The global 5G services market size was valued at USD 60.61 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 59.4% from 2023 to 2030. 5G wireless mobile services enable a fully mobile and connected environment by delivering a wide range of use cases and business models to consumers. Moreover, faster data speeds and extremely low latency offered by the 5G technology would enhance the user experience while using 5G services for several use cases, such as Virtual Reality (VR) and Augmented Reality (AR) gaming, seamless video calling, and Ultra-High Definition (UHD) videos, among others. The growing demand for high-speed data connectivity for unified Internet of Things (IoT) applications, such as smart home energy management, is estimated to propel the adoption of these services over the forecast period.
Moreover, the rising focus on building partnerships by 5G system integration providers with telecom operators is estimated to augment the adoption of these services. Many industry verticals are focusing on technological transformations to improve their overall productivity and operational efficiency as part of the efforts to sustain in a highly competitive environment. The 5G wireless technology holds the potential to help in realizing remarkable transformations across all these verticals through reductions in overall costs and enhancement in productivity. The continued emphasis on improving energy monitoring and management as well as gaining better control of the energy generation and distribution network is also expected to boost the market growth over the forecast period.
When it comes to healthcare, some of the largest economies, such as the U.S. and China, are expected to continue investing heavily in the provision of healthcare facilities. For instance, the National Health Expenditure Accounts (NHEA) of the U.S. expects the overall healthcare spending in the country to reach more than USD 6.2 trillion by 2030 exhibiting a CAGR of nearly 7% from 2022 to 2030. Modern healthcare would particularly focus on administering technology-driven treatments to the patients, thereby driving the market growth over the forecast period. Apart from energy & utilities and healthcare, transportation & logistics is another industry vertical that can offer potential opportunities to this market.
For instance, the concept of Vehicle-to-anything (V2X) communication has paved the way for connected vehicles and autonomous driving. 5G services would be playing a crucial role in providing seamless Vehicle-to-Infrastructure (V2I) communication and Vehicle-to-Vehicle (V2V) communication to reduce the chances of accidents on roads. The growing emphasis on ensuring a safe and enhanced driving experience with connected vehicles is expected to drive market growth over the forecast period. The next generation 5G technologies are increasingly being used in public transportation applications.
These technologies can provide broadband access for public transportation systems, such as buses and high-speed trains, to provide high-speed internet in transit for entertainment, information, and interaction with smart mobility components. This, in turn, is expected to fuel the market growth. Moreover, the strong emphasis on providing reliable and robust communication during natural disasters, such as floods, hurricanes, and earthquakes, is further estimated to spur the adoption of 5G services. However, the governments are quoting significantly high prices for service providers for procuring the 5G spectrum. Service providers would have no other option but to pass on these costs to the end-users.
Thus, the high spectrum prices and the subsequent hike in 5G service subscription prices are expected to hinder the market growth to some extent. As the market is in the introduction phase, several key service providers across the globe are investing in deploying modern network infrastructure to tap the maximum subscriber base in their region. However, the outbreak of the COVID-19 has put the deployment of several 5G cores and base station infrastructures on hold across the globe. In addition, the spectrum auction for 5G services has been postponed by several federal governments across key countries, such as Spain, the U.S., and France, which will hinder the market growth.
The enhanced Mobile Broadband (eMBB) segment dominated the market with a share of more than 40% in 2022 and is expected to grow considerably over the forecast period. The high share is attributed to the preliminary focus by 5G network operators on delivering enhanced broadband capabilities for applications, such as high-speed cloud-based gaming, AR/VR, UHD video, and uninterrupted video calls. The initial phase of the rollout is expected to focus on a 5G wireless non-standalone deployment model. eMBB provides extremely high data speeds for residential and commercial use.
Thus, eMBB is expected to cater to several use cases, such as in-vehicle infotainment, 4K video access, and virtual meeting, thereby driving the segment growth. The massive Machine-Type Communications (mMTC) segment is expected to witness the fastest CAGR from 2023 to 2030. Massive machine-type communications envisage catering to the growing need for a developed digital ecosystem. mMTC focuses on providing services for high connection density applications, such as smart buildings and smart cities. The growing need to ensure uninterrupted connectivity for all the IoT devices deployed in a network is anticipated to contribute to the growth of the mMTC segment over the forecast period.
