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5G Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 120 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4845978
UP TO OFF until Dec 31st 2023

Quick Summary:

In a world increasingly reliant on fast and reliable connectivity, the 5G Services Market is paving the way for technological revolution. The emergence and fast-paced growth trajectory of this market is induced by the rising need for improved mobile subscriptions, sophisticated broadband services, progressive 5G infrastructures, and the escalating use of IoT applications.

The role of 5G services in empowering connectivity across multiple end-user verticals is game-changing. Particularly, its beneficial impact on industrial automation is evident and grows prominent with momentum in Industry 4.0 initiatives. Firms and original equipment manufacturers (OEMs) benefit significantly from the reduced latency that 5G offers, driving increased efficiency and innovation. Although the capital costs for 5G infrastructure implementation are considerable, the resultant uninterrupted services easily offset the high upfront expenditure.

The migration of business operations to virtual spaces reinforces the need for superior 5G infrastructures. Similarly, rising data traffic and the demand for high-speed data connectivity are set to drive market dynamics forward. Irrespective of geographical location, the enhancement of user experience through network evolutions is clear. This growth is further reinforced by the advent of immersive 5G video content that are destined to consume a larger chunk of data traffic.

As we delve into an increasingly interconnected digital age, the role of 5G Services cannot be understated. By purchasing this comprehensive market research report, you set your business up for innovative leaps and strategical insights into an industry that is forcefully shaping the future of our digital connectivity.

The 5G Services Market is expected to register at a CAGR of 25.3% over the forecast period. 5G is anticipated to support various services and associated service requirements across multiple scenarios. Network slicing is one way to efficiently address different use cases while improving the 5G network architecture.

Key Highlights

  • The market for 5G services is expected to revolutionize the domain of various broadband services and empower connectivity across different end-user verticals. The main drivers responsible for increasing the market share are an increase in mobile subscriptions, online streaming of video content, strengthening 5G infrastructure, and various IoT applications utilizing 5G.
  • IoT in industrial automation is expected to derive maximum benefit from 5G services. The functionality to support this segment is currently being defined in 3GPP, influenced by Industry 4.0 initiatives and industry bodies, such as 5G-ACIA. It will likely be a 5G-specific segment, valid for local area use cases and private network deployments.
  • The use of more effective cloud solutions that rely on low latency improves firm efficiency and innovation through increased download speeds of broadband services, which also, in turn, leads the carriers and original equipment manufacturers (OEMs), such as cellular device manufacturers and in-building distributed antenna systems (DAS) providers to follow the 5G New Radio (5G NR) rules to enable such offerings.
  • The capital costs of installing the required 5G infrastructure and software upgrades are considerably high, considering the high density of BTS units needed to provide uninterrupted 5G services.
  • Moreover, with extensive reliance on virtual space increasing during the COVID-19 pandemic, the need to deploy advanced 5G infrastructure has become paramount. Increased migration frequency of business operations to the cloud and other virtual spaces has prompted investments in robust connectivity platforms.

5G Services Market Trends

Increasing Data Traffic and Demand for High Speed Data Connectivity will Drive the Market Growth

  • 5G standards are likely to support ultra-HD voice and video to produce new applications that rely on voice communication, for instance, telepresence. The 5G’s device density, low latency, security, and video capabilities may support added value communications offerings, like Rich Communication Services, especially for enterprises.
  • North America has the highest levels of mobile broadband and smartphone adoption globally. The operators in North America have begun to shut down 2G and 3G networks to reframe the spectrum. This trend is expected to continue as regional operators switch to 5G networks using a mix of low, medium, and high-band spectrums.
  • Countries such as Sweden and the United Arab Emirates strive to offer superior performance by strengthening user experience through continuous network evolution. As more advanced services and devices emerge, the operators may need to raise their targeted service quality levels even higher.
  • Moreover, with increased dependence on streaming services, 4G networks supported majorly, streaming with AR/VR, 4k/8k video, and 360-degree videos, the 5G video content is expected to be immersive and consume a higher proportion of the overall data traffic.
  • The 5G subscription traffic growth is driven by both the rising number of smartphone subscriptions and a need for increasing average data volume per subscription due to video content viewing.

