5G Infrastructure Market

[206 Pages Report] The 5G Infrastructure Market is projected to reach USD 47.78 Billion by 2027, at a CAGR of 67.1% during the forecast period.

Fifth generation (5G) wireless system, or fifth generation mobile network, is an advanced telecommunication technology that enables high-speed data transfer and high system spectral efficiency (implies larger data volume) with relatively low battery consumption, as well as offers the provision of connecting several devices simultaneously. 5G is likely to be the key enabler for the Internet of Things (IoT) that would provide a platform to connect a large number of sensors, edge devices, and actuators across various end-use industries.

5G Infrastructure Market Forecast to 2027

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The use of 5G infrastructure has been prevalent across consumers, commercial & enterprise, industrial, and government. 5G connectivity would be a key enabler for connected cars and autonomous vehicles as it can be used for vehicle-to-vehicle and vehicle-to-infrastructure communication. Several vendors are actively involved in offering 5G solutions for commercial users by launching commercial 5G networks and carrying out R&D activities to upgrade these commercial network solutions.

The 5G infrastructure network is witnessing high adoption from the commercial sector. Self-driving car is an upcoming idea with 5G wireless networks. High performance wireless network connectivity with low latency is preferred for autonomous driving. In the future, cars can communicate with intelligent traffic signs, surrounding objects, and other vehicles on the road. Every millisecond will be vital for self-driving vehicles as the decision has to be made in a split second to avoid collision and ensure passenger safety. Drones are gaining attention owing to multiple operations ranging from entertainment, video capturing, medical, and emergency access to smart delivery solutions, security and surveillance, and others. 5G network will enable high-speed wireless internet connectivity for drone operation in various applications.

In intelligent buildings and infrastructure systems, many devices and components (such as smart sensors, measuring meters, lighting systems, and alarm systems) are connected over a network to carry out specific tasks, such as smoke monitoring, temperature control, and HVAC system control. An operator needs a quick real-time response with low latency to operate these systems remotely. With the introduction of 5G network, an operator can efficiently control activities related to the smart building system. The 5G network features high response time, high-speed data transfer rate, and reliable connectivity, which, in turn, makes it well-suited for intelligent buildings and infrastructure applications. This is expected to fuel the growth of 5G infrastructure market in coming years.

5G Infrastucture Market Dynamics:

Driver: Growing adoption of virtual networking architecture in telecommunications

In the current scenario, networks are implemented with various hardware developed for dedicated application-specific purposes. Such customized hardware is incapable to scale up and are cost sensitive to manage and maintain. With technological advancements, the life cycle of such application-specific hardware is limited. In 5G infrastructure, it is necessary to design a network architecture that can offer flexibility and scale-up options as millions of devices are estimated to get connected to communicate with each other. Considering this, there is a high demand for agile and flexible networks that can easily be changed and designed in accordance with requirements. This can be achieved through software network technologies such as network functions virtualization (NFV) and software-defined networking (SDN). SDN and NFV allow network flexibility by partitioning network architectures into virtual elements. Further, 5G network slicing will allow network operators to deploy only those functions necessary to support a particular set of customers and specific market segments. Such software-driven network technologies would further drive the 5G infrastructure market in terms of the ease of deployment and efficient operation of 5G network.

Restraint: Delay in standardization of spectrum allocation

The use of higher frequencies is a major advantage in the development of 5G network. However, all high frequencies (radio spectrum) are already used for different applications, such as telecommunications services and government agencies. Accessing these high-frequency spectrums is crucial for the development of 5G infrastructure. As it is already allocated for different applications, there is a conflict in accessing these frequency bands. However, there is no clarity on the definite timeframe as to when wireless operators would be given access to these spectrums to implement 5G infrastructure. As of now, different regulations are being set by different government agencies across all regions. For instance, Ofcom (UK), UK’s communications regulator, has suggested allocating a 6 GHz frequency band for 5G infrastructure, while the FCC in the US has allocated frequencies from ~24 GHz.  As of February 2022, Ofcom has proposed to add the upper 6 GHz band (6425-7070 MHz) to its Shared Access license framework for low-power, indoor use. The standardization of spectrum allocation across regions and countries is extremely important for the development of 5G infrastructure as it impacts the economies of scale, and it also gives clarity to equipment vendors to develop suitable products. Hence, delay in the standardization of spectrum allocation is among the restraining factors for the 5G infrastructure market.

