Global 5G Services Market 2024-2031

Global 5G Services Market 2024-2031

5G Services Market Size, Share & Trends Analysis Report by Communication Type (Enhanced Mobile Broadband, Massive Machine Type Communication, and Ultra-Reliable Low-Latency Communications), and by End-User (Banking, Financial Services, & Insurance (BFSI), Retail & eCommerce, Healthcare & Life Sciences, Manufacturing, Telecom, IT & ITeS, Media & Entertainment, Construction & Real Estate, Government & Public Safety, Transportation, & Logistics, Energy & Utilities, Education and Other), Forecast Period (2024-2031)

5G services market is anticipated to grow at a CAGR of 11.9% during the forecast period (2024-2031). 5G services refer to the suite of communication services and capabilities enabled by fifth-generation (5G) wireless technology. 5G represents the latest evolution in mobile networking, offering significantly faster data speeds, lower latency, higher reliability, and increased network capacity compared to previous generations like 4G LTE.

Market Dynamics

Surge in Demand for High-Speed Connectivity Fuels Global Adoption of 5G Services

The demand for high-speed connectivity is experiencing unprecedented growth across industries and consumer segments globally. Businesses are increasingly reliant on fast and reliable internet access to support data-intensive applications, facilitate remote collaboration, and enable digital transformation initiatives. Moreover, the proliferation of streaming services, online gaming, and video conferencing platforms has fueled consumer demand for faster download and upload speeds, low latency, and seamless connectivity experiences. As a result, there is a pressing need for advanced telecommunications infrastructure capable of meeting these evolving connectivity requirements, driving the adoption of 5G services globally. For instance, in June 2023, Vodafone UK and Three UK announced a merger aimed at establishing a premier 5G network service in Europe, renowned for its reliability, extensive coverage, and high-speed data connectivity.

Expansion of 5G Network Infrastructure Drives Connectivity Evolution

Telecom operators are actively expanding and upgrading their network infrastructure to support the widespread deployment of 5G technology. This involves the installation of new base stations, small cells, and other network equipment to enhance coverage and capacity in urban, suburban, and rural areas. Additionally, spectrum allocation and regulatory policies play a crucial role in enabling the expansion of 5G network coverage by providing operators with access to the necessary frequency bands for deploying high-speed wireless services. As a result, efforts to expand 5G network coverage are underway globally, with operators competing to capture market share and capitalize on the growing demand for next-generation connectivity solutions. For instance, in June 2023, T-Mobile USA Inc. partnered with the City of Bellevue to introduce a collaborative Cellular Vehicle-to-Everything (C-V2X) technology, leveraging T-Mobile's 5G network service. This innovative technology facilitates real-time communication among traffic infrastructure, pedestrians, cyclists, and vehicles.

Market Segmentation

Based on communication type, the market is segmented into enhanced mobile broadband, massive machine-type communication, and ultra-reliable low-latency communications.

Based on end-user, the market is segmented into banking, financial services, & insurance (BFSI), retail & e-commerce, healthcare & life sciences, manufacturing, telecom, IT & ITeS, media & entertainment, construction & real estate, government & public safety, transportation, & logistics, energy & utilities, education, and others.

Ultra-Reliable Low-Latency Communications Segment to Hold a Considerable Market Share

The ultra-reliable low-latency communications (URLLC) segment is poised to capture a substantial market share in the global 5G services market due to its pivotal role in supporting critical applications across industries. URLLC services offer ultra-reliable connectivity with minimal latency, making them indispensable for applications requiring instantaneous data transmission and high reliability, such as autonomous vehicles and remote surgery. Industries like manufacturing, healthcare, and public safety rely on URLLC for real-time monitoring and control, driving its demand. Additionally, as the Internet of Things (IoT) expands, URLLC facilitates seamless connectivity and control of IoT devices, further bolstering its significance. Given its critical nature and broad applications, URLLC services are expected to remain a cornerstone of the 5G services market.

Regional Outlook

The global 5G services 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).

Asia-Pacific: Leading the Charge in 5G Services Adoption

The Asia-Pacific region emerges as the fastest-growing market due to the region's rapidly expanding population and increasing urbanization drive the demand for advanced telecommunications infrastructure, including 5G networks, to cater to the burgeoning connectivity needs of businesses and consumers alike. Asia-Pacific economies, particularly countries like China, Japan, and South Korea, are at the forefront of 5G technology adoption, with significant investments in network deployment and infrastructure development and also the presence of leading technology companies and a thriving ecosystem of startups foster innovation and drive the adoption of 5G services across diverse industry verticals. For instance, in March 2023, Bharti Airtel Ltd. unveiled unlimited 5G data services to its clientele, aiming to provide them with an immersive experience of the capabilities of the Airtel 5G Plus network service.

North America Holds Major Market Share

North America holds a significant share due to a mature telecommunications infrastructure and a high level of technological advancement, facilitating the early deployment and adoption of 5G networks by leading operators. North America is home to several major technology companies and industry pioneers investing heavily in 5G research, development, and innovation, driving the advancement and commercialization of 5G services. For instance, in June 2023, AT&T, Inc. and Cisco Systems, Inc. created a strategic partnership focused on aiding enterprises in bolstering connectivity to address the increasing demands of a mobile-centric workforce. Through this collaboration, the two entities aim to deliver SD-WAN connectivity coupled with supplementary services, including 5G and broadband, to ensure that businesses of varying sizes can enjoy an enhanced and uninterrupted operational experience.

Market Players Outlook

The major companies serving the global 5G services market include Jio Platforms Ltd., Bharti Airtel LTD., Vodafone Group, Swisscom, and KT Corp., among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in April 2023, Deutsche Telekom AG unveiled a collaboration with Amazon Web Services (AWS), a leading cloud computing platform provider. This partnership is part of the Integrated Private Wireless on AWS initiative, aimed at integrating AWS services with private wireless solutions leveraging LTE and 5G technologies from Deutsche Telekom AG's campus network portfolio.