The rising demand for low-latency internet, increasing adoption of technologies that demand speedy internet connections, such as the internet of things (IoT); expanding 5G subscriber base, and surging investments by governments and private organizations are some of the major factors responsible for the growth of the global 5G infrastructure market. Further, the rise in the adoption of 5G-powered devices is driving the market for 5G infrastructure components. As a result, the revenue of the market, which was ~$1.5 billion in 2020, would grow substantially during the forecast period (2021–2030).
The COVID-19 pandemic has hurt the 5G infrastructure market. The actions taken to prevent the spread of this disease, such as the implementation of lockdowns in many countries, has affected the 5G infrastructure market advance, as due to this, many organizations are delaying launching 5G networks. For instance, the Department of Telecommunications of India has postponed its spectrum auction for the year 2021.
The 5G infrastructure market is bifurcated into 5G NR non-standalone (LTE combined) and 5G standalone (NR + core), on the basis of network architecture. The 5G standalone (NR + core) category held the larger market share in 2020, and it would considerably grow in the upcoming years. This can be primarily credited to the rise in the demand for 5G-enabled smartphones and other devices; benefits of the 5G standalone architecture such as quick provision of new telecommunication services without interfering with the existing services, including 4G; and changing network demands.
Further, the market for 5G infrastructure components is categorized into residential, commercial, industrial, and government, on the basis of end user. The industrial category is predicted to show a significant growth rate during the forecast period owing to the opportunities in machine-to-machine (M2M) connectivity and developments in IoT. Many industries, such as defense, automotive, healthcare, and aerospace, would benefit from the 5G network, as it enables smooth networking during cloud computing, uninterrupted meetings, and improved connectivity with IoT devices.
In 2020, North America held the largest share in the 5G infrastructure market in 2020. This can be attributed to the investments done by regional governments in 5G infrastructure, large number of 5G infrastructure organizations, such as Airspan Networks Inc. and Cisco Systems Inc., and high adoption rate of automated vehicles, IoT, and wearable technologies in the continent.
Players in the 5G infrastructure market have been collaborating with other organizations and launching new solutions to enhance their market presence. For instance,
In February 2020, Mavenir Systems Inc. formed a partnership with Turkcell İletişim Hizmetleri A.Ş. to initially test and deploy openRAN virtualRAN (vRAN) in Turkey. The vRan solution would go live on Turkcell İletişim Hizmetleri A.Ş. Edge Cloud and be positioned on Turkcell İletişim Hizmetleri A.Ş. Telco Cloud.
In January 2020, NEC Corporation developed millimeter-wave distributed antennas (MIMO) for the efficient use of 5G millimeter-wave spectra. This technology would deliver high-capacity communication with high speed and good quality.
Some of the major players operating in the global 5G infrastructure market are Airspan Networks Inc., Affirmed Networks Inc., American Tower Corp., AT&T Inc., China Mobile Ltd., Cisco Systems Inc., Ciena Corporation, Telefonaktiebolaget LM Ericsson, Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., KT Corporation, NEC Corporation, Samsung Electronics Co. Ltd., SK Telecom Co. Ltd., and Turkcell İletişim Hizmetleri A.Ş.