According to Fior Markets- Global 5G services market is expected to grow from USD 57.45 Billion in 2020 to USD 145.91 Billion by 2025 at a CAGR of 23.76% during the forecast period from 2018-2025. The North America market is expected to witness substantial growth over the next decade. This growth is witnessed in the wake of ample opportunities offered due to technological advancement, growth of the 5G services, and the presence of major players in this region.
Global 5G services Market by Technology (Wi-Fi, GSM, HSPA, WIMAX, RAT), Service (Extreme Mobile Broadband, mMTC, uMTC), Application, Region” and Global Forecast 2018-2025.
Prominent companies in the industry include Ericsson, Orange S.A., Alcatel-Lucent S.A., Qualcomm Inc., Telstra, T-Mobile, Deutsche Telekom AG, Nokia Siemens Networks, Telecom Italia, Saudi Telecom Company, Vodafone, Verizon, China Mobile, China Telecom, Korea Telecom, SK Telecom, AT&T, and others. Ericsson, Nokia Siemens Networks, Qualcomm Inc., Telstra, and Deutsche Telekom AG are offering greater opportunities and major players are continuously focused on new product developments and venture capital investments to obtain market share. For instance, in 2018, Ericsson and BSNL entered into partnership to launch 5G to India. The companies signed MoU to work together for 5G and Internet of Things (IoT) deployments in India.
The technology segment is classified into Wi-Fi, global system for mobile (GSM), high-speed package access (HSPA), worldwide interoperability for microwave access (WIMAX), and radio access technologies (RAT). The GSM segment is dominating the 5G services market share of 34.84% in 2020 due to increasing use of GSM services globally. The service segment is divided into extreme mobile broadband, massive machine-type communications (mMTC), and ultra-reliable machine-type communications (uMTC). The ultra-reliable machine-type communications (uMTC) segment is expected to dominate the market with the market size of USD 19.13 Billion in 2020 as they offers availability, low latency, and high reliability. Application segment covers driverless car, smart agriculture, smart utilities, virtual reality & augmented reality, smart logistics, smart factory, broadband, aerospace and defense, data centers, and others. Broadband segment held largest market.
Increasing demand for reliable and ultra-low latency connectivity services, fast development of connected IoT devices, and constant increase in data traffic major factor driving the market. In addition, growing development initiatives and increasing use of cloud-based solutions are fuelling the growth of market. High cost in deployment of network services may hamper the growth of market. However, reducing the costs of 5G services and issues related to global spectrum are major challenges for the market.