Rapid Growth Expected in 5G Infrastructure Market, Worth $47,775 Million by 2027


Posted March 3, 2023 by avinashgogawale14

The 5G Infrastructure Market is projected to reach USD 47.78 billion by 2027, growing at a CAGR of 67.1%.

 
The 5G Infrastructure Market is anticipated to have rapid growth, rising by a compound annual growth rate (CAGR) of 67.1% from 2019 to 2027 to reach USD 47,775 million. The main drivers of market growth are the use of virtual networking architecture and lower latency in 5G. The rise of IoT technologies and the rising demand from different business verticals are also perhaps opening up new markets for 5G infrastructure. A thorough analysis of the sector is provided by the market's segmentation by communication infrastructure, core network, network architecture, operating frequency, end user, and geography.

By Communication infrastructure, macro cell segment is projected to grow at higher rate in the market during the forecast period

In comparison to its counterpart in the 5G Infrastructure market, the macro cell sector in the communication infrastructure category is anticipated to grow faster throughout the projected period. Macro cells are able to span up to 30 km and provide service to more than 2,000 users, offering a bigger coverage area and greater output efficiency. Since manufacturing is essential to cutting-edge technologies like the Internet of Things and M2M connectivity, the Asia Pacific region's manufacturing industry is regarded as a significant revenue source for 5G. As a result, the macro cell market in APAC is anticipated to grow at the quickest rate.

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By Operational Frequency, above 6 GHz frequency is stipulated to witness high growth rate

In the market for 5G infrastructure, it is projected that the frequency spectrum above 6 GHz will experience rapid expansion. Strong impetus exists for frequencies like the 26 GHz and 28 GHz bands, which promote spectrum harmonisation, lessen handset complexity, and boost economies of scale. Fast 5G speeds, affordable devices, international roaming, and the reduction of cross-border interference all depend on the availability of harmonised 5G spectrum in these bands. High growth rates in this market will result from network providers in the Asia Pacific region, like SK Telecom and China Mobile, which have already tested 5G at a frequency above 6 GHz and are expected to commercialise it by the end of 2019.

Asia Pacific region is expected to hold the largest share of the market by 2027

By 2027, the Asia Pacific region is anticipated to hold the greatest market share for 5G infrastructure, thanks to the adoption of technological advancements and initiatives for smart cities. With their headquarters in this area, major companies including Huawei, Samsung Electronics, ZTE, and China Mobile help fuel the market's expansion. Also, a number of nations in the region are putting smart city initiatives into action or developing them, with China being the largest market in Asia Pacific. The region is anticipated to have fantastic potential for the creation of smart cities, which will significantly contribute to the expansion of the regional market.

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Key Players in the Market

The key players operating in the 5G infrastructure market are Ericsson (Sweden), Huawei (China), Nokia Networks (Finland), Samsung Electronics (South Korea), ZTE (China) among others.

In October 2022, Nokia (Finland) announced that it has been selected as a major supplier by Reliance Jio (India) to supply 5G Radio Access Network (RAN) equipment from its comprehensive AirScale portfolio countrywide in a multi-year deal. Under the contract, Nokia will supply equipment from its AirScale portfolio, including base stations, high-capacity 5G Massive MIMO antennas, and Remote Radio Heads (RRH) to support different spectrum bands, and self-organizing network software. Reliance Jio plans to deploy a 5G standalone network which will interwork with its 4G network.

In August 2022, Nokia (Finland) announced that it has secured a deal with leading telecom operator Bharti Airtel, for 5G radio access network (RAN) deployment. This multi-year deal follows the recently concluded 5G spectrum auctions and allocation of pan-India spectrum to Bharti Airtel, supporting their ambition to take India into the 5G era.

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Last Updated March 3, 2023