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The 5G infrastructure market outlook appears extremely positive, mainly due to the rising demand from military sectors worldwide. Besides, increasing numbers of 5G implementations and the demand for support building additional networks for future technologies substantiate the market size. In addition, the demand for improved communication systems creates significant demand for higher capacities, changing networks, and additional line terminals.
Major 5G infrastructure market trends include the rising demand for higher bandwidth capabilities, longer transmission distances, immunity to EMI & RFI, higher reliability & security, and lower maintenance costs. As fiber optic technology continues to advance, it broadens the scope of use for technologies, such as radio over fiber (ROF) and cloud-based 5G Open Radio Access Network (5G O-RAN).
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In addition to being used to support 5G communications, ROF systems have potential applications in avionics systems, light-weighting aircraft while reducing interference issues and addressing long-term concerns about radio spectrum congestion. These factors, as a result, drive the 5G infrastructure market share commutatively. The market is expected to witness rampant growth, demonstrating a vast growth potential in the years to come.
In this regard, Market Research Future (MRFR), in its recently published 5G infrastructure market forecast report, asserts that the market would grow at an impressive CAGR during the forecast period (2020 – 2027). The rising adoption of public cloud-based IT services is a major driving force behind the market growth.
5G Infrastructure Market – Segments
5G infrastructure market analysis is segmented into communication infrastructure, network architecture, operational frequency, end-user, and regions. The communication infrastructure segment is sub-segmented into small cells and macrocells. The sub-segment small cell is bifurcated into microcell, femtocell, and picocell. The network architecture segment is sub-segmented into 5G non-standalone and 5G standalone.
The operational frequency segment is sub-segmented into below 6 GHz and above 6 GHz. The core technology segment is sub-segmented into software-defined networking (SDN) and network function virtualization (NFV). The end-user segment is sub-segmented into residential, commercial, industrial, and government.
5G Infrastructure Market – Regional Analysis
North America dominates the global 5G infrastructure market. The largest market share attributes to the increase in adoption of 5G infrastructure in residential, commercial, and industrial setups and government organizations. Moreover, the presence of major players and R&D centers drive the 5G infrastructure market size. Heavy investments made in building 5G infrastructure and developing 5G and cloud technologies boost the market share.
The US dominates the 5G infrastructure industry in North America due to a large number of networks deployed for efficient and faster connectivity. Canada is the fastest-growing market in the region due to the rising demand for advanced 5G infrastructure that is future-ready and capable of connecting millions of devices with enhanced network coverage, low latency, and end-to-end solutions.
Europe is the second-largest market for 5G infrastructures globally. The region shows positive signs towards 5G infrastructure adoption owing to the availability of some of the best technology providers. Additional factors impacting the 5G infrastructure market share include the proliferation of advanced technologies, the Internet, and smart connected devices in the region.
The 5G infrastructure market in the Asia Pacific region is growing briskly. Factors such as the increasing demand for 5G infrastructure and adoption of SDN and NFV technologies boost the market size in this region. China, India, and Japan hold major shares in the regional market due to the deployment of cloud-based services across various industries.
Global 5G Infrastructure Market – Competitive Analysis
Fiercely competitive, the 5G infrastructure market appears fragmented due to the competitive landscape formed by many notable players and the new entrants. Product launch, agreement & partnership, M&A, and expansion are some of the strategic initiatives traced from the recent proceedings in the market.
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Players leading the 5G infrastructure market include Huawei Technologies Co., Ltd. (China), Telefonaktiebolaget LM Ericsson (Sweden), Nokia (Finland), ZTE Corporation (China), SAMSUNG (South Korea), NEC Corporation (Japan), CommScope, Inc. (US), Cisco Systems, Inc. (US), Comba Telecom Systems Holdings Ltd. (China), Siklu Inc. (US), Alpha Networks Inc. (Taiwan), Mavenir (US), Hewlett Packard Enterprise Development LP (US), Airspan Networks (US), and F5, Inc. (US), among others.
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