Global 5G Market Landscape - Growth, Trends, Forecasts (2022 - 2027)

Global 5G Market Landscape - Growth, Trends, Forecasts (2022 - 2027)

The Global 5G Market Landscape is estimated to grow at a CAGR of about 14% over the forecast period 2020 to 2025. One of the significant trends driving the wireless industry towards the 5th generation of network technology is the proliferation in demand for wireless broadband services worldwide. These broadband services require faster, high capacity networks to deliver video and other content-rich services such as cloud gaming.

Key Highlights

• Also, there are various applications spread across the industries that the current wireless network struggle to deliver. For instance, applications such as vehicle-to-vehicle, vehicle-to-infrastructure transport systems, wireless health services, and augmented reality services cannot function optimally with current standard wireless technology.
• The analysis of such applications often suggests performance criteria for latency, capacity, peak throughput, and spectral efficiency that can only be addressed by new generation technologies such as 5G.
• For instance, Google's cloud gaming platform, called Stadia launched in November 2019, relies on cloud servers to stream games in 4K resolutions at 60fps. The company aims to support 8K resolution and 120 fps in the future, demanding faster network connectivity that is reliable and has low latency.
• Further, owing to the surge in demand, operators around the globe have started to invest in 5G technology. For instance, the report published by the Global mobile Suppliers Association (GSA) in 2019 identified around 296 operators spread across 100 countries investing in 5G.
• The study also reveals that about 154 operators spread across 66 countries have been engaged in testing or have been licensed to begin field trials of 5G-enabling and other candidate technologies. For instance, In January 2019, ZTE Corporation completed the IMT-2020 third phase of the 5G test for security function and core network performance stability, which thoroughly verifies the maturity of ZTE's 5G core network.
• As with the mobile chipset industry crowded with players, including Qualcomm, MediaTek, Huawei Technologies, Samsung is in a highly dynamic and competitive space. Vendors are constantly engaged in building modems, RF-front end components to resolve the increasing complexity of cellular networks. Also, the trend with industry' spilled preference between the mmWave and Sub-6 GHz ​capabilities is expected to drive the growth of the market.
• For instance, Qualcomm has already launched two generations of its 5G mmWave RF front-end modules, of which the 2 generation model QTM525' form matter is so small that it can fit into any connected device.
• Furthermore, mergers and acquisitions are helping to shape the industry landscape. For instance, at Mobile World Congress 2019 held in Shanghai, Huawei, and more than 30 industry partners jointly established an industry alliance in 5G deterministic networking. The establishment is aimed at promoting consensus on industry development, ecosystem building, and developing the 5G industry.
• As per Cisco, mobile network operators that didn’t make 5G technology decisions before 2020 have effectively lost an entire year’s worth of progress due to COVID-19. Delayed spectrum auctions, permitting, technology evaluations, and testing have all been delayed by about nine to 12 months due to the ongoing global pandemic.

