US: 1.917.963.8646 (24x5)
UK: 44.330.808.0580 (24x5)
Worldwide: 91.703.051.960 (24x7)
Industry Insights, Market Size, CAGR, High-Level Analysis: 5G System Integration MarketThe global 5G system integration market size is estimated to reach USD 43.7 billion by 2027 and is expected to register a CAGR of 14.9% from 2020 to 2027. 5G system integration is a process of integrating both virtual and physical components of any enterprise with new upgraded systems or applications to work over the new 5G network. The rising demand for high-speed bandwidth capacity has enabled enterprises to install upgraded network infrastructure to enhance overall operational efficiency as well as reduce the total process costs. Thus, the robust deployment of upgraded network infrastructure across enterprises to deliver enhanced services to their customers is estimated to propel the demand. Major global manufacturers are seeking opportunities to speed up their operations by embracing modern digital technologies to empower the fourth industrial revolution (i.e., Industry 4.0). These technologies, such as big data analytics, industrial wireless camera, and collaborative robots, are enabling manufacturing facilities to take a giant leap toward smart and data-driven flexible operations. In addition, several manufacturers have developed and implemented these aforementioned technologies to compete in a highly competitive environment. Manufacturers need to integrate them with next-generation 5G network, in order to provide unified communication to these technologies; which also helps reduce the overall operational downtime and costs through delivering continuous connectivity and remote monitoring. Thus, robust deployment of Industrial Internet of Things (IIoT) coupled with a growing demand for 5G services to provide unified connectivity is anticipated to bolster the demand for 5G system integration during the forecast period. With the evolution of fifth-generation mobile network services, various enterprises across the globe are aggressively focusing on integrating their legacy network infrastructure with the new upcoming 5G technologies. Also, these companies are integrating their existing on premise applications and cloud networks with modern 5G technologies to work seamlessly over a centralized network. This integration process allows enterprises to access high bandwidth capacity with low latency for their operations, thereby increasing the total operational efficiency by reducing the overall response time to customers. Therefore, the significant rise in demand for fast broadband to reduce overall response-time is expected to boost growth of the 5G system integration market from 2020 to 2027. The growing popularity of Network Function Visualizations (NFV) and Software-Defined Networking (SDN) across enterprises is also expected to be one of the major factors driving the market growth. NFV allows enterprises to deploy several virtual machines and firewalls to lead an efficient economy of scale. On the other hand, SDN provides a smart network architecture that aims to reduce hardware constraints on the company premises. Also, SDN allows these companies to manage the use of their network behaviors efficiently through an Application Program Interface (API). Thus, the rapid adoption of NFV and SDN technologies to minimize overall network infrastructure costs is anticipated to further surge the growth. However, the rapidly increasing huge chunk of data sets over the cloud, coupled with the increasing demand for cloud-based application integration, creates a major security concern among the consumers, may hinder the market growth.
Services InsightsThe infrastructure integration segment is estimated to account for more than 35% market share by 2019 and register a significant CAGR from 2020 to 2027. The growth is attributed to the surging demand for integration of traditional network infrastructure with the next generation 5G network infrastructure. This, integration of legacy infrastructure facilitates users to access the same hardware with enhanced features, thereby reducing the additional costs of hardware. In addition, the infrastructure system integration services consist of network integration, building management, and Data Center Infrastructure Management (DCIM), among others. The consulting segment is expected to expand at a CAGR of 12.5% over the forecast period. With the rapidly augmenting demand for 5G technologies such as network equipment, business enterprises initially approach system integrators to build upgraded network architecture for their organizations. This architecture will help these business enterprises to boost overall operational output in less time. Moreover, spiraling demand for multi-vendor cloud-based applications across enterprises is anticipated to augment the need for application integration services over the forecast period.
Application Insights of 5G System Integration MarketIn the application segment, the fast broadband/ UHD TV segment attained a market share, exceeding 20% by 2019, attributed to the growing need for system integration services to provide initially enhanced Mobile Broadband (eMBB) connectivity to consumers and enterprises. Moreover, a remarkable increase in IoT devices across rapidly building smart cities worldwide is expected to surge the demand for system integration services to make these devices compatible with next generation 5G network services. This factor is anticipated to further boost growth of the smart city application segment from 2020 to 2027. The adoption of connected sensors and collaborative robots is witnessing significant rise in industrial applications across the globe. This is expected to drive the demand for 5G services to establish seamless connectivity, which in turn is projected to fuel the segment growth over the forecast period. Furthermore, the intelligent power distribution systems segment is estimated to showcase a notable growth, owing to flawless communication set-up between smart grids to automate and monitor power distribution and storage operations.
