Global 5G Services Market - Forecasts from 2023 to 2028

The 5G services market is estimated to grow at a CAGR of 11.31%, reaching US$433.367 billion in 2028 from US$227.887 billion in 2022.

This market encompasses a range of critical technologies for implementing 5G networks. These services encompass various aspects of 5G connectivity, such as improved mobile broadband, highly reliable low-latency communications, and extensive machine-type communications. Moreover, 5G services are set to revolutionize the user experience across various applications, including seamless video calling, Ultra-High Definition (UHD) videos, and immersive virtual reality (VR) and augmented reality (AR) gaming, owing to their faster data speeds and incredibly low latency. In the coming years, the adoption of these services is anticipated to surge, and are anticipated to boost 5G services market growth in the forecast period.

Widespread adoption of 5G

According to the GSMA Mobile Economy Report 2023, the widespread adoption of 5G is poised to deliver substantial economic advantages across various industries. The services sector is expected to lead in reaping the benefits, accounting for 46% of the total, with manufacturing following closely at 33%. This growth is driven by innovative applications like smart factories, smart cities, and smart grids, which leverage the transformative capabilities of 5G. Additionally, the information and communications technology (ICT) sector is projected to contribute 9% to these advancements, showcasing the profound impact of 5G technology on global economic sectors. Retail is expected to gain 2% of the benefits.

Rise in data traffic and demand for high-speed data bandwidth

5G services market is expected to experience growth due to the rising demand for high-speed data connectivity driven by the surge in data traffic. Ensuring seamless user experiences now requires high-speed internet access, and the commercialization of 5G services is poised to enable a wide range of anticipated applications. For instance, as per Ericsson, there has been a remarkable growth in mobile data traffic from 2021 to 2022. The data traffic per smartphone has risen from 12.2 GB per month to 16 GB, indicating the growing use of mobile devices for data-intensive activities. Similarly, data traffic per mobile PC and tablet has also increased, from 17 GB to 20 GB and 9.5 GB to 11.2 GB per month, respectively, reflecting a broader trend of higher data consumption across various devices and technologies. This data underscores the surging demand for mobile data and the need for network providers to meet these evolving usage patterns.

Key players focus on product innovation in the 5G market

• In October 2022, Verizon transitioned consumer traffic to an innovative cloud-based, containerized core design, ensuring exceptional service agility, adaptability, and automated scalability. This significant development follows Verizon's extensive testing and user trials for the 5G core. The core's service-oriented architecture incorporates a range of components, including software programs, computational capabilities, networking, and storage. Similarly, in August 2023, Nokia partnered with Cellfie Mobile to propel their country-wide 4G network into a 5G-ready future. This comprehensive agreement will enhance Cellfie's network capabilities throughout the entire country, offering customers widespread access to high-speed broadband services. The collaboration aims to address the escalating data traffic demands effectively while preparing for the imminent 5G era, ensuring seamless connectivity and optimal coverage.

Government regulations in Canada

Through the release of a document, the Innovation, Science and Economic Development Canada (ISED), on behalf of the Minister of Innovation, Science and Economic Development Canada, announced the decision on a non-competitive local licensing framework, which included spectrum in the 3900-3980 MHz band as well as portions of the 26, 28, and 38 GHz bands.

ISED will be considering making certain band portions available for fixed, mobile, or flexible use services utilizing a non-competitive licensing framework for the local areas. ISED plans to establish an NCL licensing framework which can be applicable to multiple bands and will also be flexible to address the unique characteristics of each band. The NCL licensing enables the applicant to only apply for their specific area of interest, as opposed to the larger license areas pre-determined by the ISED.

It is projected that the 5G services market in the United States will grow steadily.

During the forecast period, the dominant domestic 5G coverage compared to other major economies is one of the prominent factors in driving the overall 5G services market growth. For instance, according to CTIA, 5G availability in the USA stands at 54% as compared to countries like China, Netherlands, Thailand, and South Korea which stand at 27%, 34%, 29%, and 35% respectively. Furthermore, as per the same source, the wireless speed in the USA increased from 44 Mbps in 2020 to about 128 Mbps in 2022. The growth in wireless speeds in the country directly correlates with the increased 5G services market expansion scope, thereby propelling the 5G services demand and opportunities during the forecast period. Additionally, the USA invested approximately 1/5th or 19% of the total global mobile capex investment made in 2021. The major investments in the country for mobile capex is further aiding the 5G services demand. In addition, the collaborations leading to increased scope for availing 5G services in the country are further anticipated to raise the 5G services market share in the United States. For instance, in October 2023, T-Mobile USA, Inc., and Seattle University joined for leveraging the operator's 5G network aiming at the improvement of digital equity for students as well as advanced outcomes. The university will be deploying several 5G projects and use cases leveraging 5G services facilitating security, and cell services among others.

Market Key Developments

• In June 2023, Lyca Mobile partnered with BT Wholesale to enhance connectivity, speed, and coverage for its customers. This partnership enables Lyca Mobile customers in the UK to directly access EE's 4G and 5G radio access network, with the potential for additional services like WiFi calling.
• In June 2023, T-Mobile USA Inc. collaborated with the City of Bellevue to jointly introduce a network-based Cellular Vehicle-to-Everything (C-V2X) technology, which, coupled with T-Mobile's 5G network, facilitates real-time communication between traffic infrastructure, vulnerable road users, and vehicles.

Segmentation:

By Band

• Sub-6 GHz
• mmWave

By Communication Type

• FWA
• eMBB
• URLLC
• MMTC

By Application

• Manufacturing
• Energy and Utilities
• Residential/Individual User
• Government
• Transportation and Logistics
• Healthcare
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• UK
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others