The enterprise segment led the market in 2021 and held the largest revenue share of 94.0%. The segment is expected to continue its dominance over the forecast period due to the significant investments by key players in the latest technologies for communication. The growing demand for higher data speeds for residential and commercial applications is estimated to drive the growth of the IT & telecom segment over the forecast period. 5G services are expected to deliver ubiquitous broadband access between homes and offices, which would encourage remote consultation with specialists and reduce business travel. The growing need for enhanced broadband capacity for virtual business meetings is anticipated to propel the segment growth during the forecast period.
The manufacturing sector has been digitalizing rapidly. As such, production lines are being automated continuously to enhance overall productivity. This has triggered the need for seamless wireless communication between the robots, sensors, actuators, and other devices installed in manufacturing facilities. Thus, the manufacturing segment is expected to exhibit the fastest CAGR over the forecast period. Moreover, key verticals, such as healthcare, are expected to see a considerable adoption of the services to provide enhanced telemedicine and healthcare emergency services during and post-pandemic.
The consumer segment is expected to grow at the highest CAGR of 71.4% during 2023–2030. This growth is attributed to the increasing commercialization of the 5G services for consumer applications across various countries, including the U.S., China, Japan, Germany, and South Korea. The number of 5G subscribers is increasing at a faster rate since 5G provides lower latency, higher speed, and greater capacity as compared to the 4G LTE networks.
Asia Pacific led the market in 2022 with a share of over 40% and is estimated to expand further at the fastest CAGR during the forecast period. Key market players in APAC, such as China Telecom, China Mobile, SK Telecom, and KT Corp., are investing aggressively in rolling out the 5G network infrastructure in China, Japan, and South Korea. Most of these investments are for the deployment of the next-generation infrastructure for the media & entertainment, transportation & logistics, healthcare, and manufacturing industry verticals. These investments are estimated to propel the growth of the Asia Pacific regional market over the forecast period. Moreover, the high demand for smartphones supporting higher data speeds has resulted in the robust production of 5G-enabled smartphones across the region.
5G services are expected to gain traction as key smartphone manufacturers in the region, such as Huawei Technologies Co. Ltd., Samsung Electronics Co., Ltd., and BBK Electronics Corp., continue to launch 5G-enabled smartphones in response to the rising demand.North America was the second-largest regional market in 2022. Some of the most significant investments in deploying the 5G network infrastructure are materializing in the U.S. For instance, according to GVR analysis, mobile operators based in the U.S. invested around USD 250 billion in mobile network infrastructure rollout between 2010 and 2017. The aggressive investments in the country in building smart homes, establishing smart industries, and rolling out smart city projects are expected to contribute to the growth of the regional market over the forecast period.
The global market is highly fragmented as several regional telecom service providers are investing in deploying the next-generation infrastructure. This will help companies gain a huge customer base in the market. In addition, these market players are strategically focusing on mergers and acquisitions to strengthen their foothold in the global market. For instance, in September 2018, T-Mobile signed an agreement with Ericsson to support T-Mobile’s 5G deployment in the U.S.
Moreover, key market players are also investing heavy amounts in acquiring the necessary spectrum. Having an adequate spectrum would allow the companies to strengthen their overall portfolios and increase their subscriber base across various countries. For instance, in April 2018, the BT Group plc’s Enterprise (EE) segment acquired 40 MHz of 3.4 GHz spectrum (3540 - 3580 MHz spectrum frequencies) for around USD 426.5 million. The company plans to utilize the spectrum to provide next-generation improved internet services in the U.K. The key players in the global 5G services market include:
AT&T, Inc.
BT Group plc
China Mobile Ltd.
China Telecom Corporation Ltd.
Bharti Airtel Ltd.
NTT Docomo
KT Corp.
Saudi Telecom Company
Vodafone Group
Deutsche Telekom AG
SK Telecom Co., Ltd.
Verizon Communications, Inc.
T-Mobile USA, Inc.
Rakuten Mobile Inc.
