5G Services Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 25.30 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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5G Services Market Analysis
The 5G Services Market is expected to register at a CAGR of 25.3% over the forecast period. 5G is anticipated to support various services and associated service requirements across multiple scenarios. Network slicing is one way to efficiently address different use cases while improving the 5G network architecture.
- The market for 5G services is expected to revolutionize the domain of various broadband services and empower connectivity across different end-user verticals. The main drivers responsible for increasing the market share are an increase in mobile subscriptions, online streaming of video content, strengthening 5G infrastructure, and various IoT applications utilizing 5G.
- IoT in industrial automation is expected to derive maximum benefit from 5G services. The functionality to support this segment is currently being defined in 3GPP, influenced by Industry 4.0 initiatives and industry bodies, such as 5G-ACIA. It will likely be a 5G-specific segment, valid for local area use cases and private network deployments.
- The use of more effective cloud solutions that rely on low latency improves firm efficiency and innovation through increased download speeds of broadband services, which also, in turn, leads the carriers and original equipment manufacturers (OEMs), such as cellular device manufacturers and in-building distributed antenna systems (DAS) providers to follow the 5G New Radio (5G NR) rules to enable such offerings.
- The capital costs of installing the required 5G infrastructure and software upgrades are considerably high, considering the high density of BTS units needed to provide uninterrupted 5G services.
- Moreover, with extensive reliance on virtual space increasing during the COVID-19 pandemic, the need to deploy advanced 5G infrastructure has become paramount. Increased migration frequency of business operations to the cloud and other virtual spaces has prompted investments in robust connectivity platforms.
5G Services Market Trends
This section covers the major market trends shaping the 5G Services Market according to our research experts:
Increasing Data Traffic and Demand for High Speed Data Connectivity will Drive the Market Growth
- 5G standards are likely to support ultra-HD voice and video to produce new applications that rely on voice communication, for instance, telepresence. The 5G's device density, low latency, security, and video capabilities may support added value communications offerings, like Rich Communication Services, especially for enterprises.
- North America has the highest levels of mobile broadband and smartphone adoption globally. The operators in North America have begun to shut down 2G and 3G networks to reframe the spectrum. This trend is expected to continue as regional operators switch to 5G networks using a mix of low, medium, and high-band spectrums.
- Countries such as Sweden and the United Arab Emirates strive to offer superior performance by strengthening user experience through continuous network evolution. As more advanced services and devices emerge, the operators may need to raise their targeted service quality levels even higher.
- Moreover, with increased dependence on streaming services, 4G networks supported majorly, streaming with AR/VR, 4k/8k video, and 360-degree videos, the 5G video content is expected to be immersive and consume a higher proportion of the overall data traffic.
- The 5G subscription traffic growth is driven by both the rising number of smartphone subscriptions and a need for increasing average data volume per subscription due to video content viewing.
North America is Expected to Hold the Largest Share
- 5G-enabled IoT connections are expected to witness a further increase in demand in the United States. As per the IoT Association, the United States leads, in terms of smart home adoption, with the highest smart home device ratio per household and the greatest consumer propensity to own devices across two or three use cases (security, energy, and appliances).
- Additionally, the country expects billions of devices to be connected to the internet, devices, and sensors of the Internet of Things. With the onset of 5G networks, the extensive bandwidth and faster internet speeds can be utilized by Google and Facebook; for instance, to develop more advanced services shortly.
- Apart from the launch of 5G services, the United States also needs to focus on software development. Repurposing the country's mid-band spectrums currently being used by the military or weather radars may make networks more efficient.
- Moreover, the country is promoting technologies, such as automated and connected driving, to enhance road safety, reduce road congestion, and decrease air pollution. Such initiatives to gain experience in actual driving scenarios are also supported by the Federal Ministry of Transport and Digital Infrastructure.
5G Services Industry Overview
The competitive rivalry among the 5G services industry players is high because of the presence of several significant players, including AT&T, Verizon, Nokia, and others. They could outperform rivals if they could consistently innovate their product offers. These businesses have established a substantial presence in the market through mergers and acquisitions, strategic alliances, and research and development.
