5G Infrastructure Market Outlook – 2030
The global 5G infrastructure market size was valued at $2.06 billion in 2020 and is projected to reach $83.62 billion by 2030, registering a CAGR of 45.3% from 2021 to 2030. The network of small & macrocell base type stations with edge computing potential required for the fifth-generation technology standard designed for cellular networks is referred to as 5G infrastructure. It also offers low latency coverage for large data streams, which power applications such as semi-autonomous vehicles, augmented reality, and IoT devices.
The growth of the global 5G infrastructure market is anticipated to be driven by factors such as a rise in demand for mobile broadband services and the proliferation of M2M/IoT connections. Increased acceptance of virtual networking architecture in the telecom industry, lower latency in 5G, and a surge in mobile data traffic fuel the growth of the 5G infrastructure market. However, high initial investment acts as a major restraint for the global 5G infrastructure market. On the contrary, high demand from Asia-Pacific especially in the consumer electronics and industrial automation segment is expected to create lucrative opportunities for the 5G infrastructure industry.
Segment Overview
The 5G infrastructure market is segmented on the basis of communication infrastructure, network technology, chipset type, application, and region. By communication infrastructure, the market is classified into a small cell, macro cell, radio access network, and distributed antenna system. On the basis of network technology, the market is divided into software-defined networking, network chipset type virtualization, mobile edge computing, and fog computing. By chipset type, market is segmented into application-specific integrated circuits, radio frequency integrated circuit, mmWave integrated circuit, field-programmable gate array. Depending on the application, it is categorized into automotive & transportation, energy & utilities, healthcare, retail, consumer electronics, industrial automation, and others.
Region-wise, the 5G infrastructure market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific dominated the 5G infrastructure market in 2020 and is projected to register significant growth rate during the forecast period, owing to growth in the flexible 5G infrastructure segment. Also, Asia-Pacific is expected to witness significant growth by the end of the forecast period, followed by North America.
Leading manufacturers such as, Huawei Devices Co. Ltd., Ericsson, Nokia Corporation, and AT&T are focused on their investments on technologically advanced, cost-effective, and more secure products and solutions for various applications.
Top Impacting Factors
The prominent factors that impact the 5G infrastructure market growth include surge in demand for mobile broadband services and proliferation of M2M/IoT connections. However, high investment and privacy & security concerns restrict the market growth. On the contrary, rise in government initiatives for building smart cities in Asia-Pacific are expected to create lucrative opportunities for the market.
Competitive Analysis
Competitive analysis and profiles of the major market players such as AT&T, Huawei Devices Co. Ltd., Ericsson, Intel Corporation, Mediatek Inc., Nokia Corporation, Qualcomm Technologies Inc., Hewlett Packard Enterprise, Samsung Electronics Co. Ltd., and Verizon have been covered in the report. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
