5G Services Market to grow by USD 397.6 billion from 2024-2028, driven by R&D and 5G network deployment, with AI transforming market dynamics - Technavio

NEW YORK, Nov. 27, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global 5G services market size is estimated to grow by USD 397.6 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  31.13%  during the forecast period. Growing research and development and deployment of 5G network is driving market growth, with a trend towards adoption of 5G networks for smart cities. However, high deployment cost of 5G technology  poses a challenge.Key market players include AT and T, Bell Canada, Bharti Airtel Ltd., BT Group Plc, China Mobile Ltd., Deutsche Telekom AG, Etisalat, KT Corp., MTN Group Management Services (Pty) Ltd., Nippon Telegraph and Telephone Corp., Orange SA, Reliance Industries Ltd., Rogers Communications Inc., stc Group, SK Telecom Co. Ltd., T Mobile US Inc., Telefonica SA, Telstra Corp. Ltd., Verizon, and Vodafone Group Plc.

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Market Driver

The 5G services market is experiencing significant growth as businesses and industries adopt 5G technology and networks for real-time data collection and analysis. Smart agriculture is a prime example, with precision farming using sensors to monitor soil conditions, weather patterns, and crop health. Telecommunication operators and equipment manufacturers are collaborating to provide global roaming capabilities and spectrum harmonization for 5G subscribers. In the smart cities segment, urban infrastructure is being transformed with 5G. Smart grid systems, environmental sensors, and responsive solutions optimize resources and improve city management processes. Traffic management, emergency response systems, and public services benefit from real-time data and video feeds. The IT and telecom sectors, manufacturing, healthcare, and transportation industries are also leveraging 5G for enhanced mobile broadband, smart manufacturing, telemedicine, autonomous vehicles, and edge computing. With average data volumes increasing among video content viewers and mobile phone users, 5G subscribers demand faster download speeds and lower latency. Fiber, cable, and copper DSL networks are being replaced by FWA 5G connections. Network infrastructure, including small cells, fiber optic networks, radio equipment, and base stations, is being upgraded to support 5G services. Specialized antennas and Industry 4.0 technologies enable predictive maintenance and monitoring of smart devices and manufacturing facilities. With 6G technology on the horizon, the future of 5G services is bright. 

Smart cities are gaining popularity due to the advanced ICT infrastructure they offer, enhancing public amenities and infrastructure connectivity. Communications play a crucial role in this setup, enabling the Internet, landline, and wireless services necessary for commercial use. Extensive Machine-Type Communication (MTC) applications, such as smart metering, property monitoring, logistics management, and smart parking, are essential in a smart city. These applications require low data rates but long-reach connectivity due to their placement in challenging environments like basements and farms. Therefore, 5G services, with their high bandwidth, low latency, and extensive coverage, are ideal for smart city communications, ensuring seamless integration and efficient operation. 

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 Market Challenges

• The 5G services market is experiencing significant growth as businesses and industries adopt 5G technology for real-time data collection and processing. In sectors like agriculture, precision farming using sensors for soil conditions and weather patterns is becoming common. Telecommunication operators and equipment manufacturers are working on global roaming capabilities and spectrum harmonization to expand 5G networks. Smart cities are investing in 5G for urban infrastructure, with applications including traffic management, emergency response systems, and public services. The market also includes FWA 5G services, Enhanced Mobile Broadband, and industrial automation. Challenges include the need for speed-based tariff plans, network infrastructure expansion, and the integration of IoT sensors for air quality, energy consumption, and traffic flow. The future holds potential for VR, AR, and UHD content, as well as 6G technology and IT and telecom applications.
• The global 5G services market faces several challenges due to the high acquisition and installation costs of 5G technology and small cell networks. Security concerns for outdoor power systems and stringent regulations add to the market's complexity. Pressure for competitive pricing from customers and almost similar data tariffs to previous broadband communications further impact profitability. The high cost of new frequency spectrum releases is another significant challenge. Large organizations must navigate these hurdles to succeed in the 5G market.

