5G Services Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast by 2031

The 5G services market size is expected to reach US$ 3,244.40 billion by 2031 from US$ 86.22 billion in 2023. The market is estimated to record a CAGR of 57.4% during 2023–2031. Standalone 5G network infrastructure is likely to remain a key market trend.

5G Services Market Analysis

A completely mobile and connected environment is made possible by 5G wireless mobile services, which offer customers a variety of business models and use cases. The user experience is further improved by utilizing 5G services for various applications, such as seamless video calling, ultra-high definition (UHD) videos, and virtual reality (VR) and augmented reality (AR) gaming. The 5G technology offers faster data speeds and extremely low latency. The rising need for high-speed data connectivity for unified Internet of Things (IoT) applications is anticipated to propel the adoption of 5G services. Further, the increased emphasis on forming alliances between telecom operators and 5G system integration providers is likely to contribute to the utilization of 5G services in the coming years. Several industry verticals are focusing on technological advancements to increase total productivity and operational efficiency to highlight their presence in a highly competitive market. Over the next few years, 5G networks and services will be gradually implemented to meet the growing demand for mobile and internet-enabled devices.

5G Services Market Overview

5G is the fifth generation of wireless technology designed to boost the speed and responsiveness of wireless networks significantly. 5G provides benefits, such as high frequencies and bandwidth, enhanced mobile broadband, a lower latency of 5ms, and higher data rates. There is a rising demand for advanced network services for efficient and real-time communication across industries and consumers. The increase in investments by regional government bodies and communication service providers (CSPs) enhances the development and deployment of 5G services across developed and developing countries. According to Groupe Speciale Mobile Association (GSMA), there will be over 1.1 billion 5G network subscribers across the globe by 2025. Major 5G network solution providers include Verizon, AT&T, Huawei, Cisco Systems, Ericsson, and Nokia. Also, Sprint, AT&T, Verizon, and other numerous major carriers are currently in the process of expanding their 5G networks. T-Mobile has been focusing on low- and midband 5G, while Verizon concentrates on mmWave implementation.

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5G Services Market: Strategic Insights

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5G Services Market Drivers and Opportunities

Increasing Number of 5G Subscribers

Ultra-low latency network, quicker internet, and broader device support are a few characteristics of 5G contributing to Industry 4.0, smart cities, driverless cars, and other innovations that improve the quality of life. 5G adoption is still growing despite ongoing economic difficulties and geopolitical upheaval in certain areas. Service providers continue to deploy 5G across the globe. According to the Ericsson mobility report, ~280 service providers worldwide have already introduced 5G services for sale, and over 40 have installed or introduced 5G standalone (SA) as of 2023. Enhanced mobile broadband (eMBB) is the most popular 5G service offered to customers by the service providers. The uptake of 5G subscriptions continues to be strong worldwide. According to GSMA Intelligence, consumers' 5G connections surpassed 1 billion at the end of 2022. Moreover, as per the estimates from the Global Mobile Suppliers Association (GSA), there were 1.15 billion 5G users at the end of 2022—a surge of ~90% annually on 619 million users in 2021. In addition, according to data from SellCell, there were almost 951 million 5G users worldwide in 2022; however, predictions for 2023 showed 50% increase, reaching 1.48 billion users. After debuting in several major cities worldwide, 5G technology is rapidly expanding. The increasing number of 5G subscribers fuels the need for 5G services such as design and network consulting, planning, deployment and integration, network optimization, and 5G service quality management, propelling the growth of the 5G services market

Increase in Adoption of IoT Devices

The Internet of Things (IoT) devices are being adopted across various industries worldwide. The IoT ecosystem relies heavily on reliable and efficient connectivity to enable seamless communication and data exchange between devices. 5G networks are well-suited to cater to this demand, offering secure and dedicated connectivity for IoT devices. By providing a robust and high-performance network infrastructure, 5G services enable organizations to harness the potential of IoT technology effectively. 5G is a powerful enabling technology that opens up new use cases that will utilize edge computing to improve the effectiveness and efficiency of the Internet of Things. The convergence of edge computing and 5G can open up new avenues for innovation and applications across various industries. For instance, IBM and Verizon are developing potential 5G and edge solutions such as remote-controlled robotics, near real-time video analysis, and factory-floor automation. 5G enables more effortless connectivity of various sensors in buildings and large facilities, opening up new possibilities for occupancy control, energy efficiency, and visitor experience. Thus, the growing adoption of IoT devices is expected to provide lucrative opportunities for the 5G services market growth during the forecast period.

5G Services Market Report Segmentation Analysis

Key segments that contributed to the derivation of the 5G services market analysis are type, end user, and geography.

• Based on type, the 5G services market is segmented into enhanced mobile broadband (eMBB), massive machine-type communications (mMTC), ultra-reliable low latency (uRLLC), and fixed wireless access (FWA). The enhanced mobile broadband (eMBB) segment held the largest share of the market in 2023.
• Based on end users, the 5G services market is bifurcated into enterprises and consumers. The enterprise segment is subsegmented into IT & telecom, manufacturing, healthcare, BFSI, retail & e-commerce, and others. The enterprises segment dominated the market in 2023.

5G Services Market Share Analysis by Geography

The 5G services market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.

Asia Pacific dominated the global 5G services market share in 2023. Asia Pacific is an early adopter of 5G, especially South Korea, Taiwan, Japan, and China. South Korea, Australia, and China are the first few countries worldwide to launch commercial 5G services. For instance, South Korea deployed the first 5G network in April 2019; it is expected to record a rise in technology penetration, with ~60% of total mobile subscriptions for 5G networks by 2025.

5G Services Market Regional Insights

The regional trends and factors influencing the 5G Services Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses 5G Services Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

5G Services Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The 5G Services Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the 5G Services Market are:

1. Verizon Communications Inc
2. Huawei Technologies Co Ltd
3. Telefonaktiebolaget LM Ericsson
4. Nokia Corp
5. Samsung Electronics Co Ltd
6. ZTE Cop

Disclaimer: The companies listed above are not ranked in any particular order.

5G Services Market News and Recent Developments

The 5G services market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the 5G services market are listed below:

• Midea, AIS, China Unicom, and Huawei have jointly implemented the first 5G fully connected factory in Southeast Asia, setting a new standard for smart manufacturing in the region. This collaboration marks a new milestone in the 5G era, enhancing efficiency, safety, and automation in complex production processes. Harnessing the comprehensive 5G network coverage of the Midea Industrial Park in Chonburi and a 5G+ industrial Internet platform, each production phase is seamlessly connected through 5G terminals to enable faster machine operation. A dedicated 5G private network has been deployed to support factory operation requirements and leverage intelligent industry applications, which facilitates manufacturing scenarios and interconnects each production line.

(Source: Huawei, Press Release, May 2024)

• Ericsson hosted an exclusive event at the Ericsson USA 5G Smart Factory in Lewisville, Texas. The company provided a tour of the facility and hosted programming to reveal the inner workings of the 5G Smart Factory. The tour was attended by key customers, US Government officials, and media and industry analysts. In addition, Ericsson's leadership discussed new developments in connectivity as demand for innovation continues to accelerate rapidly to meet the critical need for national 5G infrastructure.

(Source: Ericsson, Press Release, May 2024)

5G Services Market Report Coverage and Deliverables

The "5G Services Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• 5G services market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• 5G services market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• 5G services market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the 5G services market
• Detailed company profiles