< Key Hightlight >

5G Technology Market Forecast till 2027

Market Overview

The 5G technology market is expected to reach over 1.7 billion subscribers during the review period, with increased bandwidth and faster download speeds up to 10 gigabytes per second. 5G is poised to play a critical role in industries beyond just mobile networks, such as IoT, enterprise networking, and critical communications. 

The rise in consumer electronics and wearable devices is expected to drive 5G growth in the near future. 5G's low error rate and high speed capabilities offer ample opportunities for the market's growth. Ongoing advancements and innovations in radio technology and increased digitalization in IT and industrial sectors have contributed to the market's growth.

Segment Overview

The eMBB segment is expected to be the leading segment in the global 5G technology market during the forecast period. 5G network operators are focused on improving broadband capabilities for applications like AR/VR, UHD video, seamless video calls, and high-speed cloud gaming, driving the segment's growth. The initial rollout will likely focus on a non-standalone 5G wireless deployment. eMBB offers high data speeds for both commercial and residential use and is likely to support various applications such as 4K video access, virtual meetings, and in-vehicle infotainment. Meanwhile, the mMTC segment is expected to have the highest CAGR over the forecast period.

The enterprise segment of the 5G technology market is projected to secure the top spot globally in the coming years, driven by significant investments in advanced communication technologies by major players. The need for higher data speeds for both commercial and residential applications will further drive growth in this segment. 5G services are expected to provide widespread broadband access between homes and offices, leading to reduced business travel and remote consultations with experts. The growing demand for improved broadband capacity for virtual business meetings will also contribute to the segment's growth. Meanwhile, the consumer segment is expected to see the highest CAGR, driven by the commercialization of 5G services for consumer use and an increase in the number of 5G subscribers.

Regional Analysis

North America is currently dominating the global 5G technology market with more than two-thirds market share. The region is embracing smart technology and smart city development. The use of smart devices for banking and bill payment has risen, and the number of IoT-based devices like solar power grids and autonomous cars is increasing. Consumers in North America demand low latency, virtual reality in work and entertainment without sacrificing performance, leading to a high CAGR in the forecast period.

On the other hand, the Asia Pacific region is expected to experience significant growth in the 5G technology market during the forecast period. The region is expected to overtake North America as a leader, as governments invest in digitization. The rapid technological advancements in Asia Pacific countries also contribute to the overall growth of the 5G technology market. 

Major Players

The key players in the market are Huawei Technologies Co. Ltd (China), Nokia (Finland), MediaTek Inc. (Taiwan), Samsung (South Korea), Qualcomm Technologies Inc. (U.S.), Cisco Systems Inc. (U.S.), Verizon (U.S.), China Mobile Limited (China), NTT DOCOMO Inc. (Japan), Telefonaktiebolaget LM Ericsson (Sweden), and AT&T Inc. (U.S.).

COVID 19 Impacts

Due to COVID-19, the importance of effective communication channels has risen globally, allowing medical practitioners to reach patients for medical assistance. Despite restrictions halting the construction of 5G towers, the growth of the 5G Technology Market has been boosted by factors such as the rise of remote operations, increased cloud computing usage, growing network traffic, and other industrial activities.

However, market revenue is expected to drop by almost 3.5% due to a significant decrease in the global enterprise mobile and fixed services market. Additionally, component shortages and disruptions in the supply chain have had a significant impact on the market.