Increasing Adoption in Connected Vehicles is Expected to Boost the 5G Antenna Market
The changing paradigm of the consumer and enterprise market, the requirement of higher bandwidth, congestion in networks, and increasing data traffic across industries are some of the important factors substantiating the need for 5G network evolution. This demand leads to the advent of the 5G networks to cater to the growing needs for speed, reliability, and low latency.
5G technology holds the potential to boost new industries, such as Industrial IoT, smart city projects, automotive, and healthcare. 5G comes with enormous benefits such as improvement in speed (ten times that of 4G), minimum latency (at least ten times lower than 4G), and density (supporting approximately one million IoT devices per square kilometer).
Governments across countries are strengthening their efforts toward developing 5G equipment and infrastructure to lead the 5G race. Organizations are researching and developing new antenna technologies that can achieve a breakthrough in the 5G industry. The 5G antenna ecosystem has several budding players, thriving toward achieving new antenna technologies and products in the market.
Some of the key players operating in this ecosystem include Samsung Electronics Co., Ltd., Nokia Corporation, CommScope Holdings Company, Inc., and Ericsson. The global 5G Antenna Market was estimated at $198.52 million in 2019 and is expected to grow at a CAGR of 60.27% during the forecast period, 2020-2025.
This growth in the demand of 5G antennas is attributed to the market drivers, including the roll-out of 5G across countries that are working toward boosting the demand for 5G antennas, increasing adoption of 5G technology in connected vehicles, and other factors such as lower latency, high-speed, and large network coverage. However, there are certain challenges that are hampering the growth of the market, including the delay in allocation of the spectrum along with the deployment of small cells is expected to impact the demand generation of 5G antennas, and the impact of the COVID-19 pandemic on the 5G industry and its supply chain across the globe.
The 5G antenna market has witnessed the negative impact of COVID-19, with disruption of the supply chain due to national lockdowns and import-export shipment delays across the world. During Q1 and Q2 of 2020, several countries worldwide have halted their 5G deployment work, which caused the demand for 5G antennas in the manufacturing industry to plummet.
For example, countries in Europe have delayed the frequency auction for 5G networks across most of the region. Due to the COVID-19 situation, European countries and North American countries are witnessing cash flow issues and unclear revenue prospects, leading to cutbacks of technology deployment plans in the countries.
The wireless network in the future needs to support high-performance applications thus it requires coverage and capacity. Advancement in the network offers various options to incorporate next-generation designs that can help enhance performance. 5G network is expected to be the driving-force towards fully autonomous vehicles. Several companies are collaborating in terms of design to develop the next generation of methodologies that can test for the forthcoming regulatory compliance for connectivity technology.
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