PUBLISHER: The Insight Partners | PRODUCT CODE: 1562460
PUBLISHER: The Insight Partners | PRODUCT CODE: 1562460
The Europe 2G & 3G switch off market was valued at US$ 3,251.41 million in 2020 and is expected to reach US$ 149.03 million by 2030; it is estimated to register a CAGR of -26.5% from 2020 to 2030.
Increasing Adoption of Industry 4.0 and Edge Computing Drives Europe 2G & 3G Switch Off Market
Edge computing and 5G are two linked technologies. They both enable huge amounts of data to be processed in real-time and used to improve the performance of applications substantially. Edge computing, combined with 5G, creates opportunities to enhance digital experiences, improve performance, support data security, and enable continuous operations in every industry. Edge computing brings computation and data storage closer to the data source. By leveraging the computational capacity of edge devices, networks, and gateways, users can continue to take advantage of the principles of dynamic allocation of resources and continuous delivery that are inherent to cloud computing. The potential of 5G in the manufacturing sector is transformative. Because of its high-speed, low-latency connectivity, which is explicitly designed to meet the needs of Industry 4.0, real-time data transmission and remote monitoring, control, and automation are made possible. Manufacturers may usher in a new era of efficiency and productivity by overcoming many obstacles that plagued previous industrial networks with 5G. Due to the huge application of Industry 4.0 and edge computing, several countries are adopting Industry 4.0 and edge computing.
Wi-Fi networks are a key part of any enterprise IT network, particularly for flexible workspaces that use laptops, tablets, and smartphones. However, there are a number of technical and scalability challenges that limit the usefulness of Wi-Fi networks for wider manufacturing and supply chain operational applications, particularly when device numbers are scaled up. Therefore, manufacturing and supply chain companies are encouraged to introduce 5G mobile connectivity for their adaptable production environments. Mobile networks deliver the breadth of capabilities to support rapid reconfiguration of the production line, automated guided vehicles or autonomous mobile robots, reliable continuous tracking of components or supplies, or any of the other use cases analyzed earlier. As a result, the enterprise is able to achieve the complete benefits of Industry 4.0 investments. The substantial capabilities introduced with 5G, including network slicing, new authentication framework, key exchange and encryption, edge computing, massive bandwidth, and open networking initiatives-provide ultra-reliable low latency and deliver the greatest flexibility for Industry 4.0. In addition, 5G developments such as time-sensitive networking support can deliver additional capabilities to support the migration of wired networks to wireless. Furthermore, Industry 4.0 heavily depends on big data to support advanced analytics, automated systems, and asset tracking. IoT sensors offer the physical medium to transmit and collect that data to edge devices for processing. IoT sensors collect massive data points, which are then analyzed and consumed by artificial intelligence and machine learning platforms. Thus, an increase in these technologies propels the growth of the 4G and 5G technology, driving the growth of the 2G & 3G switch off market.
Europe 2G & 3G Switch Off Market Overview
The Europe 2G & 3G switch off market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. 2G and 3G technologies are expensive to maintain and inefficient from an energy perspective. Thus, several regional operators are switching off the 2G and 3G technology. For instance, as of September 2023, various UK mobile network operators confirmed to the government that they do not plan to offer 2G and 3G mobile networks after 2033. This will support the rollout of the 4G and 5G networks, offering faster and more reliable customer service. The operators are making their own decisions on the timing and process of the switch off, and they all plan to switch off their 3G networks first.
According to SIM GmbH's data, mobile operators in Germany, including Deutsche Telekom, Vodafone, and O2, have announced the 3G switch off, with Deutsche Telekom and Vodafone switching off their 3G radio cells in June 2021. In rural areas of Europe, the widespread 2G network is significant, despite being a slower connectivity. Hence MNOs are not keen to stop it abruptly. Only Vodafone among mobile operators across Europe has announced a date for the switch off of 2G and plans to pull the plug on the 2G network in December 2025. Thus, the decision of operators to switch off the 2G and 3G networks will propel the 2G & 3G switch off the market.
Europe 2G & 3G Switch Off Market Revenue and Forecast to 2030 (US$ Million)
Europe 2G & 3G Switch Off Market Segmentation
The Europe 2G & 3G switch off market is categorized into type, application, and country.
Based on type, the Europe 2G & 3G switch off market is bifurcated into 2G and 3G. The 2G segment held a larger market share in 2020.
In terms of application, the Europe 2G & 3G switch off market is segmented into message, voice, data, and IoT. The IoT segment held the largest market share in 2020.
By country, the Europe 2G & 3G switch off market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. France dominated the Europe 2G & 3G switch off market share in 2020.
AT&T Inc, Deutsche Telekom AG, KDDI Corp, NTT Data Corp, Orange SA, Telefonica SA, Telenor ASA, and Vodafone Group Plc are some of the leading companies operating in the Europe 2G & 3G switch off market.