5G Connections Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 56.16 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
5G Connections Market Analysis
The 5G Connections Market size is estimated at USD 106.64 billion in 2023, and is expected to reach USD 990.33 billion by 2028, growing at a CAGR of 56.16% during the forecast period (2023-2028).
According to Ericsson data, with the addition of 136 million 5G subscribers in the last quarter of 2022, Global 5G subscriptions reached the one billion milestone. 5G is expanding faster than its predecessors in the mobile generation. Ericsson further claims, by 2027, about three-quarters of the world's population will be able to access 5G.
- Robust infrastructure like fiberizing the towers will accelerate the 5G expansion across the world. Fiber-rich network infrastructure can support features like increased speeds with lower attenuation, immunity to electromagnetic interference, small size, and virtually unlimited bandwidth potential. Without fiber optics, 5G will have limited performance, so Telcos are investing in laying these fibers for further expansion.AT&T partnered with the private equity company BlackRock Alternatives for a project called Gigapower to provide a wholesale fiber network across the U.S. Initially, the fiber network will be installed in 1.5 million customer locations.
- The adoption of IoT in various businesses will drive 5G. Emerging smart city projects or Intelligent Transport Systems (ITS) are cases that require the amalgamation of IoT and 5G. 5G is being used with autonomous vehicles in mining to provide safety measures for workers. The low latency of 5G helps in making quick real-time decisions. This means cameras or sensors can be mounted on vehicles to notify workers of potential collisions and accidents while they work in mines.
- Increasing demand for cloud data or applications that use massive amounts of data to provide actionable insights will also require 5G. The high speeds and low latency of 5G can stream endless waves of data to a central cloud server, where IoT devices on the network edge can make efficient decisions. For instance, streaming patient health data from a moving ambulance to a hospital will be easy with 5G services.
- The Covid-19 pandemic was the most important time for 5G as a revolutionary technology. Many applications were tested based on the integration of 5G in combination with other digital technologies. During COVID-19, 5G was the most effective tool for supporting medical diagnosis and treatment; the trend is still present today. For instance, The healthcare sector most benefited from using 5G since the network's high capacity and low latency enable the transmission of high-definition footage for processing and analytics. This tool will assist in identifying patients who are acting differently than usual, have experienced an incident like a fall, or are becoming a danger to themselves or others.
- Implementation of 5G technology involves high costs. Utilizing mm-Wave frequencies, rolling out large-scale fiber optic cables, and lacking skilled labor involves high cost. Every 5G technology implementation step are challenging for most Communication Service Providers (CSPs).
5G Connections Market Trends
M2M Connectivity Expected to Witness Significant Growth
- M2M often refers to a point-to-point communication pattern between hardware components. It may use wired or wireless communication networks without human intervention. The primary objective is to gather data, send it across the network, and take action in response to the events that are triggered. Smart Meters are one case that uses a national wireless communication network to send information to the utility company. 5G will bring operational efficiency improvements in smart meter functioning with an uninterrupted data stream that transmits safely.
- 5G revolutionizes connectivity and enables M2M communication with IoT applications. e-Sim is one such application of M2M that provides easy mobile connectivity to industrial IoT devices and all types of machines. Since 5G boosts network capability, it will connect with millions of sensors and devices per square kilometer. In the European Union, it is mandatory to have emergency call functionality in all new cars, and e-Sim is being soldered while manufacturing in an automated process. Car manufacturers are also selling connectivity plans which provide internet to the infotainment system and allow the cars to receive over-the-air software updates.
- In February 2022, BMW Group introduced cars embedded with dual e-Sim functionality. While one sim will be used for eCalls, navigation, or traffic information services, the other will be for a driver's private information and entertainment services.
- In October 2022, Bharati Telecom launched the Always On IoT connectivity solution, which allows an IoT device to remain connected to a mobile network from different Mobile Network Operators in the eSIM. The connectivity will be helpful in vehicle tracking or in cases where universal connectivity is required for equipment working in remote locations.
North America Accounts for Significant Market Share
- According to GSMA's report, the United States is expected to have the world's second-highest 5G adoption rate by 2025. The 5G connections will contribute 64% of all mobile connections in North America and will reach 280 million by 2025. The United States and Canada are expected to perform well in terms of 5G penetration as operators step up deployments of mid-band spectrum, taking overall population coverage to 92% in Canada and 100% in the US by 2025.
- Furthermore, GSMA highlighted that T-Mobile is the biggest provider of 5G, with 0.9 million FWA subscribers by the first quarter of 2022 and plans to achieve around 7 million subscribers by 2025. The 5G FWA market is also being investigated by Canadian operators, particularly in rural areas.
- Strong spectrum availability across all the bands is accelerating the growth of 5G in the region as it supports operators to deliver enhanced speed with more geographical coverage. Telcos can make cost-effective investments and improve network quality in North America.
- In February 2022, AT&T, in partnership with Microsoft, developed AT&T Private 5G Edge to connect Azure private mobile edge computing with the 5G network. This will encourage businesses to launch their private edge networks up and running. To fulfill client needs, AT&T Private 5G Edge is intended to be an integrated platform offering connectivity and embedded applications through a single platform while utilizing CBRS or AT&T spectrum.
5G Connections Industry Overview
The 5G Connectivity Market is highly competitive because of many players. Market leaders like AT&T, Verizon, Vodafone, T-Mobile, and more work constantly towards innovation which give with a competitive advantage over other smaller players.
