PUBLISHER: The Insight Partners | PRODUCT CODE: 1562457
PUBLISHER: The Insight Partners | PRODUCT CODE: 1562457
The Middle East & Africa 2G & 3G switch off market was valued at US$ 7,207.01 million in 2020 and is expected to reach US$ 1,453.25 million by 2030; it is estimated to register a CAGR of -14.8% from 2020 to 2030.
Private 5G Networks Bolster Middle East & Africa 2G & 3G Switch Off Market
A private 5G network is a dedicated Local Area Network (LAN) that provides enterprise, industrial, and other customers with increased internet access. Next-generation network services are projected to satisfy the requirement for crucial wireless communication for public safety, industrial operations, and critical infrastructure connectivity as they evolve. Additionally, the global market is growing due to the increasing need for ultra-reliable, low-latency connections for applications based on the Industrial Internet of Things (IIoT), including robots, collaborative industrial cameras, industrial cameras, and industrial sensors.
Various prominent industrial incumbents, such as ABB Ltd., Siemens AG, and Mercedes-Benz AG, have significantly utilized sensor-based technologies and industrial robotics to achieve higher operational productivity and efficiency with the evolution of Industry 4.0. A private 5G network is important for delivering continuous and secure internet connectivity to the IIoT. Enterprise digitalization is also fueling the market growth. As businesses become more digitalized, they need faster, more reliable, and secure connectivity to support their operations. Furthermore, the demand for time-sensitive networking (TSN) and real-time-based networking is expanding rapidly across numerous industries, including transportation, manufacturing, oil & gas, and aerospace.
Furthermore, to stay competitive in the market, several market players are taking initiatives. For instance, in 2023, Nokia partnered with DXC technology to launch DXC signal private LTE and 5G solutions. Nokia and DXC Technology, one of the leading Fortune 500 global technology services companies, announced the availability of DXC Signal Private LTE and 5G, a managed secure private wireless network and digitalization platform solution that helps industrial enterprises digitally transform their operations. Therefore, the increasing adoption of IoT is creating a strong demand for private 5G networks.
Middle East & Africa 2G & 3G Switch Off Market Overview
The Middle East & Africa 2G & 3G switch off market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. African nations have begun retiring 2G and 3G networks as the continent's expanding digital economy promotes the demand for faster and more efficient internet connectivity. Spectrum auctions, mass rollout of 5G networks, and mobile financing arrangements are speeding up the shift to high-speed networks across key markets on the continent. Botswana, Ethiopia, Nigeria, Seychelles, South Africa, Tanzania, and Zimbabwe have all rolled out commercial 5G services over the past two years. Similarly, GCC nations such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE have arisen as 5G leaders in the Middle East area, received spectrum awards from governments and regulators, and mobile operators across the region are deploying 5G networks. Moreover, as of June 2022, the Telecommunications Regulatory Authority (TRA) announced the shutdown of the UAE's 2G network will start by the end of 2022, with directive resources assigned to 5G to support new generations of mobile networks. TRA specified that the UAE service providers will deliver all means of support to groups that may be affected by the 2G closure. Thus, the adoption of 5G and the shutdown of 2G and 3G networks will propel the growth of the 2G & 3G switch off market.
Middle East & Africa 2G & 3G Switch Off Market Revenue and Forecast to 2030 (US$ Million)
Middle East & Africa 2G & 3G Switch Off Market Segmentation
The Middle East & Africa 2G & 3G switch off market is categorized into type, application, and country.
Based on type, the Middle East & Africa 2G & 3G switch off market is bifurcated into 2G and 3G. The 3G segment held a larger market share in 2020.
In terms of application, the Middle East & Africa 2G & 3G switch off market is segmented into message, voice, data, and IoT. The data segment held the largest market share in 2020.
By country, the Middle East & Africa 2G & 3G switch off market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The Rest of Middle East & Africa dominated the Middle East & Africa 2G & 3G switch off market share in 2020.
AT&T Inc, Deutsche Telekom AG, KDDI Corp, NTT Data Corp, Orange SA, and Vodafone Group Plc are some of the leading companies operating in the Middle East & Africa 2G & 3G switch off market.