The Global 5G Services Market was valued at USD 53.4 Bn in 2020 is expected to reach USD 335 Bn by 2027, with a growing CAGR of 30% during the forecast period (2021-2027).
5G is the 5th generation mobile network and services. It enables a newer type of services that are designed to connect virtually everyone and everything together including machines, objects, and devices. 5G wireless technology help to deliver higher multi-Gbps peak data speeds, ultra-low latency, more reliability, massive network capacity, increased availability, and more uniform user experience to more users. The higher performance and improved efficiency of these networks empower new user experiences and connect new industries. The increasing need to transform the mobile broadband experience is expected to drive the growth of the 5G services market over the forecast period.
The 5G networks delivers the fast and smooth experience to the customers and provides platform for cloud and artificial intelligence (AI) based services. The different types of data-intensive applications are used by individuals and businesses such as AR, VR and video applications. Moreover, the increasing demand from the industries such as healthcare, IT & Telecom, retail, automotive will create a attractive opportunity for the deployment of 5G services. In this industries, there will be a different types of service requirements, including high bandwidth, low power, ultra-low latency, and high speed. To cope with the increasing demand for mobile broadband services, the network capacity needs to be increased by using a new spectrum, which would lead to the wide adoption of the 5G core to deploy 5G technology for enhanced mobile broadband services.
In addition to this, the 5G network technologies are widely used in public transportation applications. These technologies are utilized to provide broadband access for public transportation systems, such as buses and trains, by providing high-speed internet in transit for entertainment, information, and interaction with smart mobility components. Thus, it is expected to boost the 5G services market.
Moreover, the strong emphasis on providing reliable and robust communication during natural disasters, such as floods, hurricanes, and earthquakes, is further anticipated to uplift the adoption of 5G services.
The Global 5G Services Industry Segmentation:
By Communication Type
By End User
By Industry Vertical
Company Profiles and Competitive Intelligence
The key players operating in the 5G services market are:
The unique insights provided by this report also include the following:
Based on communication type, the enhanced mobile broadband (eMBB) segment dominated the 5G services market with a market share of over 40% in 2020 owing to its enhanced capabilities for the applications
The enhanced mobile broadband (eMBB) is dominated and showcase the highest market share of over 40% in 5G services market. The growth in the segment is mainly attributed to the primary focus of 5G network operators on delivering enhanced broadband capabilities for applications, such as high-speed cloud-based gaming, AR/VR, UHD video, and uninterrupted video calls. Moreover, eMBB also provides the high data speeds for residential and commercial used. Thus, this will proliferated the demand of this segment.
Based on the industry vertical, the manufacturing segment dominated and showcase the major market share during the forecast period due to the advent of industry 4.0
The manufacturing segment holds the highest market share in 5G services during the forecast period owing to the advent of industry 4.0. Industry 4.0 is expected to be fuelled by artificial intelligence (AI) and Internet of Things (IoT) which will require the support of 5G networks to transform the manufacturing processes effiecient, connected and flexible in the future.
Based on regions, Asia-Pacific holds the major market share in 5G services market in 2020 followed by North America owing to the faster adoption of smartphone coupled with high penetration of internet
Asia-Pacific region is held the largest market share of over 42% in 2020 and is expected to grow at the highest CAGR during the forecast period. The growth in the region is mainly attributed to the presence of major 5G services market players such as China Telecom, China Mobile, Sk Telecom, and KT corporation. These market players are spending heavily in rolling out the 5G infrastructure in the countries including china, Japan and South Korea. Moreover, the faster adoption of smartphone coupled with the high penetration of internet in the region is expected to create a significant opportunity for the vendors in 5G services and therefore support the growth of the market in the region.
For instance, according to the report published by the Global System for Mobile Application (GSMA), in 2019, it is estimated that there are around 2.8 Bn of mobile subscribers and 2.0 Bn of internet users in Asia-Pacific. Thereby, this fact supports the growth of the 5G services market to a great extent.
North America holds the second largest market share of over 30% in 2020. The growth in the region is attributed to the early adoption of technology in the region. Moreover, the high deployment rate of 5G infrastructure especially in the US is an major factor for the growth of the market in the region.
For instance, according to the report published by GSMA in 2019, North America, specifically the US, is expected to witness the highest rate of 5G adoption, driven by early launches and the propensity of domestic consumers to rapidly adopt new technologies. By 2025, 202 million 5G connections (predominantly smartphones) are expected in North America, accounting to almost half of the mobile connections.
The report also provides an in-depth analysis of 5G services market dynamics such as drivers, restraints, and opportunities
COVID-19 Impact on the 5G Services Market Analysis
The COVID-19 pandemic has significantly affected the major industries such as manufacturing, oil & gas and others due to the strict lockdown imposed by government across the globe. However, the telecom industry play a vital role across the globe to support the digital infrastructure of countries. Every individuals and government has been constantly touch with one and another to provide and get a real time data of COVID-19 pandemic. The healthcare, telecommunication, media & entertainment, utilities and government institutes are functioning to stabilize and facilitate prerequisite services to every individuals.
Moreover, due to pandemic many business operation running remotely therefore there is a need for fast and secure network for the organization, this is in turn, to uplift the demand for next generation network (5G). A more detailed analysis specific to this industry will be provided in the report.
The report also provides an in-depth analysis of key trends in the 5G services market
|1||The increasing trend for the remote operations across various industries has a positive significance for 5G services||Positive|
|2||5G connectivity is a critical component in the large-scale adoption of XR technology solutions that offer customers an enhanced visual and seamless experience, combined with tailored content, faster response times and mobile applications||Positive|
The report also provides an in-depth analysis of recent news developments and investments
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