5G Services

5G Services

The 5G Services Market is expected to grow at a strong CAGR of around 27% owing to the rapid digital transformation, increasing high-speed internet usage for streaming, gaming, education, browsing, etc., and an accelerated rate of digital infrastructure development such as smart cities and businesses going online. 5G (fifth generation) wireless network technology is the latest advancement in mobile communication systems. It offers faster data speeds, lower latency, and greater connectivity than its predecessors. With 5G, users can expect more reliable and seamless connections for various applications such as online gaming, virtual reality, and augmented reality. Additionally, 5G enables new use cases like smart cities, autonomous vehicles, and IoT devices. Aspects that will play out for the growth of 5G services in the future worldwide are the following:

Speed and Capacity: 5G networks offer significantly higher speed and capacity compared to previous generations. This means that users can enjoy faster downloads, smoother streaming, and reduced lag time during online interactions.

Low Latency: One of the most significant advantages of 5G is its low latency. Compared to traditional cellular networks, 5G provides much quicker response times, which is essential for real-time applications like video conferencing, online gaming, and autonomous vehicles. Lower latency ensures better user experience and increased productivity.

Internet of Things (IoT): 5G supports the growing number of connected devices, making it an ideal choice for IoT applications. Its low power consumption and long battery life enable devices to operate for extended periods, even when they are not plugged into a power source. As a result, 5G opens up new possibilities for smart homes, industrial automation, and other IoT initiatives.

Edge Computing: Edge computing refers to processing data closer to where it is generated rather than sending it all the way back to a central server. In 5G, edge computing plays a crucial role by enabling devices to perform tasks locally, reducing the need for cloud-based processing. This results in improved responsiveness, reduced latency, and lower energy consumption.

Economic Impact: The widespread adoption of 5G technology promises economic growth through job creation, investment opportunities, and increased productivity. According to our estimates, the global 5G market size is projected to reach USD 170 billion by 2025, generating substantial revenue streams for businesses operating in this space.

• Based on connectivity, the market is segmented into enhanced mobile broadband (EMBB), ultra-reliable and low latency communication (URLLC), massive machine type communication (MMTC), and fixed wireless access (FWA). The EMBB segment holds a significant share of the market. The primary factor that is responsible for this dominance are growing demand for high-speed mobile broadband. With the increasing penetration of smartphones and other mobile devices, there is a growing demand for high-speed mobile broadband services. eMBB is well-suited to meet this demand, offering faster data rates and lower latency than traditional mobile broadband services. Furthermore, as 5G networks expand, eMBB is likely to become a major component of these networks, providing high-speed mobile broadband services to a wider range of users. Moreover, eMBB is already being used in emerging use cases such as smart cities, intelligent transportation systems, and remote healthcare. This growing demand for EMBB can also be seen from the new technological developments, product launches related to this vertical, and key player investments that are undertaken in this space. For instance, in February 2023, Quectel Wireless Solutions, a global IoT solutions provider, made an announcement for the launch of its latest generation 5G New Radio (NR) module series, these are industrial grade 5G modules capable of delivering enhanced performance in capacity, data rates, power saving, and latency. As per the company, these modules are ultra-reliable and are designed especially for addressing the growing 5G fixed wireless access (FWA), EMBB, and industrial automation markets.
• On the basis of end-users, the market is categorized into manufacturing, energy and utilities, media and entertainment, IT and telecommunication, transportation and logistics, healthcare, and others. 5G services are going to significantly change the operations of almost every end-user industry globally, but some will undergo a major dynamic shift over others. With increasing 5G penetration, Industries such as retail, hospitality, healthcare, education, and entertainment are going to have a much more significant impact. Retail, for instance, will see a boost in sales thanks to the ability to provide personalized experiences to customers using AI-powered chatbots and virtual assistants. Furthermore, Education will undergo a transformation with the aid of 5G services. Students will be able to access educational materials and participate in live classes remotely, breaking down geographical barriers. Finally, the entertainment industry will flourish with the introduction of 5G services. Users will be able to stream high-definition videos and games with minimal buffering, creating a seamless viewing experience. Moreover, 5g technology has given breakthroughs to the transportation as well as manufacturing industries, helping them to achieve advanced level autonomy as well as train their AI models at an accelerated rate and with increased computing power.
• Based on application, the market is segmented into automation, monitoring and tracking, connected vehicles, smart surveillance, VR and AR, enhanced video services, and others. 5G services are by far the biggest enabler of automation. Today the world is chasing automation in almost every field of work, be it transportation, manufacturing, media and entertainment, banking and financials, or healthcare. Every industry wants all of their repeated work to get automated which can also be seen from the rollout of 5g services and artificial intelligence at such an impressive rate. And is also getting reflected in the actions of key players active in the industry. For instance, in February 2023, At Mobile World Congress Barcelona 2023, Schneider Electric, Capgemini, and Qualcomm Technologies, Inc. announced their collaboration on a pioneering 5G-enabled automated hoisting solution. The three companies combined their efforts to design and install the solution at Schneider Electric's hoisting lab in Grenoble, France. By replacing wired connections with a wireless solution and unifying existing wireless connections from Schneider Electric's industrial automation system, the 5G Private Network demonstrates how it simplifies and optimizes digital technology deployment at scale, from steel plants to ports.
• For a better understanding of the market adoption of 5G services, the market is analyzed based on its worldwide presence in countries such as North America (The U.S., Canada, and the Rest of North America), Europe (Germany, The U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific is emerging as the fastest-growing 5g services market in CAGR terms. The region has witnessed a considerable rise in smartphone penetration and with the huge population and rapid urbanization, Asia Pacific has become a giant in terms of data consumption and data generation. In addition to this, the price of the internet is lowest in the region as compared to the developed worlds further boosting the demand and adoption of high-speed internet. Moreover, the region is witnessing an exponentially growing digital economy, expanding itself in every functioning industry of the region. Additionally, the region is both an export as well as a consumption-led economy, hence industrialization is bound to grow, raising the need for automation for which 5G services are the biggest enabler. The factors stated above along with governments' proactiveness in the technology space are going to contribute to the long-term growth of the industry in the region. For instance, in March 2023, as per the Department of Telecom, the Indian telecom operators rolled out the 5G network in 6 months which was targeted to be achieved in 3 years, and now the government is focusing on increasing the adoption of 5G applications on different verticals.
• Some of the major players operating in the market include Deutsche Telekom AG; Telefonaktiebolaget LM Ericsson; Huawei Technologies Co., Ltd.; Nokia; Orange; Qualcomm Technologies, Inc.; Telecom Italia; AT&T; Intel Corporation; and Reliance Jio Infocomm Ltd.