In May 2022, Nokia Corporation announced its 5G-Advanced to widen the area that 5G uplink signals can reach. While 5G-Advanced will improve uplink coverage first with the initial connection setup by leveraging more excellent random access channel coverage, it will support new types of devices with low data-rate requirements and introduce 5G capabilities to new vertical sectors and markets. The uplink data rate will then be optimized within the allocated connection budget by 5G-Advanced dynamically altering the uplink waveform. When the user is close to the cell edge, the network will dynamically favor coverage-enhancing waveforms, and as the user travels into the cell center, it will deprioritize them.
5G Services Market Leaders
Nokia Corporation
Huawei Technologies Co Ltd
AT&T Inc.
Verizon Communications Inc
HP Enterprise Development LP
*Disclaimer: Major Players sorted in no particular order
5G Services Market News
- November 2022: Nokia Corporation announced that Balitower would extend its relationship with Nokia by using Nokia mobile transport solutions and services to upgrade its operations and network architecture and reliability to deliver expanded 5G services for its customers and improve user experience, reduce the total cost of ownership and prepare the nationwide network for 5G.
- February 2022: AT&T has announced its Microsoft collaboration which integrates the AT&T 5G Network with the Azure Private MEC and builds on the existing edge work between the two companies. In contrast, the AT&T Private 5G Edge is designed to be an integrated platform that offers embedded applications and connectivity through a single platform, utilizing AT&T and CBRS spectrum as required to satisfy customer needs.
5G Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshot
4.3.1 By Type
4.3.1.1 Enhanced Mobile Broadband (EMBB)
4.3.1.2 Ultra-reliable Low Latency Communications (URLLC)
4.3.1.3 Massive Machine Communications (MMTC)
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Ultra-Low Latency Connectivity
5.1.2 Increasing Data Traffic and Demand for High Speed Data Connectivity
5.2 Market Restraints
5.2.1 High Deployment Cost
5.3 Assessment of Impact of COVID-19 on the Industry
6. MARKET SEGMENTATION
6.1 End-user Industry
6.1.1 IT & Telecom
6.1.2 Media & Entertainment
6.1.3 Automotive
6.1.4 Energy & Utility
6.1.5 Aerospace & Defense
6.1.6 Other End-user Industries
6.2 Geography
6.2.1 North America
6.2.1.1 United States
6.2.1.2 Canada
6.2.2 Europe
6.2.2.1 Germany
6.2.2.2 United Kingdom
6.2.2.3 France
6.2.2.4 Italy
6.2.2.5 Rest of Europe
6.2.3 Asia-Pacific
6.2.3.1 China
6.2.3.2 Japan
6.2.3.3 India
6.2.3.4 South Korea
6.2.3.5 Rest of Asia-Pacific
6.2.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Nokia Corporation
7.1.2 Huawei Technologies Co Ltd.
7.1.3 AT&T Inc
7.1.4 Verizon Communications Inc
7.1.5 HP Enterprise Development LP
7.1.6 T-Mobile USA, Inc.
7.1.7 Deutsche Telekom AG
7.1.8 Telefonaktiebolaget LM Ericsson
7.1.9 Swisscom AG
7.1.10 Vodafone Group
7.1.11 BT Group
7.1.12 Telstra Corporation Limited
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNTIES AND FUTURE TRENDS
5G Services Industry Segmentation
5G is the fifth generation of wireless technology, allowing users quicker downloads, outstanding network reliability, making businesses more efficient, and more.
The 5G Services Market is segmented by End-user Industry (IT & Telecom, Media & Entertainment, Automotive, Energy & Utility, Aerospace & Defense, Other End-user Industries) and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| End-user Industry | |
| IT & Telecom | |
| Media & Entertainment | |
| Automotive | |
| Energy & Utility | |
| Aerospace & Defense | |
| Other End-user Industries |
| Geography | |||||||
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| Rest of the World |
5G Services Market Research FAQs
What is the current 5G Services Market size?
The 5G Services Market is projected to register a CAGR of 25.30% during the forecast period (2024-2029)
Who are the key players in 5G Services Market?
Nokia Corporation, Huawei Technologies Co Ltd, AT&T Inc., Verizon Communications Inc and HP Enterprise Development LP are the major companies operating in the 5G Services Market.
Which is the fastest growing region in 5G Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in 5G Services Market?
In 2024, the North America accounts for the largest market share in 5G Services Market.
What years does this 5G Services Market cover?
The report covers the 5G Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the 5G Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
5G Services Industry Report
Statistics for the 2024 5G Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 5G Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
