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Global 5G Services Market Size, Share, 2021-2027 | Industry Report

5G Services Market Analysis Report By Communication Type, By Vertical, By Region And Segment Forecasts From 2021 To 2027

Report ID: MN17619910  |  Published: July 2020  |  No of Pages: 125
Format: Electronic (PDF)  |  Industry: Telecommunications & Networks  |  Publisher: Grand View Research

Industry Insights

The global 5G services market size is expected to account for USD 41.48 billion by the end of 2020 and projected to grow with a CAGR of 43.9%, during the forecast period, 2021 to 2027. The rising demand for high-speed data and increasing application in various industries such as media & entertainment, hospitality, BFSI, retail, government and IT & telecom sector is expected to drive the market growth in the upcoming years. Further, with the rising penetration of smartphones and the growing number of IoT connected devices are expected to fuel the demand for high-speed data. Moreover, the rising adoption of high graphic quality games and their incorporation with advanced technologies such as virtual reality (VR) and augmented reality (AR) is expected to fuel the demand for high internet, in order to get better gaming experience. Additionally, the growing demand for seamless video calling, Ultra-high Definition (UHD) videos and OTT platforms are projected to boost the market demand.

U.S. 5G services market

The leading players in the market are continuously focusing on the technological innovations, in order t0 improve the operational efficiency and productivity. The 5G technology has low latency, ultra-fast internet speed and high reliability. At the same time it can provide over 20 times faster speed than 4G LTE network. Therefore, leading players are focusing to upgrade their devices which can support 5G services. For instance, Verizon is using millimeter wave (mmWave) technology in their signals, which requires a large number of 5G nodes and has the ability to provide faster signal speeds. Additionally, the growing emphasis on energy management and monitoring along with greater control over the energy production and distribution network are projected to increase the adoption of 5 G services during the forecast period, 2021 to 2027.

The developed countries across the world such as the U.S., Germany, U.K and China, are making huge investment in the development of the healthcare industry. According to the U.S. National Health Expenditure Accounts (NHEA), the healthcare spending is expected to reach USD 6.0 trillion by end of 2027, expanding with a CAGR of around 5.5%, from 2018 to 2027. Additionally, the integration of advanced technologies in the healthcare sector will play an important role in delivering a highly secure and technology-driven treatment. Thereby, projected to create huge market demand.

The 5G technology has found various applications in healthcare, and energy & utility sectors. The transportation & logistics industry is expected to see a huge opportunity in the 5G services market. For instance, the vehicle-to-everything (V2X) connectivity model is expected to change the scenario of autonomous driving and connected vehicles. The 5G services will play an important role in providing the vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. Additionally, growing focus on providing an enhanced and secure driving experience, with the help of connected devices on vehicles are projected to boost the market growth during the forecast period, 2021 to 2027.

The rising demand for high-speed data in public transports such as trains, buses and flights for watching videos contents and accessing the internet is projected to fuel the market growth over the next few years. Additionally, nowadays governments are providing free Wi-Fi at railway stations and airports, which is also expected to create a huge opportunity for 5G technology. Furthermore, these technologies can be incorporated into the public transportation systems in order to enhance the communication systems between the different departments. These types of advantages are projected to amplify market growth in the forthcoming years. Additionally, it can provide reliable and advanced communication at the time of natural disasters such as hurricanes, earthquakes and floods thereby, expected to gain traction over the forecast period.

The 5G service market is currently on deployment phase, therefore, leading players across the globe are highly investing in advanced network infrastructure, in order to capture the largest market share and customer base. However, due to the outbreak of COVID-19 pandemic, the deployment of various 5G base stations and core infrastructure is kept on hold across the globe. Furthermore, the federal governments of various countries, such as the U.S., U.K., Spain, France and Italy, have adjourned the spectrum auction of 5G technology. Therefore, it is expected to see slow growth, over the next couple of years.

Vertical Insights

The vertical segment is bifurcated into manufacturing, energy & utility, media & entertainment, IT & telecom, transportation & logistics, healthcare, retail, agriculture, oil & gas and mining, BFSI, construction, real estate. The IT and telecom segment is expected to capture the market revenue share of 24.5% by the end of 2020 and projected to dominate the market during the forecast period, 2021 to 2017. The segment growth is attributed to rising investments by the key players and growing demand for advanced technologies like IoT and AI. Additionally, rising number of internet users, growing demand for high-speed data services, and growing deployment of FTTx broadband network frameworks in residential & commercial sectors are expected to fuel the segment growth in the forthcoming years. Furthermore, 5G networks are planned to provide omnipresent internet access between offices and homes, which will allow employees to work from home, without facing an internet problem. Additionally, in case of any technical glitches, it can provide faster remote assistance, which in turn expected to enhance the working efficiency of the employees.

The manufacturing segment is expected to see significant growth over the forecast period owing to high adoption of digital technologies such as shifting from manual documentation to digital documentation for sourcing purpose and adoption of industrial robots for repetitive tasks. Additionally, with the industrial robots, the production lines process has been automated that help manufacturers to enhance their production capabilities and increasing the product qualities. These advancements have created a demand for unified wireless communication between the different devices of the manufacturing facility such as sensors, robots, actuators, and various others, thereby, projected to fuel the segment growth in the forthcoming years. The healthcare segment is expected to see moderate growth over the forecast period, owing to the rising demand for 5G services in healthcare emergency and telemedicine services.