Opportunity: Growth of IoT technology would offer new opportunities for 5G infrastructure

Wide adoption and continuous advancements in the Internet of Things (IoT) are among the factors transforming various industries by connecting several types of devices, appliances, systems, and services. IoT is among the use cases that 5G network would support; for instance, it enables the communication between a large number of sensors and connected devices. IoT application requirements can be categorized as high-power, low-latency applications (e.g., mobile video surveillance), low-power, and long-range IoT applications (e.g., smart cities and smart factories). To support these requirements of emerging IoT applications, categorized as massive machine-type communication and mission-critical applications, the 5G infrastructure market is expected to gain traction. Also, the need to provide uninterrupted Internet connectivity to the increasing number of devices, along with a reduction in power consumption, is driving the growth of the 5G infrastructure market.

Challenge: Deployment and coverage challenges

Regulations and local authority policies have slowed the deployment of small cells through excessive administrative and financial obligations on operators, thereby reducing investment. Lengthy permitting processes and procuring exercises are among the major constraints for deploying small cells. The time taken by local authorities to approve planning applications for small cell implementations can take months, resulting in delays. High fees charged by local authorities to utilize street furniture such as utility poles is another major challenge faced by companies toward 5G network deployment.

Even though 5G offers significantly high speed and bandwidth, it has a limited range that will require additional infrastructure. 5G antennas can handle more users and data but can beam out radio waves over shorter distances. This will lead to the installation of extra repeaters to spread waves for an extended range.

5G Infrastructure Market Segment Insights

Based on communication infrastructure, small cells to hold higher market share from 2019 to 2027

Based on communication infrastructure, the 5G infrastructure market has been segmented into small cells and macro cells. The small cells segment is expected to hold high market share over the forecast period. Currently, mobile and communication network operators are facing imminent challenges with regard to growth in the levels of data traffic and signaling on a communication network, rise in user expectations of service quality, need to support variety of data traffic (including data, audio, and video) with high speed and reliability, and improve capacity and coverage to target new revenue opportunities. To address these challenges, operators are developing and deploying small cells on a large scale at a faster pace. The small cell offers certain benefits, such as improving capacity in areas with high user densities, increase in coverage and available data rates, and enhance handset battery life by reduced power consumption. Hence, in 5G network infrastructure, small cells are among the critical components.

Based on core network technology, the network function virtualization (NFV) segment registered the larger share during forecast timeframe

Based on core network technology, the 5G infrastructure market has been classified into network function virtualization (NFV) and software-defined networking (SDN). Network function virtualization (NFV) is projected to hold the larger size of the 5G infrastructure market from 2019 to 2027. In 5G network, the NFV will play a significant role in providing network operators the flexibility to expand their network functionality and provide effective and efficient operation of the network. In 5G, NFV will enable network slicing and distributed cloud, which would supplement it to create flexible and programmable networks for future needs. 5G network operators desire for network infrastructure that is fast operating, accessible from anywhere, efficient in using resources, and able to scale up according to the requirement to meet the dynamic needs of the network services. All such needs can be effectively addressed with the help of NFV technology. Therefore, this segment will register high market share over the forecast timeframe.

Based on network architecture, the 5G standalone (SA) network segment to account for larger size of the 5G infrastructure market during forecast period

Based on network architecture, the 5G infrastructure market is segmented into 5G standalone (SA) network (NR + Core)  and Non-standalone (NSA) 5G network (LTE Combined). 5G Standalone (SA) refers to an independent 5G network. 5G SA includes both New Radio and Core. The SA network can interoperate with the existing 4G or LTE network to provide service continuity between the 2 network generations. 5G Core uses a cloud-aligned service-based architecture (SBA) that supports control plane function interaction, reusability, flexible connections, and service discovery that spans all functions. With the operating data rate of 20 Gbps or 10Gbps, it has a latency of 1 ms (comparatively lower than NSA) and network density of 1 million devices/km2.

Based on operational frequency, above 6 GHz frequency to hold the larger share of the 5G infrastructure market during forecast period

The 5G infrastructure market has been segmented by operation frequency into Sub 6 GHz and above 6 GHz. Above 6 GHz frequencies such as 26 GHz and 28 GHz bands have strong momentum. As they are adjacent, they tend to support spectrum harmonization, and thus reduce handset complexity, economies of scale, and early equipment availability. Above 6 GHz frequencies such as 26 GHz and 28 GHz bands have strong momentum. As they are adjacent, they tend to support spectrum harmonization and thus reduce handset complexity, economies of scale, and early equipment availability.

