Global 5G Services Market Report 2022: Need for High Speed ​​Data Connectivity Due to Rising Mobile Data Traffic Fueling Growth – ResearchAndMarkets.com

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DUBLIN–(BUSINESS WIRE)–The “Global 5G Services Market – Forecast from 2022 to 2027” report has been added to from ResearchAndMarkets.com offer.

The global 5G services market was valued at US$50.285 billion for the year 2020, growing at a CAGR of 45.73%, reaching the market size of US$701.824 billion by 2027.

5G is a next-generation cellular technology that will enable high-speed, low-latency connectivity. 5G technology encompasses the entire ecosystem of hardware, software and services required to deploy 5G networks. Low power consumption, high bandwidth, high speed and ultra-low latency are all service requirements in industries such as healthcare, retail, IT, telecommunications, media and entertainment and automotive. As a result, the acceptance of 5G services is growing along with the adoption of mobile broadband services, which is expected to increase the market demand for 5G services in the coming years.

The need for high-speed data connectivity due to increasing mobile data traffic is also driving the growth of the global 5G services market. Data traffic is increasing due to the wide usage of broadband and mobile data services by individuals and business applications, which explains the increase in market demand for high-speed data services like 5G. The need for reliable and strong communications during natural disasters such as earthquakes, floods, and hurricanes is also expected to drive 5G adoption.

The penetration of automation in the automotive industry makes automobiles more efficient in their performance. The support of 5G services to automotive sectors strengthens the security systems offered by automobiles. Government support and policies to augment the telecom sectors by hosting major players and increasing investments in data connectivity arena is fueling the growth of 5G services market in the global market. High cost of initiation and drastic infrastructure changes are also on the other hand, restraining the growth of the global 5G services market.

Growing demand for high-speed data connectivity

Growing demand for high-speed data connectivity due to increase in data traffic provides growth potential to the global 5G services market. Ericsson is a leading player in the telecommunications sector. According to Ericsson’s Mobility Report published in November 2019, mobile data traffic is growing at an annual rate of 68%.

5G networks deliver up to 1 Gbps of increased internet speed and serve as the foundation for cloud and AI-based applications. Various data-intensive applications, both personal and professional, are emerging, such as augmented reality (AR), virtual reality (VR) and video applications, requiring the high-speed data connectivity of 5G. These technological developments in the telecommunications sector are expected to drive the growth of the 5G services market over the forecasted years. Government policies and some countries’ support for the development of 5G sectors are also increasing the market value of 5G services in the telecommunications industry. Xplornet, a Canadian telecommunications company, has unveiled plans to invest more than $500 million in 5G wireless services over the next five years. Investments from private companies are also contributing to the growth of the 5G services market.

High upfront costs act as a barrier to market growth

The transition from traditional technologies to 5G technologies would require significant investments. The required throughput density, periodic interest rate, and base station price all influence the cost of 5G infrastructure. The high cost demanded by 5G infrastructure that supports 5G data connectivity is restraining the growth of the 5G services market to some extent.

The Asia-Pacific region is expected to show drastic growth

In the coming years, the market size of 5G services in the Asia-Pacific region is expected to skyrocket. Asia-Pacific countries are investing in the deployment of next-generation infrastructure in media and entertainment, transport and logistics, healthcare and manufacturing. During the forecast period, these investments are expected to drive the Asia-Pacific regional market forward.

Market segmentation :

By component

  • Material

  • Software

  • Services

By type

By app

  • Manufacturing

  • Energy and Utilities

  • Media and Entertainment

  • Government

  • Transport and logistics

  • Health care

By geography

  • North America

  • UNITED STATES

  • Canada

  • Mexico

  • South America

  • Brazil

  • Argentina

  • Europe

  • Germany

  • France

  • UK

  • Middle East and Africa

  • Saudi Arabia

  • United Arab Emirates

  • Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Taiwan

  • Thailand

  • Indonesia

  • Others

Main topics covered:

1. Introduction

2. Research methodology

3. Executive Summary

4. Market dynamics

5. Global 5G Services Market Analysis, By Component

6. Global 5G Services Market Analysis, By Type

7. Global 5G Services Market Analysis, By Application

8. Global 5G Services Market Analysis, By Geography

9. Competitive environment and analysis

10. Company Profiles

Companies cited

  • Verizon Communications, Inc.

  • BT Group plc

  • China Mobile Ltd.

  • China Telecom Corporation Ltd.

  • Bharti Airtel Ltd.

  • NTT Docomo

  • KT Corp.

  • Saudi Telecommunications Company

  • Vodafone Group

  • Deutsche Telekom AG

  • SK Telecom Co., Ltd.

For more information on this report, visit https://www.researchandmarkets.com/r/2be0eg

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