5G Infrastructure Market Size, Share & Trends Report

5G Infrastructure Market Size, Share & Trends Analysis Report By Communication Infrastructure (Solution, Services), By Spectrum (Sub-6 GHz, mmWave), By Network Architecture, By Application, And Segment Forecasts, 2020 - 2027

  • Published Date: May, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-234-1
  • Format: Electronic (PDF)
  • Historical Data: 2018
  • Number of Pages: 121

Report Overview

The global 5G infrastructure market size was valued at USD 1.9 billion in 2019 and is and is expected to grow at a Compound Annual Growth Rate (CAGR) of 106.4% from 2020 to 2027. 5G infrastructure is mainly a combination of Radio Access Network (RAN), core network, and backhaul and transport. The backhaul and transport network includes fiber optics or microwave antennas. Growing demand for enhanced bandwidth connectivity with low latency for many mission-critical applications such as vehicle to everything (V2X) and drone connectivity is estimated to fuel the market growth.

APAC 5G infrastructure market size

5G technology is expected to provide improved user experience for several use cases, including Ultra-high Definition (UHD) video, seamless video calling, and Virtual Reality (VR) and Augmented Reality (AR) gaming. In a bid to sustain in an extremely competitive environment, several manufacturing facilities are converging on technological transformations to increase their overall productivity, operational efficiency, and reduce cost. The continued emphasis on improving energy monitoring and management coupled with the need to gain better control over the energy generation and distribution network is expected to boost the deployment of 5G infrastructure during the forecast period.

Some of the largest economies, such as the U.S. and China, are expected to continue spending aggressively on provisioning healthcare facilities. For instance, the National Health Expenditure Accounts (NHEA) of U.S. expects the overall healthcare spending in the U.S. to reach around USD 6.0 trillion by 2027, exhibiting a CAGR of nearly 5.5% from 2018 to 2027.

The healthcare industry, especially in developed economies has started emphasizing the importance of concepts like remote diagnosis and surgeries to the patients. Therefore, to deliver constant data connectivity during remote patient surgeries, the need for next generation technology and related infrastructure is expected to drive market demand in the forthcoming years.

The outbreak of COVID-19 is certainly expected to delay the implementation of 5G infrastructure owing to the disruptions in further trials and testing required for verifying the stability and processing performance of 5G standalone networks. The ongoing pandemic has had an additional impact with telecom regulatory authorities postponing their plans of 5G spectrum auction, thereby adversely impacting the market growth.

For instance, governments in a few key countries including France, Spain, and Australia have temporarily postponed the spectrum auctions on several frequencies such as Sub-6 GHz and mmWave. Additionally, due to the COVID-19 pandemic, key countries such as China and the U.S. have seen a robust decline in the exports of telecom equipment for 5G New Radios (NR) to the global market. The aforementioned factors are collectively expected to pose a challenge to market growth, especially over the next couple of years.

Communication Infrastructure Insights

In terms of value, RAN dominated the 5G infrastructure market with a share of 46.2% in 2019. This is attributable to a robust deployment of 5G RAN with several small cells and macrocell base stations across the globe. The trend of deploying virtual and centralized RAN is rapidly increasing among network service providers to reduce the overall infrastructure costs and network complexities. In addition, the use of Software-defined Networking (SDN) technology to improve the operational efficiency of virtual RANs is further expected to play a crucial role in the overall segment growth from 2020 to 2027.

5G core network segment is estimated to reach a market size of nearly USD 128 billion by 2027. The core network plays an essential part in handling network traffic and stores consumer information. Moreover, leading network providers are migrating towards mounting cloud-based 5G core networks to reduce the Total Cost of Ownership (TCO) and deliver smooth connectivity. For instance, in April 2020, Ericsson and British Telecommunication PLC (BT) made an agreement to deploy a completely cloud-native mobile packet core for standalone and non-standalone networks to fulfill the high-speed bandwidth demand of individual consumers and enterprises.

Spectrum Insights

In terms of value, sub-6 GHz dominated the market with a share of 84.4% in 2019. This is attributed to the huge investments made by key communication service providers in acquiring low and mid band frequencies and consequently deliver high bandwidth services to consumers, businesses, and industries. Recently, governments across key countries such as China, U.S., Japan, South Korea, and many other countries released sub-6 GHz frequencies to provide high speed internet services in their countries.

mmWave frequencies are high band frequencies that provide enhanced bandwidth capacity with very low latency. These spectrum bands would be mainly helpful in applications where ultra-reliable connectivity is a prerequisite, especially in remote patient surgeries and Vehicle-to-Vehicle (V2V) connectivity. Additionally, few federal governments across developed economies have released mmWave spectrum bands to provide enhanced data services.

