5G Infrastructure Market Trends, Share, and Growth (2023-2031)
The 5G Infrastructure Market size is projected to reach US$ 134.88 billion by 2031 from US$ 15.27 billion in 2023. The market is expected to register a CAGR of 31.30% in 2023–2031. The expansion of industrial automation and a new wave of IoT applications are likely to fuel market growth.
5G Infrastructure Market Analysis
The increasing amount of smart city initiatives globally is boosting the need for 5G due to its ability to deliver quicker communication infrastructure, analytics, IoT, and automation for environmental conservation, enhance traffic flow, and ensure public safety. Additionally, the increasing amount of interconnected IoT devices is driving the expansion of the 5G infrastructure market. Moreover, the increasing industrial automation is boosting the need for 5G. 5G technology offers lower latency, greater reliability, and faster speeds that aid emerging technologies and their inventive methods in smart factories, leading to a chance for the expansion of the 5G infrastructure market. Furthermore, increased government investment in 5G infrastructure across various nations will further drive market expansion in the projected timeframe.
5G Infrastructure Market Overview
The 5G infrastructure is a network of large and small cell base stations with the necessary capabilities for the operation of the fifth-generation cellular network technology standard. The availability of 5G infrastructure enables quick data processing for big data streams, which is advantageous for applications such as augmented reality, semi-autonomous vehicles, and Internet of Things devices. Two categories of 5G network infrastructure exist: non-standalone (NSA) setups, which utilize certain 4G LTE equipment, and standalone 5G infrastructures, which feature their cloud-native network core connecting to 5G New Radio (NR) technologies.
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5G Infrastructure Market: Strategic Insights
Market Size Value in US$ 11.63 billion in 2022 Market Size Value by US$ 102.47 billion by 2030 Growth rate CAGR of 31.3% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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5G Infrastructure Market: Strategic Insights
| Market Size Value in | US$ 11.63 billion in 2022 |
| Market Size Value by | US$ 102.47 billion by 2030 |
| Growth rate | CAGR of 31.3% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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5G Infrastructure Market Drivers and Opportunities
The Expansion of Industrial Automation to Fuel the Market
Automation is becoming more sought-after in different industries across the globe. Fast wireless communication is crucial for automation and interconnectivity, acting as a bridge between machines, sensors, and users for smooth and expandable connectivity. Moreover, it connects automated guided vehicles (AGVS), robotics, drones, and the Internet of Things (IoT). Additionally, increased factory automation boosts productivity and product quality while reducing production costs. Additionally, industrial automation has become highly sought after in industries such as automotive, manufacturing, and others due to its ability to safeguard consistent and high-quality results in production. Automation is becoming more sought-after in different industries across the globe. Fast wireless communication is crucial for automation and interconnectivity, acting as a bridge between machines, sensors, and users for smooth and expandable connectivity.
New Wave of IoT Applications to Support Market Growth
The emergence of 5G technology is leading to significant developments in the Internet of Things (IoT). It serves as a robust facilitator for a new wave of applications that will utilize edge computing to enhance the effectiveness and efficiency of IoT. 5G's impact can be seen as the interplay between two persistent trends: the growth of highly dependable, high-capacity communications and the widespread distribution of computing power across networks. This computational power extends beyond the network to include smarter and more powerful endpoint devices. As telecommunications companies redesign their networks for 5G, a more dynamic and potent computational environment is taking shape, which will drive the adoption of IoT applications and services across various industries. Anticipated benefits of 5G include the facilitation of new applications in areas such as remote monitoring, visual inspection, autonomous operations in large remote settings like mines, and connectivity for vehicles, among others. The expanding array of computing options necessitates a more adaptable approach to developing and deploying applications and AI models that can efficiently utilize the most cost-effective computing resources available. Furthermore, these AI models can now operate on edge devices connected to the network edge, leading to more secure and efficient data processing.
