5G Technology Market Size, Share, and Trends Analysis Report 2020-2027
The Global 5G Technology market size was estimated at USD 4.30 billion in 2020, the market is anticipated to grow up to a market size of USD 720 billion by 2027. The market is projected to grow at a cagr of 144.2 % between 2020 to 2027. Increasing penetration of smartphones and other smart connected devices is expected to drive the market growth for 5G Technology. Although 5G Technology is into the developmental stage in 2019, it is expected to start mass deployment in various countries by the end of 2020. Smartphone manufacturing companies including Samsung Electronics, OnePlus have already started selling their 5G supported handsets worldwide. There is a huge investment required in deploying 5G services such as infrastructure cost, which is expected initially hamper the market growth, as the data prices will be substantially higher in the starting few months as all the telecom companies shall focus on earning profit in the initial phase. Moreover, the need to replace the existing 2G/3G/4G device, the latest 5G one for better connectivity is expected to hinder the market growth initially.
The 5G connectivity Connectivity offers advanced features such as ultrareliable and low latency communications (URLLC), enhanced mobile broadband (eMBB), and massive machine-type communications (mMTC). In short, 5G technology is a faster, reliable, and lag-free mode of communication. There is ample reliability on internet connectivity for various smart devices functionality, for example, a smart home is completely dependent on internet connectivity for performing various automation tasks such as multimedia playback, surveillance, theft protection, and communication. The automotive industry is also planning to use 5G Technology for vehicle automation and creating a connected Automotive ecosystem such as V2X, V2I, V2V, and P2P. Various industries such as information technology, Banking, Financial Services, and Insurance (BFSI) are dependent on strong and secure network connectivity for their various operations.
5G is expected to offer latency-free and faster internet connectivity. The 5G may reach 10Gb/s speed with latency time reduced to as low as 1 millisecond. With the emergence of 5G, the cloud gaming market shall also benefit as the industry is completely dependent upon the internet connectivity for providing a smoother gaming experience.
The telecom companies are licensing the 5G spectrum for getting exclusive service provider rights in various countries. The increase in penetration of the internet of things (IoT), machine learning, Artificial Intelligence is revolutionizing the industrial automation initiatives, a strong internet connectivity may further enhance the technology performance & shall help to innovate new application for such technologies.
The emerging trend of content streaming platforms such as video streaming applications (Youtube, Netflix) and social networking sites is anticipated to boost the demand for 5G in the upcoming few years. The 5G connectivity shall directly benefit other technologies including AI, Edge Computing, Cyber Security, Internet of Things (IoT), Telematics, Big Data Analytics among others.
Industry 4.0 aims at introducing high-end automation into the industrial processes in order to increase productivity and reduce operational costs. The faster internet connectivity shall positively benefit the implementation of various techniques into the Industry 4.0 initiative. The government shall play a crucial role in promoting the implementation of 5G connectivity, with the launch of numerous smart city project via PPP (Public-Private Partnership), the government is aiming to digitalize the cities. For instance, the Indian government recently launched the Smart City Project aiming at developing 100 smart cities in the country.
Based on the offering type, the 5G technology market can be segregated into hardware, software, and services. The hardware segment emerged as the largest market in 2019
On the basis of connectivity the market is segmented into Enhanced mobile broadband (eMBB), Ultra-reliable low latency communication (URLLC), Massive machine type communication (mMTC)
By Application, the 5G market can be segmented as Connected vehicles, Monitoring & tracking, Automation, Smart Surveillance, VR & AR, Enhanced video services, and Others.
Based on end-user type, the market can be segmented into Manufacturing, Automotive, Energy & Utilities, Transportation & Logistics, Healthcare, Government, Media & Entertainment, and Others
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