5G System Integration Market Size, Share & Trends Report

5G System Integration Market Size, Share & Trends Analysis Report By Services (Consulting, Infrastructure Integration, Application Integration), By Vertical, By Application, And Segment Forecasts, 2020 - 2027

  • Published Date: May, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-149-8
  • Format: Electronic (PDF)
  • Historical Data: 2019
  • Number of Pages: 125

Report Overview

The global 5G system integration market size was valued at USD 7.66 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 23.8% from 2020 to 2027. 5G system integration is a process of integrating both virtual and physical components of any enterprise with new upgraded systems or applications to work over the new 5G network. Rising demand for high-speed bandwidth capacity has enabled enterprises to install upgraded network infrastructure to enhance overall operational efficiency as well as reduce the total process costs. Thus, robust deployment of upgraded network infrastructure across enterprises to deliver enhanced services to their customers is estimated to propel the demand for 5G system integration services.

North America 5G system integration market size

Major global manufacturers are seeking opportunities to speed up their operations by embracing modern digital technologies to empower the fourth industrial revolution (Industry 4.0). Technologies such as big data analytics, industrial wireless camera, and collaborative robots are enabling manufacturing facilities to take a giant leap toward smart and data-driven flexible operations.

In addition, several manufacturers have developed and implemented these aforementioned technologies to compete in a highly competitive environment. Manufacturers need to integrate them with next-generation networks in order to provide unified communication to these 5G technologies, which also helps reduce the overall operational downtime and costs through delivering continuous connectivity and remote monitoring. Thus, robust deployment of industrial internet of things (IIoT), coupled with the growing demand for 5G services to provide unified connectivity, is anticipated to bolster the demand for 5G system integration services during the forecast period.

With the evolution of fifth-generation mobile network services, various enterprises across the globe are aggressively focusing on integrating their legacy network infrastructure with the new upcoming 5G technologies. Moreover, these companies are integrating their existing on premise applications and cloud networks with modern 5G technologies to work seamlessly over a centralized network. This integration process allows enterprises to access high bandwidth capacity with low latency for their operations, thereby increasing the total operational efficiency by reducing the overall response time to customers. Therefore, a significant rise in demand for fast broadband to reduce overall response-time is expected to drive the market for 5G system integration from 2020 to 2027.

The growing popularity of Network Function Visualization (NFV) and Software-Defined Networking (SDN) across enterprises is also expected to be one of the major factors driving the market for 5G system integration. NFV allows enterprises to deploy several virtual machines and firewalls to lead an efficient economy of scale. On the other hand, SDN provides a smart network architecture that aims to reduce hardware constraints on the company premises.

Moreover, SDN allows these companies to manage the use of their network behaviors efficiently through an Application Program Interface (API). Thus, the rapid adoption of NFV and SDN technologies to minimize overall network infrastructure costs is anticipated to further surge the growth of the market for 5G system integration. However, a rapidly increasing large chunk of datasets over the cloud, coupled with increasing demand for cloud-based application integration, creates a major security concern among the consumers, which may hinder the 5G system integration industry growth in the future.

The outbreak of the COVID-19 pandemic is substantially impacting the overall 5G industry across the globe. Few countries such as the U.S., Spain, France, and the U.K. have postponed the spectrum auctions to deliver 5G services. Additionally, several telecom network providers such as Huawei Technologies Co. Ltd, Ericsson, and Nokia Corporation have temporarily delayed the 5G network deployment for telecom operators globally. The delay in 5G network deployment is having an adverse impact on the demand for 5G system integration services.

Services Insights

In terms of value, the infrastructure integration segment dominated the market for 5G system integration with a share of 37.8% in 2019 and is expected to register the fastest CAGR from 2020 to 2027. This is attributed to surging demand for integration of traditional network infrastructure with the next generation 5G network infrastructure. Thus, integration of legacy infrastructure facilitates users to access the same hardware with enhanced features, thereby reducing the additional costs of hardware. In addition, the infrastructure system integration services consist of network integration, building management, and Data Center Infrastructure Management (DCIM).

The consulting segment is expected to expand at a CAGR of 21.1% over the forecast period. With the rapidly augmenting demand for 5G technologies, such as network equipment, business enterprises initially approach system integrators to build upgraded network architecture for their organizations. This architecture will help these business enterprises to boost overall operational output in less time. Moreover, spiraling demand for multi-vendor cloud-based applications across enterprises is anticipated to augment the need for application integration services over the forecast period.

Vertical Insights

In terms of value, the IT and telecom segment dominated the market for 5G system integration with a share of 25.1% in 2019 and is anticipated to register a considerable CAGR from 2020 to 2027. This is attributed to surging demand for 5G integration services across various IT and telecom companies to support 5G New Radio (NR) waves. A healthy rise in demand for integrating enterprise network infrastructure and data center network hardware is anticipated to witness significant growth in demand for 5G system integration services in the IT and telecom segment.

Global 5G system integration market share

Moreover, 5G network services are estimated to witness significant adoption across enterprises over the forecast period due to increased focus on providing seamless connectivity during a virtual meeting to reduce the overall travel time of a consultant or specialist. As a result, demand for 5G system integration services is estimated to witness a substantial rise in integrating an entire enterprise network to make compatible with the 5G network.

As digitalization is becoming popular in the manufacturing sector, the production lines are being continuously automated to improve overall production efficiency. This has triggered the need for seamless wireless communication between the industrial robots, actuators, sensors, and other devices mounted in manufacturing facilities. Thus, the manufacturing sector is estimated to exhibit the fastest growth over the forecast period owing to the growing demand for 5G system integration services to integrate the entire facility with 5G carriers supporting network.

