5G Infrastructure Market Share, Size, Trends, Industry Analysis Report, By Communication Infrastructure (Small Cell, Macro Cell); By Core Network Technology; By End-Use; By Region; Segment Forecast, 2024 - 2032
- Published Date:Dec-2023
- Pages: 118
- Format: PDF
- Report ID: PM1700
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global 5G infrastructure market was valued at USD 9.39 billion in 2023 and is expected to grow at a CAGR of 29.3% during the forecast period.
The 5G infrastructure includes a network of macro and small-cell base stations integrated with edge computing capabilities required for the fifth-generation cellular technology standard to operate. This infrastructure enables low-latency coverage for large data streams, which is beneficial for applications such as augmented reality, semi-autonomous vehicles, and Internet of Things devices.
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Several factors are driving the growth of the 5G infrastructure market. The increasing demands of emerging technologies such as autonomous vehicles, Augmented Reality (AR), Virtual Reality (VR), and the Internet of Things (IoT) have increased the demand for increased network capacity, lower latency, and improved network performance. Furthermore, significant investments by governments and telecommunications companies in developing and deploying 5G networks are creating lucrative opportunities for infrastructure providers.
- For instance, Nokia has extended its exclusive 5G collaboration with IT infrastructure company Kyndryl for the next three years. In a joint declaration, the two entities disclosed the extension and emphasized their commitment to advancing and providing global clients with LTE, 5G private wireless services, and Industry 4.0 solutions.
The rapid increase in mobile data usage necessitated significant network expansions during the 4G era, which included the augmentation of cellular radio sites and the deployment of wireless spectrum. As the industry transitions to 5G, the anticipated continued growth in mobile data demand is compelling network operators to increase capacity by a factor of ten. To meet this demand, operators are increasingly turning to the installation of small cells, particularly in high-traffic areas.
The Covid-19 has a significant impact on the 5G infrastructure market. Due to the increasing number of COVID-19 cases, many businesses and manufacturing units around the world had to close, and it is anticipated that they will remain closed during the first quarter of 2022. Furthermore, the imposition of partial or total lockdowns has disrupted the global supply chain, making it difficult for manufacturers to reach their customers.
The suspension of industrial plants caused by the lockdown has resulted in significant economic losses for European and Asian nations. The COVID-19 pandemic has a considerable impact on production and manufacturing activities, impeding the growth of the 5G infrastructure industry. Furthermore, the pandemic has an impact on the electronics sector, with production facilities coming to a halt, resulting in increased demand for electronic and semiconductor products in these regions. This situation has a significant impact on European manufacturing and the export of Chinese components, limiting market opportunities for the 5G infrastructure sector.
5G technology advancements are anticipated to enhance assisted driving and transportation services by delivering real-time data alerts. This advancement will provide information on current traffic conditions, significantly improving safety in assisted driving scenarios. Furthermore, 5G's low latency has the potential to transform virtual and augmented reality applications. With its fast data transmission capabilities, this technology is anticipated to provide users with a highly immersive experience, which is fueling demand for 5G infrastructure.
Industry Dynamics
Growth Drivers
- Rising use of IoT connected devices to enhance demand for 5G technology will drive the growth of the market
The increasing use of IoT connected devices to enhance the demand for 5G technology will drive the growth of the 5G infrastructure market. Technology has a wide range of applications in industries such as manufacturing, smart cities, logistics, healthcare, and automotive. The successful implementation of the Internet of Things (IoT) requires a strong communication infrastructure with dependable connections and low latency. In the present era, the deployment of 5G networks proves to be a viable solution, offering advantages as well as drawbacks in providing the necessary modern infrastructure.
5G uses advanced techniques such as network function virtualization and network slicing to create specific networks for individual customers. This enables the provision of personalized infrastructure for Internet of Things (IoT) applications, thereby increasing industry efficiency. Consider Industry 4.0, where robotics plays a critical role in increasing manufacturing plant productivity. With the integration of 5G, IoT-connected devices gain access to dedicated network lines with high wireless data transfer capabilities, allowing for real-time information exchange. As a consequence, shop-floor operations are automated, significantly improving manufacturing efficiency. The impact of 5G extends to a wide range of applications, including precision livestock farming, intelligent emergency response systems, automated valet parking, and communication within car manufacturing processes.
Report Segmentation
The market is primarily segmented based on communication Infrastructure, core network technology, end-use, and region.
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By Communication Infrastructure |
By Core Network Technology |
By End-Use |
By Region |
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By Communication Infrastructure Analysis
- The small cell segment accounted for the largest revenue share in 2023
The small cell segment accounted for the largest revenue share. Small cells are crucial components of 5G infrastructure, providing high bandwidth 5G coverage in highly populated urban areas such as downtown areas, shopping malls, stadiums, train stations, and other locations requiring extensive data capacity and coverage. These small cell base stations are designed to blend into the existing environment while taking up as little physical space as possible. As a result, the use of small cell infrastructure allows for seamless network evolution while utilizing the capabilities of the high frequency 5G radio spectrum.