Based on end user, industrial end user segment to grow at the highest rate

By end user, the 5G infrastructure market has been segmented into residential, commercial, government, and industrial. The industrial market is estimated to grow at the highest rate because of the growing demand for process automation in various manufacturing and process industries. To carry out various processes effectively in these industries, the flow of data and information at right time and place is crucial. With the implementation of 5G network, a strong data network, in terms of high speed with minimal delay can be easily achieved.

Regional Insights:

The Asia Pacific region is projected to Grow at highest CAGR during the forecast period

The growth of the 5G infrastructure market in Asia Pacific can be attributed to dynamic changes in the adoption of new technologies and advancements in organizations across various industries. The growth of the 5G infrastructure market in Asia Pacific will mainly be driven by the growing development (such as R&D activities, investments, and partnerships with different companies) related to the 5G market in countries such as Japan, China, South Korea, and Australia.

5G Infrastructure Market by Region

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In the Asia Pacific region, 5G is well-suited as it provides simultaneous connectivity for multiple devices and has low latency, which, in turn, improves the overall performance of systems. The 5G infrastructure market in Asia Pacific has huge opportunities in smart cities. Various countries in Asia have either initialized the implementation of smart city projects or are in the planning phase. China is the biggest marketplace in Asia Pacific for the development of smart cities. It is one of the major countries involved in the development of the 5G network infrastructure. The Chinese government has coordinated and stimulated 5G research in China. As a result, the market for 5G infrastructure in Asia Pacific is expected to grow at the highest CAGR in the coming years.

The North America region held the major share of the 5G Infrastructure market in 2018

North America is one of the leading markets for 5G infrastructure in terms of R&D activities in 5G technology, network design/deployment, and presences of key market players. North America is well known for its high adoption rate of new advanced technologies, including Internet of Things (IoT), wearable technology, and autonomous car/connected cars. Reliable and fast connectivity required for these technologies is addressed by 5G. Therefore, high growth opportunities for the said market in North America can be expected. For instance, Qualcomm, Intel, Cisco, and AT&T are among the major companies in the 5G market that are actively participating in the development of 5G technology. With full-fledged 5G implementation in North America, it is expected to boost on-demand video services. In the current scenario, the market for such services is growing continuously.

Key Market Players:

Some of the Major players in the 5G infrastructure market are Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung Electronics (South Korea), ZTE (China).  These players have adopted various growth strategies such as agreement, collaboration, partnerships, new product development, product launch to further expand their presence in the 5G infrastructure market.

Ericsson (Sweden) held the leading position in the 5G infrastructure as it is working closely with various telecom companies toward the deployment of 5G network. The company provides high-performing solutions for networks, IT & cloud, and media to the telecom industry. It aims to capture more market share as the market shifts from 4G to 5G. Moreover, the company aims to strengthen its position in the emerging 5G market. With its offerings, the company plans to expand and grow in utilities, transport, and public safety verticals. The company is aggressively adopting inorganic growth strategies, including agreements and partnerships.

Huawei (China) is the frontrunner among network access equipment providers, primarily on the back of its R&D investment, product portfolio, market perception, and geographic reach. It is among the major suppliers of network products to telecom and private network operators across the world. Its equipment has been a major part of LTE rollouts in China, Europe, East Asia, and many emerging markets. In terms of key business strategies in the 5G infrastructure market, the company considers partnerships/collaborations necessary for its growth, product launches, continuous enhancements of its existing products, and investments in R&D.

5G Infrastructure Market Report Scope:

This report categorizes the 5G infrastructure market based on Communication Infrastructure, Core Network, Network Architecture, Operational Frequency, End User, and Region.

Based on Communication Infrastructure, the 5G Infrastructure Market been Segmented as follows:

• Small Cell
• Macro Cell

Based on Core Network, the 5G Infrastructure Market been Segmented as follows:

• Software-Defined Networking (SDN)
• Network Function Virtualization (NFV)

Based on Network Architecture, the 5G Infrastructure Market been Segmented as follows:

• 5G NR Non-Standalone (LTE Combined)
• 5G Standalone (NR + Core)

Based on Operational Frequency, the 5G Infrastructure Market been Segmented as follows:

• Sub 6 GHz
• Above 6 GHz

Based on End User, the 5G Infrastructure Market been Segmented as follows:

• Residential
• Commercial
• Industrial
• Government

Based on Region, the 5G Infrastructure Market been Segmented as follows:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of APAC
• RoW
  • Middle East & Africa
  • South America

5G Infrastructure Market Highlights:

 What is new?

• Major developments that can change the business landscape as well as market forecasts.

