The global 5G network equipment market is estimated to reach US$ 2.3 Bn by the end of 2021. As per Persistence Market Research analysis, the market will register significant growth at 55% CAGR from 2021 and 2031, due to increase in commercialization of 5G technology and rise in number of connected wireless devices demanding high-speed connectivity.
The market is forecast to exhibit 42.5% y-o-y growth in 2021. Among the products available, macro cells would contribute to the largest share of 35.5% in 2021; however, small cells would show y-o-y growth of 61.4% in 2021.
Find Out More about the Report Coverage
- Qualcomm Technologies, Inc.
- Samsung Electronics Co., Ltd
- NEC Corporation
- Huawei Technologies Co., Ltd.
- ZTE Corporation
- Ericsson AB
- Cisco Systems, Inc.
- Hitachi, Ltd.
- Airspan Networks, Inc.
- Equinix, Inc.
Key Points Covered in 5G Network Equipment Industry Survey
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on 5G Network Equipment Sales and How to Navigate
- Recommendation on Key Winning Strategies
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2016-2020 5G Network Equipment DemandAnalysis Compared to 2021-2031 Market Outlook
The 5G network equipment market saw soaring growth in 2021 with worldwide revenue up 42.5% year-over-year. A revised report by Persistence Market Research estimates that 5G network equipment revenue will grow at significant rate, reaching nearly US$ 189.5 Bn by 2031,ata humongous CAGR of 55.5%. Increasing penetration of smartphones and advancements in 5G technology are likely to drive market growth over the coming years.
Connecting multiple devices, technologies, and communication approaches, 5G will act as the missing link in providing seamless user experience, revolutionizing how telecommunication, computing, and IoT is delivered and experienced by end users.
Multiple trials and developments have indicated toward the humongous scale of 5G deployments. A significant increase in the number of total antennas and devices connected to them is definitive.
Economies of scale will be of immense importance in 5G deployment. While niche players with innovative product offerings would be impactful, market share would go to those offering cost-effective solutions covering the requirements of telecom carriers. Digital transformation and growing demand for wireless systems will fuel demand for 5G network equipment across the globe.
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How Rising Implementation of Advanced Technologies Impacting Market Growth for 5G Network Equipment?
In enterprise application, substantial adoption of advanced technologies such as Internet of things and cloud solutions will boost 5G uptake by transforming the focus from consumer-centric cellular coverage to more machine-centric communications.
Rapid growth in mobile data traffic calls for much more efficient spectral efficiency. Cloud-RAN helps in bringing spectral efficiency, as this technology minimizes signal loss and radio Interference, which was a constant bug in traditional radio technology. Moreover, significant growth in wired and wireless subscriptions as well as the number of internet users is creating potential opportunities for the growth of 5G network equipment.
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Why are 5G Networks and Services Gaining Traction in the Global Market?
Enterprises have started migrating their existing network infrastructure to 5G networks and services with high speed. This, in turn, paves the way for the North American region to be one of the early adopters of 5G. Moreover, highly engaged smartphone users account for a large volume of data usage in the region.
The data-intensive nature of these consumers will also encourage them to be the early adopters in terms of 5G-enabled services such as autonomous driving, ultra-HD video, AR & VR, and artificial intelligence.
- For instance, in January 2018, Intel partnered with several car vendors such as Nissan, BMW, and Volkswagen in order to boost Intel technology toward artificial intelligence, which includes its mobile-based mapping technology for the smooth navigation of self-driving cars.
How Big is the Opportunity for 5G Network Equipment Adoption in the U.S.?
The U.S. is predicted to remain one of the most attractive markets during the forecast period, according to Persistence Market Research. According to the study, the U.S. is expected to account for over 76.4% of the North American market through 2031.
The U.S. is expected to be the first country to set large volume 5G wireless applications and networks, as regulators pave the wave for rapidly growing next-generation services.
In North America, enterprises such as AT&T Inc. and Verizon Communication Inc. are coming together to adopt 5th generation wireless technology. Moreover, the U.S. federal commission has decided to open a high-frequency spectrum of around 11GHz for mobile, fixed-use, and flexible wireless broadband.
Why is Demand for 5G Network Equipment Surging across Germany?
Demand in Germany is expected to rise at nearly 50% CAGR over the forecast period (2021-2031). It has been observed that, in the European region, countries such as Germany, France, and the U.K. are leading the research being conducted toward the commercialization of 5G technology.
Enterprises such as Verizon, Ericsson, and Qualcomm are testing various frequency spectrums and advanced technologies to deploy 5G efficiently in Germany and other European countries. Moreover, these enterprises have launched customer trails in several geographical areas. These 5G trials will form the base for 5G, which will then be globally adopted.
As per the report, Germany is recognized as a primary market, and it is expected to continue exhibiting high demand for 5G network equipment through the forecast period.
How is India Contributing toward 5G Network Equipment Sales?
By 2031, India will account for over 50% of share in South Asia and Pacific. India is one of the growing economies and is expected to offer a favorable market for 5G network equipment vendors.
Presently, enterprises in India and other Asian countries have extensive focus on the adoption of the bring-your-own-device (BYOD) in order to improve their productivity through flexible utilization of their resources to meet growing business demand.
Moreover, significant rise in the adoption of mobile devices in India occurs due to several factors such as increased smartphone penetration, low data rates, and low prices of mobile devices, which would further drive demand for 5G technology in India.
Which 5G Network Equipment is Expected to Witness Highest Demand?
Revenues of Macro Cells segment grew a robust 45.8% year over year in 2021. Demand of Small Cells segment is expected to show study growth between 2020 and 2021, giving the small cells product segment year-over-year growth of 61.4% in 2021.
