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The 5G equipment market size is forecast to increase by USD 146.95 billion, at a CAGR of 81.05% between 2023 and 2028. The market is experiencing significant growth due to the global shift towards advanced 5G services, including mobile cloud gaming, video conferencing, live broadcasting, remote-controlled machines/vehicles, public safety services, and more. Governments and financial institutions are providing assistance and commitment to the procurement of 5G equipment and spectrum acquisition to accelerate the deployment of 5G networks. However, there are challenges such as regulatory compliance, talent acquisition, and financial planning that need strategic planning to overcome. Moreover, the need for high throughput, reliability, and low latency in 5G networks necessitates the improvement of functionality through Advanced RAN Slicing, Time-Critical Communication, and network performance enhancement.
Energy efficiency challenges in 5G small cells also require innovative solutions to ensure the sustainability and scalability of the 5G infrastructure. Overall, the market is poised for growth, driven by the demand for advanced services and the commitment of stakeholders to overcome the associated challenges.
The market is experiencing significant growth due to the increasing adoption of fifth-generation technology standard for data-intensive applications. The proliferation of smartphones and tablets, which are capable of supporting 5G, is driving the demand for 5G equipment. The rise of data-driven services, high-definition videos, cloud-based applications, online gaming, and the remote work culture are some of the key factors fueling the market growth. 5G equipment is essential for enabling global connectivity and supporting bandwidth-intensive applications. The market is witnessing a rise in demand from IoT devices, semi-autonomous vehicles, and digitalization initiatives. The adoption of 5G is being accelerated by governments and nations to enhance their digital infrastructure.
5G equipment includes both hardware and software components. Hardware components include radio units, base stations, and customer premise equipment. Software components include network software, security software, and edge computing capabilities. The market is expected to grow significantly due to the increasing demand for big data, cloud computing, and IoT applications. The integration of 5G with these technologies is enabling new use cases and applications, further expanding the market potential.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The macrocell segment is estimated to witness significant growth during the forecast period. The fifth-generation technology standard, 5G, is revolutionizing global connectivity with its edge computing capabilities and high-speed data transmission. This innovation is driving the growth of various sectors, including consumer electronics, IoT devices, and semi-autonomous vehicles. The adoption of 5G is leading to digitalization and the integration of big data, cloud computing, and open RAN deployment. Telecommunications service providers are investing in hardware and software to develop the necessary infrastructure for these fifth-generation wireless networks. Macro cells, consisting of handsets, radios, and customer premise equipment, play a crucial role in providing extensive network coverage. These high-power network cells, used to create base stations, are essential for ensuring seamless connectivity in larger areas.
To function optimally, macrocell antennas must have an unobstructed view of their surroundings. Governments and nations worldwide are recognizing the importance of 5G equipment in enhancing their digital economies and are making significant investments in its development and deployment.
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The macrocell segment accounted for USD 481.80 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is experiencing significant growth, particularly in the consumer electronics sector, driven by the adoption of fifth-generation technology standard in developed regions such as North America. In North America, the US is a major market for 5G equipment due to the increasing use of IoT devices and the development of infrastructure for semi-autonomous vehicles. The US telecom sector is expected to witness substantial growth during the forecast period, fueled by the need for global connectivity and the adoption of digitalization. The US has a higher data traffic volume than other regions due to its advanced technology adoption. In 2023, there were approximately 310-315 million internet users in the US, representing around 91-92% internet penetration.
With the increasing use of cloud computing, big data, and edge computing capabilities, the demand for 5G equipment, including handsets, radios, and customer premise equipment, is expected to increase. Furthermore, open RAN deployment is gaining popularity, and governments and nations around the world are investing in the development of hardware and software for fifth-generation wireless networks and base stations.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The adoption of 5G networks for smart cities is the key driver of the market. The market is experiencing significant growth due to the increasing demand for data-intensive applications in various sectors. With the proliferation of smartphones and tablets, there is a rise in data-driven services such as high-definition videos, cloud-based applications, online gaming, and real-time communication. These applications require immense bandwidth and low latency, which can only be provided by 5G technology. Moreover, the remote work culture, online learning, telemedicine, and real-time communication are becoming increasingly popular, especially in the wake of the COVID-19 pandemic. These applications require reliable and high-speed connectivity, making 5G equipment an essential component. Furthermore, the adoption of 5G technology is not limited to consumer applications but is also gaining traction in industries such as transportation, healthcare, and manufacturing.
Autonomous vehicles, remote surgery, augmented reality (AR), smart city infrastructure, industrial sensors, and wearable fitness trackers are some of the applications that require high-speed and low-latency connectivity. Telecom operators are investing heavily in 5G infrastructure to cater to the growing demand for high-speed connectivity. The deployment of 5G technology is expected to revolutionize various industries, from smart homes to smart cities, and from industrial automation to autonomous vehicles. In conclusion, the market is poised for significant growth due to the increasing demand for high-speed and low-latency connectivity in various sectors, including consumer applications and industries such as transportation, healthcare, and manufacturing.