Communication Type Insights

The communication type segment has bifurcated into ultra-reliable and low latency communications (uRLLC), fixed wireless access (FWA), enhanced mobile broadband (eMBB) and massive machine-type communications (mMTC). The eMBB segment is projected to dominate the market, with a revenue share of 42.5% by the end of 2020 and projected to see a significant market growth over the forecast period. The segment growth is attributed enhancing broadband functionalities for base applications, such as high-speed gaming experience, UHD video, uninterrupted video calls and OTT services. The initial phase deployment is expected to concentrate on a non-standalone wireless 5G deployment model. The eMBB communication deployment will provide high-speed data for commercial and residential sectors. Additionally, it can provide4K video streaming, in-vehicle infotainment and virtual meetings without any interruption, which in turn expected to boost the eMBB segment growth, during the forecast period.

Global 5G services market

The mMTC segment is projected to see the fastest growth during the forecast period, 2021 to 2027. The segment growth is attributed to the rising adoption of m2m connected devices and increasing deployment of IT infrastructure in the manufacturing sectors. Additionally, the growing demand for smart devices and smart homes has led to an increase in the demand for unified communication along with remote access. As a result, it is expected to fuel the demand for high-speed data, which in turn, fuel the segment growth. Additionally, with the rising demand for IoT connected device, it is projected to fuel demand for mMTC segment.

Regional Insights

The North America is estimated to dominate the 5G services market with share of 34.3% by the end of 2020. The region growth is attributed to the presence of leading players and the availability of advanced IT & telecom infrastructure. Further, high investment in the next-generation technologies such AI, ML and IoT, and the rising number of connected devices in the region are expected to fuel the demand for high-speed data, which in turn, is projected to fuel the regional growth. Moreover, growing demand for higher and faster bandwidth in FTTN, FTTC, and FTTH connections are expected to bolster the regional growth.

Asia Pacific market is projected to see significant growth during the forecast period, 2021 to 2027, owing to the presence of leading players, especially in China such as SK Telecom, China Telecom, KT Corporation and China Mobile. These players are making huge investments in the development and implementation of 5G network infrastructures in Japan, South Korea and China. Furthermore, growing demand for 5G enabled smartphones in the region are projected to fuel the market demand for 5G services. Additionally, various smartphones manufacturers such as BBK Electronics Corporation and Samsung Electronics Co., Ltd, are continuously introducing 5G enabled phones, which is expected to boost the demand for 5G services in the upcoming years.

COVID-19 Impact Insights

The global 5G service market has been severely impacted by the on-going COVID-19 pandemic, owing to a halt in the deployment of a 5G network, especially in the Europe and America. Furthermore, various telecom regulators across the globe have postponed the plans of 5G spectrum auctions, due to which network operators have faced significant loss over the last few months. However, as the lockdown will relax the deployment of the 5G network will upsurge and expected to create huge growth opportunities for the 5G network service provider over the forecast period.

5G Services Market Share Insights

Key players in the market include AT&T Inc., BT Group plc, NTT Docomo, Bharti Airtel Limited, KT Corporation, Telecom Italia, Vodafone Group, Sprint Corporation, and among others. The market is highly competitive and fragmented in the nature, due to the presence of number of market players and their huge investments in the deployment of 5G infrastructures. Additionally, the market players are focusing on merger & acquisition strategy in order to strengthen their global presence. For instance, T-Mobile and Ericsson have signed an agreement in September 2018 to support the 5G deployment of T-Mobile’s in the U.S. The deal was accounted for around USD 3.5 billion.

Additionally, the leading players in the market are heavily investing in acquisition of spectrums. This will help market players in strengthening their service offerings and capture larger subscriber base across the globe. For example, BT Group plc’s Enterprise (EE) has acquired the 3540 - 3580 MHz frequency spectrum, in April 2018, which cost them around USD 426.5 million. This will allow the company to provide the high-speed internet services in the U.K, thereby, gaining competitive advantage in the market.

Report Scope

Attribute

Details

Market size value in 2020

USD 41.48 Billion

Revenue forecast in 2027

USD 414.50 Billion

Growth Rate

CAGR of 43.9% from 2021 to 2027

Base year for estimation

2020

Forecast period

2021 - 2027

Quantitative units

Revenue in USD Billion and CAGR from 2021 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Communication Type, Vertical, and Region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; Russia; Spain; China; Japan; India; South Korea; Brazil; Mexico

Key companies profiled

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

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs.


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2027. For the purpose of this study, Million Insights has segmented the global 5G services market report based on communication type, vertical, and region:

• Communication Type Outlook (Revenue, USD Billion, 2020 - 2027)
    • Fixed Wireless Access (FWA)
    • Enhanced Mobile Broadband (eMBB)
    • Ultra-reliable and Low Latency Communications (uRLLC)
    • Massive Machine-type Communications (mMTC)

• Vertical Outlook (Revenue, USD Billion, 2020 - 2027)
    • Manufacturing
    • Energy & Utility
    • Media & Entertainment
    • IT & Telecom
    • Transportation & Logistics
    • Healthcare
    • Retail
    • Agriculture
    • O&G and Mining
    • BFSI
    • Construction
    • Real Estate

• Regional Outlook (Revenue, USD Billion, 2020 - 2027)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
        • Russia
        • Italy
        • Spain
    • Asia Pacific
        • China
        • Japan
        • India
        • South Korea
    • Latin America
        • Brazil
        • Mexico
    • Middle East and Africa (MEA)

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