As per the report published by Fior Markets, the global 5G services market is expected to grow from USD 53.17 billion in 2020 to USD 427.88 billion by 2028, at a CAGR of 29.78% during the forecast period 2021-2028.
5G replaces 3G and 4G with improved characteristics such as extremely high bandwidth, ultra-low latency, and high-density connections. The worldwide 5G service market is seeing increased traffic density due to increased mobile consumption of Internet-based content and services and a growing need for reduced communication latency for a better user experience. 5G is more efficient than previous generations, and it meets the demand for a high density of connected devices and cutting-edge technology. Businesses will benefit from 5G by being able to embrace IoT and other new technologies. As a result of fast advancements in connected IoT devices, there would be considerable demand for 5G services, boosting the market’s growth. The expansion of the worldwide 5G service market is aided by increasing initiatives aimed at creating smart cities. Sensors, control units, and other linked devices are used in smart cities and smart energy grids, and their successful operation needs improved network services. As a result of the increased need for in-building internet services, 5G services are expected to be in great demand.
Inside the structures, network operators are installing femtocells. These deployments were confined to high-traffic areas such as airports, athletic events, shopping malls, and train stations. There is a growing demand for a unique type of infrastructure in these regions that may improve network efficiency and density by using small cells.
Covid-19 is likely to substantially influence the 5G services industry in the immediate term since 5G launch projects in many regions across the world are being postponed due to the pandemic. For example, the spectrum auction for 5G networks in France has been delayed due to the coronavirus epidemic scheduled for April 2020. The development of United Internet’s subsidiary 1&1 Drillisch’s 5G network and other projects has been postponed.
Key players operating in the 5G services market are AT&T Inc., KT Corp., China Mobile Ltd., Deutsche Telekom AG, China Telecom Corporation Ltd., Bharti Airtel Ltd., BT Group plc, Saudi Telecom Company, Vodafone Group, SK Telecom Co. Ltd. To earn a significant market share in the 5G services market, the key players now focus on adopting product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.
- In Jan 2021, AT&T Inc. announced the launch of its 5G service in some of Tampa’s most popular neighborhoods and attractions. AT&T calls their 5G+ service millimeter wave spectrum, which is excellent for high-traffic regions.
The enterprise segment dominated the market and held the largest market share of 62.71% in the year 2020
Based on end-use, the 5G service market is segmented into consumers and enterprises. The enterprise end-user segment dominated the 5G service market and held the largest market share of 62.71% in 2020. The most significant benefit of 5G will be its capacity to connect infrastructures, machines, and things rather than connecting individuals. 5G is expected to provide the foundation platform for several new vertical applications, including manufacturing, transportation, and healthcare. However, the skills and standards needed to open up a new world of corporate services are still being developed. As a result, commercial 5G corporate applications, including Industry 4.0 factories, self-driving vehicles, and robotic surgery, are already being implemented. In conjunction with 5G network slicing, edge computing will be especially beneficial to latency-sensitive and time-sensitive applications like automated vehicle driving and telerobotics.
The manufacturing segment dominated the market and held the largest market share of 34.97% in the year 2020
Based on the enterprise, the 5G service market is segmented into manufacturing, transportation, and logistics, media and entertainment, and government. The manufacturing enterprise segment dominated the 5G service market and held the largest market share of 34.97% in 2020. Cyberphysical systems and the IoT are projected to power Industry 4.0, which would need 5G networks. This will allow future factories to be more efficient, networked, and adaptable. Inside factories, 5G will make manufacturing operations more manageable, such as more efficient production lines (with machine vision and high definition video for process management), AGVs (autonomous transportation) in factories, and machine control, all with the latency of less than 5ms utilizing URLLC.