Key Market Trends5G Devices Drive the market growth

• There has been a rapid rise in the number of 5G devices that are commercially available. According to GSA, as of mid-April 2020, over 280 5G devices have been announced, of which 95 devices are commercially available. The 5G devices include smartphones, head-mounted displays, CPE devices, Industrial grade CPE, tablets, TV, Drones, and vending machines.
• Also, according to a report published by Ericsson published in November 2019, the annual shipments of 5G devices have reached 13 million units in 2019, which suggests that 5G has outpaced LTE in the number of devices compared to the initial roll-out period. The study further revealed that the 5G device volume is projected to reach 160 million units by the end of the year 2020.
• For instance, in February 2020, Huawei Technologies Inc, which is considered to be one of the pioneers in 5G technology, announced the launch of a series of commercially available 5G enabled devices. The series include Huawei Mate Xs, MatePad Pro 5G, Huawei 5G CPE Pro 2, wifi 6 Plus Huawei wifi AX3, among others.
• Also, with Qualcomm launch of 5G only chipset snapdragon 865 has pushed all the major Android manufacturers including Xiaomi, Samsung, Sony, Motorola to adopt 5G into their flagship device launched in 2020, despite the current limitation concerning network coverage and geographic deployment of network carriers. Also, the anticipation of the launch of Apple's iPhone 12 in September 2020 with 5G support is expected to future drive smartphone' 5G adoption.
• Owing to the growth in 5G enabled mobile devices has initiated the increase in number 5G connection across the globe. For instance, as per the GSMA forecast, 5G will account for a 20% share of global connections by 2025, with carrier association expecting strong growth across Asia, Europe, and North America.
• Also, Laptops provide the most significant opportunities for 5G in devices beyond smartphones. However, the technology in laptops has not hit the market in a meaningful way yet. Intel, in collaboration with Qualcomm, has developed 5G chips concentrating on the laptop market and is banking on them to help drive sales.
• For instance, In January 2020, Lenovo announced the launch of an ARM-based Windows laptop that features 5G connectivity called Yoga 5G at CES 2020. The laptop features Qualcomm' Snapdragon 8cx Soc paired with Qualcomm's X55 5G modem, which supposedly supports both mmWave and Sub-6GHz 5G networks.

China' 5G infrastructure to lead the industry forward

• China is one of the largest investors in 5G technologies for applications, including basic, general, and downstream. The region has even left the US behind for the 5G infrastructure owing to the growing effort by the Chinese government, telecom operators, and vendors to deploy 5G.
• For instance, In March 2020, China Mobile launched a tender for the second phase of its 5G network rollout. The company has acquired over 232,000 5G base stations to extend 5G service coverage to 28 regions across China. The company reported that their peek investments in 5G deployment will be between 2020 and 2022.
• The country's five-year economic plan specifies USD 400 billion in 5G-related investment. By the starting of 2019, China has outspent the United States by approximately USD 24 billion in wireless communications infrastructure. Many industrialists also claim that, by 2020, mid-band deployments in China will ramp up rapidly.
• Furthermore, according to the Semiconductor Industry Association (SIA), the country's semiconductor sales grew from USD 82.4 billion in 2015 to USD 143.7 billion in 2019. The country also leads the world in 5G coverage, with full network coverage planned in 50 cities by 2020. According to Xinhua, in October 2019, the world's largest 5G network was launched by the three largest Chinese network operators, namely China Mobile, China Unicom, and China Telecom. These companies also activated their networks within five months after they were issued 5G licenses.
• Moreover, a study conducted by GSMA in 2019 suggests that the number of 5G connections in China is expected to forecast 460 million by 2025, accounting for an average annual growth rate of 63%. Also, the scale of its market is expected to surpass the combined size of 5G series in the United States, Australia, South Korea, and the United Kingdom.
• As with the recent outbreak of global pandemic COVID-19 led by the implementation of lockdowns across major cities and criticism faced by the country worldwide. The country is surprisedly gaining market share by deploying 5G-powered drones across the cities to broadcast pandemic prevention measures and conduct thermal imaging checks on the residents.

Competitive Landscape

The 5G market Landspace is highly fragmented. All the companies involved in the production continue to enhance their product offering frequently, leveraging their high R&D capabilities and investments, leaving the current market scenario highly competitive and mostly market incumbents.

• February 2020: Huawei Technologies co Ltd announced the extension of its 5G portfolio for European markets. The company has launched a different version of its blade AAU antenna tailored to meet EU requirements. It supports all existing network bands, including 3G, 4G, and 5G, under sub 6Ghz network band added with support the coverage of several suppliers at the same time with 400 MHz.
• February 2020: Qualcomm Technologies, Inc. continues to extend its global 5G offerings in mmWave, and cellular infrastructure technologies with the Qualcomm 5G RAN platform (FSM100xx). The company’s 5G infrastructure solutions are now used by major players like Airspan, Altiostar, Radisys, Rakuten, Samsung, etc.

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