5G Services Market

[296 Pages Report] The 5G Services market is estimated at USD 98.3 billion in 2023 to USD 427.7 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 34.2%. The integration of 5G technology in environmental monitoring and sustainability initiatives serves as a significant driver for the 5G market. The high-speed, low-latency capabilities of 5G networks enable real-time data collection and analysis, fostering more efficient resource management. In applications like smart agriculture, 5G facilitates precision farming by allowing sensors to provide instant feedback on soil conditions, weather patterns, and crop health. This enables farmers to optimize irrigation, fertilization, and pesticide use, ultimately reducing waste and environmental impact. Additionally, 5G contributes to smart grid systems, improving the efficiency of energy distribution and consumption. The ability to swiftly transmit data from various environmental sensors aids in creating responsive and sustainable solutions, positioning 5G as a key enabler for environmentally conscious practices and resource optimization.

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5G Services Market Dynamics

Driver:  Increase in mobile network data traffic

As per the Ericsson Mobility report in June 2023, the total mobile data traffic is estimated to reach approximately 93 Exabytes per month by the end of 2022 and is projected to reach 329 EB per month by 2028. The mobile network data traffic growth between Q1 2022 and Q1 2023 was around 36%. The traffic growth is due to both the increasing number of smartphone subscriptions and an increasing average data volume per subscription primarily driven by increasing video content viewers. Video traffic at present accounts for 71% of all mobile data traffic which is projected to reach up to 80% by 2028. The number of mobile phone users is rapidly increasing across the globe. There has also been increased penetration of smartphone devices in developing countries over the past few years. 5G’s share of mobile data traffic was around 10% in 2021, and this share is forecast to grow to 60% in 2027. By the end of 2028, 5G subscribers are expected to reach 4.6 billion globally.

Restraint: High costs for deployment of 5G network

The smooth deployment and optimization of 5G networks face a significant challenge due to delays in achieving spectrum harmonization across diverse geographical regions. Spectrum harmonization involves aligning frequency bands globally for 5G utilization, promoting interoperability, and ensuring consistent network performance. The absence of synchronized spectrum allocation complicates efforts for telecommunication operators and equipment manufacturers to establish cohesive and efficient 5G ecosystems. This delay not only hampers the global roaming capabilities of 5G devices but also undermines the potential economies of scale achievable through standardized spectrum deployment. Additionally, the lack of harmonization poses challenges for international businesses, requiring adaptations in devices and network configurations to operate in varied markets. Therefore, it is crucial to foster international collaboration and expedite the harmonization process to unlock the full potential of 5G technology on a global scale and ensure its seamless integration across borders.

Opportunity: Growth in data generated by IoT devices creates new opportunities

FWA is witnessing tremendous growth in the number of mobile service providers offering FWA. According to Ericsson Mobility Report 2023, about 40% of FWA service providers are offering services over 5G. Over 80% of mobile service providers in North America, Europe as well as the Middle East & Africa offer FWA. Speed-based tariff plans are commonly offered for fixed broadband services such as those delivered over fiber or cable. In the US, two leading service providers now have more than 5 million 5G FWA connections. Japan is at the forefront of 5G FWA adoption, with all major service providers now offering 5G FWA, including standalone 5G (SA) support and battery-powered pocket router solutions. Pioneering a shift to FWA, a Norwegian service provider has replaced its copper DSL network with FWA services for over 51,000 customers. The number of FWA connections worldwide is expected to reach 300 million by 2028 accounting for almost 80% of FWA connections. Widespread adoption of 5G FWA in populous, rapidly developing nations like India can lead to economies of scale for the entire 5G FWA ecosystem, enabling more affordable CPE that can significantly benefit low-income populations.

Challenge: Delay in spectrum harmonization across geographies

The considerable expense associated with deploying 5G technology poses a substantial obstacle to its widespread adoption. The extensive upgrades required for the transition from existing networks to 5G, which involve installing numerous small cells and implementing advanced equipment, place a significant financial burden on telecommunication service providers. These costs not only cover the acquisition and installation of 5G-compatible hardware but also extend to developing a resilient and secure network infrastructure capable of meeting the heightened demands for speed and connectivity. Such financial challenges may act as a deterrent, especially for smaller operators or those with limited resources, delaying seamless and swift integration of 5G technology into global telecommunications ecosystems. It becomes imperative to make concerted efforts to address and alleviate these deployment costs to ensure the widespread accessibility and affordability of the transformative benefits promised by 5G.

5G Services Market Ecosystem

Prominent players in this market include well-established, financially stable 5G Services solutions, services providers, and regulatory bodies. These companies have been operating in the market for several years and possess a diversified product portfolio and state-of-the-art technologies. Prominent companies in this market include Vodafone (UK), AT&T (US), and Verizon (US) and so on.

"By application, communication & collaboration segment to hold the largest market size during the forecast period.”