For instance, the Federal Communication Commission (FCC) released several mmWave frequencies including 24.25–24.45 GHz, 47.2-48.2 GHz, 24.75–25.25 GHz, and 38.6-40 GHz, among others with a view of delivering connectivity with low latency for applications such as autonomous vehicles. Also, other countries, such as Russia, Japan, South Korea, and Italy, have released mmWave frequencies for enhanced data services. Thus, increased focus to release mmWave frequencies by key federal governments across many countries is expected to augment the mmWave segment growth during the forecast period.

Application Insights

The industrial segment dominated the market with a revenue share exceeding 20% in 2019. This is attributed to the surging demand for 5G services in a bid to provide seamless connectivity to devices such as Ultra-HD wireless cameras, extended reality headsets, and Automated Guided Vehicles (AGVs).

The rising demand to establish continual communication among industrial applications is expected to propel growth in the industrial sensors segment over the forecast period. Moreover, another critical industrial application, such as collaborative/cloud robots, is anticipated to experience strong growth in the coming years, consequently driving the market demand in the industrial segment.

The deployment of 5G infrastructure is increasing across government and public safety facilities owing to the imminent need to establish quick communication with first responders during emergencies. In the wake of the ongoing pandemic, the demand for next-generation high-speed networks is expected to surge, especially for healthcare applications.

Digital services including telemedicine and remote patient monitoring will remain popular even after the pandemic is contained, thereby ensuring strong market growth. Moreover, the energy and utilities sector is anticipated to showcase an enormous growth owing to the growing need for high-speed internet connectivity across energy generation and distribution applications. Similarly, the growing demand to provide improved connectivity to ships and containers/vessels for efficient monitoring from remote locations is further expected to fuel the adoption of 5G technology and related infrastructure in the transportation and logistics sector.

Network Architecture Insights

In terms of value, Non-standalone (NSA) network architecture dominated the market with a share exceeding 85% in 2019. This is attributable to the early rollout of the non-standalone network across the globe. The non-standalone network is generally deployed in integration with the existing LTE infrastructure. Besides, several leading service providers such as AT&T, Inc.; Verizon Communication; and China Mobile Limited have deployed a 5G NSA network model for basic uses cases such as cloud-based AR/VR gaming and UHD videos.

Global 5G infrastructure market share

The rapidly growing industrial digitalization has paved a new revenue stream for service providers across the globe. To provide uninterrupted connectivity between machines to machines, the need for ultra-reliable high frequency with low latency connectivity is a prerequisite. Similarly, the need for unified bandwidth capacity with minimum latency to establish seamless communication between autonomous vehicles is expected to drive market demand in the transportation and logistics segment. Therefore, the growing demand for faster data speed across above-mentioned verticals is anticipated to boost the standalone segment expand at a CAGR of 131.7% from 2020 to 2027.

Regional Insights

The Asia Pacific dominated the market with a share of 36.9% in 2019. This is attributed to the aggressive deployment of 5G new radio infrastructure by major communication service providers such as China Mobile Limited; KT Corporation; and NTT Docomo Inc. In addition, governments across countries such as Japan, China, and South Korea are highly focused on releasing multiple sub-6GHz, and mmWave frequencies to cater to the growing need for high-speed data connectivity among huge subscriber base. Consequently, the market in the region is anticipated to experience strong growth over the forecast period.

With the presence of large service providers such as AT&T Inc.; Sprint Corporation; T-Mobile; and Verizon Communications; the U.S. market is also expected to expand at a significant CAGR over the forecast period. The multitude of investments made in deploying 5G infrastructure by the afore-mentioned companies is anticipated to help the market reach USD 101.9 billion by 2027.

For instance, in September 2018, T-Mobile signed an agreement with Ericsson a worth of USD 3.5 billion to support T-Mobile’s 5G network infrastructure. Also, in this deal, Ericsson will provide 5G New Radio (NR) hardware and software to T-Mobile for offering high-speed internet. Moreover, spiraling need for high-speed data networks to build autonomous factories is further anticipated to increase the adoption of next generation network infrastructure in the forthcoming years.

