5G Services Market To Register Growth At 52.0% CAGR By 2030 Owing To Rising Demand For Ultra-Reliable And Low-Latency Data Networks | Grand View Research, Inc.

Posted on
by

5G Services Market To Register Growth At 52.0% CAGR By 2030 Owing To Rising Demand For Ultra-Reliable And Low-Latency Data Networks | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting
According to new report available with Grand View Research, the growing demand for high-speed data connectivity for unified Internet of Things (IoT) applications, such as smart home energy management, is estimated to propel the growth of 5G services market over the forecast period.

5G Services Market Overview

The global 5G services market size was valued at USD 47.3 billion in 2021 and is estimated to reach USD 1.67 trillion by 2030, at a CAGR of 52.0% from 2022 to 2030. 

5G wireless mobile services enable a fully mobile and connected environment by delivering a wide range of use cases and business models to consumers. Moreover, faster data speeds and extremely low latency offered by the 5G technology would enhance the user experience while using 5G services for several use cases, such as Virtual Reality (VR) and Augmented Reality (AR) gaming, seamless video calling, and Ultra-High Definition (UHD) videos, among others. The growing demand for high-speed data connectivity for unified Internet of Things (IoT) applications, such as smart home energy management, is estimated to propel the adoption of these services over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Global 5G Services Market

Moreover, the rising focus on building partnerships by 5G system integration providers with telecom operators is estimated to augment the adoption of these services. Many industry verticals are focusing on technological transformations to improve their overall productivity and operational efficiency as part of the efforts to sustain in a highly competitive environment. The 5G wireless technology holds the potential to help in realizing remarkable transformations across all these verticals through reductions in overall costs and enhancement in productivity. The continued emphasis on improving energy monitoring and management as well as gaining better control of the energy generation and distribution network is also expected to boost the market growth over the forecast period.

                         North America 5G services market size, by communication type, 2020 - 2030 (USD Billion)

When it comes to healthcare, some of the largest economies, such as the U.S. and China, are expected to continue investing heavily in the provision of healthcare facilities. For instance, the National Health Expenditure Accounts (NHEA) of the U.S. expects the overall healthcare spending in the country to reach more than USD 6.2 trillion by 2030 exhibiting a CAGR of nearly 7% from 2022 to 2030. Modern healthcare would particularly focus on administering technology-driven treatments to the patients, thereby driving the market growth over the forecast period. Apart from energy & utilities and healthcare, transportation & logistics is another industry vertical that can offer potential opportunities to this market.

For instance, the concept of Vehicle-to-anything (V2X) communication has paved the way for connected vehicles and autonomous driving. 5G services would be playing a crucial role in providing seamless Vehicle-to-Infrastructure (V2I) communication and Vehicle-to-Vehicle (V2V) communication to reduce the chances of accidents on roads. The growing emphasis on ensuring a safe and enhanced driving experience with connected vehicles is expected to drive market growth over the forecast period. The next generation 5G technologies are increasingly being used in public transportation applications.

These technologies can provide broadband access for public transportation systems, such as buses and high-speed trains, to provide high-speed internet in transit for entertainment, information, and interaction with smart mobility components. This, in turn, is expected to fuel the market growth. Moreover, the strong emphasis on providing reliable and robust communication during natural disasters, such as floods, hurricanes, and earthquakes, is further estimated to spur the adoption of 5G services. However, the governments are quoting significantly high prices for service providers for procuring the 5G spectrum. Service providers would have no other option but to pass on these costs to the end-users.

Thus, the high spectrum prices and the subsequent hike in 5G service subscription prices are expected to hinder the market growth to some extent. As the market is in the introduction phase, several key service providers across the globe are investing in deploying modern network infrastructure to tap the maximum subscriber base in their region. However, the outbreak of the COVID-19 has put the deployment of several 5G cores and base station infrastructures on hold across the globe. In addition, the spectrum auction for 5G services has been postponed by several federal governments across key countries, such as Spain, the U.S., and France, which will hinder the market growth.

5G Services Market Segmentation

Based on the Communication Type Insights, the market is segmented into FWA, eMBB, uRLLC and mMTC.

  • The enhanced Mobile Broadband (eMBB) segment dominated the market with a share of more than 42% in 2021 and is expected to grow considerably over the forecast period. 
  • The massive Machine-Type Communications (mMTC) segment is expected to witness the fastest CAGR from 2022 to 2030. Massive machine-type communications envisage catering to the growing need for a developed digital ecosystem.

Based on Vertical Insights, the market is segmented into Manufacturing, Public Safety, Healthcare & Social Work, Media & Entertainment, Energy & Utility, IT & Telecom, Transportation & Logistics, Aerospace & Defense, BFSI, Government, Retail, Mining, Oil & Gas, Agriculture, Construction and Real Estate.

  • The IT & telecom segment led the market in 2021 and held the largest revenue share of over 20%.
  • The manufacturing sector has been digitalizing rapidly. As such, production lines are being automated continuously to enhance overall productivity. This has triggered the need for seamless wireless communication between the robots, sensors, actuators, and other devices installed in manufacturing facilities. Thus, the manufacturing segment is expected to exhibit the fastest CAGR over the forecast period.

Based on the 5G Services Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA)

  • Asia Pacific led the market in 2021 with a share of over 38.5% and is estimated to expand further at the fastest CAGR during the forecast period.
  • North America was the second-largest regional market in 2021.

Browse through Grand View Research’s Next Generation Technologies Industry Research Reports.

  • Virtual Reality Market – The global virtual reality market size was valued at USD 21.83 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. Virtual Reality (VR) is a digitally produced experience that simulates a three-dimensional environment in the real world.
  • IoT Device Management Market– The global IoT device management market size was valued at USD 1.48 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 34.2% from 2022 to 2030. Growing emphasis on increasing operational efficiencies and managing connected devices is anticipated to drive market growth. 

Market Share Insights:

  • February 2021: Starhub and Nokia Corporation announced a partnership for the deployment of a new cloud-based 5G core network aimed to manage rapidly growing 5G standalone (SA) bandwidth demand.
  • September 2020: Rakuten Mobile, Inc. launched a new ‘Rakuten UN-LIMIT V*1’ and 5G mobile communications service plan that allows consumers to access 5G services in the same monthly 2,980 yen charges.

Key Companies Profile:

The global market is highly fragmented as several regional telecom service providers are investing in deploying the next-generation infrastructure. This will help companies gain a huge customer base in the market. In addition, these market players are strategically focusing on mergers and acquisitions to strengthen their foothold in the global market.

Some prominent players in the global 5G Services market include

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

Order a free sample PDF of the 5G Services Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

Web: https://www.grandviewresearch.com

Media Contact
Company Name: Grand View Research, Inc.
Contact Person: Sherry James, Corporate Sales Specialist – U.S.A.
Email: Send Email
Phone: 1888202951
Address:Grand View Research, Inc. 201 Spear Street 1100 San Francisco, CA 94105, United States
City: San Francisco
State: California
Country: United States
Website: www.grandviewresearch.com/industry-analysis/5g-services-market