5G Infrastructure Market Size, Share & Trends Report

5G Infrastructure Market Size, Share & Trends Analysis Report By Component (Hardware, Services), By Spectrum (Sub-6 GHz, mmWave), By Network Architecture, By Vertical, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jul, 2021
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-234-1
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 150

Report Overview

The global 5G infrastructure market size was valued at USD 2.64 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 49.8% from 2021 to 2028. 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. The 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. 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 the U.S. expect the overall healthcare spending in the U.S. to reach more than USD 6.0 trillion by 2028, exhibiting a CAGR of nearly 6% from 2019 to 2028.

North America 5G infrastructure market size, by spectrum, 2018 - 2028 (USD Million)

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 the market in the forthcoming years.

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 and operational efficiency and reduce costs. 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.

COVID-19 Impact Analysis

The outbreak of COVID-19 is certainly expected to delay the implementation of the 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 the 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 the market growth, especially over the next couple of years.

Component Insights

In the hardware segment, RAN dominated the 5G infrastructure market with a share of 47.6% in 2020. This is attributed 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 expected to play a crucial role in the overall segment growth from 2021 to 2028.

The core network sub-segment under hardware is estimated to witness significant growth over the forecast period. 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 revenue, sub-6 GHz dominated the market for 5G infrastructure with a share of 91.4% in 2020. This is attributed to the significant investments made by key communication service providers in acquiring low and mid-band frequencies and consequently delivering high bandwidth services to consumers, businesses, and industries. Recently, governments across key countries such as China, the U.S., Japan, and South Korea 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, with a view of delivering connectivity with low latency for applications such as autonomous vehicles. Moreover, 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.

Network Architecture Insights

In terms of value, non-standalone (NSA) network architecture dominated the market with a revenue share of over 92.9% in 2020. This is attributed 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 use cases, such as cloud-based AR/VR gaming and UHD videos.

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 the ultra-reliable high frequency with low latency connectivity is increasing. Similarly, the need for unified bandwidth capacity with minimum latency to establish seamless communication between autonomous vehicles is expected to drive the demand for 5G infrastructure in the transportation and logistics segment. Therefore, the growing demand for faster data speed across the above-mentioned verticals is anticipated to boost the standalone segment growth from 2021 to 2028.

Vertical Insights

The enterprise/corporate segment dominated the market with a revenue share exceeding 20.7% in 2020. This is attributed to the surging demand for faster data bandwidth for use cases, including uninterrupted virtual meetings, seamless connectivity during cloud-computing, and creating a smart workplace by providing enhanced connectivity to IoT devices.

The need to provide seamless connectivity to smart home applications, cloud-based Augmented Reality/Virtual Reality (AR/VR) gaming, and others, has raised the deployment of 5G infrastructure for residential or consumer applications. The rising demand to establish continual communication among industrial applications is expected to propel the growth of the industrial segment over the forecast period. Besides, these industrial applications primarily include collaborative/cloud robots, automated guided vehicles (AGVs), wireless cameras, and others.

Global 5G infrastructure market share, by vertical, 2020 (%)

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 robust market growth.

The energy and utility sector is anticipated to showcase enormous growth owing to the growing need for high-speed internet connectivity across energy generation and distribution applications. 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.

Regional Insights

The Asia Pacific region dominated the market with a share of 36.3% in 2020. 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 subscriber bases. Consequently, the market in the region is anticipated to witness robust 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 aforementioned companies is anticipated to boost the market growth. For instance, in September 2018, T-Mobile signed an agreement with Ericsson worth USD 3.5 billion to support T-Mobile’s 5G network infrastructure. As part of this deal, Ericsson will provide 5G New Radio (NR) hardware and software to T-Mobile for offering high-speed internet. Moreover, the spiraling need for high-speed data networks to build autonomous factories is 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 the top four players accounting for over 50% share of the total revenue in 2020. Key players are striving to build strategic partnerships with service providers to deploy next-generation network infrastructure and gain early mover’s 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 entered into 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 mid-2021. Some of the prominent players operating in the global 5G infrastructure market are:

  • 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

Report Attribute

Details

Market size value in 2021

USD 4.7 billion

Revenue forecast in 2028

USD 80.5 billion

Growth Rate

CAGR of 49.8% from 2021 to 2028

Base year for estimation

2020

Historical Data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Component, spectrum, network architecture, vertical, 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.

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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 2028. For this study, Grand View Research has segmented the global 5G infrastructure market report based on component, spectrum, network architecture, application, and region:

  • Component Outlook (Revenue, USD Billion, 2018 - 2028)

    • Hardware

      • Radio Access Network (RAN)

      • Core Network

      • Backhaul & Transport

    • Services

      • Consulting

      • Implementation & Integration

      • Support & Maintenance

      • Training & Education

  • Spectrum Outlook (Revenue, USD Billion, 2018 - 2028)

    • Sub-6 GHz

      • Low Band

      • Mid Band

    • mmWave

  • Network Architecture Outlook (Revenue, USD Billion, 2018 - 2028)

    • Standalone

    • Non-standalone

  • Vertical Outlook (Revenue, USD Billion, 2018 - 2028)

    • Residential

    • Enterprise/Corporate

    • Smart City

    • Industrial

    • Energy & Utility

    • Transportation & Logistics

    • Public Safety and Defense

    • Healthcare Facilities

    • Retail

    • Agriculture

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2028)

    • 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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