Growing Need for Ultra-Low Latency– An Opportunity in the Market
The adoption of cutting-edge expertise, such as the Internet of Things (IoT), connected devices, Artificial Intelligence, Augmented & Virtual Reality, and others, is on the rise. However, many industries face challenges in fully leveraging these technologies due to high latency. 5G technology offers ultra-low latency capabilities, enhancing user experience and driving demand in mission-critical applications. Notably, in telemedicine, low latency enables real-time access to critical data, paving the way for future remote robotic surgeries. In manufacturing, 5G can optimize connected robotic systems, improving the efficiency of Industrial IoT devices and machines. Additionally, 5G is poised to enhance assisted driving and transport services through real-time data alerts, improving safety. Furthermore, its low latency is set to revolutionize virtual and augmented reality applications, offering users a highly immersive experience and driving the demand for 5G infrastructure.
5G Infrastructure Market Report Segmentation Analysis
Key segments that contributed to the derivation of the 5G Infrastructure Market analysis are communication infrastructure, core network technology, operational frequency, network architecture, and end user.
- Based on communication infrastructure, the market is segmented into small cells and macro cells. The small cell segment held a significant market share in 2023.
- In terms of core network technology, the market is segmented into software-defined networking (SDN) and network function virtualization (NFV). The software-defined networking (SDN) segment held a substantial share of the market in 2023.
- Based on operational frequency, the market is segmented into Sub 6 GHz and Above 6 GHz. The Sub 6 GHz segment held a substantial share of the market in 2023.
- In terms of network architecture, the market is segmented into standalone and non-standalone. The standalone segment held a substantial share of the market in 2023.
- Based on end user, the market is segmented into residential, commercial, government, and industrial. The residential segment held a substantial share of the market in 2023.
5G Infrastructure Market Share Analysis by Geography
The geographic scope of the 5G Infrastructure Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
Governments in various Asia Pacific countries, including China and India, are actively improving their digital and network infrastructure in response to the increasing internet usage. The swift implementation of 5G, driven by ongoing digital advancements, is expected to stimulate market growth in the region. According to the 2022 GSMA report, 14 countries already have commercially accessible 5G networks. Vietnam and India are projected to experience rapid 5G network adoption in the near future, consequently driving the demand for 5G infrastructure.
5G Infrastructure Market Report Scope
5G Infrastructure Market News and Recent Developments
The 5G Infrastructure Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
- The 5G Smart Factory Forum was held today at the Huawei European Supply Center (HESC) in Budapest. At the forum, Huawei stated that 5G-powered innovative solutions, including self-driving vehicles, AI-driven quality control, and AR-assisted remote maintenance, will serve as the typical applications and basic capabilities of future smart factories.
(Source: Huawei Technologies Co., Ltd., Company News, 2023)
- At the 5G Core Summit hosted by Informa Tech, George Gao, President of Huawei Cloud Core Network Product Line, launched the 5.5G Intelligent Core Network solution. The solution is equipped with native intelligence, making it powerful enough to implement service intelligence, network intelligence, and O&M intelligence so as to empower more new businesses and light up an intelligent world.
(Source: Huawei Technologies Co., Ltd., Company News, 2023)
- The technology company Siemens is launching a private infrastructure developed in-house for the 5G mobile communications standard. The solution enables industrial companies to build their own local 5G networks that will provide optimal support for automation applications. "By building their own 5G networks, industrial companies are launching the next stage of connected production," says Axel Lorenz, CEO of Process Automation at Siemens. "5G is crucial for applications like mobile robots, autonomous logistics, and driverless transport systems in factories. Siemens' private 5G infrastructure also gives users sole control over the data in their 5G network at all times, and they can custom-configure the network for their applications."
(Source: Siemens, Press Release, 2023)
5G Infrastructure Market Report Coverage and Deliverables
The “5G Infrastructure Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- 5G Infrastructure Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- 5G Infrastructure Market Trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- 5G Infrastructure Market analysis covering key market trends, major players, regulations, and recent market developments
- 5G Infrastructure industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Communication Infrastructure, Core Network Technology, Operational Frequency, Network Architecture, and End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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