The "COVID-19 Impact on 5G Infrastructure Market by Communication Infrastructure (Small Cell and Macro Cell), Core Network Technology Type (SDN and NFV), End-User (Commercial, Residential, Government, Industrial), and Region - Global Forecast to 2025"
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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“Telecommunication authorities of several countries have postponed the 5G spectrum, which will delay 5G rollout plans thereby affecting the 5G infrastructure market.”
Several telecommunication operators and government authorities have delayed the 5G rollout plans and spectrum auction. For instance, in India, DoT (Department of Telecommunication) has postponed 5G spectrum auction to next year. On 17 February 2020, Brazilian telecoms regulator Anatel launched a public consultation to discuss the rules of 5G spectrum auction, which was scheduled to be held in March but is delayed due to COVID-19. This is adversely impacting the 5G rollout plans of telecommunication operators.
“5G infrastructure market in APAC to generate the highest revenue between 2020 and 2025 during the forecast period “
The 5G infrastructure industry in APAC is expected to generate the highest revenue during the forecast period. This growth is attributed to aggressive spending on the development of 5G network infrastructure by China, South Korea, Japan, and India. The growing 5G subscriber base and the adoption of 5G smartphones in these countries will result in large scale deployment of 5G base stations.
Some of the major players in the global 5G infrastructure market are Ericsson (Sweden), Huawei Technologies Co., Ltd. (US), Nokia Networks (Finland), Samsung Electronics Co., Ltd. (South Korea), and ZTE Corporation (China) among others.
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