The global deployment of 5G commercial networks is increasing, prompting telecom operators to prioritize improving user experiences. New-generation 5G small cells are being developed to meet market demands for improved Mobile Broadband (eMBB), ultra-reliable low-latency communication (URLLC), and massive machine-type communication (MTC). 5G small cells play an essential role in managing issues by enabling multi-gigabit per second speeds. This capability is useful for increasing throughput for applications in highly populated areas. By leveraging 5G small cells, networks can expand coverage, reduce latency, and serve a larger user base, all while maintaining multi-gigabit performance in the 5G era.
By End-Use Analysis
- The commercial segment accounted for the highest market share during the forecast period
The commercial segment accounted for the highest market share during the forecast period, owing primarily to increased demand for greater data bandwidth across various corporate enterprises. Various applications, such as virtual meetings, cloud computing, and the integration of IoT-based smart workplaces, contribute to the increased demand. The efficacy of these applications is dependent on consistent and reliable connectivity, which is essential in facilitating efficient communication and data exchange. As a result, businesses are actively seeking advanced connectivity solutions to meet their growing bandwidth requirements and ensure smooth operational processes.
On the other hand, residential segment is anticipated to experience fastest growth throughout the forecast period. The growth of this sector can be attributed to a variety of factors, including a rising dependency on the internet and a boost in the demand for rapid data. In order to fulfill the demands of video streaming and other high-bandwidth residential applications, communication service providers (CSPs) are quickly deploying 5G networks in suburban areas and numerous cities.
Regional Insights
- North America accounted for the largest market share in 2023
In 2023, North America accounted for the largest market contributor in the 5G infrastructure market. The rising R&D efforts in 5G technology, as well as the significant presence of major market players, are driving the market's expansion in this region. Furthermore, because the region is home to prominent leaders in the 5G infrastructure industry, R&D investment is significantly higher. This factor is anticipated to generate attractive growth prospects for the 5G infrastructure market.
Asia Pacific is witnessed for the fastest growth in the 5G infrastructure market. The rapid implementation of 5G, fueled by ongoing digital transformation efforts, is anticipated to significantly accelerate market growth in the region. According to the 2022 GSMA report, 14 countries in the region already have commercially operational 5G networks. Countries such as Vietnam and India are expected to see rapid adoption of 5G networks in the near future, driving increased demand for 5G infrastructure.
Key Market Players & Competitive Insights
The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.
Some of the major players operating in the global market include:
- Airspan Networks Holdings Inc.
- Altiostar
- Ceragon Networks Ltd.
- Cisco Systems, Inc.
- Ericsson
- Huawei Technologies Co., Ltd.
- Mavenir
- Nokia Networks
- Samsung Electronics Co., Ltd.
- ZTE Corporation
Recent Developments
- In February 2023, Cisco and NTT Ltd., an IT infrastructure and services provider, have partnered to foster the widespread adoption of Private 5G in key industries such as public services, automotive, retail, healthcare, logistics, and automotive. NTT and Cisco intend to collaborate on co-innovation, introducing cutting-edge technology and managed services.
- In February 2023, NEC Corporation and ADVA have partnered to develop time synchronization solutions for Telkom Indonesia. The partnership aims to equip the operator's transport network for the efficient nationwide delivery of time-sensitive 5G services. Enabling new service monetization opportunities is critical for mobile operators seeking to establish a strong presence in the 5G era, particularly in the field of ultra-low latency applications.
- In April 2022, Ericsson and Valmont Industries, Inc. have completed the acquisition of ConcealFab, a provider of 5G and small cell infrastructure. Ericsson's strategic move is intended to accelerate the advancement of 5G infrastructure in the United States.
5G Infrastructure Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 12.12 billion |
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Revenue forecast in 2032 |
USD 94.45 billion |
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CAGR |
29.3% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
By Communication Infrastructure, By Core Network Technology, By End-Use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation |
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FAQ's
key companies in 5G infrastructure market are Airspan Networks Holdings Inc., Altiostar, Ceragon Networks Ltd., Cisco Systems, Inc., Ericsson, Huawei Technologies Co., Ltd
The global 5G infrastructure market is expected to grow at a CAGR of 29.3% during the forecast period.
The 5G infrastructure market report covering key segments are communication Infrastructure, core network technology, end-use, and region.
key driving factors in 5G infrastructure market are Rising use of IoT connected devices to enhance demand for 5G technology will drive the growth of the market
The global 5G infrastructure market size is expected to reach USD 94.95 billion by 2032
