Global 5g Services Market Demand Analysis 2022 Growth Statistics, Revenue Estimates, Covid-19 Impact, Global Share, Emerging Trends, Top Leading Play

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The global 5G services market was valued at US$45,680 million in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 44.1% between 2022 and 2029, mainly driven by the exponential rise in data traffic and growing demand for high-speed data connectivity. The planned deployment of 5G networks in smart cities growing adoption of IoT is also expected to drive the 5G Services market growth.

AgileIntel’s global 5G services market study is a 172 slide report containing in-depth analysis on historical and forecasted spending patterns in the sector. The study offers granular value data from a global, regional, communication technology, and vertical perspective.

5G services commercialization started in 2020. Hence, the base year is 2021 for the study with historical data available for 2020. The data forecast has been provided for the years between 2022 and 2029.

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Key insights from the Global 5G Services report

Insights on Communication Technology:

The ...
... 5G services market is classified into Enhanced Mobile Broadband (eMBB), Fixed Wireless Access (FWA), Massive Machine Type Communication (mMTC), and Ultra-Reliable Low Latency Communication (uRLLC) based on the communication technology.

The Enhanced Mobile Broadband (eMBB) segment, also known as extreme mobile broadband, dominated the market in 2021 and is expected to grow considerably over the forecast period. It is the extended version of 4G network services and can deliver ultra-high wireless bandwidth capabilities in applications such as high definition (HD) video streaming and immersive virtual reality (VR)/augmented reality (AR) gaming and video calling, providing faster download speed and improved user experiences.

The massive Machine-Type Communications (mMTC) segment is expected to grow exponentially during the forecast period. The 5G mMTC technology provides high bandwidth connectivity for heavy density applications such as smart cities, remote asset monitoring, etc. The rising need for high-speed connectivity for all IoT devices deployed in a network is expected to boost the mMTC segment growth during the forecast period.

Insights on Regional Growth:

Asia Pacific is the largest market for 5G services globally. Market players in APAC region such as China Mobile, China Telecom, SK Telecom, and KT Corporation are making significant investments in rolling out 5G network infrastructure in China, Japan and South Korea. Moreover, manufacturers such as Huawei Technologies, Samsung Electronics, and BBK Electronics Corporation are continuing to launch 5G-enabled smartphones which is likely to drive growth in the region.

Meanwhile, North America accounted for 27% of the 5G services market in 2021. The 5G rollout in North America is delayed due to the escalating trade war between the U.S. and China. The U.S. is one of the largest importers of Infrastructure equipment from China. Due to geopolitical tensions between these two countries, the U.S. government has urged other countries to review the role of Chinese firms in 5G networks, suspecting their equipment is being used for cyberespionage. The absence of major 5G equipment suppliers from the domestic market is expected to reduce price competition and higher deployment costs. The move is expected to increase the CAPEX of operators and delay the 5G rollout in the U.S.

Market dynamics

Trends

The deployment of millimeter wave (mmWave) technology based standalone 5G (SA 5G) networks is likely to take precedence over non-standalone 5G (NSA 5G) technology, which has been used in most of the commercial deployments till date. NSA 5G uses new radio technologies, implemented on an underlying 4G core, thus offering better bandwidth and performance than 4G. However, it is nowhere close to the true potential of the mmWave based SA 5G networks, which can reach 10 times the speed of 4G, and unlock several application areas consumers and business. Thus, as the implementation of SA 5G networks gains momentum, the practical application of advanced IoT, robotics, and AR/VR in industrial use cases can finally be a reality.

Drivers

The growing demand for high-speed data for commercial, industrial, and personal applications is expected to drive the demand for 5G services. The proliferation of smartphones, tablets, and smart TVs has led to increasing internet use for browsing, streaming videos, and video calling, among others. The resultant increase in data traffic has, in turn, created a need for high-speed data connectivity to provide a seamless experience to users. The commercialization of 5G-enabled services is anticipated to create numerous uses ranging from simple applications such as Virtual Reality (VR) & Augmented Reality (AR) gaming and Ultra-High-Definition (UHD) video streaming to more complex applications, including robotic surgeries, autonomous vehicles, and autonomous defense equipment. Thus, the advent of next-generation technologies is expected to drive the demand for high-speed, low latency data connectivity and the demand for 5G services.

Opportunities

5G and cloud are likely to evolve into two interdependent technology platforms that would grow together and support each other during the forecast period. The combination of cloud technologies and 5G services is anticipated to enhance the flexibility, operational capacity, and functionality of many industries. High-speed data connectivity coupled with reduced latency levels that 5G network services offer would encourage organizations to shift toward cloud-based solutions. Moreover, they are expected to pave the way for several investment opportunities for cloud businesses. For instance, 5G technology is anticipated to enable cloud service providers to use their mobile phones for remotely accessing machines, thus making it easier and more reliable for them to offer their services to mobile enterprise customers. Thus, the growing adoption of cloud services is expected to support the 5G market growth during the forecast period.

Challenges

The increased cost of 5G spectrum coupled with high infrastructure costs associated with the deployment of 5G services is expected to result in higher subscription fees to avail 5G services. Telecom service providers are charged a high fee by the government or telecom regulating authorities to buy the license or rights to transmit signals over specific electromagnetic spectrum bands. Moreover, governments worldwide release only a limited band to be licensed by telecom operators. These factors are expected to hamper the growth of the 5G services market. For instance, the Telecom Regulatory Authority of India (TRAI) has recommended base price of INR 492 per MHz for 5G spectrum within the 3300 MHz to 3600 MHz band. These high spectrum costs are likely to directly affect the consumers and hamper the development of 5G services over the forecast period.

Impact of COVID-19

The COVID-19 pandemic has significantly impacted the global economyand, subsequently, 5G roll-out and infrastructure deployment. Governments across the world have issued strict lockdowns and travel restrictions leading to labor shortage and complete disruption of supply chain and logistics operations, delaying the deployment of 5G Infrastructure.As a result, there has been a notable decline in the imports and exports of 5G equipment from major manufacturing hubs, including China, the U.S., Korea, Taiwan, and other key European countries. This, in turn, has further delayed the deployment of the next-generation network infrastructure worldwide.

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