Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the 5G Services market.
Trusted Business Insights presents an updated and Latest Study on 5G Services Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the 5G Services market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Global 5G Services Market
The global 5G services market size is estimated to reach USD 30.37 billion by 2020 and expand at a compound annual growth rate (CAGR) of 32.8% from 2021 to 2027. 5G wireless mobile services are expected to commercialize in 2020 and enable a fully mobile and connected environment by delivering a wide range of use cases and business models to consumers. Moreover, faster data speeds and extremely low latency offered by the 5G technology would enhance the user experience while using 5G services for several use cases, such as Virtual Reality (VR) and Augmented Reality (AR) gaming, seamless video calling, and Ultra-high Definition (UHD) videos. Growing demand for high-speed data connectivity for a unified Internet of things (IoT) applications, such as smart home energy management, is estimated to propel the adoption of 5G services over the forecast period 2021-2027. Moreover, increasing focus of the 5G system integration providers on building partnerships with telecom operators is estimated to augment the adoption of 5G services.
Many industry verticals are focusing aggressively on technological transformations to improve their overall productivity and operational efficiency as part of the efforts to sustain in a highly competitive environment. The 5G wireless technology holds the potential to help in realizing remarkable transformations across all these verticals through reductions in overall costs and enhancement in productivity. Continued emphasis on improving energy monitoring and management as well as gaining better control of the energy generation and distribution network is also expected to increase the adoption of 5G services over the forecast period.
When it comes to healthcare, some of the largest economies such as the U.S. and China are expected to continue spending aggressively on provisioning healthcare facilities. For instance, the National Health spending Accounts (NHEA) of the U.S. expects the overall healthcare spending in the U.S. to reach around USD 6.0 trillion by 2027, exhibiting a CAGR of nearly 5.5% from 2018 to 2027. Modern healthcare would particularly emphasize on administering technology-driven treatments to the patients, thereby driving the market for 5G services over the forecast period.
Apart from energy and utilities and healthcare, transportation and logistics is another industry vertical that can offer potential opportunities for the 5G services industry. For instance, the concept of vehicle-to-everything (V2X) communication has paved the way for connected vehicles and autonomous driving. 5G services would be playing a crucial role in providing seamless vehicle-to-infrastructure (V2I) communication and vehicle-to-vehicle (V2V) communication to reduce the chances of accidents on roads. Growing emphasis on ensuring a safe and enhanced driving experience with connected vehicles is expected to drive the market for 5G services over the forecast period.
Next-generation 5G technologies are increasingly being used in public transportation applications. These technologies are capable of providing broadband access for public transportation systems, such as buses and high-speed trains, to provide high-speed internet in transit for entertainment, information, and interaction with smart mobility components. This, in turn, is expected to fuel the market growth over the forecast period. Besides, the strong emphasis on providing reliable and robust communication during natural disasters, such as floods, hurricanes, and earthquakes, is further estimated to spur the adoption of 5G services over the forecast period.
However, governments are quoting significantly high prices for service providers for procuring the 5G spectrum. Service providers would have no other option but to pass on these costs to the end users. Clearly, end users would have to pay higher prices for availing 5G services from the service providers. High spectrum prices and the subsequent hike in 5G service subscription prices are expected to hinder the market growth from 2021 to 2027.
The 5G services market is currently in the introduction phase, therefore key service providers across the globe are aggressively investing in deploying modern network infrastructure to tap the maximum subscriber base in their region. However, the outbreak of the COVID-19 pandemic has positioned the deployment of several 5G core infrastructure and base stations on hold across the globe. Additionally, the spectrum auction for 5G services has been postponed by several federal governments across key countries, such as Spain, U.S., U.K., Italy, and France. Therefore, it is estimated that the market for 5G services would witness sluggish growth in the near future.
Vertical Insights: Global 5G Services Market
In terms of value, IT and telecom is estimated to dominate the market for 5G services with a share of 24.5% by 2020 and is expected to maintain its lead over the forecast period. This is attributed to the significant investments by corporate players in the adoption of the latest technologies for communication. Growing demand for higher data speeds for residential and commercial applications is estimated to boost the growth of the IT and telecom segment over the forecast period. Besides, 5G services are expected to deliver ubiquitous broadband access between homes and offices, which would encourage remote consultation with specialists and reduce business travels. Growing need for enhanced broadband capacity for virtual business meetings is anticipated to propel the IT and telecom segment growth during the forecast period.
The manufacturing sector is witnessing rapid digital transformation. As such, production lines are being automated continuously to enhance overall productivity. This has triggered the need for seamless wireless communication between the robots, sensors, actuators, and other devices installed in manufacturing facilities. As a result, the manufacturing segment is expected to witness the fastest growth over the forecast period. The healthcare industry is expected to witness a considerable adoption of the 5G services to provide enhanced telemedicine and healthcare emergency services over the forecast period.