In February 2023, AT&T signed an agreement with Frontier's fiber network to expand into areas where it doesn't have fiber connectivity. Frontier's fiber infrastructure will strengthen the wireless services for AT&T. These optical cables provide higher bandwidth and are very secure for transmitting data. These features of fiber optics will help the telecom operator to entice more users for its 5G services.
In January 2023, Verizon collaborated with Deloitte to promote smart manufacturing for the Smart Factory at the Wichita ecosystem of 20 leading global companies. This smart factory is located on the Innovation Campus at Wichita State University and includes a fully operational production line and experiential labs for creating and researching smart manufacturing technology and strategy.
In October 2022, Bosch and Cradlepoint developed a solution that will use T-mobile's 5G Wireless WAN technology to facilitate real-time parking and safety monitoring at Peachtree Corners, one of the nation's first smart cities. This will further help city planners to make real-time informed decisions on parking capacity, infrastructure planning, traffic management, and security safeguards based on data about events happening throughout the city.
5G Connections Market Leaders
-
AT&T Inc.
-
Verizon Communications Inc.
-
Vodafone Group Plc
-
T-Mobile US Inc. (Sprint Corporation)
-
Telstra Corporation Ltd
*Disclaimer: Major Players sorted in no particular order
5G Connections Market News
- Jan 2023: 5G connected ambulances were developed and tested by Bharti Airtel in partnership with Apollo Hospitals. Under this partnership, a 5 G-driven Artificial Intelligence (AI) guided Colonoscopy trial was carried out. HealthNet Global, AWS, and Avesha provided their technical expertise and resources to Airtel's ultra-low latency 5G technology to detect colon cancer at a faster rate and with greater accuracy.
- Oct 2022: 5G rolled out in India during the India Mobile Congress event. Indian Telecom providers demonstrated use cases of 5G technology to present the potential of the technology in the country. 5G could touch 10 Gbps, during peak working hours, compared to the 100 Mbps peak of 4G, which means users can enjoy faster download and upload speeds. Bharti Airtel was the first telecom operator to launch the services publically in the country.
- Oct 2022: Hyundai Mobis developed a 5G communication module for automotive use. Hyundai Mobis is a South Korean auto parts and mobility solution that constantly works on innovation and technology to provide a new phase to its automotive portfolio. The company plans to implement the technology in telematics services for 5G-connected vehicles to improve driver convenience and safety, including sensor data sharing between vehicles, autonomous braking in school zones, and vehicle management in an emergency. The company claims approximately 52 million vehicles will use 5G telematics modules by 2028, compared to 2 million cars as of 2021.
5G Connections Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 Increase in Demand for Wireless Broadband Services Needing Faster, Higher-Capacity Networks
4.4 Market Challenges
4.4.1 High Infrastructure Setup Cost During the Initial Rollout Phase and Relatively Less Range of Coverage
5. MARKET SEGMENTATION
5.1 Connection Type
5.1.1 Mobile Broadband
5.1.2 Fixed Wireless Access
5.1.3 M2M and IoT
5.1.4 Mission-critical
5.2 By Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 France
5.2.2.3 United Kingdom
5.2.2.4 Rest of Europe
5.2.3 Asia Pacific
5.2.3.1 India
5.2.3.2 China
5.2.3.3 Japan
5.2.3.4 Rest of Asia Pacific
5.2.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 AT&T Inc.
6.1.2 Verizon Communications Inc.
6.1.3 Vodafone Group Plc
6.1.4 T-Mobile US Inc. (Sprint Corporation)
6.1.5 Telstra Corporation Ltd
6.1.6 Telefonica SA
6.1.7 China Telecommunications Corporation
6.1.8 Deutsche Telekom
6.1.9 IDEMIA
6.1.10 Nippon Telegraph and Telephone
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
5G Connections Industry Segmentation
The fifth-generation cellular technology, or 5G, is utilized for mobile communications. Compared to earlier generations, 5G networks provide lower latency and faster speed. According to trial runs, 5G will offer response times as low as one millisecond. Widespread deployment of 5G technology will support effective working from any remote location.5G's enhanced connection stability enables IoT in areas without Wi-Fi coverage. Automobile companies plan to integrate 5G antennas in their vehicles called connected cars. Self-driving cars will be the next era of 5G or IoT integration in automobiles.
The 5G Connections Market is segmented by Connection Type (Mobile Broadband, Fixed Wireless Access, M2M and IoT, and Mission-critical) and Geography. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Connection Type | |
| Mobile Broadband | |
| Fixed Wireless Access | |
| M2M and IoT | |
| Mission-critical |
| By Geography | ||||||
| ||||||
| ||||||
| ||||||
| Rest of the World |
5G Connections Market Research FAQs
What is the current 5G Connections Market size?
The 5G Connections Market is projected to register a CAGR of 56.16% during the forecast period (2024-2029)
Who are the key players in 5G Connections Market?
AT&T Inc., Verizon Communications Inc., Vodafone Group Plc, T-Mobile US Inc. (Sprint Corporation) and Telstra Corporation Ltd are the major companies operating in the 5G Connections Market.
Which is the fastest growing region in 5G Connections Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in 5G Connections Market?
In 2024, the North America accounts for the largest market share in 5G Connections Market.
What years does this 5G Connections Market cover?
The report covers the 5G Connections Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the 5G Connections Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
5G Connections Industry Report
Statistics for the 2024 5G Connections market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 5G Connections analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
