The global 5G applications and services market is likely to be valued at USD 132,840 million in 2020 and is expected to reach USD 663,960 million by 2027, at a CAGR of 25.8 percent between 2020 and 2027, estimates Zion Market Research. The rising number of 5G-enabled consumer electronics devices is likely to act as an add-on to market growth in coming years. Companies like Samsung, Huawei, and Fujitsu are focusing on investing in 5G technology. The increasing use of cash-less payments by customers has led to the rise in the demand for high speed and secured internet services globally. Furthermore, governments of developing economies like India and China are focusing on promoting the use of 5G technology. The government of India has launched a campaign Digital India that focuses on electronically delivering government services to the citizens and developing online infrastructure.
The overall IoT market size in 2020 is likely to be worth USD 195 billion. IoT is being adopted in various sectors, such as healthcare, automotive, IT and telecom, consumer electronics, and BFSI. It is expected that the 5G network will play a key role in IoT development, owing to its technological benefits over 4G networks, such as high speed and reliable connection. This is expected to attract numerous customers from different sectors to subscribe to 5G in the future. This, in turn, will further boost the 5G applications and services market globally in the years ahead.
By region, North America is expected to grow considerably in the years ahead, owing to the presence of developed economies like the US and Canada. The US is projected to make significant contributions to the growth of the North American 5G applications and services market, due to the increasing use of 5G technology by the US telecom sector. Companies like AT&T, Verizon Communications, Comcast Corporation, and Charter Communications are focusing on utilizing 5G technology. In 2019, AT&T announced that its 5G network is anticipated to cover over 200 million people, i.e., over 60 percent of the US population.