One of the key strengths of 5G is its ultra-low latency, which offers minimal lag between sending and receiving data. This is crucial for seamless communication, enabling real-time applications such as remote collaboration tools and virtual reality meetings to function flawlessly. 5G networks can handle a much higher volume of devices than previous generations allowing more users to connect simultaneously, fostering large-scale collaboration projects and communication within organizations with many employees or geographically dispersed teams. High-bandwidth capabilities of 5G enable advancements like real-time translation during video calls, immersive augmented reality experiences for remote training, and the widespread adoption of the Internet of Things (IoT) for connected workplaces.

“By communication type, URLLC segment is expected to have the fastest growth rate during the forecast period.” 

The intersection of URRLC and 5G technology is transforming public safety applications, particularly in the realms of first responder communications and disaster management. The integration of 5G enhances URRLC's capacity to transmit critical information in real-time, providing a responsive and resilient communication infrastructure for first responders during emergencies. The high data speeds and ultra-low latency of 5G networks ensure that real-time data, including live video feeds, location information, and vital statistics, can be transmitted instantaneously. This capability significantly improves the situational awareness of first responders, enabling more informed decision-making in rapidly evolving crisis scenarios. Moreover, in disaster management, the combination of URRLC and 5G facilitates seamless coordination between various agencies and organizations involved in emergency response efforts. The ability to quickly share and access crucial information enhances the overall efficiency of disaster management, leading to more effective and timely interventions. As the demand for advanced public safety solutions continues to grow, the synergy between URRLC and 5G is becoming increasingly vital, driving innovation and deployment in this critical domain.

“Asia Pacific to have the largest market size during the forecast period.”

Cities across the Asia Pacific region are increasingly embracing smart city initiatives to revolutionize urban living, and at the heart of this transformation is the pivotal role played by 5G technology. 5G is the backbone for the infrastructure required to power diverse smart city applications. From deploying IoT sensors that gather real-time data on air quality, traffic patterns, and energy consumption to intelligent transportation systems that optimize traffic flow and reduce congestion, 5G enables seamless connectivity and rapid data exchange. The high data speeds and low latency of 5G networks support the real-time analytics necessary for effective urban planning and management. This convergence of 5G and smart city initiatives not only enhances efficiency in resource utilization but also contributes to a more sustainable, connected, and responsive urban environment, ultimately improving the overall quality of life for residents in these cities.

Market Players:

The major players in the 5G Services market are AT&T (US), China Mobile (China), Verizon Communications (US), Deutsche Telekom AG (Germany), Vodafone Group (UK), SK Telecom (South Korea), BT Group (UK), China Telecom (China), Orange (France), KT Corporation (South Korea), China Unicom (China), Telstra Group (Australia), Rogers Communications (Canada), Bell Canada (Canada), Etisalat (UAE), Saudi Telecom Company (Saudi Arabia), KDDI Corporation (Japan), Telus Corporation (Canada), LG Uplus Corporation (South Korea), Swisscom (Switzerland), Reliance Jio Infocomm (India), Bharti Airtel Limited (India), Telenor Group (Norway), MTN Group (South Africa), NTT Docomo (Japan), Dish Network Corporation (US), Rakuten Group (Japan), Telefonica S.A (Spain), JMA Wireless (US), Verana Networks (US), Celona (US), Mangata Networks (US), Airspan Networks (US), EdgeQ (US), Omniflow (US), and Aarna Networks (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their 5G Services market footprint.

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Scope of the Report

This research report categorizes the 5G Services market to forecast revenues and analyze trends in each of the following submarkets:

Based on Application:

• Communication & collaboration
• Asset tracking
• Smart cities
• Smart buildings
• Industry 4.0
• Autonomous vehicles
• Smart healthcare
• Smart utilities
• Immersive media & gaming
• Other applications (smart agriculture, smart payments, and emergency response)

Based on Communication type:

• Enhanced Mobile Broadband
• Massive Machine Type Communication
• Ultra-Reliable Low-Latency Communications

Based on End user:

• Consumers
• Enterprises

Based on Enterprise

• Banking, Financial Services, & Insurance (BFSI)
• Retail & eCommerce
• Healthcare & Life Sciences
• Manufacturing
• Media & Entertainment
• Construction & Real Estate
• Government & Public Sector
• Transportation & Logistics
• Energy & Utilities
• Education
• Other Enterprises (agriculture, travel & hospitality, mining, oil & gas, and sports)

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia & New Zealand
  • Southeast Asia
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC Countries
    • Kingdom of Saudi Arabia (KSA)
    • United Arab Emirates (UAE)
    • Rest of GCC
    • South Africa
    • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In September 2023, Vodafone partnered with Nokia to introduce Open RAN in Italy through a pilot program. The carrier completed a series of 4G calls over a cluster of shared commercial network sites in Romania.
• In September 2023, China Mobile and Indosat Ooredoo Hutchison collaborated to develop strategies and expand their businesses into new and existing markets, as well as to monetize the 5G market.
• In July 2023, AT&T Boldyn Networks partnered to boost 5G mobile coverage for millions of San Fransico Municipal Transportation Agency riders.

Frequently Asked Questions (FAQ):

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