An increase in the number of smartphones and connected devices and an increase in data traffic has led to congestion in the existing network, thus, increasing the demand for high bandwidth for various end-users.
This has paved the way for the network that can provide high speed and uninterrupted data at low latency. The introduction of the fifth generation (5G) communication network is expected to overcome speed barriers and enable faster data transmission.
One of the most innovative aspects offered by 5G infrastructure is network slicing, enabling providers to develop networks, tailored to end-application requirements. For example, when two people are using data services, high speed and low latency will be provided to the application which is more important.
According to a market intelligence report published by BIS Research, titled Global 5G Infrastructure Market – Analysis and Forecast, 2019-2025, the 5G infrastructure market is expected to generate a revenue of $2.55 billion in 2020 and witness a CAGR of 75.09% during the forecast period from 2020 to 2025. The 5G infrastructure market has immense potential which is reflected by the opportunities present in the market, such as surging demand for different applications and compatibility of 5G network with IoT applications such as smart cities, homes and mobile devices, among others.
With the rollout of the 5G network, the market is expected to witness extensively connected users needing technologies that can help overcome traffic and security issues. However, in order to establish seamless connectivity across platforms, certain standards have to be established in the industry. Presently, a common standard and spectrum identification for 5G network is under discussion by several organizations including the International Telecommunication Union (ITU), 3rd Generation Partnership Project (3GPP), and Open Network Foundation (ONF).
Factors Driving and Challenging the Growth of the 5G Infrastructure Market
The 5G infrastructure market is influenced by a number of factors, while some are responsible for driving growth, others are impeding market expansion. Moreover, there are several opportunities that have the potential to expand the market further, when utilized properly.
Factors that are responsible for driving the growth of the market include the growing demand for high speed and large network coverage, increasing data traffic coupled with a rising demand from end-consumers, and a shift from hardware to software in the communication network. The increasing demand for high speed connectivity is arising from several end-use industries for a wide array of applications, where large network coverage is required, and the present network technologies are struggling to deliver the optimum performance.
Also, an increase in the number of smartphones and other connected devices has augmented the need for high-speed connection, owing to the surge in data traffic. Further, with a shift in the requirement from hardware devices to software for cloud computing and storage needs from several end users, such as data centers and high-end servers, among others, the requirement for 5G infrastructure rises as it can provide the required flexibility to its users.
At the same time, deployment of small cells, fiber backhaul availability, spectrum allocation and device availability are some of the factors that are responsible for challenging the growth of the 5G market. The deployment of small cells is mandatory; however, several operators are unable to deploy them owing to the issues faced by local authorities and regulatory bodies.
Also, the 5G network is highly dense in order to support hundreds of gigabytes of traffic through backhaul, and thus requires upgrades within the entire spectrum along with the architecture and the physical layers of the network. Further, the allocation of harmonized spectrum is another challenge that needs to be resolved.
Segmentation of the 5G Infrastructure Market
The market intelligence report published by BIS Research provides a detailed segmentation of the 5G infrastructure market. The market has been segmented on the basis of communication infrastructure, spectrum type, application, and region.
The 5G market by communication infrastructure is further categorized into radio access, core and transport network. Each sub-segment is further segregated. Radio access network (RAN) is sub-segmented into base station and distributed antenna system; core network is further sub-segmented into software-defined networking (SDN), network function virtualization (NFV), mobile edge computing (MEC), fog computing, and network slicing.
The base station sub-segment of radio access network of the 5G market is further segregated into small cell and macro cell. Among these networks, RAN segment is expected to dominate the market in 2020 with a share of 67.85% of the total market by communication infrastructure. The increasing installation of the cells and antenna systems in the urban areas is expected to drive the growth of the RAN segment and enhance the demand for 5G infrastructure.
The 5G infrastructure market by application is further segmented into automotive, energy and utilities, industrial, consumer electronics, and others. The automotive sub-segment is further segregated into autonomous driving, digital logistics, and intelligent navigation. The energy and utilities sub-segment is categorized under smart grid and smart metering. The industrial sub-segment is further segregated into machine-to-machine communication and remote machinery. Lastly, the consumer electronics segment is categorized into smartphones and tablets and augmented and virtual reality devices.
Among the various applications of 5G technology, consumer electronics is expected to dominate the market with the highest share. The dominance of this segment can be attributed to the technology-driven population and their requirement for high-speed data for applications ranging from entertainment to navigation. The 5G technology can provide high speed data at low latency, thus enhancing the overall experience.
Furthermore, the global 5G infrastructure market based on region is sub-segmented into North America, Europe, Asia-Pacific, and Rest-of-the-World (ROW). Based on the analysis of the report, North America is expected to contribute maximum to the total revenue of the market. Another region that is expected to closely follow the region of North America is Asia-Pacific. This phenomenal growth in North America can be attributed to the high distribution of 5G infrastructure equipment’s in the region. Also, a number of 5G infrastructure projects have been deployed.
Top 5G Infrastructure Companies
The report profiles several companies that are expected to dominate the 5G infrastructure market, of which 15 are listed below. These companies are further split under different categories, namely network operators, network partners, and chipset manufacturers
|
Network Operators |
Network Partners |
Chipset Manufacturers |
|
AT&T Inc |
Nokia |
Intel Corporation |
|
Verizon Communications Inc. |
Telefonaktiebolaget LM Ericsson |
Qualcomm Technologies, Inc. |
|
NTT Docomo, Inc. |
Cisco Systems Inc. |
MediaTek Inc. |
|
Orange |
Huawei Technologies Co., Ltd. |
Huawei Technologies Co., Ltd. |
|
Vodafone Group PLC |
Samsung Electronics Co., Ltd. |
Samsung Electronics Co., Ltd. |
Global 5G Infrastructure Market Research Report
For more information, see the full industry report by BIS Research, which provides critical insights of the market. This comprehensive report draws on research from a mix of primary interviews and secondary research, along with analytical tools that have been used to build forecasts and predictive models.
About the Publisher: BIS Research is a global market intelligence, research and advisory company that focuses on emerging technology trends that are likely to disrupt the market. Its team includes industry veterans, experts, and analysts with diverse backgrounds in consulting, investment banking, government, and academia.
