South America 5G Device Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South America 5G Device Market Trends and Insights

Rising 5G-Enabled Smartphone Replacement Cycles

Smartphone replacement cycles have shortened since 2024 as 5G coverage reached levels that allow more consumers to use the service. Brazil added 18.2 million 5G connections in 2025, bringing its total to 58.1 million and representing 46.6% year-over-year growth. The increase points to upgrades from 4G-capable devices during carrier promotions, rather than subscriber growth alone. Samsung introduced the Galaxy A06 5G with Vivo at BRL 899 (USD 157) in April 2025, setting a lower reference price for 5G handsets. Motorola, Xiaomi, and Jovi have competed in the same mid-range range as operators promote device upgrades. As 5G handset ownership rises, higher network use can support additional network investment and data-plan upgrades.

Expansion of 5G Fixed Wireless Access Device Demand in Underserved Areas

The gap between fiber deployment economics and population distribution is supporting demand for fixed wireless access customer-premises equipment. Brazil's Ministry of Communications completed a 5G FWA outdoor CPE trial at 3 rural schools in Rio Grande do Norte in July 2025, in partnership with CPQD, Qualcomm, Brisanet, and Intelbras. The trial found that outdoor 5G CPE delivered speeds comparable to those of fiber connections at the tested locations.^{[1]Ministério das Comunicações, “Tecnologia 5G FWA Se Mostra Solução Eficiente Para Conectar Escolas em Áreas Rurais e Remotas do Brasil,” Governo do Brasil, gov.br} Brisanet and Qualcomm announced the Northeast Connected with FWA collaboration in March 2026 to supply subsidized SDX62-based CPE to rural communities. Claro Argentina also began commercial 5G FWA services in Buenos Aires, Córdoba, and other provincial capitals in 2025. Public connectivity objectives in education, health care, agribusiness, and financial services are making this demand less dependent on consumer handset purchase decisions.

Network Operator Subsidy Programs for 5G Handsets and CPE

Device financing programs are helping operators address the gap between 5G network availability and handset ownership. Vivo stated in December 2025 that its 5G coverage reached nearly 70% of Brazil's population, while only 25% of its customers had 5G-capable handsets. It introduced Vivo Pay financing in January 2026, enabling purchases in up to 21 installments without a credit card. Samsung, Claro, Vivo, and TIM have also expanded the availability of lower-priced 5G handsets and device-plan bundles. Operators are pairing handset subsidies with CPE support for FWA subscribers, increasing the number of device types involved in each customer cycle. Argentina's removal of the 16% mobile phone import tariff in January 2026, together with the reduction in internal tax from 19% to 9.5%, lowered the wholesale cost base for such programs.

Enterprise Digitization Driving 5G Routers, Gateways, and Industrial Devices

Private 5G adoption is creating demand for industrial routers, gateways, and modules in steel, mining, agribusiness, and port operations. Usiminas contracted Embratel in January 2025 to deploy a private LTE and 5G network across its Ipatinga plant for industrial automation, logistics, and safety applications. Gerdau also expanded its private 5G project to the Miguel Burnier mining operation in Ouro Preto, following its earlier deployment in Ouro Branco. Nokia expanded its TIM Brasil partnership in March 2026 to modernize 5G networks in 14 states, with planned uses in mining, agribusiness, manufacturing, and logistics.^{[2]Nokia, “Nokia Expands Partnership With TIM Brasil to Deliver Next-Generation AI-Ready 5G Network With NVIDIA,” Nokia Newsroom, nokia.com} These network programs support device procurement where equipment must meet industrial operating requirements. Longer procurement cycles will continue to slow industrial device adoption compared to consumer handset replacement.

