Global 5G Fixed Wireless Access Market 2024-2031

Global 5G Fixed Wireless Access Market 2024-2031

5G Fixed Wireless Access Market Size, Share & Trends Analysis Report by Offerings (Hardware, and Services), by Territory (Urban, Semi-Urban, and Rural), and by Application (Residential, Commercial, Industrial, and Government) Forecast Period (2024-2031)

5G fixed wireless access market is anticipated to grow at a CAGR of 39.3% during the forecast period (2024-2031). The growth of the 5G Fixed Wireless Access (FWA) market is attributed to various factors, including technological advancements, the increasing need for high-speed connectivity, and cost-effective deployment options. This market segment is particularly developing in densely populated areas, where it provides reliable connectivity and supports the integration of IoT devices and smart cities. The widespread adoption of 5G technology globally is evidence of the strong demand for advanced wireless services.

Market Dynamics

Rising Demand for High-Speed Internet

The increasing demand for high-speed internet, driven by remote work, online education, and streaming services, has significantly boosted the need for 5G FWA as a faster, more reliable alternative to traditional broadband. According to the GSM Association, in October 2023, the growth rate of mobile internet adoption experienced a slowdown, with only 200 million new users compared to 300 million in the previous two years. However, it is worth noting that over three-quarters of this growth came from low- and middle-income countries, where 95.0% of the unconnected population resides. Additionally, mobile broadband coverage remained relatively stable, with 95.0% of the global population having access to a mobile broadband network. Nonetheless, there is still a coverage gap of nearly 400 million people, primarily in rural and economically disadvantaged areas.

Expanding IoT and Smart Home

The rapid growth of smart home devices and IoT applications necessitates robust and reliable internet connectivity, which 5G FWA can efficiently provide. In February 2024, ZTE Corp. introduced the Full-Scenario Ecosystem 3.0, the globe's first AI 5G Fixed Wireless Access product, the ZTE G5 Ultra, which offers faster, smoother network experiences with increased bandwidth utilization and reduced congestion and supports Wi-Fi 7 technology.

Market Segmentation

Based on offerings, the market is segmented into hardware and services.

Based on application, the market is segmented into urban, semi-urban, and rural areas.

Based on the end-user, the market is segmented into residential, commercial, industrial, and government.

Urban Sub-segment to Hold a Considerable Market Share

Rapid urbanization is boosting the need for efficient, high-speed internet solutions, with FWA offering a viable solution to meet the connectivity needs of densely populated areas. In January 2024, Peraso launched its dense urban network environment (DUNE) platform for Fixed Wireless Access (FWA). DUNE addresses network access issues in urban neighborhoods where conventional solutions are costly or impractical. It planned to use DUNE to expand its market opportunity and increase Perspectus mmWave module sales.

Commercial Sub-segment to Hold a Considerable Market Share

Growing companies and businesses with influencing connectivity demands are going to identify Enterprise Connect, a highly scalable FWA solution, appropriate for easily expanding networks. For instance, in December 2022, Swisscom launched a 5G Fixed Wireless Access (FWA) service for business customers, offering a 5G mobile backup option. The solution, ""Enterprise Connect,"" connects customers without a fiber or copper connection, allowing them to integrate multiple business locations into their office networking. This offers the fastest internet at their sites.

Regional Outlook

The 5G fixed wireless access market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Regulatory Support in the Asia-Pacific Region

The Indian government and regulatory bodies are promoting the deployment of 5G infrastructure through favorable policies and incentives, accelerating the adoption of 5G FWA technologies. According to nccs.gov, in August 2023, by 2030, it is projected that the 5G telecom networks contribute approximately 2.0% to India's GDP, with the sector itself generating revenues of around $180 billion. The implementation of both public and private 5G networks will play an essential role in facilitating various use cases across multiple sectors, including mobility, healthcare, manufacturing, retail, energy, and utilities.

North America Holds Major Market Share

The increasing demand for high-speed internet access is driving the adoption of 5G FWA, particularly in regions with limited wired infrastructure. According to 5GAmericas.org, in March 2024, the wireless telecommunications industry experienced significant growth and innovation in 2023, driven by the momentum of 5G technology. According to data from 5G Americas and Omdia, global adoption of 5G connections reached 1.76 billion, with North America leading the way with 197 million connections. Additionally, Latin America saw progress in both 4G LTE and 5G connections, with 582 million LTE connections and 39 million 5G connections by the end of the year.

The major companies serving the 5G fixed wireless access market include Huawei Technologies Co. Ltd., Qualcomm Inc., Samsung Electronics Co., Ltd., Nokia Corp., and ZTE Corp. among others. The market players are expanding their presence by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in December 2023, Airties partnered with Qualcomm Technologies to enhance its managed Wi-Fi solutions for broadband service providers, enhancing the integration on broadband carrier platforms featuring the Qualcomm 5G fixed wireless access platform.