Post COVID-19, the global 5G infrastructure market size is estimated to grow from USD 12.6 billion in 2020 and projected to reach USD 44.9 billion by 2025, at a CAGR of 29.0%. The projection for 2025 is estimated to be down by 22.7% as compared to pre-COVID-19 estimation. The major factors driving the growth of the 5G network infrastructure market include an exponential rise in data traffic, increasing M2M connections across various industries, partnerships and alliances for 5G monetization, and rising adoption of IoT devices. However, supply chain disruptions, delay in the release of 5G specifications, and the China-US trade war will result in lower market projection compared to pre-COVID-19 estimation.
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“5G macro cell-based communication Infrastructure market to generate the highest revenue between 2020 and 2025.”
Macro cells provide radio coverage for cellular networks and comprise the bulk of 4G/5G data traffic. Though macro cell sites are costly to deploy, they generate a higher average gross margin compared with small cells since one macro cell can cover several small cells. The impact of COVID-19 on macro cells sales is expected to be high as operators are seeking to minimize their capital spending to remain in the growth stage. However, the COVID-19 crisis has made end-users realize the true value of automation, IoT, and digitalization, who are now anticipated to increase their focus on implementing 5G wireless technology across their facilities, leading to the aggressive deployment of macro cells during 2020-2025.
“Industrial end-user to have the highest CAGR in the 5G infrastructure market during the forecast period.”
The industrial market is estimated to grow at the highest rate because of the growing demand for process automation in various manufacturing and process industries. 5G networks will become mainstream in industrial facilities for multiple applications. To efficiently collect, store, manage, and analyze the data generated by connected devices, a robust communication network infrastructure such as 5G will be needed to facilitate communication between IoT devices.
Key Market Players
Some of the major players in the 5G infrastructure industry are Ericsson (Sweden), Huawei Technologies Co., Ltd. (China), Nokia Networks (Finland), Samsung Electronics Co., Ltd. (South Korea), and ZTE Corporation (China), among others. These players account for the majority of the global 5G infrastructure market share.
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