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The 5G services market is estimated to grow by USD 397.6 billion, at a CAGR of 31.13% during the forecast period. Market growth hinges on multiple factors such as intensified R&D and deployment of 5G networks, government initiatives promoting high-speed network connectivity, and the rising demand for smartphones and enhanced connectivity. This comprehensive market trends and analysis report covers pivotal drivers, trends, and challenges anticipated throughout the forecasted period. The ongoing focus on 5G enterprises underscores a shift toward faster and more reliable connectivity, bolstered by governmental support for infrastructure development. Concurrently, escalating smartphone usage fuels consumer expectations for seamless connectivity, driving industry innovations. However, challenges like infrastructure costs and technological complexities remain, shaping the trajectory of this dynamic market segment.
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The 5G services market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market segment growth by the EMBB segment will be significant during the forecast period. The benefits of EMBB go beyond meeting consumer demand for ever-increasing data traffic. Communication service providers (CSPs) in several markets are gradually migrating to 5G networks, and the number of subscriptions is growing rapidly.
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The EMBB segment was valued at USD 22.80 billion in 2018. In this market, the commercial deployments have been driven by enhanced mobile broadband (EMBB) services, which have elevated 4G LTE mobile broadband experiences to the next level, primarily connecting consumer smartphones and targeting consumer applications. These services represent an evolutionary approach for CSPs to meet consumers' insatiable appetites for faster and better mobile experiences. The market refers to the segment within the telecommunications industry that involves the production, sale, and distribution of hardware and infrastructure necessary for the deployment and operation of 5G networks. Consumers are largely satisfied with their current home and mobile internet services and internet speeds; however, there are concerns among them regarding overall reliability, speed, and cost.
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North America is estimated to contribute 43% to the growth of the global 5G services market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as the increasing adoption of technologies such as video streaming, video calling and digital payments is driving the growth of the regional market. With an increase in the use of mobile phones and smartphones, as well as the expansion of device connectivity, the demand for IoT solutions is increasing in the region. The growing adoption of smartphones has increased growth opportunities for all subsectors within the telecom industry verticals, including network infrastructure and companies, wireless/broadband carriers, and device manufacturers. Considering these factors, the regional market is expected to grow during the forecast period.
The market is driven by the demand for ultra-high definition (UHD) content, vehicle-to-everything (V2X) communication, and IT and telecom advancements. 5G technology enables real-time data collection in sectors like smart agriculture and healthcare monitoring. Trends include the growth of 5G networks supporting smart city systems and autonomous vehicles, backed by edge computing and fiber optic networks. Challenges lie in deploying specialized antennas for small cells, ensuring 5G subscribers enjoy reliable Enhanced Mobile Broadband (eMBB) services while preparing for future 6G technology integration.
The market is experiencing growth driven by increasing R&D efforts and widespread deployment of the 5G wireless network impacting the economies and outlook of the market worldwide. Enhanced product features, coupled with intensified research endeavors and groundbreaking innovations, are set to propel advancements during the projected timeframe. The company's prominent stance in test execution and recent achievements will further expedite research and development, fostering global standardization and aiding China's 5G testing completion in its second phase.
For the evolution of 5G technology, companies must devise wireless test tools that efficiently bolster its capabilities. Competition among companies is fierce, particularly in the Americas. Similarly, India's government is establishing a fund to foster technological advancement, supported by a dedicated committee striving to outline a 5G rollout strategy by 2020. These factors collectively augur well for the 5G services market's positive trajectory in the foreseeable future.
Strategic collaboration stands out as a prominent trend propelling 5G services market growth. Key players across diverse sectors like IT solutions, communication networks, utilities, and semiconductor integrated circuits are actively investing in advancing 5G technology. Governments are partnering and providing their inputs with industry players to expedite the infrastructure expansion. Boasting transmission speeds notably surpassing 4G, 5G wireless technology garners momentum. As these market services evolve, there's a concerted effort to establish 5G networks capable of supporting a wide array of applications, from advanced wireless infrastructure to transformative services across various sectors. This transformation underscores the importance of network operations and the need for 5G network operators to continually push the boundaries, providing customers with unparalleled connectivity and setting the stage for a highly interconnected future.
Additionally, Integration of HMI tech in end-user industries fuels the need for high-bandwidth, low-latency networks. This fuels an increase in companies developing 5G-compatible devices and establishing network infrastructure within the ecosystem. Use cases include enhanced mobile broadband, ultra-reliable low latency communications (URLLC), and massive machine type communications (mMTC), which cater to diverse applications across industries such as healthcare, manufacturing, transportation, and entertainment. Collaborative efforts among stakeholders yield products and services supporting 5G, driving infrastructure developments and heightened 5G services market demand in the forecast period.
The rise in the cost of 5G technology deployment poses a significant challenge for 5G services market growth. Steep acquisition expenses, installation costs for small cell networks, and security concerns hinder growth. Adhering to strict telecom regulations and meeting customer demands for competitive pricing pressures industry players.
Furthermore, introducing new frequency spectrum releases comes with substantial costs. In the US, around USD 100 billion is needed for 5G infrastructure set up by 2020. Efficiently designing complex network virtual applications within budget is crucial. These factors collectively constrain the growth of the market share during the forecast period. The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The 5G services market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the 5G services market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
China Mobile Ltd.- The company offers 5G services that deliver ultra-high speed, ultra-low latency, and ultra-wide connection and provide more ideas and solutions for helping all mankind jointly tackle the challenges of sustainable development. Also, the company is mainly engaged in telecommunications and related businesses.
The 5G services market forecast also includes detailed analyses of the competitive landscape of the market expansion and information about 18 companies. The list includes:
The market growth analysis qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak in this market research and growth report.
The 5G services market is rapidly evolving, driven by the increasing demand for real-time data collection and resource management across various sectors like smart agriculture and smart cities. Precision farming leverages sensors to monitor soil conditions, weather patterns, and crop health, enabling efficient irrigation strategies. In urban areas, smart grid systems and environmental sensors provide responsive solutions for resource optimization. Telecommunication operators and equipment manufacturers are enhancing mobile network data traffic to accommodate rising smartphone subscriptions and the growing consumption of video content. 5G subscribers benefit from spectrum harmonization and expanded frequency bands, empowering telecommunication operators with global roaming capabilities and new speed-based tariff plans.
Furthermore, smart city initiatives integrate Internet of Things (IoT) devices for managing urban infrastructure and optimizing city management processes. These encompass traffic lights, surveillance cameras, traffic management, and emergency response systems, enhancing public safety applications and disaster management with real-time data and situational awareness.The 5G services ecosystem extends to smart manufacturing, telemedicine, autonomous vehicles, and industrial automation through technologies like edge computing, small cells, and fiber optic networks. This paradigm shift towards it enables ultra-fast download speeds, predictive maintenance, and seamless connectivity for a wide range of smart devices in diverse settings, from manufacturing facilities to urban centers.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 31.13% |
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Market Growth 2024-2028 |
USD 397.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
27.06 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 43% |
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Key countries |
US, Canada, China, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AT and T, Bell Canada, Bharti Airtel Ltd., BT Group Plc, China Mobile Ltd., Deutsche Telekom AG, Etisalat, KT Corp., MTN Group Management Services (Pty) Ltd., Nippon Telegraph and Telephone Corp., Orange SA, Reliance Industries Ltd., Rogers Communications Inc., stc Group, SK Telecom Co. Ltd., T Mobile US Inc., Telefonica SA, Telstra Corp. Ltd., Verizon, and Vodafone Group Plc |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our 5G services market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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