Vertical InsightsThe IT and telecom segment held the largest market share of over 20% in 2019, due to surging demand for integration services across various IT and telecom companies to support 5G New Radio (NR) waves. A healthy rise in demand for integrating enterprise network infrastructure and data center network hardware is anticipated to witness significant growth in demand for 5G system integration in the IT and telecom segment. Moreover, with a high focus on providing seamless connectivity during a virtual meeting to reduce the overall travel time of a consultant or specialist, the demand for 5G network services is estimated to showcase significant adoption across enterprises over the forecast period. As a result, the demand for 5G system integration services is estimated to witness a substantial rise for integrating an entire enterprise network to make compatible with the 5G network. As digitalization is becoming popular in the manufacturing sector, the production lines are being continuously automated to improve overall production efficiency. This has triggered the need for seamless wireless communication between the industrial robots, actuators, sensors, and other devices mounted in manufacturing facilities. Thus, the manufacturing sector is estimated to exhibit the fastest growth over the forecast period owing to growing demand for system integration services to integrate entire facility with a 5G carriers supporting network.
Regional Insights of 5G System Integration MarketNorth American is held more than 35% market share in 2019 and is projected to register a CAGR of around 16% from 2020 to 2027. The growth is attributed to the presence of large IT and telecom players such as IBM Corporation; Microsoft Corporation; and Cisco Systems, Inc. Moreover, rising investments in deploying 5G infrastructure by key market players such as AT&T Inc. and Verizon Communications Inc. are expected to create a robust need to integrate overall infrastructure and applications across various verticals such as IT and telecom, energy and utilities, and healthcare, to support 5G NR frequency bands. This factor is anticipated to boost the overall growth of the regional market for 5G systems integration. In Asia Pacific, prominent telecom operators such as China Mobile, China Telecom, KT Corporation, and SK Telecom are making significant investments in rolling out 5G networks in China, Japan, and South Korea. Most of these investments are envisioned to focus on implementing 5G network infrastructure for transportation, energy and utility, healthcare, media and entertainment, and manufacturing, among other industry verticals. Thus, quickly growing investments for installing 5G infrastructure across the above-mentioned countries are likely to create a significant opportunity for 5G system integrators in the region in the forthcoming years. Furthermore, the rapidly increasing number of small and medium IT companies in emerging countries such as China and India is estimated to propel the regional adoption of 5G system integration services.
Market Share Insights of 5G System Integration MarketProminent market players include Accenture Inc.; Huawei Technologies Co., Ltd.; Cisco Systems, Inc.; Infosys Limited; Tata Consultancy Services Limited; Wipro Limited; Radisys Corporation; IBM Corporation; HPE; Oracle Corporation; HCL Technologies Limited; ALTRAN; AMDOCSl CA Technologies; Sigma Systems; Samsung Electronics Co., Ltd.; Ericsson; Keysight Technologies; and ECI TELECOM. The key players are focusing on making adequate investments in developing systems integration software, platforms, and other solutions to enhance their overall product portfolios. For instance, Huawei Technologies Co., Ltd. has announced the investment of around USD 350 million over the next three years. This strategical investment is expected to be focused on developing system integration services solutions such as tools, platforms, and consulting services related to 5G system integration across numerous verticals. These market players are aggressively focusing on building partnerships and agreements to gain a significant market share on global scale. For instance, in Feb 2019, Hewlett Packard Enterprise (HPE) made a partnership agreement with Samsung Electronics Co., Ltd. This partnership will focus on offering edge-to-core virtual Radio Access Network (vRAN) solution based on Samsung Electronics Co., Ltd.'s system integration services and radio network technologies. HPE announced to invest nearly USD 4 billion to introduce converged edge systems that target to provide to Communication Service Providers (CSP) and other use cases such as IoT, media streaming, and video analytics.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of 5G System Integration Market Research ReportThis report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2027. For the purpose of this study, this market research report has segmented the global 5G system integration market report based on services, vertical, application, and region:
Services Outlook (Revenue, USD Million, 2019 - 2027)
- Infrastructure Integration
- Application Integration
Vertical Outlook (Revenue, USD Million, 2019 - 2027)
- Energy & Utility
- Media & Entertainment
- IT & Telecom
- Transportation & Logistics
Application Outlook (Revenue, USD Million, 2019 - 2027)
- Smart City
- Collaborate Robot/ Cloud Robot
- Industrial Sensors
- Logistics & Inventory Monitoring
- Wireless Industry Camera
- Fast Broadband/ UHD TV
- Vehicle-to-Everything (V2X)
- Gaming and Mobile Media
Remote Patient & Diagnosis Management
- Intelligent Power Distribution Systems
- P2P Transfers/ mCommerce
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 | read more...