Communication Type Insights: Global 5G Services Market
In terms of value, the enhanced mobile broadband (eMBB) segment is estimated to dominate the market for 5G services with a share of 42.5% by 2020 and is expected to witness considerable growth over the forecast period. This is attributed to the preliminary focus by 5G network operators to deliver enhanced broadband capabilities for applications, such as high-speed cloud-based gaming, AR/VR, UHD video, and uninterrupted video calls. The initial phase of the rollout is expected to focus on a 5G wireless non-standalone deployment model. The eMBB provides very high data speeds for residential and commercial use. As such, eMBB is expected to cater to several use cases, such as in-vehicle infotainment, 4K video access, and virtual meeting, thereby fueling the growth of the eMBB segment during the forecast period.
The massive machine-type communications (mMTC) segment is expected to witness the fastest growth from 2021 to 2027. Massive machine-type communications are likely to cater to the growing need for a developed digital ecosystem. As such, mMTC focuses on providing services for high connection density applications, such as smart buildings and smart cities. Growing need to ensure uninterrupted connectivity for all the IoT devices deployed in a network is anticipated to contribute to the growth of the mMTC segment over the forecast period.
Regional Insights: Global 5G Services Market
North America is expected to dominate the 5G services market with a share of 34.3% by 2020. Some of the most significant investments in deploying 5G network infrastructure are materializing in the U.S. For instance, according to GVR analysis, mobile operators based in the U.S. invested around USD 250 billion in mobile network infrastructure rollout between 2010 and 2017. The aggressive investments in the U.S. in building smart homes, establishing smart industries, and rolling out smart city projects are expected to contribute to the market growth in North America over the forecast period.
In Asia Pacific, key market players such as China Telecom, China Mobile, SK Telecom, and KT Corporation are investing aggressively in rolling out 5G network infrastructure in China, Japan, and South Korea. Most of these investments are expected to focus on deploying the next-generation infrastructure for the media and entertainment, transportation and logistics, healthcare, and manufacturing. These investments are estimated to propel the market growth in Asia Pacific over the forecast period. Moreover, rapidly rising demand for smartphones supporting higher data speeds has resulted in robust production of 5G-enabled smartphones across the region. 5G services are expected to gain traction as key smartphone manufacturers in the region, such as Huawei Technologies Co. Ltd., Samsung Electronics Co., Ltd, and BBK Electronics Corporation, continue to launch 5G-enabled smartphones in response to the rising demand.
Key Companies & Market Share Insights: Global 5G Services Market
The market for 5G services is highly fragmented as several regional telecom service providers are investing significantly in deploying the next-generation infrastructure. This will help these players to expand their customer base in the market. In addition, these market players are strategically focusing on mergers and acquisitions to strengthen their foothold in the global market. For instance, in September 2018, T-Mobile signed an agreement with Ericsson to support T-Mobileâ€™s 5G deployment in the U.S. The deal was valued at USD 3.5 billion.
Moreover, key market players are investing a significant amount in acquiring the necessary spectrum. Having an adequate spectrum would allow the market players to strengthen their overall portfolios and increase their subscriber base across various countries. For instance, in April 2018, the BT Group plcâ€™s Enterprise (EE) segment acquired 40 MHz of 3.4 GHz spectrum (3540 – 3580 MHz spectrum frequencies) for around USD 426.5 million. The company plans to utilize the spectrum to provide next-generation improved internet services in U.K. Some of the prominentÂ players in the 5G services market include:
Key companies Profiled: Global 5G Services Market Report
- AT&T Inc.
- BT Group plc
- China Mobile Ltd.
- China Telecom Corporation Limited
- Bharti Airtel Limited
- KT Corporation
- Saudi Telecom Company
- Vodafone Group
- Deutsche Telekom AG
- SK Telecom Co., Ltd.
- Verizon Communications Inc.
- NTT Docomo
- Telecom Italia
- Sprint Corporation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2020 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global 5G services market report based on communication type, vertical, and region:
Communication Type Outlook (Revenue, USD Billion, 2020 – 2027)
- Fixed Wireless Access (FWA)
- Enhanced Mobile Broadband (eMBB)
- Ultra-reliable and Low Latency Communications (uRLLC)
- Massive Machine-type Communications (mMTC)
Vertical Outlook (Revenue, USD Billion, 2020 – 2027)
- Energy & Utility
- Media & Entertainment
- IT & Telecom
- Transportation & Logistics
- O&G and Mining
- Real Estate
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