COVID-19 Impact on 5G Infrastructure Market - Exclusive Report by MarketsandMarkets™

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Apr 21, 2020, 10:30 ET

CHICAGO, April 21, 2020 /PRNewswire/ -- Post COVID-19, the report "COVID-19 Impact on 5G Infrastructure Market by Communication Infrastructure (Small Cell and Macro Cell), Core Network Technology Type (SDN and NFV), End-User (Commercial, Residential, Government, Industrial), and Region - Global Forecast to 2025" size is estimated to grow from USD 12.6 billion in 2020 and projected to reach USD 44.9 billion by 2025, at a CAGR of 29.0%. The projection for 2025 is estimated to be down by 22.7% as compared to pre-COVID-19 estimation. The major factors driving the growth of the 5G infrastructure market include an exponential rise in data traffic, the need for high data transfer speed with low latency, rising adoption of IoT devices, and increasing adoption of M2M connections across various industries. However, supply chain disruptions, delay in the release of 5G specifications, and China-US trade war will result in lower market projection compared to Pre COVID-19 estimation.

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"5G macro cell-based communication Infrastructure market to generate the highest revenue between 2020 and 2025."

Macro cells provide radio coverage for cellular networks and comprise the bulk of 4G/5G data traffic. Though macro cell sites are costly to deploy, they generate a higher average gross margin compared with small cells since one macro cell can cover several small cells. The impact of COVID-19 on macro cells sales is expected to be high as operators are seeking to minimize their capital spending to remain in the growth stage. However, the COVID-19 crisis has made end-users realize the true value of automation, IoT, and digitalization, who are now anticipated to increase their focus on implementing 5G wireless technology across their facilities, leading to the aggressive deployment of macro cells during 2020-2025.

"Industrial end-user to have the highest CAGR in the 5G infrastructure market during the forecast period."

The industrial market is estimated to grow at the highest rate because of the growing demand for process automation in various manufacturing and process industries. 5G networks will become mainstream in industrial facilities for multiple applications. To efficiently collect, store, manage, and analyze the data generated by connected devices, a robust communication network infrastructure such as 5G will be needed to facilitate communication between IoT devices.

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"5G infrastructure market in APAC to generate the highest revenue between 2020 and 2025 during the forecast period "

The 5G infrastructure industry in APAC is expected to generate the highest revenue during the forecast period. This growth is attributed to aggressive spending on the development of 5G network infrastructure by China, South Korea, Japan, and India. The growing 5G subscriber base and the adoption of 5G smartphones in these countries will result in large scale deployment of 5G base stations.

Some of the major players in the global 5G infrastructure market are Ericsson (Sweden), Huawei Technologies Co., Ltd. (US), Nokia Networks (Finland), Samsung Electronics Co., Ltd. (South Korea), and ZTE Corporation (China) among others.

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