North America is Expected to Hold the Largest Share

  • 5G-enabled IoT connections are expected to witness a further increase in demand in the United States. As per the IoT Association, the United States leads, in terms of smart home adoption, with the highest smart home device ratio per household and the greatest consumer propensity to own devices across two or three use cases (security, energy, and appliances).
  • Additionally, the country expects billions of devices to be connected to the internet, devices, and sensors of the Internet of Things. With the onset of 5G networks, the extensive bandwidth and faster internet speeds can be utilized by Google and Facebook; for instance, to develop more advanced services shortly.
  • Apart from the launch of 5G services, the United States also needs to focus on software development. Repurposing the country’s mid-band spectrums currently being used by the military or weather radars may make networks more efficient.
  • Moreover, the country is promoting technologies, such as automated and connected driving, to enhance road safety, reduce road congestion, and decrease air pollution. Such initiatives to gain experience in actual driving scenarios are also supported by the Federal Ministry of Transport and Digital Infrastructure.

5G Services Market Competitor Analysis

The competitive rivalry among the 5G services industry players is high because of the presence of several significant players, including AT&T, Verizon, Nokia, and others. They could outperform rivals if they could consistently innovate their product offers. These businesses have established a substantial presence in the market through mergers and acquisitions, strategic alliances, and research and development.

In May 2022, Nokia Corporation announced its 5G-Advanced to widen the area that 5G uplink signals can reach. While 5G-Advanced will improve uplink coverage first with the initial connection setup by leveraging more excellent random access channel coverage, it will support new types of devices with low data-rate requirements and introduce 5G capabilities to new vertical sectors and markets. The uplink data rate will then be optimized within the allocated connection budget by 5G-Advanced dynamically altering the uplink waveform. When the user is close to the cell edge, the network will dynamically favor coverage-enhancing waveforms, and as the user travels into the cell center, it will deprioritize them.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshot
4.3.1 By Type Enhanced Mobile Broadband (EMBB) Ultra-reliable Low Latency Communications (URLLC) Massive Machine Communications (MMTC)
5.1 Market Drivers
5.1.1 Increasing Demand for Ultra-Low Latency Connectivity
5.1.2 Increasing Data Traffic and Demand for High Speed Data Connectivity
5.2 Market Restraints
5.2.1 High Deployment Cost
5.3 Assessment of Impact of COVID-19 on the Industry
6.1 End-user Industry
6.1.1 IT & Telecom
6.1.2 Media & Entertainment
6.1.3 Automotive
6.1.4 Energy & Utility
6.1.5 Aerospace & Defense
6.1.6 Other End-user Industries
6.2 Geography
6.2.1 North America United States Canada
6.2.2 Europe Germany United Kingdom France Italy Rest of Europe
6.2.3 Asia-Pacific China Japan India South Korea Rest of Asia-Pacific
6.2.4 Rest of the World
7.1 Company Profiles
7.1.1 Nokia Corporation
7.1.2 Huawei Technologies Co Ltd.
7.1.3 AT&T Inc
7.1.4 Verizon Communications Inc
7.1.5 HP Enterprise Development LP
7.1.6 T-Mobile USA, Inc.
7.1.7 Deutsche Telekom AG
7.1.8 Telefonaktiebolaget LM Ericsson
7.1.9 Swisscom AG
7.1.10 Vodafone Group
7.1.11 BT Group
7.1.12 Telstra Corporation Limited

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Nokia Corporation
  • Huawei Technologies Co Ltd.
  • AT&T Inc
  • Verizon Communications Inc
  • HP Enterprise Development LP
  • T-Mobile USA, Inc.
  • Deutsche Telekom AG
  • Telefonaktiebolaget LM Ericsson
  • Swisscom AG
  • Vodafone Group
  • BT Group
  • Telstra Corporation Limited