The global 5G Services market size is projected to reach USD 490 Billion by 2028, from USD 67 Billion in 2021, at a CAGR of 29.91% during 2022-2028, according to Valuates Reports.
Major Factors Driving the Growth of the 5G Services Market
The increasing demand for enhanced mobile broadband services due to emerging applications in several industry verticals will fuel the growth of the market.
The rising investments by telecom companies in deploying eMbb technology for ensuring uninterrupted connectivity in densely populated or underserved areas will drive the growth of the market.
The demand for fast mobile broadband service is on a rise due to the massive shift toward digitization and increasing penetration of smartphones. Emerging applications such as AR, VR, and video monitoring solutions have increased the need for a new network capacity with better spectrum usage, in turn, driving the growth of the 5G services market. Telecom, healthcare, transportation, media, entertainment, and BFSI industries have different service requirements involving high bandwidth, low power, low latency, and fast speed. 5G services provide an improved broadband experience thereby aiding the data traffic needs of both individuals and enterprises.
Telecom operators are actively investing in eMBB technologies. There are lucrative opportunities for network providers in many areas ranging from home monitoring, fixed wireless access, cloud gaming, precision-based navigation, and real-time drone video thereby driving the growth of the 5G services market. eMBB does not only support the consumption of multimedia content but also helps in accessing cloud-based apps as all the devices are connected wirelessly in a remote work environment. Fully immersive AR, VR to virtual meetings, real-time interaction, and participation in full 360-degree mode becomes seamless and smooth.
FWA( Fixed Wireless Access) is gaining prominence in many parts of the world. Massive 5G projects and testing are being carried out in places like Europe, the Middle East, Asia-Pacific regions, etc. The increasing smart city initiatives will bolster the growth of the 5G services market. Moreover, the capability of 5G with beamforming and higher spectrum bands will allow wireless broadband connections in previously inaccessible areas. Densely populated areas like high-rise buildings and crowded city centers will have latency-free indoor and outdoor coverage.
The high infrastructural cost of installing 5G networks will hamper the expansion of the 5G services market. The throughput density, initial interest rate pricing, and base stations require smaller cell deployments. Lowering the network cost is critical for the future prospects of the market.
Based on type, The EMbb( Enhanced Mobile Broadband) segment accounted for 42.84% of the global 5G services market share in 2021 and will grow at a CAGR of 27.01% from 2022 to 2028. The market value of EMbb will reach US$ 151 billion by 2028. Network operators are increasingly focusing on providing improved broadband services for applications such as gaming, uninterrupted video calling, and streaming of high-definition videos in residential and commercial areas.
Based on application, the telecom segment will grow at the highest CAGR of 34.34% during the forecast period due to rising investments by big firms in communication technology.
Based on region, Europe will witness considerable growth due to the wide scale adoption of 5G services in countries like Austria, Germany, Greece, France, Belgium, etc. The Europe 5G services market was worth USD 27.55 Billion in 2021 and will grow at a CAGR of 41.30%. Germany will reach USD 40.16 Billion in 2028 expanding at a CAGR of 26.52%. On the other hand, China’s market value in 2021 was US$8.98 billion at a CAGR of 13.46%. North America’s market was US$ 19.27 billion at a CAGR of 28.89%. The market in China is expected to reach 17.51% in 2021, trailing at a CAGR of 34.23% throughout the forecast period. Furthermore, in the Asia-pacific belt, Japan and South Korea are the mainstream markets with a CAGR of 32.62% and 25.57% respectively.