5G Infrastructure Industry Overview
The global 5G infrastructure market size was valued at USD 4.75 billion in 2021 and is estimated to reach USD 95.88 billion by 2030, at a CAGR of 34.2% from 2022 to 2030.
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 5G infrastructure industry 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 16.0 trillion by 2030, nearly 32% of GDP.
Gather more insights about the market drivers, restrains and growth of the Global 5G Infrastructure Market
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 for 5G infrastructure 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. 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 for 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 for 5G infrastructure, especially over the next couple of years.
5G Infrastructure Market Segmentation
Based on the Component Insights, the market is segmented into Hardware and Services.
- The In the hardware segment, RAN dominated the market for 5G infrastructure with a share of 48.5% in 2021. This is attributed to the robust deployment of 5G RAN with several small cells and macrocell base stations globally.
Based on the Spectrum Insights, the market is segmented into Sub-6 GHz and mmWave.
- In terms of revenue, the sub-6 GHz segment dominated the 5G infrastructure market with a share of 84.8% in 2021.
- 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.
Based on the Network Architecture Insights, the market is segmented into Standalone and Non-standalone.
- The non-standalone (NSA) network architecture dominated the global 5G infrastructure industry with a revenue share of over 91% in 2021.
- 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 2022 to 2030.
Based on the Vertical Insights, the market is segmented into Residential, Enterprise/Corporate, Smart City, Industrial, Energy & Utility, Transportation & Logistics, Public Safety and Defense, Healthcare Facilities, Retail, Agriculture and Others.
- The enterprise/corporate segment dominated the market with a revenue share exceeding 20% in 2021.
- 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.
Based on the 5G Infrastructure Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA).
- The Asia Pacific region dominated the market with a share of 36.9% in 2021.
- 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.
Market Share Insights:
- January 2022: Telesat partnered with ENCQOR 5G to conduct demonstrations, trials, and pilots to advance 5G connectivity, particularly for industries operating in rural areas in Canada. The collaboration includes the utilization of the ENCQOR testbed, satellite assets, as well as national and international 5G infrastructures.
- December 2021: Sidewalk Infrastructure Partners, a US company pioneering technology-enabled sustainable and inclusive infrastructure, announced that it will acquire a majority stake in Dense Air, an innovative RAN-as-a-Service company that uses shared infrastructure to extend and enhance carrier networks.
Key Companies Profile:
The market is highly consolidated with the top four players accounting for over 60% revenue share in 2021. Key players are striving to build strategic partnerships with service providers to deploy next-generation network infrastructure and gain an early mover’s advantage.
Some prominent players in the global 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.
- Airspan Networks
- Casa Systems
- Hewlett Packard Enterprise Development LP
- Parallel Wireless
- JMA Wireless
- Aviat Networks, Inc.
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