5G Services Market Size, Share, Global Market Research and Industry Forecast Report, 2021-2025 (Includes Business Impact of COVID-19)

  • TBI960988
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel

Industry Insights, Market Size, CAGR, High-Level Analysis: 5G Services Market

The global 5G services market size is estimated to reach USD 45.7 billion by 2020 and register a CAGR of 32.1% from 2021 to 2025. 5G wireless mobile services are expected to commercialize in 2020 and enable a fully mobile and connected environment by delivering a wide range of use cases and business models to consumers. Moreover, faster data speeds and extremely low latency offered by the 5G technology would enhance the user experience while using 5G services for several use cases, such as virtual reality (VR) and augmented reality (AR) gaming, seamless video calling, and ultra-high definition (UHD) videos, among others. The growing demand for high-speed data connectivity for unified Internet of things (IoT) applications, such as smart home energy management, is estimated to propel the adoption of 5G services over the forecast period. Many industry verticals are focusing aggressively on technological transformations to improve their overall productivity and operational efficiency as part of the efforts to sustain in a highly competitive environment. The 5G wireless technology holds the potential to help in realizing remarkable transformations across all these verticals through reductions in overall costs and enhancement in productivity. The continued emphasis on improving energy monitoring and management as well as gaining better control of the energy generation and distribution network is also expected to boost the adoption of 5G services over the forecast period. When it comes to healthcare, some of the largest economies, such as the U.S. and China, are expected to continue spending aggressively on provisioning healthcare facilities. For instance, the National Health Expenditure Accounts (NHEA) of the U.S. expects the overall healthcare spending in the U.S. to reach around USD 6.0 trillion by 2027 exhibiting a CAGR of nearly 5.5% from 2018 to 2027. Modern healthcare would particularly emphasize on administering technology-driven treatments to the patients, thereby driving the market growth over the forecast period. Apart from energy & utilities and healthcare, transportation & logistics is another industry vertical that can offer potential opportunities for 5G services. For instance, the concept of vehicle-to-anything (V2X) communication has paved the way for connected vehicles and autonomous driving. 5G services would be playing a crucial role in providing seamless vehicle-to-infrastructure (V2I) communication and vehicle-to-vehicle (V2V) communication to reduce the chances of accidents on roads. The growing emphasis on ensuring a safe and enhanced driving experience with connected vehicles is expected to drive the 5G services market growth over the forecast period. Next-generation 5G technologies are increasingly being used in public transportation applications. These technologies are capable of providing broadband access for public transportation systems, such as buses and high-speed trains, to provide high-speed internet in transit for entertainment, information, and interaction with smart mobility components. This, in turn, is expected to fuel the market growth over the forecast period. Besides, the strong emphasis on providing reliable and robust communication during natural disasters, such as floods, hurricanes, and earthquakes, among others, is further estimated to spur the adoption of 5G services over the forecast period. However, governments are quoting significantly high prices for service providers for procuring the 5G spectrum. Service providers would have no other option but to pass on these costs to the end users. Clearly, end users would have to pay higher prices for availing 5G services from the service providers. The high 5G spectrum prices and the subsequent hike in 5G service subscription prices are expected to hinder the market growth over the forecast period. Communication

Type Insights of 5G Services Market

The enhanced mobile broadband (eMBB) segment is estimated to account for a market share exceeding 40% by 2020. The initial phase of the rollout is expected to focus on a 5G wireless non-standalone deployment model. eMBB provides very high data speeds for residential and commercial use. As such, eMBB is expected to cater to several use cases, such as VR & AR gaming, video conferencing, and virtual meeting, thereby driving the growth of the eMBB segment over the forecast period. Massive machine-type communications (mMTC) segment is expected to witness the fastest growth over the forecast period. Massive machine-type communications envisage catering to the growing need for a developed digital ecosystem. As such, mMTC focuses on providing services for high connection density applications, such as smart buildings and smart cities. The growing need to ensure uninterrupted connectivity for all the IoT devices deployed in a network is anticipated to contribute to the growth of the mMTC segment over the forecast period.

