The 5G Technology Market is expected to reach $242 billion by 2029, at a CAGR of 42.4% during the forecast period of 2022 to 2029.

Impact of COVID-19 on the 5G Technology Market

The global economy bore the brunt of the COVID-19 pandemic, with nationwide lockdowns and social distancing measures casting a shadow over numerous industries, including the 5G technology sector. The uncertainty surrounding the duration of lockdowns posed significant challenges to key market players, hindering their ability to gauge the 5G technology market's recovery.

In March 2020, the 3rd Generation Partnership Project (3GPP) announced a three-month delay in finalizing 5G specifications due to the pandemic, resulting in sluggish progress in commercial 5G deployments. Supply chain disruptions and delayed technology releases further hampered the 5G technology market in the years 2020 and 2021.

However, as economies pivot from pandemic response to economic revival, new growth opportunities are anticipated. The adoption of virtual networking architecture in the telecommunications sector is poised to create openings for 5G technology market players.

Despite the challenges, businesses and governments are actively working to steer the point-of-sale terminal market and the broader economy in the right direction. Local governments are implementing relief measures to mitigate pandemic-induced setbacks. Consequently, the 5G technology market is expected to regain its momentum, with a return to its original trajectory anticipated after 2023.

The Proliferation of Mobile Data Traffic Fuels the 5G Technology Market

One of the prime driving forces behind the growth of the 5G technology market is the explosive surge in mobile data traffic volumes. 5G technology plays a pivotal role in efficiently managing this surge, leading to improved throughput, reduced network congestion, optimized resource utilization, and elevated service quality. The relentless rise in the number of 5G-enabled wireless devices accessing global mobile networks stands as a key driver behind the exponential evolution in mobile data traffic. This trend is further pushed by the widespread adoption of smartphones and the widespread availability of affordable high-speed network services. Notably, GSMA Intelligence forecasts a rise in global smartphone penetration from 65% in 2019 to 80% by the close of 2025. In line with this, Ericsson predicts that by 2025, 5G networks will carry a significant 45% of the world's mobile data traffic, reaffirming the indispensable role of 5G technology in meeting the escalating demands of mobile data traffic.

The Urgent Demand for Ultra-Low Latency Drives the 5G Technology Market

The placement of cutting-edge technologies, encompassing IoT, artificial intelligence, augmented reality, and virtual reality, is observing a rapid increase across various industries. Yet, the true potential of these technologies often remains unexploited due to challenges related to high latency. In stark contrast, 5G technology excels in providing ultra-low latency, delivering swift data transmission and uplifting user experiences. This capability holds transformative potential, particularly in mission-critical applications.

5G technology enables ultra-reliable communication with minimal latency, making it indispensable for applications like vehicle-to-vehicle communication in densely populated urban areas and high-speed environments. Consequently, the 5G technology market experiences growing demand, driven by the game-changing possibilities of ultra-low latency in virtual and augmented reality applications.

Key Insights from the Global 5G Technology Market Study:

In 2022, Dominance of Hardware Segment Expected

Within the component category, the hardware segment is poised to assert dominance in the 5G technology market in 2022. Key factors driving this leadership include the imperative to reduce operational (OPEX) and capital (CAPEX) expenditures, extensive deployment of 5G Radio Access Network (RAN) incorporating numerous small cells and microcell base stations, and the growing demand for implementing virtual RAN solutions among network service providers, aiming to simplify network configurations. The convenience, criticality, and ease of deploying hardware solutions further bolster this segment's growth. Notably, various providers are directing research and development investments toward enhancing hardware solutions, making them more accessible, even for small and medium-scale enterprises.

Enhanced Mobile Broadband (eMBB) Predicted to Dominate

Within the connectivity domain, the Enhanced Mobile Broadband (eMBB) segment is anticipated to record the highest compound annual growth rate (CAGR) throughout the forecast period. This projection aligns with the increasing proliferation of smartphones and the growing need for high-bandwidth resources to ensure reliable wireless communication.

Asia-Pacific: The Thriving Regional Hub

The Asia-Pacific region is set to occupy the lion's share of the 5G technology market in 2022, closely followed by North America, Europe, Latin America, and the Middle East & Africa. However, Asia-Pacific is forecasted to undergo fast growth in the forthcoming years, primarily catalyzed by the prominent presence of key industry players. Furthermore, robust governmental initiatives, substantial investments in 5G network technology, the embracing of advanced technologies such as IoT and M2M communication, and the burgeoning prominence of small and medium-sized enterprises (SMEs) are all poised to fast-track the region's growth trajectory.

Prominent Market Players

The report features an in-depth analysis of the viable landscape, highlighting key strategic developments executed by major industry players over the past four years. Leading participants in the 5G technology market contain Nokia Corporation (Finland), Cisco Systems, Inc. (U.S.), Huawei Technologies Co., Ltd. (China), Telefonaktiebolaget LM Ericsson (Sweden), Qualcomm Technologies, Inc. (U.S.), Ciena Corporation (U.S.), Verizon Communications Inc. (U.S.), Intel Corporation (U.S.), Deutsche Telekom AG (Germany), Samsung Electronics Co., Ltd. (South Korea), Extreme Networks (U.S.), DISH Network Corporation (U.S.), NEC Corporation (U.S.), Parallel Wireless, Inc. (U.S.), AT&T (U.S.), Fujitsu Limited (Japan), Mavenir Systems, Inc. (U.S.), ZTE Corporation (China), Comba Telecom Systems Holdings Ltd. (China), and Crown Castle (U.S.).

Scope of the Report:

The report provides comprehensive coverage of the 5G Technology Market, including:

1. Components:

• Hardware




• Base Station




• Macro Cell


• Small Cell


• Pico Cell


• Femto Cell


• Metro Cell




• Radio Access Network




• Baseband Unit


• Distributed Unit


• Centralized Unit




• Transport Network




• Front haul


• Backhaul


• Midhaul




• Core Network




• Gateway


• Other (AMF, SMF, & UPF)




• Antennas


• Other Hardware




• Software




• SDN


• NFV


• Cloud RAN




• Services

2. Connectivity:

• Enhanced Mobile Broadband (eMBB)


• Massive Machine Type Communication (mMTC)


• Ultra-reliable Low-latency Communication (URLLC)

3. Geography:

• North America




• U.S.


• Canada




• Europe




• UK


• Germany


• France


• Italy


• Spain


• Sweden


• Netherlands


• Rest of Europe




• Asia-Pacific




• China


• Japan


• India


• Singapore


• South Korea


• Australia & New Zealand


• Rest of Asia-Pacific




• Latin America

Middle East & Africa