5G Services Market

5G Services Market Outlook 2031

The global 5G services market size was valued at USD 85.34 Billion in 2022 and is expected to reach USD 2.44 Trillion by 2031 expanding at a CAGR of 45.2% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing needs for high-speed data networks for unified Internet of Things.

5G wireless mobile services provides a high speed, well-connected, and fully mobile communication network that can deliver a wide range of advanced business models and service networks to consumers. Furthermore, low latency and high data speeds provided by the 5G technology enhances the user experience in the fields of virtual reality (VR), seamless video calling, augmented reality (AR) gaming, and ultra-high definition (UHD) videos, and others.

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The 5G wireless technology has the prospect to support in realizing astonishing alterations over all verticals by enhancement in productivity and decreasing overall costs. Considering emerging opportunities of the healthcare sector, the two largest economies namely China and the U.S. are continuing their investment to develop and enhance healthcare facilities.

Furthermore, the data reported by National Health Expenditure Accounts (NHEA), the overall healthcare spending in the U.S. is expected to be more than USD 5.0 trillion by 2028 anticipating to expand at a CAGR of nearly 5% during the forecast period. Apart from the healthcare sector, the technology has a wide range of applications in various industries including transportation, energy & utilities, and logistics.

For instance, the vehicle-to-anything communication has provided the way for connected autonomous driving and vehicles. 5G services plays a major role in providing seamless vehicle-to-infrastructure communication and vehicle-to-vehicle communication to reduce the chances of accidents on roads. The next-generation 5G technology is growingly used in public transportation applications.

This technology provide broadband access for public transportation systems such as high-speed trains and buses, to provide fast-speed internet in transit for information, entertainment, and interaction with smart mobility components. This technology is expected to be highly in demand in the coming years considering its higher adoption rates.

5G Services Market Trends, Drivers, Restraints, and Opportunities

• Rising emphasis on building collaborations and partnerships by 5G service providers with telecom operators is estimated to spur the adoption of these services. This is expected to drive the market growth in the coming years.
• Continued focus on upgrading energy monitoring and management along with gaining better distribution network and control of the energy generation is expected to boost the market growth during the forecast period.
• Modern healthcare is particularly concentrating on administering technology-driven treatments to the patients, which is furthermore expected to be a key driver for the market growth during the forecast period.
• Growing demand on ensuring enhanced and safe driving experience with connected vehicles is estimated to accelerate the market growth in the coming years.
• Increasing demand for robust and reliable communication during natural disasters for instance, hurricanes, floods, and earthquakes is further projected to fuel the adoption rate of 5G services.
• High spectrum costs and price hike in 5G service subscription are expected to hamper the market growth during the forecast period.

Scope of The 5G Services Market Report                          

The report on the global 5G services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

5G Services Market Segment Insights

Enhanced mobile broadband segment is estimated to expand at a robust growth rate

Based on communication types, the global 5G services market is divided into fixed wireless access, enhanced mobile broadband, low latency communications, ultra-reliable, and massive machine-type communications. The enhanced mobile broadband segment is estimated to expand at a robust growth rate during the projected period owing to certain advantages such as extremely high data speeds for residential and commercial use.

However, the massive machine-type communications segment is attributed to register a high CAGR during the forecast period due to growing need for a developed digital ecosystem.

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IT & Telecom segment is projected to expand at a considerable CAGR

On the basis of verticals, the market is segmented into energy & utility, manufacturing, media & entertainment, transportation & logistics, IT & telecom, aerospace & defense, healthcare,  government & public safety, BFSI, mining, retail, oil & gas, agriculture, construction, and real estate. The IT & telecom segment is projected to expand at a considerable CAGR during the forecast period due to growing need for enhanced broadband capacity for virtual business meetings.

On the other hand, the manufacturing segment is anticipated to account for a key share of the market in the coming years owing to the need for seamless wireless communication between the robots, sensors, actuators, and other devices installed in manufacturing facilities.

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Asia Pacific is anticipated to constitute a key market share

In terms of regions, the 5G services market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Asia Pacific accounted for a key share of the market in 2020 and is anticipated to constitute a key market share in the coming years owing to large investments for the deployment of the next-generation infrastructure in the region.

The market of North America, however, is anticipated to expand at a rapid pace during the forecast period due to planned rolling out smart city projects and various activities associated with these projects in the region.

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Segments

The global 5G services market has been segmented on the basis of

Communication Types

• Fixed Wireless Access
• Enhanced Mobile Broadband
• Low Latency Communications
• Ultra-reliable
• Massive Machine-type Communications

Verticals

• Energy & Utility
• Manufacturing
• Media & Entertainment
• Transportation & Logistics
• IT & Telecom
• Aerospace & Defense
• Healthcare
• Government & Public Safety
• BFSI
• Mining
• Retail
• Oil & Gas
• Agriculture
• Construction
• Real Estate

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• BT Group plc
• AT&T, Inc.
• China Telecom Corporation Ltd.
• China Mobile Ltd.
• KT Corp.
• Bharti Airtel Ltd.
• Saudi Telecom Company
• Deutsche Telekom AG
• Vodafone Group
• SK Telecom Co., Ltd.
• NTT Docomo
• Verizon Communications, Inc.
• Telecom Italia
• Sprint Corp.

Competitive Landscape

Key players competing in the global 5G services market are BT Group plc; AT&T, Inc.; China Telecom Corporation Ltd.; China Mobile Ltd.; KT Corp.; Bharti Airtel Ltd.; Saudi Telecom Company; Deutsche Telekom AG; Vodafone Group; SK Telecom Co., Ltd.; NTT Docomo; Verizon Communications, Inc.; Telecom Italia; and Sprint Corp.

Some of these players have adopted certain business expansion strategies such as merger, partnership, and collaboration to solidify their competitive edge in the market. For instance, T-Mobile announced that it entered into an agreement with Ericsson to support T-Mobile’s 5G deployment in the U.S. in September 2018.