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Segment Overview 

This 5g services market report extensively covers market segmentation by  

1. Technology 
• 1.1 eMBB
• 1.2 FWA
• 1.3 mMTC
• 1.4 uRLLC
2. End-user 
• 2.1 Consumers
• 2.2 Enterprises
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 eMBB-  The 5G Enhanced Mobile Broadband (eMBB) service category offers significant improvements over existing 4G services, with a minimum data transfer rate that delivers increased bandwidth and lower latency. This technology enables new applications such as 8K video streaming and Virtual Reality (VR) and Augmented Reality (AR). Large events, like sports, games, or concerts, are potential applications for these high bandwidth services. However, network performance is crucial for these applications, as any disruption can negatively impact the user experience. For instance, latency exceeding 20 milliseconds can cause dizziness and nausea in VR users. Meeting latency thresholds for large audiences is essential. The 5G eMBB service aims to achieve high data rates solely within 5G standalone capacity and improve 4G LTE networks for higher data rates with lower latency. It also provides high capacity to densely populated urban areas, ensures broad network coverage, and allows for real-time connectivity while using mobile broadband services from moving vehicles. These factors contribute to the anticipated growth of the 5G services market.

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Research Analysis

The 5G services market is poised for significant growth, driven by the deployment of 5G networks and the integration of advanced technologies. 5G technology offers real-time data collection capabilities, making it ideal for various industries such as agriculture, where precision farming and smart agriculture are set to revolutionize production with sensors monitoring soil conditions. The energy sector is also embracing 5G with smart grid systems, while 5G subscribers can look forward to experiences with Virtual Reality (VR) and Augmented Reality (AR), UltraHigh Definition (UHD) streaming, and the promise of 6G technology. IT and telecom companies are investing heavily in 5G services, including Fixed Wireless Access (FWA), telemedicine, and autonomous vehicles. Edge computing, industrial automation, and smart city systems are also set to benefit from the low latency and high bandwidth offered by 5G. Service providers are rolling out small cells and specialized antennas to expand network coverage and capacity. Fiber optic networks continue to play a crucial role in the backhaul infrastructure of 5G networks.

Market Research Overview

The 5G services market is poised for significant growth as the deployment of 5G networks continues to expand. With 5G technology, real-time data collection becomes a reality, enabling various industries to optimize resources and improve efficiency. In agriculture, smart farming and precision farming are set to benefit from sensors that monitor soil conditions, weather patterns, and crop health. 5G networks will also power smart grid systems, environmental sensors, and responsive solutions for resource optimization. The average data volume generated by smartphone subscriptions, video content viewers, and mobile phone users will require advanced network infrastructure. Telecommunication operators and equipment manufacturers are investing in global roaming capabilities, spectrum harmonization, and frequency bands to meet the demands of 5G subscribers. The smart cities segment will see the implementation of 5G in urban infrastructure, enabling smart city initiatives, city management processes, and real-time data exchange for applications such as traffic management, emergency response systems, and public services. The IoT sensors in smart cities will monitor air quality, traffic patterns, energy consumption, and traffic flow, enabling congestion management and urban planning. The 5G services market will also impact industries such as IT and telecom, manufacturing, healthcare, and transportation, with applications such as Virtual Reality (VR), Augmented Reality (AR), UltraHigh Definition (UHD), and 6G technology. The market will also see the growth of FWA 5G Services, Enhanced Mobile Broadband, smart manufacturing, telemedicine, autonomous vehicles, edge computing, industrial automation, and smart city systems. The deployment of small cells, fiber optic networks, radio equipment, and base stations will be essential for the growth of the 5G services market. The market will also see the implementation of predictive maintenance, monitoring, and smart devices in manufacturing facilities, as well as the development of speed-based tariff plans and fixed broadband services. The 5G services market will revolutionize the way we live, work, and communicate, providing rapid data exchange and enabling new applications and services.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Technology
• EMBB
• FWA
• MMTC
• URLLC
• End-user
• Consumers
• Enterprises
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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