In June 2023, Vodafone UK merged with Three UK for creating one of Europe’s best in class 5G network service with reliability, great coverage, and high-speed data connectivity
In June 2023, T-Mobile USA Inc. collaborated with the City of Bellevue to jointly launch a network-based Cellular Vehicle-to-Everything (C-V2X) technology. This technology along with T-Mobiles’s 5G network service will provide real-time communication between traffic infrastructure, vulnerable road users, and cars
In June 2023, BT Group Plc partnered with Lyca Mobile for providing customers of Lyca with cost-effective mobile connectivity of 4G and 5G radio access network
In April 2023, AT&T, Inc. initiated plans to expand 5G standalone technology service by including MIMO, and carrier aggregation technologies for improving data rates, signal quality, and overall performance
In March 2023, SK Telecom Co., Ltd. Collaborated with Dell Technologies for the launch of a 5G mobile edge computing (MEC) solution. MEC is a significant technology for 5G services including immersive media, autonomous driving, and smart factories
In March 2023, Bharti Airtel Ltd. Launched unlimited 5G data services for its customers with the purpose to make them experience the power of Airtel 5G Plus network service
In February 2023, Saudi Telecom Company signed an agreement with SKYFive Arabia for introducing broadband inflight connectivity to airlines in Saudi Arabia, and in the MENA region. The purpose is to offer a reliable and faster 5G internet connection for international and local flights
In February 2023, NTT Docomo developed a RAN Intelligent Controller (RIC) to enable multivendor interoperability for open radio access network in the current era of 5G services
Report Attribute |
Details |
Market size value in 2023 |
USD 84.31 billion |
Revenue forecast in 2030 |
USD 2,208.2 billion |
Growth rate |
CAGR of 59.4% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2020 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative units |
Revenue in USD billion/trillion and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Communication type, vertical, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Russia China; Japan; India; South Korea; Brazil; Mexico |
Key companies profiled |
AT&T, Inc.; BT Group plc; China Mobile Ltd.; China Telecom Corporation Ltd.; Bharti Airtel Ltd.; NTT Docomo KT Corp.; Saudi Telecom Company; Vodafone Group; Deutsche Telekom AG; SK Telecom Co., Ltd.; Verizon Communications, Inc.; T-Mobile USA Inc.; Rakuten Mobile Inc. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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 2023 to 2030. For the purpose of this study, Grand View Research has segmented the global 5G services market report based on communication type, vertical, and region:
Communication Type Outlook (Revenue, USD Billion, 2020 - 2030)
FWA
eMBB
uRLLC
mMTC
Vertical Outlook (Revenue, USD Billion, 2020 - 2030)
Consumer
Enterprises
Manufacturing
Public Safety
Healthcare & Social Work
Media & Entertainment
Energy & Utility
IT & Telecom
Transportation & Logistics
Aerosapce & Defense
BFSI
Government
Retail
Mining
Oil & Gas
Agriculture
Construction
Real Estate
Regional Outlook (Revenue, USD Billion, 2020 - 2030)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Russia
Italy
Spain
Asia Pacific
China
India
Japan
South Korea
Latin America
Brazil
Mexico
Middle East & Africa (MEA)
b. The global 5G services market size is expected to reach USD 60.61 billion in 2022 and USD 84.31 billion in 2023.
b. The global 5G services market is expected to grow at a compound annual growth rate of 59.4% from 2023 to 2030 to reach USD 2,208.25 billion by 2030.
b. Asia Pacific is estimated to dominate the 5G services market with a share of 39.4% in 2022. This is attributable to huge investments made by key service providers such as China Telecom, China Mobile, SK Telecom, and KT Corporation, in rolling out the 5G network infrastructure in China, Japan, and South Korea.
b. Some key players operating in the 5G services market include AT&T, Inc., BT Group plc, China Mobile Ltd., China Telecom Corporation Ltd., Bharti Airtel Ltd., NTT Docomo, KT Corp., Saudi Telecom Company, Vodafone Group, Deutsche Telekom AG, SK Telecom Co., Ltd., Verizon Communications, Inc., T-Mobile USA Inc, Rakuten Mobile Inc.
b. Key factors that are driving the 5G services market growth include growing demand for high-speed connectivity with low latency and rising adoption of IoT devices
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In wake of the ongoing COVID-19 outbreak, telecom regulators worldwide have postponed their plans of 5G spectrum auction. Will this have an impact on the commercialization of commercial 5G standalone deployments? What will be the implication on the overall revenue generated through 5G services? Therefore, we are currently working on our analysis to capture the exact cumulative impact of the COVID-19 outbreak on the 5G services market. The report will account for Covid-19 as a key market contributor.
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