With the evolution of communication networks and technologies, over the past decade the telecommunications industry has transformed. It offers enhanced safety measures, connectivity, and reduced cost to its consumers. However, in recent times, factors such as increasing data traffic across industries, the requirement for higher bandwidth, and congestion in networks have propelled the need for the development of more advanced communication networks.
5G infrastructure hardware components and technologies have emerged as a solution for the growing needs of consumers for speed, reliability, and low latency. According to the latest market intelligence report by BIS Research titled “Global 5G Infrastructure Market – Analysis and Forecast, 2019-2025,” the global 5G infrastructure market is projected to generate a revenue of $42.00 billion by 2025, growing at an exponential CAGR of 75.09% during the forecast period, 2019 -2025.
In addition to the advantages offered by 5G networks, the growth of the market can also be attributed to the ongoing enhancements in the current communication infrastructure such as towers, small cell, and fiber network to cater to the surge in demands from various application areas such as automotive, industrial, energy and utility, and consumer electronics industry.
As per the report published by BIS Research, the consumer electronics category is anticipated to be the leading contributor during the forecast period in the 5G infrastructure market, by application segment, followed by the automotive industry category. The increasing use of smartphones and augmented reality and virtual reality devices and the need for inexpensive and high capacity networks associated with them are propelling the tremendous growth of the consumer electronics industry.
Further, the industrial category of the application segment is projected to witness high growth owing to the rising demand for remote machinery and machine-to-machine (M2M) connections in the facility management and security sector.
In terms of the communication infrastructure, the 5G market includes radio access network (RAN), core network, and transport network. With the introduction of 5G services on a commercial level, the installation rate of small cells and antenna systems in urban areas has increased considerably. This is the primary cause which can be attributed to the expected dominance of RAN during the forecast period. RAN, along with components such as macro cell sites and distributed antenna systems (DAS), is essential to ensure that the 5G system is completely installed in the industry.
To offer a wider perspective of the market, the report analyzes the 5G market for four prominent regions, namely Asia-Pacific, Europe, North America, and Rest-of-the-World. While North America is expected to generate the maximum revenue, Asia-Pacific is expected to emerge as the fastest growing region during the forecast period.
The demand for ultra-fast 5G networks has increased manifold across various industries. With players such as Intel Corporation, Network Partners, Samsung Electronics Co., Ltd., and Cisco Systems Inc. focusing on the growth of the IoT market, the 5G infrastructure market is expected to undergo more technological advancements and to expand its area of applications.