Premium Pricing of 5G Devices Versus 4G Alternatives

The price difference between 5G and 4G devices remains a major limit on adoption in price-sensitive consumer segments. Brazilian regulator data indicated that 5G smartphones cost 40% to 60% more than comparable 4G handsets in 2025. Import duties, exchange-rate effects, and brand positioning add to the retail premium. The impact is strongest among prepaid customers, who account for the majority of mobile connections in the region. Operators and manufacturers have responded with installment plans, subsidies, and lower-priced 5G models, but those actions have not yet kept pace with network expansion. This mismatch delays device upgrades and operator revenue from 5G service plans.

Uneven 5G Network Coverage Outside Major Urban Corridors

5G availability remains concentrated in capital cities and larger metropolitan areas outside Brazil and major Argentine cities. Rural areas in Peru, Bolivia, Ecuador, Venezuela, Paraguay, Brazil, and Argentina have earlier-stage deployments, limiting the immediate value of purchasing a 5G device. In Brazil, 64.94% of the population had 5G coverage, yet adoption was stronger in higher-income states.^{[3]Agência Nacional de Telecomunicações, “Anatel Aprova Planejamento Para Novas Licitações de Faixas da Telefonia Móvel,” Governo do Brasil, gov.br} Anatel approved a multiband auction roadmap through 2032 covering 450 MHz, 850 MHz, 2.3 GHz, 2.5 GHz, 3.5 GHz, 6 GHz, and 26 GHz bands. New coverage layers can take 12 to 24 months to translate into material handset and CPE demand. Markets without settled spectrum allocations are likely to defer subsidy and device deployment plans.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Form Factor: Smartphones Lead While CPE Devices Support Faster Growth

Smartphones accounted for 70.80% of the South America 5G device market share in 2025, reflecting the region's mobile-first connectivity base and the replacement of legacy 4G handsets. Samsung supported shipments through local production in Campinas, São Paulo, and Manaus, Amazonas. Motorola and Xiaomi increased competition in the BRL 1,000 (USD 174) to BRL 3,500 (USD 609) range. Jovi entered Brazil in June 2025 through partnerships with Claro and TIM, offering the V50 Lite 5G at BRL 1,799 (USD 315) via carrier plans. Wearables, XR devices, hotspots, modules, and laptops and tablets had lower volumes, though modules saw increased use in IoT and agricultural automation equipment.

Customer-premises equipment is projected to expand at a 13.40% CAGR through 2031, the fastest rate among form factors. Brisanet, Claro Argentina, and Telecom Argentina have expanded their FWA programs, which created supply pressure on CPE during 2025. Indoor and outdoor CPE is supporting broadband access where fiber deployment is not economical. Industrial-grade routers and gateways have expanded more gradually because enterprise procurement cycles are longer. Deployments by Usiminas, Gerdau, and Nestlé's Caçapava facility show a growing need for dedicated industrial connectivity devices.

By Spectrum Support: Sub-6 GHz Provides Volume While Hybrid Devices Gain Ground

Sub-6 GHz devices held 66.30% of the South America 5G device market share in 2025, supported by Brazil's standalone 5G network architecture. An analysis of 5G readings in Brazil found that 99% originated from the 3.5 GHz C-band in October 2024. This network design has concentrated demand on Sub-6 GHz-compatible handsets and CPE. mmWave devices remained limited to dense venues such as stadiums, airports, and convention centers in São Paulo, Rio de Janeiro, and Brasília. Their use is linked to locations where additional capacity per square meter has clear value.

Hybrid Sub-6 GHz and mmWave devices are expected to expand at a 13.61% CAGR through 2031. Premium smartphone makers are standardizing mmWave support in flagship models, while private network operators are evaluating the band for factory and port automation. Brazil, Uruguay, and Chile have moved ahead with mmWave spectrum auctions, though broad commercial availability remains limited. Qualcomm and Ericsson completed 5G Standalone RedCap trials in Sao Paulo in March 2026 using the RHINO H1 hotspot and Snapdragon X35 modem. Cost-efficient RedCap modules and CPE can drive demand in the Sub-6 GHz ecosystem, while hybrid products address higher-value use cases.

