5G infrastructure are hardware and software resources of network that facilitates 5G connection, communication, operations, and management of a network. 5G technology deployment provide high speed data transmission as compared to 3G and 4G along with large bandwidth with its application across IT, telecommunication, retail, education and other sectors. As per report from Ericsson, 5G technology can add up to approximately 34% in telecommunications sector by 2026.
Notable growth in mobile data traffic volume has been observed in recent years. Due to increase in usage tablets and smartphones supported by evolution in Internet service technology. According to International Telecommunication Union (ITU), approx. 3.19 billion internet users were recorded in 2015 that raised to around 3.74 billion in 2017 globally. Whereas, in 2016, America recorded highest internet user penetration rate of around 88% of total population in 2016. The National Broadband plan forecasted that 500 MHz will be available for wireless network by 2020. The data carried on mobile networks is expected to increase 25 times by 2030 with a CAGR of 22%. Hence, astonishing mobile data traffic growth is the key factor fueling growth of global 5G infrastructure market.
Drivers and restrain factor of the market
Increasing demand for high speed network due to rise in implementation of IoT and big data and rising trend for connected vehicles and devices is demanding the high-speed network. Rapid growth in mobile data traffic volume is one of the major factors which contributes to the growth of global 5G infrastructure market during forecast period. As per Ericsson Mobility Report 2017, mobile data traffic volume across the globe is growing with the CAGR of about 42% during 2016-2022. Also, mobile data traffic witnessed a growth of 70% between 2016 and 2017. Moreover, mobile video data traffic is expected to grow by about 50% annually from 2016 to 2022 which accounts for about 3 quarters of all mobile data traffic generated across the globe. In 2016, mobile video data traffic accounted for about 8.8 ExaBytes volume across the globe. It is expected that by the end of 2022, mobile video data traffic would increase and reach up to 71 ExaBytes globally. Rapidly increasing mobile data traffic volume is expected to increase the demand for 5G network infrastructure for control of mobile data traffic which is likely to promote the growth of global 5G infrastructure market during the forecast period.
Major players in the market
Intel (US), Qualcomm (US), Samsung (KR), Ericsson (SE), Mediatek (TW), NEC (JP) are some major players in the global 5G infrastructure market. Companies are adopting various strategies to compete in the market. Some strategies are product launches, acquisitions and mergers, partnerships, expansion, collaborations and others. For instance, China announced that Chinese mobile companies are set to build largest 5G network by spending $180 billion.
Recent key development in the market
In 2017, Verizon Communication launched 5G wireless network which is majorly aimed to speed up the 5G network infrastructure. This is expected to increase the customer base of company and its market revenue share.
Leading region and fastest growing region
North America is leading the global 5G infrastructure market, the United States is the major player, as per Pew Internet Research Organization, in 2014, around 59% of Americans uses smartphone that increased to 77% in 2016. For instance, T-Mobile have plans for establishing 5G infrastructure market in the U.S. Also, AT&T and Verizon Communication (based in the U.S.) have successfully done 5G trials to ensure 5G technology deployment.
Global 5G infrastructure market is segmented on the basis of product type and application. The product type segmented is sub-segmented as Pico Cell, Femtocell and Macro Cell. Furthermore, application segment is sub-segmented as Smart Cities, Smart Farming, Autonomous Driving, Logistics and Shipping, Smart Home, Industrial IoT, Security and Surveillance, Healthcare and Mission Critical Applications.