ReportCrux Market Research has published a new report titled “5G Services Market by Application (mMTC, uRLLC, eMBB, and FWA); by Vertical (Smart Cities, Connected Factories, Smart Buildings, Connected Vehicles, Connected Healthcare, Connected Retail, Smart Utilities, Broadband, and Others); and by Region: Global Industry Trends, Dynamics, Competitive Insights and Forecast Analysis, 2020 – 2027”.
5G Services Market Size
5G Services Market is estimated to grow from USD 32.79 Billion in 2019 to USD 283.48 Billion by 2027, at a CAGR of 31.0% during 2020-2027
5G is a new wireless system with faster means of communication. 5G networks provide high latency, efficient use of spectrum, data filtering and segregation. It is expected that smart mobile networks will connect to more devices, handle more data, significantly reduce latency and be reliable.
The growing demand for Internet of Things (IoT) applications for high-speed data networking is accelerating the development of the 5G services industry. Increase in demand for stable and ultra-low latency networking services is impacting the growth of the market for 5G services. Rising infrastructural development such as smart cities and growing usage of connected devices is also increasing the need for high-speed connectivity which is likely to boost the market growth for 5 G services.
Many verticals in the industry are actively concentrating on technological innovations to increase their overall profitability and operating performance as part of their efforts to maintain themselves in a highly competitive climate. 5G wireless technology has the potential to help transform remarkably across all these verticals by reducing overall costs and enhancing them.
It is also expected that continued emphasis on improving energy management and monitoring in gaining better control over the energy distribution and generation network will boost the adoption of 5G services over the forecast time. Apart from energy and infrastructure, transport and logistics, and education are other vertical sectors that can bring future opportunities for the 5G services industry.
The vehicle-to-everything (V2X) communication concept, for example, has paved the way for connected vehicles and autonomous driving. 5G networks will play a vital role in delivering vehicle-to – infrastructure (V2I) seamless connectivity and vehicle-to-vehicle (V2V) connectivity to minimize the likelihood of road accidents. Increasing focus on providing a secure and improved driving experience with connected vehicles over the projected timeframe is expected to drive the demand for 5G services market globally.
The global market for the 5G services is segmented into vertical, application, and region.
enhanced mobile broadband (eMBB) :43%
- connected factories
- connected healthcare
- connected vehicles
- smart buildings
- smart cities
- smart utilities
- connected retail
- North America
- Latin America
- Middle-East & Africa
North America :35%
Based on application, the market for 5G services is segmented into mMTC, uRLLC, eMBB, and FWA. The enhanced mobile broadband (eMBB) held maximum share of almost 43% in the market. It is due to the early emphasis of 5G network operators' on providing improved mobile features for base applications like AR/VR, high-speed cloud-based gaming, uninterrupted phone calls, and UHD videos.
The initial deployment process is expected to concentrate on a non-standalone wireless 5G deploy configuration. The eMBB provides for commercial and residential use with a very high data speed. As such, eMBB is likley to cater for multiple use cases like 4K video access, in-vehicle infotainment, and virtual meeting, thus fueling the growth of this segment over the forecast time span.
Based on vertical, the market is categorized into connected factories, connected healthcare, connected vehicles, smart buildings, smart cities, smart utilities, connected retail, broadband, and others. The smart cities held almost 23% share of the market in 2019. Smart city applications include bundled solutions that cover smart car parking, smart traffic management, water and waste management, environmental monitoring, and solutions for public safety.
With increasing traction in connected solution via IoT-enabled platforms, many such applications are likely to use to the 5G-based connectivity model, resulting in a strong vertical area to concentrate 5G services.
Geographically, the market is classified into Latin America, Middle East & Africa, Asia Pacific, North America, and Europe. North America held almost 35% of the market in 2019 while Asia Pacific is likely to rise at the highest CAGR in the forecast period. Some of the largest investments in 5G network technology development are taking place in the U.S. For instance, telecom operators based in the U.S. invested almost 260 billion USD in mobile network infrastructure expansion between 2010 and 2017.
This rapid U.S. investments in setting up smart industries, building smart cities, and carrying out smart city programs are expected to lead to North America ‘s demand growth over the forecast period. Key market players in Asia Pacific like the China Mobile, China Telecom, KT Corporation, and SK Telecom are investing aggressively in Japan, China, and South Korea to roll out 5G network infrastructures.
Most of these investments are projected to concentrate on the implementation of the next-generation transport and logistics, media and entertainment, manufacturing infrastructure, and healthcare.
Key Market Analysis
Some of the major players in 5G services market are China Telecom (China), du (UAE), Korea Telecom (Korea), BT Group (UK), Sprint (US), Airtel (India), China Mobile (China), SK Telecom (South Korea), Deutsche Telecom (Germany), Telstra (Australia), AT&T (US), Saudi Telecom Company (Saudi), Vodafone (UK), and Verizon (US) among others.
The market for 5G services is highly competitive as many regional telecom service providers are investing heavily in the implementation of the infrastructure of next generation. It will help these players expand their market customer base. Furthermore, these industry players are concentrating strategically on mergers and acquisitions to improve their presence in the global marketplace.
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