By End-User Industry: Consumer Electronics Retains Scale as Automotive Demand Rises

Consumer electronics accounted for 69.11% of the South America 5G device market in 2025, as smartphones, tablets, and consumer CPE remain the main channels for regional device purchases. This concentration makes volumes sensitive to exchange rates, financing availability, and consumer confidence. Industrial and manufacturing represented the next significant end-user vertical through private network deployments at steel, mining, and food-processing sites. Enterprise and commercial users, along with health care providers, are also adopting dedicated connectivity via network slicing capabilities. These uses can support enterprise-grade connectivity without a full private network deployment.

Automotive and transportation is projected to expand at a 13.52% CAGR through 2031, supported by connected vehicle modules, V2X planning, and 5G telematics along highway corridors. Anatel reserved the 5.9 GHz band for V2X equipment certification, which is shaping future equipment requirements. Brazil had not fully built the infrastructure needed for commercial V2X deployment in late 2025, despite connectivity modules appearing in vehicle lines. Energy and utilities are also emerging through grid modernization programs. Neoenergia used Qualcomm's 9205S LTE and 5G IoT modem in its distribution-grid program to target a 30% reduction in maintenance crew travel time.

By Application: eMBB Holds the Base While FWA Expands Fastest

Enhanced mobile broadband held 61.00% of South America's 5G device volumes in 2025, as faster mobile internet on smartphones and tablets remained the most mature use case. URLLC and mMTC applications remained in early stages because 5G network slicing was limited outside major cities. RedCap device trials in Brazil indicated that lower-cost devices for mMTC applications were nearing commercial availability. V2X remains a longer-term application because the network and road infrastructure require further development. Automakers, including Stellantis and Ford, had already included connectivity modules in new vehicle lines sold in Brazil.

Fixed wireless access is expected to expand at a 13.89% CAGR through 2031, making it the fastest-growing application. Rural broadband gaps and public connectivity programs are supporting the South America 5G FWA device market. The Ministry of Communications trial in Rio Grande do Norte demonstrated that outdoor 5G FWA CPE can deliver fiber-like performance in remote school locations. This result changed operator assessments of rural FWA and supported additional CPE procurement planning. CPE and smartphones also draw on Qualcomm and MediaTek supply platforms, which require assemblers and operators to manage component availability across both product groups.

Geography Analysis

Brazil held 59.31% of South America's 5G device market volumes in 2025, supported by its large subscriber base, operator investment, local manufacturing, and broad device ecosystem. Vivo operated 17,184 5G cell sites in 562 cities and served 19.2 million subscribers as of May 2025. TIM Brasil reached 13,189 sites across 705 municipalities and covered 62.3% of the population during the same period. Anatel's 2032 auction roadmap provides a clearer path for continued coverage expansion.

Argentina is projected to expand at a 13.22% CAGR through 2031, making it the fastest-growing national market in the South America 5G device market. The removal of mobile phone import tariffs and lower internal taxes in January 2026 improved the affordability of imported devices. Telecom Argentina deployed 800 5G mobile sites during 2025 and is targeting more than 2,000 by the end of 2026. Claro is also targeting 300,000 FWA subscribers by the end of 2026. ENACOM's 2025 allocation of the 2,300-2,400 MHz band for private mobile networks supports demand for routers, gateways, and modules in mining, oil and gas, and agribusiness.

Chile and Colombia are the most commercially developed markets in the rest of South America after Brazil and Argentina, adding a broader base for the South America 5G device market. Chile uses the 3.5 GHz band for 5G and plans to consult on the allocation of the remaining spectrum. Colombia's 2023 auction provided 80 MHz blocks to each of its 4 operators. Peru, Bolivia, and Paraguay remain at earlier stages of commercial 5G deployment. Differences in spectrum allocation create compatibility and certification challenges for device makers serving multiple countries. As coverage density improves, these markets are expected to add more demand for CPE and modules used in FWA and enterprise applications.