5G Infrastructure Market Promising Growth Opportunities over 2020-2027

5G Infrastructure Market
5G Infrastructure Market

Market Analysis

Market Research Future (MRFR) presumes the global 5G infrastructure market size to reach USD 27,476 million at an exponential CAGR of 58.9% from 2020 to 2027 (forecast period).

5G infrastructure refers to the network of macro and small-cell base stations with edge computing capabilities that are required for the functionality of fifth-generation cellular networks. This infrastructure includes Radio Access Network (RAN) hardware, which consists of a network of small-cell and macrocell base stations, and a core network that offers numerous services to customers who are connected to the network. In addition, 5G infrastructure requires virtualized network functions that typically run on hardware to run as software. While 5G networks are cellular networks, in which the service area is divided into small geographical areas called cells, the two types of 5G network infrastructure are freestanding 5G infrastructures, which use their cloud core and connect to 5G New Radio (NR), and non-standalone 5G infrastructures, which use the existing 4G core network to enable 5G.

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Multiple Factors to Bolster Market Growth

Benefits provided by 5G networks, an increase in mobile users, and rapid advances in IoT are among the drivers driving the growth of the 5G infrastructure market. Furthermore, the government’s plans to implement smart city projects, and other public welfare projects using digital transformation are likely to propel market evolution to the next level.

COVID-19 Impact on the Worldwide Market

The COVID-19 crisis has caused significant disruptions in 5G implementation around the world, hurting investments, delays in spectrum allocations, and supply chain disruptions, among other things. During 2019, telecom industry stakeholders like Communications Service Providers (CSPs), began 5G network service trials and rollouts, while many countries across the world were busy preparing for rollouts through spectrum auctions, releasing tenders for infrastructure contracts, and other readiness initiatives. With the pandemic situation, all of the aforementioned preparedness saw an influence on the 5G infrastructure industry, mostly due to delayed spectrum auctions, reduced spending budgets for digital transformation, and other factors.

Market Segmentation

The worldwide 5G infrastructure market has been segmented based on communication infrastructure, network architecture, operational frequency, and end-user.

By communication infrastructure, the worldwide 5G infrastructure market has been divided into small cells and macrocell.

By network architecture, the global 5G infrastructure market has been divided into5G non-standalone and 5G standalone.

By operational frequency, the global 5G infrastructure market has been split into below 6 GHz and above 6 GHz.

By core technology, the global 5G infrastructure market has been segmented into Software-Defined Networking (SDN) and Network Function Virtualization (NFV).

By end-user, the global 5G infrastructure market has been categorized into residential, commercial, industrial, and government.

Regional Analysis

North America to Dominate the Global Market

Due to the large investments, North America is likely to be the dominant region in terms of 5G infrastructure adoption. The North American market is divided into three parts: the United States, Canada, and Mexico. During the forecast period, the United States is predicted to lead the country-level market, while Canada is expected to be the fastest-growing sector. Because of its leading market position in terms of 5G transport networks implemented for efficient and speedier transportation, the US market is likely to report the greatest market share.

Key Players 

The key players in the global 5G infrastructure market are Telefonaktiebolaget LM Ericsson (Sweden), Huawei Technologies Co., Ltd. (China), Nokia (Finland), SAMSUNG (South Korea), ZTE Corporation (China), NEC Corporation (Japan), Cisco Systems, Inc. (US), CommScope, Inc. (US), Comba Telecom Systems Holdings Ltd. (China), Alpha Networks Inc. (Taiwan), Siklu Inc. (US), Mavenir (US), Airspan Networks (US), Hewlett Packard Enterprise Development LP (US), and F5, Inc. (US).

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Industry News

On March 4, 2021, Facebook, the leading social media and technology company, partnered with Marvell, a semiconductor manufacturer based in California, US. This partnership aimed to create an open radio access network (ORAN) capable of connecting a large number of users at a low cost.

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