5G Services Market is expected to reach US$ 3244.40 Billion by 2031

Rising Government Initiatives to Promote Deployment of 5G Fuels 5G Services Market Growth

According to our latest study, “5G Services Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, End User, and Geography," the market was valued at US$ 86.22 billion in 2023 and is expected to reach US$ 3244.40 billion by 2031; it is estimated to record a CAGR of 57.4% from 2023 to 2031. The report includes growth prospects owing to the current 5G services market trends and their foreseeable impact during the forecast period. 

The US, China, and South Korea are among the major adopters of 5G technology worldwide. The rising operational efficiency in various industries due to the adoption of 5G technology is influencing the respective government bodies to invest in promoting and developing 5G network services. A few of the government initiatives are mentioned below:

5G Services Market Analysis — by Geography

Source: The Insight Partners Analysis

• In October 2020, the Federal Communications Commission (FCC) of the US announced a 5G fund worth US$ 9 billion to help network carriers across North America deploy 5G mobile wireless services across rural areas. The commission also made rules for new network equipment to reduce the 5G network services deployment cost and accelerate the deployment process.
• In April 2021, the Ministry of Innovation, Science, and Industry of Canada announced the investment of US$ 14 million in Redline Communications to develop advanced telecommunication products for assisting industries such as mining, utilities, and oil & gas. The investment also supports projects to design 5G wireless solutions for industrial applications across Canada.
• In February 2022, the Mexican telecommunication authorizer granted permission to América Móvil to offer its 5G network services. The Federal Telecommunications Institute (IFT) of Mexico also authorized the modification for 18 concession titles, enabling Telcel to offer its 5G services within the frequency band of 3,450–3,550 MHz across the country.
• In July 2022, the German government unveiled a new strategy to augment the deployment of gigabit broadband across the country in the coming years, with targets to provide fiber-to-the-home and 5G by 2030. This strategy aims to provide FTTH to at least 50% of homes in Germany by 2025.
• In November 2023, the UK government announced an investment of US$ 39.16 million (GBP 36 million) through the 5G Innovation Regions (5GIRs) program. This initiative aims to drive the development and adoption of 5G and other wireless technologies to provide connectivity for towns, cities, and rural areas.

Thus, the rise in government initiatives to promote the deployment of 5G boosts the 5G services market growth.  

Verizon Communications Inc, Huawei Technologies Co Ltd, Telefonaktiebolaget LM Ericsson, Nokia Corp, Samsung Electronics Co Ltd, ZTE Cop, Vodafone Group Plc, Orange SA, Deutsche Telekom AG, and China Mobile Limited are among the key players profiled in the 5G services market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem. 

The report includes the 5G services market forecast by type, end user, and geography from 2023 to 2031. 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). In terms of revenue, the enhanced mobile broadband (eMBB)segment held the largest 5G services market share and is expected to record the highest CAGR during the forecast period.

The scope of the 5G services market report focuses on North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). Asia Pacific dominated the market in 2023, followed by North America and Europe.

The Asia Pacific 5G services market is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. In terms of revenue, China held the largest APAC 5G services market share. China is expanding its 5G infrastructure rapidly. In early 2021, China Mobile announced a total of 168.97 million 5G subscribers, compared to 6.7 million 5G customers in January 2020. In the same period, the Vice Minister of the Ministry of Industry and Information Technology (MIIT) of China announced that 718,000 5G base stations were built in the country in 2020, accounting for ~70% of the world’s total 5G sites. According to the 2022 World 5G Convention, telecom operators across the country have invested US$ 59.4 billion in 5G. In March 2022, China had 355 million 5G users and had deployed 1.4 million 5G base stations. According to MIIT, China had built ~1.97 million 5G base stations in  July 2022. Almost all prefecture-level cities and counties and 96% of all towns in China are equipped with 5G network coverage. Also, China’s 5G base stations represent more than 60% of the total 5G users worldwide.

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