Vertical Insights

The IT & telecom segment is estimated to hold the largest market share of over 20% by 2020 owing to the significant investments corporate players are making on adopting the latest technologies for communication. The growing demand for higher data speeds for residential and commercial applications is estimated to drive the growth of the IT & telecom segment over the forecast period. Besides, 5G services are expected to deliver ubiquitous broadband access between homes and offices, which would encourage remote consultation with specialists and reduce business travels. The growing need for 5G services for virtual business meetings is anticipated to propel the IT & telecom segment growth over the forecast period. The manufacturing sector has been digitalizing rapidly. As such, production lines are being automated continuously to enhance overall productivity. This has triggered the need for seamless wireless communication between the robots, sensors, actuators, and other devices installed in manufacturing facilities. The manufacturing segment is expected to exhibit the fastest growth over the forecast period as a result.

Regional Insights of 5G Services Market

The North American regional market is expected to account for around 40% share of the global market by 2020. Some of the most significant investments in deploying 5G network infrastructure are materializing in the U.S. For instance, according to GVR analysis, mobile operators based in the U.S. invested around USD 250 billion in mobile network infrastructure rollout between 2010 and 2017. The aggressive investments in the U.S. in building smart homes, establishing smart industries, and rolling out smart city projects are expected to contribute to the growth of the North American regional market over the forecast period. In Asia Pacific, key market players, such as China Telecom, China Mobile, SK Telecom, and KT Corporation, are investing aggressively in rolling out 5G network infrastructure in China, Japan, and South Korea. Most of these investments are expected to focus on deploying 5G network infrastructure for the media & entertainment, transportation & logistics, healthcare, and manufacturing, among other industry verticals. These investments are estimated to propel the growth of the Asia Pacific regional market over the forecast period. Moreover, the rapidly rising demand for smartphones supporting higher data speeds has resulted in robust production of 5G-enabled smartphones across the region. 5G services are expected to gain traction as key smartphones manufacturers in the region, such as Huawei Technologies Co. Ltd., Samsung Electronics Co., Ltd, and BBK Electronics Corporation, among others, continue to launch 5G-enabled smartphones in response to the rising demand.

Market Share Insights of 5G Services Market

Prominent players in the market include AT&T Inc.; BT Group plc; China Mobile Ltd.; China Telecom Corporation Limited; Bharti Airtel Limited; KT Corporation; Saudi Telecom Company; Vodafone Limited; Deutsche Telekom Group; SK Telecom Co., Ltd.; and Verizon Communications Inc.; among others. These market players are focusing strategically on mergers and acquisitions to strengthen their foothold in the global market. For instance, in September 2018, T-Mobile signed an agreement with Ericsson to support T-Mobile's 5G deployment in the U.S. The deal was valued at USD 3.5 billion. Key market players are also investing in acquiring the necessary spectrum. Having adequate spectrum would allow the market players to strengthen their overall portfolios and increase their subscriber base across various countries. For instance, in April 2018, the BT Group plc's Enterprise (EE) segment acquired 40 MHz of 3.4 GHz spectrum (3540 - 3580 MHz spectrum frequencies) for around USD 426.5 million. The company plans to utilize the spectrum to provide 5G technology services in the U.K.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of 5G Services Market Research Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the subsegments from 2020 to 2025. For the purpose of this study, this market research report has segmented the global 5G services market report based on communication type, vertical, and region:

Communication Type Outlook (Revenue, USD Billion, 2020 - 2025)

  • Fixed Wireless Access (FWA)
  • Enhanced Mobile Broadband (eMBB)
  • Ultra-Reliable and Low Latency Communications (uRLLC)
  • Massive Machine-Type Communications (mMTC)

Vertical Outlook (Revenue, USD Billion, 2020 - 2025)

  • Manufacturing
  • Energy & Utilities
  • Media & Entertainment
  • IT & Telecom
  • Transportation & Logistics
  • Healthcare
  • Others

Table of Contents
Chapter 1. Methodology and Scope                  1.1. Market Segmentation & Scope                  1.2. Market Definition                   1.3. Information Procurement                      1.3.1. Purchased database                      1.3.2. GVR’s internal database                      1.3.3. Secondary sources & third-party perspectives                      1.3.4. Primary research                  1.4. Information Analysis                      1.4.1. Data analysis models                  1.5. Market Formulation & Data Visualization                  1.6. Data Validation & P
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