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Global 5G Services Market - Forecasts from 2022 to 2027

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  • 125 Pages
  • June 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5636838
The global 5G services market was evaluated at US$50.285 billion for the year 2020, growing at a CAGR of 45.73%, reaching the market size of US$701.824 billion by the year 2027.

5G is a next-generation cellular technology that will enable high-speed, low-latency connectivity. 5G technology encompasses the entire ecosystem of hardware, software, and services required to deploy 5G networks. Low power, high bandwidth, high speed, and ultra-low latency are all service requirements in industries like healthcare, retail, IT, telecom, media & entertainment, and automotive. As a result, 5G service acceptance is expanding in tandem with the adoption of mobile broadband services, which is likely to drive up market demand for 5G services in the coming years. The need for high-speed data connectivity due to increasing data mobile traffic is also driving the growth of the global 5G services market. Data traffic is increasing due to the wide usage of broadband and mobile data services by people and commercial applications, accounting for the rise in market demand for high-speed data services like 5G. The necessity for dependable and strong communications during natural catastrophes such as earthquakes, floods, and hurricanes is also expected to drive 5G adoption. The penetration of automation in the automobile industry makes automobiles more efficient in their performance. The support of 5G services to automobile sectors boosts the safety systems offered by automobiles. The support and policies of governments in augmenting the telecom sectors by welcoming major players and rising investments in the field of data connectivity are fuelling the market growth of 5G services in the global market. The high cost of initiation and drastic infrastructure changes are also on the other side, restraining the growth of the global 5G services market.

The recent outbreak of the COVID-19 pandemic had a positive impact on the growth of the global 5G services market. As most of the work has transferred to online platforms, the COVID-19 pandemic seems to have a beneficial impact on the 5G technology industry, as the demand for a better network provider and higher internet speed has increased. Distancing socially, the impact on the workplace, and the consequent upheavals have caused enterprises to rethink their operating strategies in light of 5G technology, which has fuelled the global 5G service market growth during the pandemic.

Rising demand for high-speed data connectivity

The increasing demand for high-speed data connectivity due to rising data traffic is giving potential to the growth of the global 5G services market. Ericsson is a prominent player in the telecom business. According to Ericsson's mobility report released in November 2019, mobile data traffic is growing at a 68 percent annual rate. 5G networks offer up to 1 Gbps of increased internet speed and serve as the foundation for cloud and AI-based applications. Various data-intensive applications, both personal and business, are emerging, such as augmented reality (AR), virtual reality (VR), and video applications, requiring 5G's high-speed data connectivity. These technological developments in the telecom sector are expected to surge the market growth of 5G services in the forecasted years. The government policies and support of certain countries for developing 5G sectors also push the market value of 5G services in the telecom industry. Xplornet, a Canadian telecommunications company, has revealed plans to invest more than USD 500 million in 5G wireless services over the next five years. The investments of private companies are also contributing to the market growth of the 5G services market.

High initial costs are acting as a barrier to the market growth

The switch from traditional to 5G technologies would necessitate significant investment. The needed throughput density, periodic interest rate, and base station pricing all influence the cost of 5G infrastructure. The high cost demanded by the 5G infrastructures that support 5G data connectivity is restraining the market growth of 5G services to a certain extent.

Asia Pacific region expected to show drastic growth

In the coming years, the market size of 5G services in the Asia Pacific area is predicted to skyrocket. Asia Pacific countries are investing in deploying next-generation infrastructure in the media and entertainment, transportation and logistics, healthcare, and manufacturing industries. Over the forecast period, these investments are expected to move the Asia Pacific regional market forward.

Market Segmentation:

By Component

  • Hardware
  • Software
  • Services

By Type

  • FWA
  • eMBB
  • MMTC

By Application

  • Manufacturing
  • Energy and Utilities
  • Media and Entertainment
  • Government
  • Transportation and Logistics
  • Healthcare

By Geography

  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Europe
  • Germany
  • France
  • UK
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others
Frequently Asked Questions about the Global 5G Services Market

What is the estimated value of the Global 5G Services Market?

The Global 5G Services Market was estimated to be valued at $50.29 billion in 2020.

What is the growth rate of the Global 5G Services Market?

The growth rate of the Global 5G Services Market is 45.7%, with an estimated value of $701.82 billion by 2027.

What is the forecasted size of the Global 5G Services Market?

The Global 5G Services Market is estimated to be worth $701.82 billion by 2027.

Who are the key companies in the Global 5G Services Market?

Key companies in the Global 5G Services Market include Verizon Communications, Inc., BT Group plc, China Mobile Ltd., China Telecom Corporation Ltd., Bharti Airtel Ltd., NTT Docomo, KT Corp., Saudi Telecom Company and Deutsche Telekom AG.

Table of Contents

1. Introduction
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Global 5G Services Market Analysis, by Component
5.1. Introduction
5.2. Hardware
5.3. Software
5.4. Services
6. Global 5G Services Market Analysis, by Type
6.1. Introduction
6.2. FWA
6.3. eMBB
6.4. URLLC
6.5. MMTC
7. Global 5G Services Market Analysis, by Application
7.1. Introduction
7.2. Manufacturing
7.3. Energy and Utilities
7.4. Media and Entertainment
7.5. Government
7.6. Transportation and Logistics
7.7. Healthcare
7.8. Others
8. Global 5G Services Market Analysis, by Geography
8.1. Introduction
8.2. North America
8.2.1. USA
8.2.2. Canada
8.2.3. Mexico
8.3. South America
8.3.1. Brazil
8.3.2. Argentina
8.3.3. Others
8.4. Europe
8.4.1. Germany
8.4.2. France
8.4.3. UK
8.4.4. Others
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.5.2. UAE
8.5.3. Others
8.6. Asia Pacific
8.6.1. China
8.6.2. India
8.6.3. Japan
8.6.4. South Korea
8.6.5. Taiwan
8.6.6. Thailand
8.6.7. Indonesia
8.6.8. Others
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Verizon Communications, Inc.
10.2. BT Group plc
10.3. China Mobile Ltd.
10.4. China Telecom Corporation Ltd.
10.5. Bharti Airtel Ltd.
10.6. NTT Docomo
10.7. KT Corp.
10.8. Saudi Telecom Company
10.9. Vodafone Group
10.10. Deutsche Telekom AG
10.11. SK Telecom Co., Ltd.

Companies Mentioned

  • Verizon Communications, Inc.
  • BT Group plc
  • China Mobile Ltd.
  • China Telecom Corporation Ltd.
  • Bharti Airtel Ltd.
  • NTT Docomo
  • KT Corp.
  • Saudi Telecom Company
  • Vodafone Group
  • Deutsche Telekom AG
  • SK Telecom Co., Ltd.