5G Services Global Market Report 2024

The 5g services market size has grown exponentially in recent years. It will grow from $150 billion in 2023 to $210 billion in 2024 at a compound annual growth rate (CAGR) of 40.0%. The expansion observed in the historic period can be ascribed to the growing number of internet users, robust economic growth in emerging markets, a rising adoption of 5G networks, and the increasing prevalence of wireless technology.

The 5g services market size is expected to see exponential growth in the next few years. It will grow to $1843.12 billion in 2028 at a compound annual growth rate (CAGR) of 72.1%. Anticipated growth is driven by the surge in 5G subscriptions, heightened demand for connected cars and smart homes, expanding internet penetration, government initiatives, and the proliferation of IoT devices. Key trends include the adoption of 5G vRAN technology, service innovations, technological advancements, stand-alone 5G network implementation, and strategic partnerships. Integration of artificial intelligence in the 5G network is also expected.

The escalating demand stemming from the Internet of Things (IoT) sector is poised to drive a heightened need for 5G services, aiming to deliver superior performance and efficiency. Projections from the Federation of Indian Chambers of Commerce & Industry (FICCI) indicate an anticipated global market revenue of $1.1 trillion by the conclusion of 2025 for the Internet of Things (IoT). The proliferation of IoT connections worldwide is expected to surge to 25 billion by 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 17%. Consequently, the increasing demand for IoT, coupled with the necessity to link smart devices with high-speed internet, is anticipated to significantly augment the revenue within the 5G services market in the upcoming years.

The expanding penetration of 5G technology is forecasted to act as a catalyst propelling the growth of the 5G services market moving forward. 5G networks represent the fifth generation of mobile networks, offering notably swifter data speeds and reduced latency. These advancements enhance user experiences and enable the emergence of new applications, thereby stimulating both consumer and business demand for 5G connectivity. As per Telefonaktiebolaget LM Ericsson's insights in May 2023, it is projected that 4.624 billion 5G mobile subscriptions will be active in 2028, marking a substantial increase from 1.481 billion in 2023. Hence, the burgeoning penetration of 5G technology stands as a significant driver fostering the growth of the 5G services market.

The integration of AI-powered functionalities stands as a pivotal trend driving the evolution of the 5G services market. The commercial adoption of 5G services is rapidly expanding, bolstered by the surge in connections and the growing utilization of cloud-based Augmented Reality (AR) or Virtual Reality (VR) applications. This heightened demand for 5G services emphasizes the necessity for networks with greater bandwidth, extensive coverage, and minimal latency. For instance, Nokia Corporation, a Finland-based technology firm, announced in September 2022 its collaboration with NTT DOCOMO Inc. to utilize AI-driven Radio Frequency (RF) capacity planning software. This strategic deployment aims to expedite RF planning processes and assist the Japanese operator in effectively deploying its 5G network. Nokia's AVA software, embedded with an AI-based RF capacity planning solution, was customized to predict 4G cell RF capacity from Base Transceiver Station (BTS) performance data. This adaptation allowed simulation for optimal candidate locations for 5G cells and Radio Access Network (RAN) hardware, ensuring the required area capacity. Hence, the introduction of AI-driven capabilities in 5G services, enhancing precision and agility, emerges as a prominent trend in the 5G services market.

Prominent players in the 5G services market prioritize the development of innovative features to offer new digital capabilities across various subscriber segments, including prepaid and postpaid mobile, home, and business subscribers, seeking a competitive edge. 5G services encompass high-speed, low-latency wireless communication offerings enabled by fifth-generation (5G) cellular technology. For instance, Orange, a US-based provider of engine oil and liquid filtration solutions, launched its 5G services in specific areas in Amman and Irbid in July 2023. The company had previously piloted 5G in Jordan in November 2022 and subsequently activated the 5G network in Amman, allowing individuals to experience and test the service for free. This strategic move positions Orange Jordan as an early adopter, catering to the growing demand for advanced 5G services within the region.

In June 2023, HPE, a US-based edge-to-cloud company, successfully acquired Athonet for an undisclosed amount. This strategic acquisition marks a substantial leap in HPE's initiatives to revolutionize the private networking sector. By incorporating Athonet's expertise, HPE aims to offer a comprehensive and streamlined approach to establishing the connected edge. This move is designed to support telecommunication companies in addressing the growing market demand and empower businesses to confidently embrace advanced connectivity technologies. Athonet, based in Italy, is renowned for providing a robust 5G and LTE mobile platform.

Major companies operating in the 5g services market report are AT&T, Inc., Verizon Communications, Inc., Deutsche Telekom AG, China Mobile Ltd., T-Mobile USA, Inc., SK Telecom Co., Ltd., Saudi Telecom Company, Vodafone Group, China Telecom Corporation Ltd., BT Group PLC, Telefonica, O2, MTS, Ericsson, Orange, DIGI, Qualcomm, Cisco, Intel, Huawei, Inseego, CommScope, Cohere Technologies Inc., United States Cellular Corporation, C Spire, Mimosa Networks, Telecom Argentina, America Movil, Etisalat, Emirates Integrated Telecommunications Company P.J.S.C., Zain Saudi Arabia, 21st Century Technologies Ltd., Dreamlabs Nigeria Ltd., Excelsimo Networks Ltd., Galaxy Backbone PLC, ipNX Nigeria Ltd., Liquid Intelligent Technologies, MainOne, Medallion Communications Inc., MTN Group, Rack Centre Ltd.

Asia-Pacific was the largest region in the 5G services market in 2023. North America was the second largest region in the global 5G services market share. The regions covered in the 5g services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 5g services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The primary communication types of 5G services include Fixed Wireless Access (FWA), Enhanced Mobile Broadband (eMBB), Ultra-Reliable and Low Latency Communications (uRLLC), and Massive Machine-Type Communications (mMTC). Fixed Wireless Access (FWA) involves providing wireless connectivity between two fixed points through radio links. These services find applications in various sectors such as smart cities, smart buildings, connected factories, smart utilities, connected healthcare, connected retail, and others. The end-users span across manufacturing, energy and utilities, media and entertainment, IT and telecom, transportation and logistics, aerospace and defense, and other industries.

The 5G services market research report is one of a series of new reports that provides 5G services market statistics, including 5G services industry global market size, regional shares, competitors with a 5G services market share, detailed 5G services market segments, market trends and opportunities, and any further data you may need to thrive in the 5G services industry. This 5G services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The 5G services market includes revenues earned by entities by providing 5th generation advance cellular technology services that provide faster means of communication through high bandwidth, good spectrum management, segregation of data, and routing. 5G services deliver high levels of efficiency and performance that empower to connect new industries and user experiences. Cellular networks using 5G services can connect with more devices, handle more data, significantly reduce latency, and are reliable. This technology is more beneficial for companies operating into robotics, automation, and IoT. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.