The global 5G services market is anticipated reach approximately USD 20 billion in 2020 and is expected to witness a double-digit growth exceeding 45% from 2021 to 2025. 5G services are next generation mobile broadband services that are expected to augment or replace 4G LTE connection over the forecast years.
With the proliferation of 5G services users will experience a rise in upload & download speed and low latency in terms of devices communicating with each other over a wireless network. In addition to high speed and low latency, 5G offers several benefits on a day-to-day basis and will play a major role in driving the 5G services market growth. For instance, in major metropolitan areas carriers are reported to be running out of LTE capacity, and users are experiencing slowdown during busy hours of the day. This is where 5G plays an important role and will drive the market growth significantly.
Presently, buyer expectation in terms of network connectivity are changing at a rapid pace; however, advances in technology as expected by the operators are still moving at snail’s pace. Due to this lack in availability of necessary wireless infrastructure, we expect that the adoption of 5G services will begin from the year 2020, and 2019 will be the year where carrier providers will attempt to navigate the mismatch between user expectations and infra availability.
On the basis of communication type, we have bifurcated the 5G services market in to Massive Machine Type Communications (mMTC), Fixed Wireless Access, Enhanced Mobile Broadband (eMBB), and Ultra-Reliable & Low-Latency Communications (uRLLC). The fixed wireless access segment is expected to witness highest growth from 2021 to 2025, which is primarily ascribed to the capability of covering remote areas and reducing latency.
5G technology will witness high penetration across the manufacturing, energy & utility, transportation & logistics, IT & telecom, healthcare, media & entertainment and a range of other verticals. Automotive & transportation vertical is expected to witness considerable growth particularly the connected vehicles segment. Although self-driving vehicles are still in the pilot phase, we expect the market to grow particularly in the U.S. with deployment of 5G services.
Being the early adopter of technology, the North America will emerge as the dominant market by 2020. Major service carriers in the region are focusing aggressively on launching 5G commercially. With a positive experience in terms of 4G adoption, we expect the subscriber base for 5G in North America to account for over 45% of the total mobile subscription by 2025. According to CTIA, a trade association. that represent wireless communications industry in the U.S., 5G deployment is anticipated to result in creation of over three million jobs with support from projected high investments in network infrastructure.
Key players operating in the 5G services market include AT&T, Airtel, Korea Telecom, China Mobile, Deutsche Telecom, Vodafone, Telstra, among others. Companies such as Ericsson are focusing on entering in to public-private partnerships to bring together SMBs, governments as well academics to collaborate on the development of 5G technology. Collaborations such as these will aid in faster deployment and proliferation of 5G services.
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