The 5G infrastructure has witnessed numerous technological advancements over the years. The 5G network is mainly driven by software technologies such as network function virtualization (NFV) and software-defined networking to improve the operational efficiency of a network operator by offering functional flexibility.

• Emerging Technology Trends
  • Network functions virtualization (NFV)
  • Software-Defined Networking (SDN)
  • Internet of Things (IoT)

• Addition/refinement in segmentation–Increase in depth or width of segmentation of the market.

• 5G Infrastructure Market, by End User Vertical
  • Residential
  • Commercial
  • Industrial
  • Government
• 5G Infrastructure Market, by Network Architecture
  • 5G Standalone (NR + CORE)
  • 5G NR Non-Standalone (LTE COMBINED)
• 5G Infrastructure Market, by Operational Frequency
  • Sub 6 GHz
  • Above 6 GHz

• Coverage of new market players and change in the market share of existing players of the 5G infrastructure market.

Company profiles: Company profiles give a glimpse of the key players in the market with respect to their business overviews, financials, product offerings, recent developments undertaken by them, and MnM view. In the new edition of the report, we have total 24 players (12 major, 12 Startups/SME).

• Updated financial information and product portfolios of players operating in the 5G infrastructure market.

Newer and improved representation of financial information: The new edition of the report provides updated financial information in the context of the 5G infrastructure market till 2018/20 for each listed company in the graphical representation in a single diagram (instead of multiple tables). This would help to easily analyze the present status of profiled companies in terms of their financial strength, profitability, key revenue-generating region/country, business segment focus in terms of the highest revenue-generating segment and investment on research and development activities.

• Updated market developments of the profiled players.

Recent Developments: Updated market developments such as contracts, joint ventures, partnerships & agreements, acquisitions, new service launches, new product launches, investments, funding, and certification have been mapped for the years 2019 to 2027. For instance, in September 2022, Tusass A/S (Greenland) announced a collaboration with Ericsson (Sweden) for the joint vision of a wireless Greenland. Starting as a pilot in 2022, non-standalone (NSA) Fixed Wireless Access (FWA) 5G will be rolled out in Sisimiut, Maniitsoq, and Narsaq, before it is realized in several places in the rest of the country.

• Any new data points/analysis (frameworks) which was not present in the previous version of the report

• In the new edition of the report, 5G chipset providers have been removed and market players have been updated as the report focuses only on 5G infrastructure equipment providers and network operators.
• In the previous version, market size was provided from 2020 to 2026, since 5G was not commercialized at that time. In the latest report market size has been provided from 2018 to 2027. We have provided an additional forecast of 1 years (till 2027) to project the extensive growth of the market and showcase growth opportunities for industry stakeholders.

Recent Developments

• In October 2022, Nokia (Finland) announced that it has been selected as a major supplier by Reliance Jio to supply 5G Radio Access Network (RAN) equipment from its comprehensive AirScale portfolio countrywide in a multi-year deal. Under the contract, Nokia will supply equipment from its AirScale portfolio, including base stations, high-capacity 5G Massive MIMO antennas, and Remote Radio Heads (RRH) to support different spectrum bands, and self-organizing network software. Reliance Jio plans to deploy a 5G standalone network which will interwork with its 4G network.
• In October 2022, Ericsson (Sweden) entered into a long-term strategic 5G contract with Indian communications service provider (CSP) Reliance Jio Infocomm Ltd. (Jio) to roll out 5G Standalone (SA) in the country. This is the first partnership between Jio and Ericsson for radio access network deployment in the country.
• In October 2022, Ericsson (Sweden) and Becker Mining Systems AG (Germany) unearthed the future of smart mining, following the signing of a multi-country reselling agreement. Becker Mining Systems AG has selected Ericsson as the 5G network partner of choice to provide Ericsson Private 5G (EP5G) and private network solutions. The frame agreement covers many countries including Canada, US, Mexico, Chile, France, Germany and Poland. There are plans to expand the agreement to new countries in the future.
• In August 2022, Nokia (Finland) announced that it has secured a deal with leading telecom operator Bharti Airtel, for 5G radio access network (RAN) deployment. This multi-year deal follows the recently concluded 5G spectrum auctions and allocation of pan-India spectrum to Bharti Airtel, supporting their ambition to take India into the 5G era.
• In June 2022, Cisco (US) announced its expanded relationship with General Dynamics Information Technology (GDIT), a business unit of General Dynamics, to deliver Cisco Private 5G services to a broad set of government entities. Cisco’s Private 5G service is built on its industry-leading mobile core technology and IoT portfolio – spanning IoT sensors and gateways, device management software, as well as monitoring tools and dashboards.

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