ceramic & LTCC
      • HTCC
      • Others
  • Package Materials
    • EMC / MUF
    • EMI Shielding with Inks
    • Advanced Package Materials (SiP, AiP)

• By Frequency :

  • Sub-6 GHz 5G
  • mmWave 5G

• By End Use :

  • Smartphones
  • Infrastructure
  • Customer Premise Equipment (CPE)

• By Region :

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