Application Insights

In terms of value, the home and office broadband segment dominated the market for 5G system integration with a share of 23.8% in 2019 and is expected to register a considerable CAGR from 2020 to 2027. This is attributed to the growing need for 5G system integration services to provide initially enhanced Mobile Broadband (eMBB) connectivity to consumers and enterprises. Moreover, a remarkable increase in IoT devices across rapidly building smart cities worldwide is expected to surge the demand for 5G system integration services to make these devices compatible with next generation network services. This factor is anticipated to further boost the growth of the smart city application segment from 2020 to 2027.

The adoption of connected sensors and collaborative robots is witnessing a significant rise in industrial applications across the globe. This is expected to drive the demand for 5G services to establish seamless connectivity, which, in turn, is projected to fuel the segment growth over the forecast period. Furthermore, the intelligent power distribution systems segment is estimated to witness notable growth owing to a flawless communication set-up between smart grids to automate and monitor power distribution and storage operations.

Regional Insights

North America dominated the market for 5G system integration with a share of 34.1% in 2019. This is attributed to the presence of large IT and telecom players, such as IBM Corporation; Microsoft Corporation; and Cisco Systems, Inc. Moreover, rising investments in deploying 5G infrastructure by key market players, such as AT&T Inc. and Verizon Communications Inc., are expected to create a robust need to integrate overall infrastructure and applications across various verticals, such as IT and telecom, energy and utilities, and healthcare, to support 5G NR frequency bands. This factor is anticipated to boost the overall growth of the regional market.

Asia Pacific is expected to expand at the fastest CAGR during the forecast period. Prominent telecom operators such as China Mobile, China Telecom, KT Corporation, and SK Telecom are making significant investments in rolling out 5G networks in China, Japan, and South Korea. Most of these investments are envisioned to focus on implementing next-generation infrastructure for various industry verticals, including transportation, energy and utility, healthcare, media and entertainment, and manufacturing. Thus, rapidly growing investments in installing 5G infrastructure across the above-mentioned countries are likely to create a significant opportunity for system integrators in the market in the forthcoming years. Furthermore, a rapid increase in the number of small and medium IT companies in emerging countries, such as China and India, is estimated to propel the regional adoption of 5G system integration services.

Key Companies & Market Share Insights

The market is moderately fragmented due to the presence of several players operating in the market. Key players are focusing on making adequate investments in developing systems integration software, platforms, and other solutions to enhance their overall product portfolios. For instance, Huawei Technologies Co., Ltd. has announced an investment of around USD 350 million over the next three years. This strategic investment is expected to be focused on developing system integration services solutions, such as tools, platforms, and consulting services, related to 5G system integration across numerous verticals.

Market players are aggressively focusing on building partnerships and agreements to gain a significant market share on a global scale. For instance, in Feb 2019, Hewlett Packard Enterprise (HPE) made a partnership agreement with Samsung Electronics Co., Ltd. This partnership is focused on offering edge-to-core virtual Radio Access Network (vRAN) solution based on Samsung Electronics Co., Ltd.’s system integration services and radio network technologies. HPE announced to invest nearly USD 4 billion to introduce converged edge systems that target to provide to Communication Service Providers (CSP) and other use cases, such as IoT, media streaming, and video analytics. Some of the prominent players in the 5G system integration market include:

  • Accenture Inc.

  • Huawei Technologies Co., Ltd.

  • Cisco Systems, Inc.

  • Infosys Limited

  • Tata Consultancy Services Limited

  • Wipro Limited

  • Radisys Corporation

  • IBM Corporation

  • HPE

  • Oracle Corporation

  • HCL Technologies Limited

  • ALTRAN

  • AMDOCS

  • CA Technologies

  • Sigma Systems

  • Samsung Electronics Co., Ltd.

  • Ericsson

  • Keysight Technologies

  • ECI TELECOM

5G System Integration Market Report Scope

 Report Attribute

Details

Market size value in 2020

USD 7.02 Billion

Revenue forecast in 2027

USD 31.41 Billion

Growth Rate

CAGR of 23.8% from 2020 to 2027

Base year for estimation

2019

Historical Data

2019

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

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

Segments covered

Services, vertical, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

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

Key companies profiled

Accenture Inc.; Huawei Technologies Co., Ltd.; Cisco Systems, Inc.; Infosys Limited; Tata Consultancy Services Limited; Wipro Limited; Radisys Corporation; IBM Corporation; HPE; Oracle Corporation; HCL Technologies Limited; ALTRAN; AMDOCS; CA Technologies; Samsung Electronics Co., Ltd.; Ericsson; Keysight Technologies

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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 and opportunities in each of the sub-segments from 2019 to 2027. For the purpose of this study, Grand View Research has segmented the global 5G system integration market report based on services, vertical, application, and region:

  • Services Outlook (Revenue, USD Million, 2019 - 2027)

    • Consulting

    • Infrastructure Integration

    • Application Integration

  • Vertical Outlook (Revenue, USD Million, 2019 - 2027)

    • Manufacturing

    • Energy & Utility

    • Media & Entertainment

    • IT & Telecom

    • Transportation & Logistics

    • BFSI

    • Healthcare

    • Retail

    • Others

  • Application Outlook (Revenue, USD Million, 2019 - 2027)

    • Smart City

    • Collaborate Robot /Cloud Robot

    • Industrial Sensors

    • Logistics & Inventory Monitoring

    • Wireless Industry Camera

    • Drone

    • Home and Office Broadband

    • Vehicle-to-everything (V2X)

    • Gaming and Mobile Media

    • Remote Patient & Diagnosis Management

    • Intelligent Power Distribution Systems

    • P2P Transfers /mCommerce

    • Others

  • Regional Outlook (Revenue, USD Million, 2019 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Russia

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • MEA (Middle East & Africa)

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