5G is the fifth generation of cellular networks, bringing new capabilities and opportunities to people, businesses, and society. 5G does more than simply improve network connectivity. It enables the delivery of ground-breaking solutions that benefit society as a whole. By enabling technology, 5G operates on the same radiofrequency that is currently used for smartphones, Wi-Fi networks, and satellite communications. 5G is about reliably connecting things everywhere with no lag so that people can measure, understand, and manage things in real time.

Market Dynamics

5G provides lucrative opportunity for semiconductors industry

5G offers numerous potential opportunities for semiconductor companies. Furthermore, the expected two-stage adoption results in two distinct go-to-market strategies and plans that fully capitalize on 5G potential for semiconductor companies. Semiconductor companies are expected to gain significant revenue in the first quarter, rising from near zero in 2018 to US$ 31.5 billion by 2023, with a focus on smartphones and the demand for 5G speed. A massive number of new applications beyond smart phones contributed to growth in the second quarter. Automotive applications, for example, are expected to grow at a CAGR of 28.5% between 2021 and 2023.

Smart cities incorporating 5G services bolster the growth of the overall market

Cities can use 5G to automate functions ranging from building operations to traffic safety, as well as connect buildings, streets, and a wide range of devices. Cities are looking for ways to improve quality of life by enabling diverse economic activities, reducing environmental impacts, and providing improved services and amenities. It is estimated that incorporating 5G technology reduces traffic congestion by approximately 10%. For example, 5G enabled smart traffic management solutions in the cities of Montreal and Vancouver alone can be expected to boost citizens' and businesses' prosperity by US$ 535 Mn and US$ 267 Mn, respectively, with a potential annual increase in productivity of US$ 535 Mn, and US$ 267 Mn. Furthermore, 5G fixed wireless access technologies is a cost-effective way to improve rural connectivity, costing up to 40% less than Fiber-to-the-Premise (FTTP) deployment.

5G services in energy management and precision agriculture will offer lucrative opportunities to grow worldwide

With the advent of digital innovation in agriculture, 5G services enable "precision agriculture," which aids in improvements. For example, through the incorporation of 5G services, can support the minimization of pesticide use by enabling farmers to diagnose and isolate problem areas on a large farm through massive penetration of large-scale IoT sensor networks, aerial scanning and detection, and autonomous and targeted application of pesticides. Furthermore, smart grid technologies are regarded as an important enabler for dealing with the rising demand for electricity in conjunction with 5G technologies that promise a bright future. It is expected that 5G connected smart grids will enable a wide range of applications that will help to reduce household energy consumption by up to 12%. Furthermore, cities can use 5G networks to deploy Smart Street lighting, with smart lighting systems consuming 50% to 60% less energy than traditional lamps, and 5G connectivity unlocking further cost savings of up to 80% by providing greater visibility into maintenance operations.

COVID-19 impact on 5G service market

The COVID-19 pandemic has impacted every aspect of society, affecting both individuals and businesses. During the COVID-19 pandemic, the telecom sector is playing a critical role in supporting countries' digital infrastructure around the world every individual and government, regardless of federal, state, central, local, or provincial level, has been in constant contact with one another in the society to provide and receive real-time information on COVID-19. Currently, healthcare, telecommunications, media and entertainment, utilities, and government institutes are working around the clock to stabilize the situation and provide essential services to everyone. COVID-19 cases are increasing on a daily basis, with several infected people on the rise. COVID-19, in line with individuals, has a significant impact on large enterprises and SMEs. Manufacturing, automotive, textile, transportation and logistics, travel and hospitality, and consumer goods have all been shut down as a result of country-level lockdowns around the world. In terms of GDP decline, this would have a significant impact on the global economy. Small and medium-sized enterprises (SMEs) have long served as the economy's backbone. Due to the COVID-19 pandemic, SMEs are currently the most affected.

Segmental Analysis

The global 5G service market is segmented based on communication type, enterprise, and end-users. By communication type, the market is segmented as FWA, eMBB, URLLC, and MMTC. Based on enterprise, the market is segregated as manufacturing, energy and utilities, media and entertainment, government, transportation and logistics, healthcare, and others. Furthermore, end-user, the market is classified into consumers and enterprises.

Based on enterprises, the manufacturing segment is anticipated to dominate the 5G service market globally by recording significant market share. As 5G services will facilitate manufacturing procedures involving more efficient production lines (with machine vision, and high definition video for managing different processes), AGVs in factories (autonomous transportation) and machine control, with latency of less than 5ms by using URLLC it has gained high demand worldwide. By end-user, the enterprise segment is predicted to grow at the highest rate during the forecast period. 5G gaining high prominence for developing foundation platform for several new applications in various verticals such as transportation, manufacturing, and healthcare upsurge the growth of global 5G services market.

Regional Overview

North America expected to hold largest market share for 5G services market

North America, which includes prominent telecom industry players such as AT&T, Verizon, Ericsson, and others, is one of the major factors driving global growth. Furthermore, top players investing in infrastructure development and advancement to take the lead, combined with technological advancements, boosts the adoption of 5G services market over the forecast period. But apart from that, Canadian service providers are increasingly investing in the acquisition of 5G licenses, which will boost demand for 5G services in the North America regional market in the coming years. For example, in April 2019, wireless carrier Rogers paid $1.7 billion for 20-year licenses to 600 MHz spectrum in Ontario, Northern Quebec, Atlantic Canada, Manitoba, and all three territories, which it expects will allow its 5G network to power everything from urban building penetration to agricultural, mining, industrial, and transportation projects.

Competitive Landscape

The prominent players involved in global 5G services market are AT&T Inc., China Mobile Limited, Verizon Communications Inc., BT Group plc, Deutsche Telekom AG, T-Mobile, Orange S.A., China United Network Communications Group Co., Telstra Corporation Limited, Telefónica, S.A., Rogers Communications Inc, Bell Canada, and among others

Market Segmentation

Market By Communication Types
FWA
eMBB
URLLC
MMTC

Market By Enterprises
Manufacturing
Energy and Utilities
Media and Entertainment
Government
Transportation and Logistics
Healthcare
Others

Market By End Users
Consumers
Enterprises

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa