5G Equipment Market to Reach $23.9 Billion by 2032, Growing at a 14.5% CAGR
The global 𝟓𝐆 𝐄𝐪𝐮𝐢𝐩𝐦𝐞𝐧𝐭 𝐌𝐚𝐫𝐤𝐞𝐭 was
valued at $6.4 billion in 2022, and is projected to reach $23.9 billion by
2032, growing at a CAGR of 14.5% from 2023 to 2032. By end-use, the retail
sector held the highest market share in 2022, accounting of nearly
three-fourths of the 5G equipment market revenue, and is estimated to maintain
its leadership status during the forecast period. Rise in demand of advanced
and portable devices is expected to optimize the business capabilities of
retail sector. However, the non-retail sector is projected to attain the
highest CAGR of 17.3% from 2023 to 203, due to rise in demand for 5G technology
in the enterprises.
5G technology offers significant advancements, such as faster
speed, lower latency, improved connection density and wider coverage, thus
enabling implementation of IoT, augmented reality & virtual reality (AR/VR)
applications, factory automation, and other applications where security,
reliability, quality of service and efficiency are critical. While the 5G
industry is preparing businesses to experience digital transformation with
equipment manufacturers, playing a crucial role in developing high performance
components to support reliable implementation. However, major challenges to be
addressed by manufacturers include managing extreme thermal conditions within
increasing smaller encapsulated components and delivering high performance at
low power. These challenges can be overcome through the use of high-performance
materials. Such factors are expected to provide the lucrative opportunities for
the 5G equipment market forecast. The global 5G Equipment Market was valued at
$6.4 billion in 2022, and is projected to reach $23.9 billion by 2032, growing
at a CAGR of 14.5% from 2023 to 2032.
𝐑𝐞𝐠𝐢𝐨𝐧𝐚𝐥 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:
By region, North America dominated the market
share in 2022 for the 5G equipment industry. As this region companies are contributing
significantly to the development of 5G equipment, including radio units,
antennas, and other infrastructure components. In addition, North America
region has advanced technology ecosystem, along with numerous R&D centers,
that foster innovative and cutting-edge solutions for the 5G equipment market.
However, Asia-Pacific is expected to exhibit the highest growth during the
forecast period. Rise in digitalization toward business process is anticipated
to provide lucrative growth opportunities for the market in the Asia-Pacific
region. For instance, Huawei, a Chinese company, launched a new solution, Telco
Cloud Networking. The solution will assist carriers in providing innovative
services that will empower 5G, IoT, and Virtual Reality (VR), which is
anticipated to provide lucrative opportunities for the growth of the
Asia-Pacific region.
By product, the small cell segment held the
highest market share in 2022, accounting for more than two-fifths of the 5G
equipment market revenue, and is estimated to maintain its leadership status
during the forecast period. Increase in network densification, rise in mobile
data traffic, and the emergence of citizens broadband radio service (CBRS) band
boost the growth of the segment. However, the macro cell segment is expected to
attain the largest CAGR of 17.0% from 2023 to 2032 and is projected to maintain
its lead position during the forecast period. The major advantage of using
macro cell in 5G is that it can provide 5G services to a large geographic area.
5G macro cells also use Massive MIMO technology, which allows large
transmission and reception of data.
𝐓𝐡𝐞 𝐤𝐞𝐲 𝐩𝐥𝐚𝐲𝐞𝐫𝐬 𝐩𝐫𝐨𝐟𝐢𝐥𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐫𝐞𝐩𝐨𝐫𝐭 𝐢𝐧𝐜𝐥𝐮𝐝𝐞 Cisco Systems, Inc., Samsung Electronics, NEC Corporation,
Huawei Technologies Co., Ltd., AT&T Inc., Verizon
Communication, Qualcomm Technologies,Telefonaktiebolaget LM
Ericsson, ZTE Corporation and Nokia Corporation.
The report provides a detailed analysis of these
key players in the 5G equipment market. These players have adopted different
strategies such as new product launches, collaborations, expansion, joint
ventures, agreements, and others to increase their market share and maintain
dominant shares in different countries. The report is valuable in highlighting
business performance, operating segments, product portfolio, and strategic
moves of market players to showcase the competitive scenario.
Based on product, the global 5G equipment market
size was dominated by the small cell segment in 2022 and is expected to
maintain its dominance in the upcoming years. Increase in trend of remote work
due to the outbreak of the COVID-19 pandemic is driving the deployment of 5G
equipment among industries across the globe. This, in turn, is expected to
boost growth of the segment. In addition, increase in network densification,
rise in mobile data traffic, and the emergence of citizens broadband radio
service (CBRS) band also boost the growth of the small cell segment. However,
the macro cell segment is expected to witness the highest growth during the
forecast period. The major advantage of using macro cell in 5G is that it can
provide 5G services to a large geographic area. 5G macro cells also use Massive
MIMO technology, which allows large transmission and reception of data.
However, economic uncertainties and budget
constraints faced by businesses and governments during the pandemic may have
influenced investment decisions in 5G deployment. In addition, travel
restrictions hindered the deployment of 5G networks in some regions. As the
global economy recovers, the 5G equipment industry is expected to rebound,
spurred by continued digital transformation efforts and a renewed focus on
resilient, high-capacity communication networks. Further, the pandemic has
served as a catalyst, emphasizing the critical role of 5G technology in
fostering connectivity and enabling businesses and communities to thrive in a
rapidly changing world. For instance, in September 2023, Siemens launched a
private 5G infrastructure developed in-house for industry users. The solution
enables industrial companies to build their own local 5G networks that provide
optimal support for automation applications. 5G is crucial for applications
such a mobile robots, autonomous logistics, and driverless transport systems in
factories. Consequently. this 5G infrastructure provides users sole control
over the data in their 5G network, and they can custom-configure the network
for their applications.
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