5G Fixed Wireless Access market worth $153.0 bn by 2028

The global 5G FWA market is expected to be valued at USD 29.4 billion in 2023 and is projected to reach USD 153.0 billion by 2028 growing at a CAGR of 39.0% during the forecast period according to a new report by Markets and Markets.

The growing use of millimeter-wave technology in 5G FWA
The growth of the 5G fixed wireless access market is expected to be driven by the increased wireless network capacity and high speed offered by high-frequency millimeter waves. Millimeter waves occupy a relatively unused portion of the electromagnetic spectrum between 30 GHz and 300 GHz, which offers excellent throughput and increased capacity. The 5G fixed wireless access technology provides large bandwidth, high resolution, low interference, cost-efficiency, and high security. It enables the development of miniaturized components for use in several commercial applications. 5G fixed wireless access is expanding to fixed communication, medicine, remote sensing, and consumer electronics applications. This includes using millimeter waves for IPTV, a prospective replacement of the Wi-Fi Alliance standards (802.11n), and wireless video transmission.

Customer premise equipment (CPE) is expected to hold the highest market share during the forecast period.
FWA broadband connections are set to surge, with 5G-enabled FWA lining up to be a major use case for driving adoption and bridging the digital divide challenge worldwide. Ericsson’s most recent 5G Mobility report predicts FWA connections will grow 17% annually through 2028. The number of FWA connections is expected to reach 300 million by 2028, out of which 5G FWA will represent almost 80% of the total FWA connections. High-speed 5G-based FWA connections will drive most of that growth, through 4G LTE technology will remain an important connection source across developing countries until 2024. Higher volumes of 5G FWA in large, high-growth countries such as China can drive economies of scale for the overall 5G FWA ecosystem, resulting in affordable CPE that will positively impact low-income markets. Chinese operators are also looking to increase the number of 5G base stations to 2 million collectively by the end of 2022 to widen their 5G network coverage. This will increase the demand for CPE deployment across the region.

Industrial Application to hold the highest CAGR during the forecast period
5G FWA technology is expected to play an integral role in improving the overall performance of industries such as automotive and transportation, energy and utilities, and mining. IoT and M2M communication are the key technologies used in industrial automation. Applications based on these technologies require high-speed networking, low-latency communication, ultra-fast response times, and many simultaneously connected smart devices. 5G networks are the key enablers for the deployment of IoT as they provide a platform to connect all devices to the Internet using high-speed data transmission and process.

5G FWA market in US for North America to hold the highest market share during the forecast period
The US is one of the major adopters of advanced technologies and strives to implement automation technologies across end-user sectors. For instance, it is among the top three spenders on smart city initiatives. It is also among the top five countries in terms of investments in industrial automation. All these factors have resulted in the adoption of wired and wireless technologies. Most companies operating in the 5G FWA market in North America are based in the US. The strong economy and high disposable income have increased the demand for modern technologies in the country, which is expected to account for more mobile connections than 4G by 2025 and lay the groundwork for accelerated growth in the FWA broadband and IoT services sectors over the next three years.

CT Bureau