5G technologies market to grow to $99.76 billion by 2026

The global 5G technologies market is expected to grow from $20.23 billion in 2021 to $30.11 billion in 2022 at a compound annual growth rate (CAGR) of 48.8%. The 5G technologies market is expected to grow to $99.76 billion in 2026 at a compound annual growth rate (CAGR) of 34.9%.

North America was the largest region in the 5G technologies market in 2021. The regions covered in the 5G technologies report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

The increase in government initiatives to promote and roll out the emerging 5G technology is expected to propel the growth of the 5G technologies market. This is mainly because the 5G technology has a significant impact on mobile networks, physical networking, computing facilities, hosting and deployment systems, and service and infrastructure orchestration. It has become imperative for every government to ensure that the 5G technology reaches its maximum potential, as it supports thousands of new applications for consumers and businesses in the manufacturing, energy, healthcare, and automobile markets.

For example, the Chinese government is expecting to initiate commercial rollouts of 5G by 2020 with a 3400-3600 MHz band. The government also plans on using a spectrum of 25 and 40 GHz frequencies to ensure high-speed internet throughout the country. Similarly, phone carriers AT&T, Verizon, T-Mobile, and Sprint have plans to introduce their mobile 5G networks in the USA in 2019. Therefore, the increase in government initiatives are driving the growth of the 5G technology market.

Security and privacy concern is an important restraint for the 5G technologies market. This is mainly because the 5G technologies market faces both standard and sophisticated cybersecurity threats, and the security of user`s data becomes a critical challenge for the 5G wireless transmission system/infrastructure because of the large number of devices connected to the network and diversity of the technology. For example, according to experts at the Canadian Wireless and Telecommunications Association event in 2019, 5G networks have 200 times more attack vectors, or paths to gain access to a network, than their 4G predecessors.

The increasing collaborations between 5G technology companies are an emerging trend in the 5G technologies market. This is mainly because these companies are focusing on developing a strong 5G infrastructure and facilitating innovative platforms, by sharing their resources, knowledge, technology, and cost.

Such collaborations are also helpful to the companies in case of expiring licenses, lack of technological know-how, and stringent regulatory environment. For example, in February 2019, Ericsson partnered with Intel Corporation for developing the next-generation hardware management platform that will deliver transparency, agility, and efficiency for 5G, distributed cloud, and Network Functions Virtualization (NFV). Similarly, AT&T entered into a collaboration with Rush University Medical Center for bringing the first 5G-enabled hospital to the USA, in January 2019.

The 5G technologies market is governed by the European Electronic Communications Code (EECC) which lays down regulations related to 5G technologies within the European Union. For instance, in. March 2022, Accordingly, the EU has adopted regulations to accelerate 5G network installations by simplifying the deployment of small cell antennas that provide the last mile for 5G networks. The regulation defines the physical and technical characteristics of small cells, setting strict limits on their size and power, exempting them from planning permits (while retaining national oversight), and addressing their appearance to make them less visible. Hence, regulations such as these would benefit 5G technology companies, and drive the 5G technologies market.

CT Bureau