Based on product, the macro cells segment is expected to expand at over 56% CAGR and account for market share of nearly 42% in 2031.Macro cells are antenna units deployed on cell towers, and provide radio coverage to a wide geographical area.
Growing adoption of macro cells in communication technologies such as LTE networks and 5G technology, and Internet of Things (IoT) augments demand for macro cells, which is set to assist market growth during 2021-2031.
Why Does Industrial End Use of 5G Network Equipment Hold Major Market Share?
The industrial sector is expected to contribute maximum revenue share of more than 40% to the global demand for 5G network equipment in 2021.Demand for 5G technology has increased rapidly in various industrial use cases such as improved industrial Internet of Things (IoT) communication, manufacturing process data collection and analysis in real time, multi-client serving facilities, and production line flexibility, among others.
Some of the recent trends for 5G network equipment in industrial end-use segments are increase in effective utilization of cloud-RAN technology for industrial control systems, improved flexibility compared to the current 4G LTE technology, and industrial wireless communications services with reduced latency.
Impact of COVID-19 Outbreak on 5G Network Equipment Sales Forecast
The COVID-19 pandemic outbreak has disrupted many industries, including the 5G network equipment space. In response to the pandemic, 5G network equipment providers are taking special measures to meet customer demand for 5G technology usage, due to sudden shift to a remote-first workforce.
During the outbreak, production as well as development of 5G network equipment declined by nearly 6%-8% in Q3-Q4 2020, due to plunging production across Chinese and U.S. factories, as both are the world’s major 5G network equipment manufacturers and suppliers. However, according to estimates, production has become quite stable over the last two quarters of 2021 and demand has started to gain traction again.
However, new technologies such as AI, Robotics, AR/VR, IoT, cognitive security etc., would see surge in adoption owing to increasing new use-cases and new market opportunities. In addition, the overall cloud communication platform as a service market is projected to grow at increasing rate from Q3-Q4 2021 onwards.
Insights into 5G Network Equipment Market Competitive Landscape
According to the Persistence Market Research analysis, Qualcomm Technologies, Inc., Samsung Electronics Co., Ltd, NEC Corporation, Huawei Technologies Co., Ltd., and ZTE Corporation are identified as key players manufacturing5G network equipment.
Major strategy lies in partnering with other companies involved in digital technologies and digital transformation to upgrade 5G network equipment and gain revenue and traction in the market with advanced features. Advanced features will allow companies to penetrate the market and be more approachable by clients.
- For instance, in January 2018, Qualcomm Technologies, Inc. announced an alliance with OPPO, a smartphone brand, in the 5G pioneer initiative to explore new ways toward 5G deployment in mobile technology.
Manufacturers and key providers of 5G network equipment are also focusing on mergers and acquisitions to maintain their global presence.
Scope of Report
Historical Data Available for
US$ Million for Value
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Customization & Pricing
Available upon Request
5G Network Equipment Industry Survey by Category
- Small Cells
- AAU (Active Antenna Unit)
- BBU (Baseband Unit)
- Energy Supply Equipment
- Macro Cells
- RRU (Remote Radio Unit)
- RF Filter
- Phase Shifters
By End Use
- Commercial 5G Network Equipment
- Industrial 5G Network Equipment
- 5G Network Equipment for Government & Defense
- Residential 5G Network Equipment
FAQs Answered in Market Study
- What is the global market size of 5G network equipment?
The global 5G network equipment market was valued at US$ 1.6 Bn in 2020, and is estimated to surge rapidly over the next ten years.
- Which region is expected to showcase significant growth as per 5G network equipment industry research?
The 5G network equipment market in South Asia & Pacific is projected to expand at the highest CAGR of 68.5% through 2031, owing to rapid growth in telecom network infrastructure in countries such as India, Indonesia, and Thailand.
- Which is the most attractive of 5G network equipment?
Macro cells is the most attractive segment with estimated market share of 35.5% in 2021; however, small cells are estimated to surge at 70% CAGR through 2031.
- Which are some of the leading companies offering 5G network equipment?
Leading manufacturers of 5G equipment are Qualcomm Technologies, Inc., NEC Corporation, and others. As per Persistence Market Research analysis, 65.5% of market share is held by the top 15 players.
- In which end use areas are 5G network equipment highly integrated?
The industrial sector is expected to dominate the market with revenue of US$ 109.6 Bn by 2031, owing to increasing commercialization of 5G technology across industrial network infrastructure.
- What will be the demand outlook for 5G network equipment?
The market size of 5G network equipment is expected to be valued at US$ 2.3 Bn by the end of 2021, and is likely to shoot up to US$ 189.5 Bn by 2031.
- What was the last 5 year market CAGR for 5G network equipment?
The market in the last 5 years (2016 – 2020) expanded at a CAGR of 36.9%.
- What are the key trends shaping demand growth of 5G network equipment?
Dominance of Western countries in 5G technology research and 5G-enabled services gaining traction across industries are key trends being witnessed in this space.
- What is majorly driving demand of 5G network equipment?
Increasing penetration of mobile devices and effective utilization of cloud-RAN technology are spurring demand growth of 5G network equipment.
- Which are the top 5 countries driving demand for 5G network equipment?
Top 5 countries driving demand for 5G network equipment include China, the U.S., Germany, France, and India.
- What is the North American market outlook for 5G network equipment?
North America is the most attractive market, and the U.S. is expected to account for 85% share of the North American market through 2031.
- What are the key market statistics for 5G network equipment in South Korea and Japan?
The market in Japan and South Korea was valued at US$ 107.2 Mn and US$ 49.4 Mn, respectively, in 2020, and is projected to register CAGRs of 63.5% and 54.4% over the next ten years.
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