The deployment of 5G technology is expected to revolutionize the way we live and work, making it an essential component of our daily lives.
Growing R&D and deployment of 5G network is the upcoming trend in the market. The market is experiencing significant growth due to the increasing demand for data-intensive applications such as high-definition videos, cloud-based applications, online gaming, and data-driven services. With the rise of the remote work culture, online learning, telemedicine, real-time communication, autonomous vehicles, remote surgery, augmented reality (AR), and the Internet of Things (IoT), the need for high bandwidth and low latency networks is becoming increasingly important. As a result, R&D in 5G hardware is escalating, with companies like Ericsson investing over USD350 million in 5G R&D since 2018. companies are developing wireless test equipment to effectively support the technology, as the evolution of 5G compels telecom operators to shift their investments from 4G to 5G.
In addition, the proliferation of smartphones, tablets, smart home appliances, wearable fitness trackers, industrial sensors, and smart city infrastructure is fueling the demand for 5G equipment. By 2022, operators in Sub-Saharan Africa had already begun investing in 5G networks, marking a significant shift in the region's telecommunications landscape.
Energy efficiency challenges in 5G small cell networks is a key challenge affecting the market growth. The deployment of 5G technology is set to revolutionize various sectors with its high-speed connectivity and low latency. The increasing adoption of data-intensive applications, such as high-definition videos, cloud-based applications, online gaming, and smartphones and tablets, is driving the demand for 5G equipment. Data-driven services, including remote work culture, online learning, telemedicine, real-time communication, and autonomous vehicles, also require the reliability and high bandwidth offered by 5G. However, energy efficiency challenges are prevalent in 5G small cell networks. Small cells, which are essential for 5G deployment, must work efficiently to maintain overall network infrastructure. With the anticipated rise in consumer traffic, network operators must redesign their systems to ensure energy efficiency.
Additionally, the proliferation of 5G is expected to impact various industries, including smart home appliances, wearable fitness trackers, industrial sensors, smart city infrastructure, automotive, and telecom operators. These sectors will leverage 5G for applications such as AR, remote surgery, and remote work, among others.
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 market growth analysis strategies.
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.
Airspan Networks Holdings Inc. - The company offers 5G-equipment such as Air5G.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The market is experiencing significant growth due to the increasing adoption of 5G technology for data-intensive applications in various industries. Smartphones and tablets are leading the charge in consumer electronics, while data-driven services, high-definition videos, cloud-based applications, online gaming, and digitalization of sectors like telemedicine, remote work culture, and online learning are driving demand. The automotive industry, smart home appliances, wearable fitness trackers, industrial sensors, and smart city infrastructure are also embracing 5G for efficient routing, real-time communication, and enhanced connectivity. The fifth-generation technology standard offers high bandwidth, low latency, and reliable connectivity for various applications, including autonomous vehicles, remote surgery, augmented reality (AR), and smart cities.
Moreover, telecom operators are investing in infrastructure development, including base stations, antennas, massive MIMO, beamforming, and edge computing infrastructure, to meet the increasing demand for 5G connections. The development of 5G equipment involves hardware and software components, including radios, customer premise equipment, routers, switches, backhaul equipment, core network, fiber-optic cables, software-defined networking (SDN), virtualization technologies, and security equipment. The ecosystem of 5G equipment is essential for enabling advanced services, such as mobile cloud gaming, video conferencing, live broadcasting, and remote-controlled machines/vehicles, and for meeting the needs of various industries. Governments and nations are also investing in 5G implementation, providing financial commitment and regulatory compliance to facilitate infrastructure upgrade and talent acquisition.
The competition among equipment manufacturers and telecommunication companies is driving innovation and pushing for faster data speeds, reduced latency, and advanced RAN slicing for time-critical communication and network performance enhancement. The growth platform for 5G equipment is vast, with potential applications in manufacturing, smart retail, customer experience, and various other sectors.
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Market Scope |
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Report Coverage |
Details |
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Page number |
181 |
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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 81.05% |
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Market Growth 2024-2028 |
USD 146.95 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
69.9 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 31% |
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Key countries |
US, China, UK, South Korea, 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 |
Airspan Networks Holdings Inc., Alpha Networks Inc., Altiostar, Analog Devices Inc., Cisco Systems Inc., Comba Telecom Systems Holdings Ltd., CommScope Holding Co. Inc., Fujitsu Ltd., Huawei Technologies Co., Ltd., Infinite Electronics Inc., Laird Connectivity, Mavenir Systems Inc., NEC Corp., Nokia Corp., Qorvo Inc., Qualcomm Inc., Samsung Electronics Co. Ltd., Telefonaktiebolaget LM Ericsson, Wireless Excellence Ltd., and ZTE Corp. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
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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