Key Companies & Market Share Insights

The market is highly consolidated with top four players accounting for over 50% of the total market revenue in 2019. Key players are striving to build strategic partnerships with service providers to deploy next-generation network infrastructure and gain early movers advantage. For instance, China Mobile Limited has recently entered into partnerships with several key infrastructure providers such as Huawei Technologies Co., Ltd., ZTE Corporation, and Ericsson to deploy 5G RAN in China. Huawei Technologies Co., Ltd. achieved more than 55% of the total contract value from China Mobile Limited to deploy 5G base stations in China. Moreover, China Mobile Limited planned to implement nearly 300,000 5G sites by 2020 in China. On the contrary, in the wake of the ongoing pandemic, there has been a sharp decline in the deployment of 5G technology and related infrastructure worldwide.

Leading infrastructure providers are actively targeting key European countries to install their next-generation network with a special focus on offering enhanced bandwidth capacity for public safety applications. For instance, in April 2020, Ericsson made a partnership with Erillisverkot Group, a Finland-based state government body accountable to provide public-safety communication network in the country, to deliver 5G core network hardware solutions for mission-critical applications. This next-generation network is scheduled to be operational by the mid of 2021. Some of the prominent players in the 5G infrastructure market include:

  • Huawei Technologies Co., Ltd.

  • Samsung Electronics Co., Ltd.

  • Nokia Corporation

  • Telefonaktiebolaget LM Ericsson

  • ZTE Corporation

  • NEC Corporation

  • Cisco Systems, Inc.

  • Fujitsu Limited

  • CommScope Inc.

  • Comba Telecom Systems Holdings Ltd.

  • Altiostar

  • Airspan Networks

  • Casa Systems

  • Hewlett Packard Enterprise Development LP

  • Mavenir

  • Parallel Wireless

  • JMA Wireless

  • Ceragon

  • Aviat Networks, Inc.

5G Infrastructure Market Report Scope

 Attribute

Details

Market size value in 2020

USD 3.1 Billion

Revenue forecast in 2027

USD 496.6 Billion

Growth Rate

CAGR of 106.4% from 2020 to 2027

Base year for estimation

2019

Historic Data

2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Communication Infrastructure, Spectrum, Network Architecture, Application, and region

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

U.S., Canada, U.K., Germany, Italy, Russia, China, Japan, India, South Korea, Mexico, Brazil

Key companies profiled

Huawei Technologies Co., Ltd.,     Samsung Electronics Co., Ltd., Nokia Corporation, Telefonaktiebolaget LM Ericsson, ZTE Corporation, NEC Corporation, Cisco Systems, Inc., Fujitsu Limited, CommScope Inc., Comba Telecom Systems Holdings Ltd., Altiostar, Airspan Networks, Casa Systems, HPE, Mavenir, Parallel Wireless, JMA Wireless, Ceragon, Aviat Networks, Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2027. For the purpose of this study, Grand View Research has segmented the global 5G infrastructure market report based on communication infrastructure, Spectrum, network architecture, application, and region:

  • Communication Infrastructure Outlook (Revenue, USD Billion, 2018 - 2027)

    • Solutions

      • Radio Access Network (RAN)

      • Core Network

      • Backhaul & Transport

    • Services

      • Consulting

      • Implementation & Integration

      • Support & Maintenance

      • Training & Education

  • Spectrum Outlook (Revenue, USD Billion, 2018 - 2027)

    • Sub-6 GHz

      • Low Band

      • Mid Band

    • mmWave

  • Network Architecture Outlook (Revenue, USD Billion, 2018 - 2027)

    • Standalone

    • Non-standalone

  • Application Outlook (Revenue, USD Billion, 2018 - 2027)

    • Consumer    

      • Home Broadband Services

        • Cloud-based Gaming/AR/VR

        • UHD TV/Video

        • Smart Homes

        • Web-Browsing

      • Mobile Data Services

    • Smart City    

      • IoT Connected Devices

      • Cloud-Computing/Storage

      • Others

    • Enterprise/Corporate        

    • Industrial     

      • Smart Manufacturing

        • Wireless Industry Camera

        • Industrial sensors

        • logistic & inventory Monitoring

        • Collaborative Robot/Cloud-Robot

        • Cloud-based AGV

        • Industrial Analytics

      • Energy & Utilities

      • Oil & Gas

      • Mining

      • Construction

    • e-Health       

      • Remote Patient Monitoring

      • Remote Diagnosis & Surgery

      • Hospital Assistant Robot

      • Others

    • Media & Entertainment     

    • Transportation & Logistics            

      • Connected Fleets

      • Infotainment Systems

      • Ships and Ports Connectivity

      • Drones

    • Aerospace & Defense          

    • Government

    • Smart Retail

    • Smart Agriculture   

    • Others           

  • Regional Outlook (Revenue, USD Billion, 2018 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Italy

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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