5G Services Market - Potential Waiting To be Tapped

Any sufficiently advanced technology is indistinguishable from magic” - Arthur C Clarke.

The respected writer and futurist above, summed up fascinatingly in his words the beauty of advanced technologies and how they can be miraculous for the mankind. 5G services is one of those advanced technologies, which has the capability to boost connectivity not only among humans but also among vehicles, houses and other important devices and infrastructures that form essential part of human life. Multiple benefits of 5G technologies are coming to fore nowadays, as safety from the spreading contagion has become important and social distancing has become a key rule to abide by.

5G Services: Why?

Basically, 5G in telecommunications is fifth generation technology standard for cellular networks, which was planned to be deployed in 2019 itself, but had to be postponed due to global emerging circumstances. 5G is the successor of 4G, which is currently the fuel running most of the cellular phones nowadays. When compared on the basis of capabilities, 5G clearly shows 4G who’s the boss! Also, 5G Services Market is expected to grow at the same speed that 5G has. It is anticipated to reach USD 414.50 billion by 2027, registering a CAGR of 43.9% from 2021 to 2027, according to a new study by Grand View Research, Inc.The reasons why 5G is expected to grow at such speed are -

• High Speed - With the arrival of the new generation on the block, speed upgrade is a given for the cellular operators. The fifth generation of cellular network technology will push far beyond 4G LTE. In practical terms, 4G vs. 5G speed enhancements will mean exciting possibilities for consumers. Transferring a high-resolution movie at peak download speeds will go from taking seven minutes to just six seconds. This lowering of download rate means a godsend for the entertainment industry.

• Low Latency - Latency is nothing but a measure of how long a signal takes to go from its source to its receiver, and then back again. It has been a very important goal of each generation to lower the latency period. Low latency makes the data transfer almost instantaneous and delay is not at all observed. 5G network will have lower latency that 4G LTE network, with the round-trip transmission of data taking less than five milliseconds. 5G latency will be faster than human visual processing, making it possible to control devices remotely in near-real time, creating a whole set of opportunities for the companies to build upon.

• Capacity Boost - When it comes to capacity building, 5G will be 1000x more capable of 4G, which is a good sign for IoT and automation industry. With capacity for hundreds or thousands of devices seamlessly communicating, new applications and use cases for cities, factories, farms, schools, and homes will flourish. With major developments in the sensors market, 5G will prove to be the best friend IoT has ever had until today.

• Increased Bandwidth - When high speed comes together with increased network capacity of 5G network, it is common sense that higher amounts of data will be transmitted by the users that what was possible previously. Therefore, 5G networks are architected differently from traditional 4G networks, allowing greater optimization of network traffic and smooth handling of usage spikes. This will prove helpful to many businesses in more ways than one.

Market Factors In A Nutshell

5G services have an unprecedented demand now more than ever. With new technologies and machines coming along, which are making mankind highly dependent on them, 5G services are going to experience growing demands as the days pass us by. Major factors that are playing in the market are -

• Growing IoT and Automation need - Smart machines are making a niche for themselves in the world and automation has become a new trend to practice. Also, automation makes human more efficient in their work and when time needs can be a source of good entertainment as well. 5G services has increased speed, which can be used by the self-driven automobiles to scan the surrounding and take immediate decisions when obstacles arise on the roads, which will lead to lesser accidents.

• Education Usage - Pandemic has caused a major shift in the education processes all over the world. Large amount of teaching and assessment has shifted online, which has carved a space for the 5G services to fill in, helping governments and education institutions provide uninterrupted education to its citizens.

• COVID-19 - It has worked as a benefactor as well as a hindrance, when it comes to the establishment of 5G services all over the world. It has worked as a benefactor in a sense that, pandemic and lockdown restrictions have stressed on the importance of 5G services in completing multiple routine works in several fields. However, it has also caused a delay in arrival of 5G infrastructure for the world, as telcos postponed the launch of 5G services due to pandemic.

Competitive Insights

The market for 5G services is highly fragmented as several regional telecom service providers are investing significantly in deploying the next-generation infrastructure. These activities will definitely help the companies in establishing its consumer base, which can be leveraged late, after the launch of services. Also, these companies are strategically focusing on mergers and acquisitions to strengthen their foothold in the global market. Major key players in the industry are AT&T Inc.,BT Group plc, China Mobile Ltd., China Telecom Corporation Limited, Bharti Airtel Limited, KT Corporation, Saudi Telecom Company, Vodafone Group, Deutsche Telekom AG, SK Telecom Co., Ltd., Verizon Communications Inc., NTT Docomo, Telecom Italia, Sprint Corporation and Reliance Jio.a

  In-depth report on global 5G services market by Grand View Research:

https://www.grandviewresearch.com/industry-analysis/5g-services-market