Next Generation Wireless Communication Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Next Generation Wireless Communication Market Size

Next-Generation Wireless Communication Market Trends & Growth Drivers

Expansion of 5G Networks Are Key Trend in Market

• Businesses are developing innovative strategies for 5G network installation, in response to the growing demand for connectivity. They are lowering the cost of tiny cells and increasing their appeal to vertical firms, as well as MNOs. Furthermore, SDNs and NFV are virtualized and simplified network choices, which offer the foundation for improved capabilities via function centralization.
• With the increasing demand for voice and data access, many service providers have started funding the development of 5G networks. During the process, companies create small cells, which are more affordable, to provide customers with improved bandwidth offerings.
• The development of C-RAN for 5G will have a significant influence on wireless technologies, allowing for network slicing and mobile edge computing (MEC).

Rising Demand for Reliable Connectivity Is Driving Market

• The increasing need for dependable communication networks in various sectors, such as public safety, healthcare, and defense, is a significant driver for the market.
• In the U.K., from 2021 to 2022, almost 4.3 million homes were upgraded to full-fiber broadband.
• The market is growing because of the development of the 5G technology, which offers high-speed connections, low latency, and great dependability. Allied applications such as virtual and augmented reality, and driverless cars will be aided by this technology.
• The growing adoption of edge and cloud computing technologies drives the market as they require a low latency and high-speed communication for real-time data processing and analysis.
• This market is also driven by the growing use of wireless communication technologies in various industries to enable the remote operation and real-time monitoring and control of machines.

Conflict Between Russia and Ukraine Is Affecting Market

• The Russia–Ukraine war is expected to have a substantial impact on the next-generation wireless communication market in the short term. The prolonged conflict has led to political and economic instability, which has decreased the spending power of consumers in the area.
• Due to this war, the supply chain of the market has been disrupted, causing difficulties for the players in manufacturing and delivery. Due to this, the market might have to face huge losses.
• Next-generation wireless communication is seen as an essential service, which is why when political leaders settle down, the demand for these goods is expected to grow.

Next-Generation Wireless Communication Market Analysis

Component Insights

• The hardware category dominates the market with 45% revenue in 2024.
• Components such as routers, modems, network switches, fiber-optic cables, transmission tower and base station equipment, network hubs, and firewalls form the very core of any telecom system.
• They are the initial purchases and come with the software installed on them.
• The software category is expected to witness the highest CAGR, of 17.9%, in 2024–2030. This is because the software creates the network's ability to scale up in response to requirements and its responsiveness. The use of a centralized control system enables MNOs to swiftly alter their network in response to variations in data traffic volume.

The components covered in the report include:

• Hardware (Largest Category)
• Software (Fastest-Growing Category)
• Services

Mode Insights

• The cellular category contributes 35% revenue and dominates the market in 2024. This is due to the establishment of GSM standards, the enlargement of coverage, the growth in the usage of mobile data services, and the launch of prepaid services.
• The Wi-Fi category is expected to witness the highest CAGR, of 18.2%, in 2024– 2030. This is because of the rise of smart homes and the use of IoT devices, which require mobile devices to seamlessly integrate into various devices, to establish remote connectivity. As a result, both businesses and people are investing significantly in improve connectivity protocols, such as Wi-Fi 6 and Wi-Fi 6E.
• In addition to the increase in the efficiency and dependability of wireless networks, the easy availability of digital solutions drives the market in this category.

The following modes are included in the report:

• Infrared
• Wi-Fi (Fastest-Growing Category)
• Radiofrequency
• Bluetooth
• Satellite
• Cellular (Largest Category)
• Microwave

Application Insights

• The telecommunications category contributes 30% market revenue, thus dominating the segment, in 2024. Over the past few years, the landscape of communications has changed drastically with the emergence of machine-to-machine communications. Without human assistance, machines and their components, such as sensors, actuators, and smart meters, interact with one another, sharing data and improving their operations.
• The demand for improved communication infrastructure is rising with the introduction of M2M and remote monitoring concepts.
• Service providers now prioritize value-added services and providing an exceptional client experience above technical infrastructure, due to the increasing competition.

Applications covered in the report are:

• Consumer Electronics
• Telecommunications (Largest and Fastest-Growing Category)
• Aerospace & Defense
• Retail
• Automotive
• Healthcare
• Others

Geographical Analysis

• North America is the largest region with a market share of 45% in 2024. This dominance is due to the existence of market leaders, increasing disposable income, and rapidly advancing telecom infrastructure. The increasing usage of smart devices and IoT is likely to further boost the market development in North America.
• According to the International Trade Administration, the IT sector contributes almost USD 2 trillion to the U.S.’s GDP due to the rapid 5G mobile technology deployment and announcement of plans for further enhancement by major operators.
• Almost half the mobile phone users in this region had 5G access in 2023.
• APAC will be the fastest-growing market, with a CAGR of 17.9%, during 2024–2023.
• This is because of the adoption of advanced telecom technologies due to a large user base, government support, and smart city initiatives.
• India, China, Japan, and South Korea lead the way in deploying 5G networks in the region.
• These countries seek to bring their manufacturing sector into the future, for which high-speed, low-latency connectivity is vital for M2M, IoT, and other industrial applications.

The regions and countries analyzed in this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Next Generation Wireless Communication Market Share

Market Concentration – Fragmented

This market is fragmented in nature as a lot of multination and local companies offer the hardware to enable next-generation wireless communication. However, the associated software is generally available with the well-known IT firms that operate internationally. The leading companies are increasingly investing in R&D for upgrading their manufacturing plants and solutions.

Next-Generation Wireless Communication Market News

• In March 2024, researchers at Samsung’s R&D Institute in Bangalore, India, collaborated with experts from the U.K. and the U.S. to edit a book titled AI in Wireless for Beyond 5G Networks. The authors of the book examined the latest AI technologies and how B5G wireless communication systems can leverage them.
• In March 2024, Telefonaktiebolaget LM Ericsson expanded its geographical presence in the U.S. by establishing Ericsson Federal Technologies Group. This group will deliver 5G-driven digital transformation to numerous government agencies. Key applications of this transformation are expected to be U.S. defense modernization programs, for national and economic security.
• In March 2024, Intel Corporation collaborated with Arm Limited to support the startup community. This initiative builds on the one started in April 2023 to enable semiconductor companies to design low-power system-on-chips (SoCs) for the Intel 18A process.
• In March 2024, Telefonaktiebolaget LM Ericsson entered into an alliance with Umniah to increase network performance with AI. Modern AI- and ML-driven performance diagnostics and virtual drive testing solutions will be made available by Ericsson to address the important network components of Umniah in a sizable cluster, which includes Amman and its environs.
• In June 2023, Analog Devices Inc. started to advance the software of Apollo MxFE for upgrading signal processing for aerospace, defense, and other sectors. The advanced solution is expected to provide higher bandwidths and faster data processing and analysis for 5G, 6G, Wi-Fi, radar, signal intelligence, and other network edge applications.