As the world is witnessing rapid advancements in technology, 5G technology is expected to be at the centre of an ecosystem that empowers society’s continued digital transformation journey. 5G is anticipated to take over the generation of cellular mobile communications that promises to change the DNA of user experience by offering new applications and services through superior gigabit speeds, and significantly improved network performance & reliability. 5G technology is expected to transform societies to support new services and new business models.
In addition, the boom in artificial intelligence and IoT is driving the growth of 5G technology market. The increase in number of internet users and smartphone users is also fuelling the growth of 5G technology market. Moreover, increasing investments in IIoT technology is expected to have a significant impact on the 5G technology market. Apart from this, integration of new technologies within the existing infrastructure is the major challenge for the 5G technology market.
Increasing Investments in Telecommunication Infrastructure is Creating Investment Opportunities
Infrastructure is always on the top priority of any country when it comes to investments. The telecommunication sector is a rapidly growing sector with a vast scope for investments in telecommunication infrastructure. These investments are creating potential growth opportunities for 5G technology market. Moreover, the governments and public organizations of various countries are investing a high amount for the betterment of their telecommunication infrastructure which is driving the 5G technology market.
The recent trend of 5G technology has a significant potential to transform the telecom industry as well as the telecom experience of end users. Thus, heavy investments for the betterment of telecommunication infrastructure is one of the major factors driving the 5G technology market.
For instance, Japan, South Korea, and China have been leading infrastructure tests throughout the 5G deployment cycle. Moreover, China has invested approximately US$ 180 Billion into mainland telecommunication infrastructure and is planning the full commercial launch of 5G technology in 2020.
Digital Transformation Is Growing Demand for Wireless Systems
The increasing network complexity in businesses and organizations is propelling the growth of 5G technology market. These companies are preparing for the adoption of 5G technology to sustain in an increasingly complex network world. Also, as the tides of data continue to rise, businesses are focusing on transformation through virtualization and automation to optimize the cost and scale of experiences that they want to create which is fuelling the growth of 5G technology market.
Moreover, the 5G technology market is expected to witness high growth rates due the rapid digitalization and increasing penetration of mobile devices, apps, and a variety of voice and collaboration tools. Furthermore, the high approval of advanced applications, such as augmented reality, Internet of Things (IoT), and autonomous vehicles are likely to fuel the growth of the 5G technology market.
In addition, a continuous increase in the number of subscribers and new application areas of wireless technologies has created potential growth opportunities for the 5G technology market.
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East Asia is expected to Create Higher Growth Opportunities
East Asia is expected to hold a significant share in the global 5G Technology market during the forecast period. The continuous developments in the network infrastructure of countries in the region is fuelling the growth of the 5G Technology market. Moreover, the growing need for high-performance and faster data transfer equipment is also creating substantial demand for 5G technology.
Furthermore, increasing investments in telecommunication sectors by countries in the region, including China, Japan, and South Korea are expected to drive the 5G Technology market. Also, the growing demand for large and high-speed network coverage from numerous industries in the region is fuelling the growth of the 5G technology market. Apart from this, the increasing number of 5G trails is supporting the growth of 5G technology market in the region.
For instance, in February 2017, China Mobile has started 5G field trials in 2017 and it is planning to pre commercialize 5G technology trials in 2019. Also, the Government of China announced plans for the secure quantum communication backbone network and 5G technology and network.
Partnerships and Collaboration between Telecommunication Service Providers and Network Equipment Manufacture will Drive Future Growth Avenues
According to FMI analysis, strategic partnerships and long-term agreements among the telecommunication service providers and network equipment manufacturers are expected to drive the growth of 5G technology market and helps in escalating revenue and new innovation strategies for the providers of 5G technology. Moreover, continuous innovations in 5G technology use cases is also expected to help the providers of 5G technology create value for their shareholders and to accelerate revenue growth.
For instance, in December 2018, Ericsson, SK Telecom, and Qualcomm Technologies, Inc. entered into the partnership and have successfully carried out a 5G NR data call on mid-band over SKT’s live, 5G commercial network in Busan, South Korea. Other key participants in the global 5G technology market include Deutsche Telekom AG, Nokia Networks, Telecom Italia, AT&T, Inc., Huawei Technologies Co. Ltd., Orange, S.A., China Mobile Limited, KT Corporation, and Verizon Communications, Inc.
On the basis of technology
- 5G RAN
- 5G NG Core
- Routing Backhaul
- Optical Backhaul
On the basis of application
- Virtual & Augmented Reality
- Connected Automotive
- Smart Manufacturing
- Connected Energy
- Wireless eHealth
- Connected Drones
- Smart Cities
On the basis of vertical
- Energy & Utilities
- Transportation & Logistics
- Public Safety