By 2028, the global 5G infrastructure market will reach US$80.5 billion

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According to data released by market research firm ResearchAndMarkets, by 2028, the global 5G infrastructure market is expected to reach US$80.5 billion, with a compound annual growth rate of 49.8%.

Significant investments by communication service providers to deploy 5G infrastructure across the globe to provide improved data services are estimated to drive the market. In addition, strong innovations in next-generation 5G network equipment and deployment modules will help reduce the overall deployment costs for service providers. Thus, it is expected to drive the deployment of 5G infrastructure during the forecast period.

According to the report, a significant increase in demand for high-bandwidth connectivity for several use cases, such as access to ultra-high-definition (UHD) videos, cloud-based AR/VR gaming, and high-definition video conferencing, is expected to drive market growth during the forecast period. In addition, a wide range of industries, including manufacturing, oil and gas, mining, energy, and utilities, are investing heavily in the deployment of 5G networks.

5G networks help industrial facilities improve overall productivity and operational efficiency. Hence, the growing need for high-bandwidth capacity to establish unified connectivity to millions of Industrial Internet of Things (IIoT) devices is expected to boost market growth from 2020 to 2027.

With the advent of 5G technology, the transportation and logistics industry is undergoing a major transformation towards building an autonomous ecosystem. In addition, the deployment of 5G networks will help provide seamless data speeds for various transportation applications, including ships and ports, vehicle-to-everything (V2X), and drone connectivity.

Furthermore, the significant demand for high-speed bandwidth capacity for emergency medical applications such as remote patient surgery is expected to strengthen the market growth from 2020 to 2027. Furthermore, the rapid construction of multiple smart cities for energy management and cloud storage applications is expected to further augment the market growth.

The ongoing COVID-19 pandemic has adversely impacted the 5G infrastructure market. Several telecommunication equipment manufacturers around the world have suspended the production and export of 5G equipment.

Furthermore, the federal governments of major countries such as the U.S., France, the U.K., and Australia have temporarily postponed 5G spectrum auctions in their countries. Moreover, the escalating trade war between the two largest economies coupled with growing security concerns is estimated to hamper the market growth.

Some key points about this 5G infrastructure market report are as follows:

• Based on components, in the hardware segment, RAN held the largest share of 46.3% in 2019 due to a significant increase in investments in deploying 5G cloud or centralized RAN in major countries such as the United States, the United Kingdom, Japan, and China.
• The industrial vertical segment is expected to witness considerable growth during the forecast period owing to the growing need to provide unified connectivity to multiple industrial sensors and collaborative robots.
• Robust investments in installing 5G standalone networks to provide ultra-reliable and low-latency connectivity for connected car applications are estimated to drive the growth of the standalone network architecture segment during the forecast period.
• Looking at the spectrum, sub-6 GHz bands held a dominant share of 94.7% in 2019, which can be attributed to the federal government’s initial high focus on releasing sub-6 GHz spectrum bands in major countries for providing high-speed data services.
• Leading companies such as Telefonaktiebolaget LM Ericsson and Nokia Corporation place great emphasis on establishing partnerships with leading service providers to increase their geographical presence and overall market share.