5G Devices Market Size

5G Devices Market Analysis

The 5G Devices Market size in terms of shipment volume is expected to grow from 4.85 Billion units in 2024 to 53.77 Billion units by 2029, at a CAGR of 61.76% during the forecast period (2024-2029).

5G technology will offer ultra-high-speed network coverage and enable numerous new applications with the help of IoT. Also, the COVID-19 pandemic has delayed the widespread deployment of 5G.

• According to the last year's Ericsson ConsumerLab report, Online interviews were conducted with 49,100 customers in 37 markets between April and July last year. The respondents chosen for the interview represent the surveyed markets' online population of 1.7 billion customers and 430 million 5G users, who range in age from 15 to 69. According to studies, the next wave of 5G is already in motion, with mainstream customers starting to accept the technology in early adopter markets.
• The growing adoption of connectivity, digital applications, and wearable technology is expected to drive growth for players in the 5G devices market. Moreover, upgrading existing supporting infrastructure, including modems, towers, and other supporting infrastructure, will present significant opportunities for new players. The 5G devices market's growth is expected to drive significant opportunities as the adoption of 5G technology has received positive signals in several local markets worldwide.
• Major chip makers also focus on 5G device component development to boost device penetration in the market. This includes chipset vendors competing in volume-driven markets as they introduce more models for mass deployments. In May last year, MediaTek launched Dimensity 1050 mmWave SoC, and related models, to highlight 5G connectivity in devices.
• Also, emerging applications, business models, and falling device costs have driven IoT adoption, increasing the number of connected devices and endpoints globally. 5G offers massive machine-type communication (mMTC), poised to support tens of billions of network-enabled devices to be wirelessly connected. Modern communication systems already serve several MTC applications. However, the characteristic properties of mMTC, i.e., the massive number of devices and the tiny payload sizes, require novel concepts and approaches. 5G allows a density of approximately one million devices per square kilometer.
• However, the global operation and installation of the supportive infrastructure continue to be a significant hurdle in many areas. For instance, in September last year, the international standardization body, 3GPP, updated the next release of the 5G specification, Release 17, for the second half of the previous year. The release was frozen in March last year due to the pandemic and other reasons. Such delays create subsequent delays in companies' supply chains and other operational activities.
• The COVID-19 pandemic's immediate effects have been felt in every industry, causing widespread layoffs, record unemployment, and severely curtailing consumer spending. The spread of COVID-19 resulted in a significant supply chain disruption impeding the 5G buildout process in the short & medium term. The critical 5G hardware delays and general effects of the economic slowdown thus apply.