The 5G technology market is expected to reach $667.9 billion, globally, by 2026. Behind the surge is the growth in the number of IoT devices and adoption of edge computing, the surge in demand for content streaming services, and increased demand for low latency connectivity in industrial automation.
Increase in demand for low latency connectivity in industrial automation and surge in demand for content streaming services are the two major factors that drive the growth of the global 5G technology market. In addition, growth in the number of IoT devices and adoption of edge computing supplements the market growth. On the other hand, small cell deployments challenges and implementation of fiber backhaul hamper the 5G technology market growth. However, the increase in investments in smart cities and opportunity in autonomous vehicles provide lucrative opportunities in the 5G technology market forecast.
According to recent reports, the hardware segment of 5G growth accounts for more than half of the total market share in 2020 and is expected to maintain its dominance by 2026. This is due to 5G hardware facilitates edge processing leading to low latency levels and is dominated by small cell infrastructure with a dense, distributed network of base stations. However, the services segment is estimated to project the fastest CAGR of 133.1% from 2020 to 2026, owing to the spur in innovation and adoption of cutting-edge technologies in smart cities.
What about 5G Chipsets?
Other industry reports point out the increased consumer demand for the latest 5G products, rapid developments in automated devices and the introduction of cheaper materials as factors driving growth in the global 5G chipset market. We can expect to see the market grow at a rate of 65.7% through 2024. It could be worth $10.9 billion.
Noteworthy 5G chipset mentions:
- Smart gadgets as a segment of the 5G chipset market should grow from $124 million in 2019 to reach $1.6 billion by 2024 at a CAGR of 67.1% in 2024.
- Smartphones as a market segment should grow from $468.4 million in 2019 to reach $5.7 billion by 2024 at a CAGR of 64.8% in 2024.
- Asia-Pacific held the highest revenue share in the market in 2018 at $334.23 million and is expected to continue to dominate the revenue share with a value of $7.2 billion in 2024.
“The market for 5G chipsets is expected to witness tremendous growth from 2019 to 2024,” writes BCC Research analyst Sinha G. Gaurav. “The major factors driving growth will be an increasing demand for the Internet of Things and machine-to-machine connections, coupled with an ever-increasing demand for high-speed mobile data services and rapid development in automated devices. Further, the 5G chipset market is set to experience exponential growth because of its wide range of applications.”
Who are the Major Market Players?
Industry experts have unanimously hailed 5G as the catalyst for the greatest advancement in recent manufacturing history, due to being able to reach download speeds over 100 times as fast as our current networking technology. The adoption of 5G across the manufacturing industry is part of the drive for Industry 4.0, also referred to as the fourth industrial revolution, allowing for a complete renovation of current manufacturing processes.
BMW began testing this new wave of technology in 2016, with fully automated robots being able to find necessary transport parts from the desired location. These robots used wireless transmitters to calculate their position on the manufacturing floor, detecting changes and potential dangers to their working environment. After a six-month trial, 10 robots were permitted in the factory due to the efficiency improvements they provided.
5G technologies facilitate all the necessary network advancements to completely automate the manufacturing process. Significantly lower latency alongside much faster speeds allows for critical applications being used securely, opening up a wide range of new opportunities.
The large bandwidth and secure connection provide a network of mobile connectively formerly restricted to fixed-line. In short, in the coming years, the features associated with 5G would allow a complete redesign of manufacturing spaces, with wireless workspaces along with which connectivity between devices will vastly improve, leading to a significant improvement in accuracy, precision and the operating speed of manufacturing systems.
Most of the service providers are implementing or are in plans of implementing 5G networks using high-frequency bands than what is generally used for 4G networks. This opens up an avenue for more traffic on the network, which means higher capacity and better speeds of the network. 5G also offers greater focus when compared to 4G, which means that the radio waves provide a concentrated beam that can target specific users directly for ultrafast speeds based on need, exactly what one would get with wireless internet service at home.
Leading market players include Deutsche Telekom AG, Ericsson, Huawei Technology, Nokia, Orange S.A., Qualcomm Inc., Telecom Italia, Telstra, T-Mobile, Intel Corporation, Samsung and MediaTek. They have adopted different strategies such as mergers & acquisitions, partnerships, collaborations, new product launches, and others to gain a strong position in the global industry.
5G News Around the Industry: What’s Making Headlines?
- In a proof-of-concept trial in a live network environment, Verizon and Ericsson have introduced cloud native, container-based technology on the core of Verizon’s active network. This trial, the first container-based wireless EPC (Evolved Packet Core) technology deployment in a live network in the world, introduces a much more efficient way to deliver operational applications that run the network. It is a solution that will increase agility and enable deployment at scale for new services in 4G and 5G.
- Ericsson and Vodafone bring 5G to Germany: With their sights set on bringing 5G to 20 million people in Germany by the end of 2021, Ericsson and Vodafone launched a commercial 5G network using Ericsson products and solutions.
- Apple and Intel have signed an agreement for Apple to acquire the majority of Intel’s smartphone modem business. Approximately 2,200 Intel employees will join Apple, along with intellectual property, equipment and leases. The transaction, valued at $1 billion, is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary conditions, including works council and other relevant consultations in certain jurisdictions.
- Huawei and Samsung released 5G mobile phones with AR