5G Infrastructure Market Size, Share & Trends Analysis Report By Component, By Type, By Spectrum, By Network Architecture, By Vertical, By Region, And Segment Forecasts, 2024 - 2030

5G Infrastructure Market Size & Trends

The global 5G infrastructure market size was estimated at USD 16.69 billion in 2023 and is expected to grow at a CAGR of 22.9% from 2024 to 2030. The growing mobile data traffic and the rise of smart cities with IoT applications are key factors that are fueling market growth. Moreover, increased government and telecom investments in 5G networks are expected to create growth opportunities for the market. The increasing demand for connected devices for uses like smart buildings and remote healthcare is also contributing to market growth. Worldwide data traffic, especially mobile data traffic, has increased at exponentially over the past few years.

According to the Telefonaktiebolaget LM Ericsson’s Mobile Data Traffic Outlook report, at the end of 2023, total worldwide mobile data traffic (without traffic caused by fixed wireless access) reached 130 EB per month and is expected to increase by a factor of 3 to reach 403 EB per month by 2029.This growth in mobile data traffic, coupled with increasing preference for 5G networks, is creating significant opportunities for market growth. The growing number of smart cities in major countries, such as the U.S., Japan, China, Germany, Italy, the UK, and India, has increased the adoption of IoT technology for applications, such as transportation, energy management, and public safety & security.

To offer continuous connectivity for these mission-critical applications, various telecom providers invest in 5G network infrastructure across many cities in partnership with the local federal government. This private and government investment in deploying 5G network infrastructure significantly drives market growth. The rising demand for connected devices and the use of 5G IoT in Industry 4.0 are also among the significant factors driving the industry growth. 5G enables the most advanced network, designed to link nearly anything and everyone, including objects, machines, and gadgets.

These devices are utilized in fleet management, smart buildings, logistics, capabilities networks, smart agriculture, tracking, remote healthcare, traffic safety & control, smart grid automation, and various other applications. The growing adoption of these applications is driving market growth. Despite its growth potential, the market faces hurdles. Deploying a denser network with short-range small cells is costly, and securing permits for using street furniture like lamp posts can be expensive. In addition, the complex technical requirements and the lack of widespread adoption of applications that truly utilize 5G's capabilities are factors that can slow down investments.

Market Concentration & Characteristics

The industry growth stage is high, and the pace of its growth is accelerating. The industry’s growth can be attributed to the rising demand for ultra-fast connectivity and the imperative for seamless integration across diverse sectors. Notably, the 5G infrastructure industry growth is driven by continuous innovation attributed to the growing need to enhance data speeds and seamless connectivity across multiple industry sectors.

The 5G infrastructure industry is characterized by a high level of merger & acquisition activities. Major players including telecommunications service providers, infrastructure developers, and technology firms are actively engaging in strategic partnerships. These strategic initiatives are aimed at fortifying industry presence, broadening product portfolios, and gaining access to cutting-edge technologies and capabilities, thus positioning themselves advantageously in this competitive landscape.

The impact of regulations is significant in the 5G infrastructure landscape. The industry faces a dynamic regulatory framework that governs spectrum allocation, compliance standards, infrastructure deployment protocols, as well as privacy & security mandates. These regulations significantly shape the landscape of 5G infrastructure deployment, utilization, and expansion across different regions.

The 5G technology has multiple substitutes, including the 4G LTE, Wi-Fi 6/6E, and satellite communications. However, 5G infrastructure stands out for its unparalleled advantages including ultra-low latency, significantly higher data transfer rates, and support for an extensive array of connected devices concurrently. These distinctive attributes position 5G infrastructure as the preferred choice for applications demanding ultra-reliable and low-latency connectivity.

End-use concentration within this industry varies across multiple industries and applications. Key sectors contributing significantly to end-use concentration include telecommunications, smart cities, automotive, manufacturing, and healthcare. The adoption of 5G infrastructure is notably widespread across these sectors, fueling the overall industry growth.

Component Insights

The hardware segment dominated the market in 2023 and accounted for a revenue share of 77.18%. The hardware segment is further classified into RAN, core network, backhaul & transport, fronthaul, and midhaul. RAN is an essential component of 5G infrastructure as it connects devices, such as smartphones, via a radio link. Key industry players are investing and innovating in RAN 5G infrastructure. In December 2023, Parallel Wireless, Inc. announced the availability of a hardware-agnostic standalone (SA) 5G software stack. This standalone solution allows public safety networks, private networks, and operators to deploy their RAN infrastructure across various processor hardware platforms. Such initiatives are anticipated to boost the growth of the RAN segment.

The services segment is anticipated to register substantial growth from 2024 to 2030. The segment is further divided into consulting, implementation & integration, support & maintenance, and training & education. The support & maintenance segment is expected to exhibit significant growth during the forecast period, driven by the increasing deployment of 5G infrastructure. This deployment creates a demand for support & maintenance services to ensure the proper functioning of the equipment. Factors, such as understanding software technicalities, repairing breakdowns, upgrading infrastructure, and keeping up with the latest technologies & market trends, are crucial considerations in 5G implementation. Neglecting these factors can lead to decreased productivity. Consequently, the demand for support & maintenance services is projected to gain traction in the coming years.

Type Insights

The private type segment dominated the market in 2023.The rising demand for ultra-reliable low-latency connections for Industrial Internet of Things (IIoT) applications, such as industrial cameras, collaborative robots, and industrial sensors, is the main factor driving the segment growth. A private 5G network offers enhanced security for businesses, ensuring that their infrastructure and data are protected from attacks. In addition, it is anticipated to become a crucial component when information secrecy is of the greatest importance. Therefore, it is predicted that from 2024 to 2030, business data storage applications as well as government and public safety will have significant traction, thereby driving the demand for private 5G infrastructure.

The public type segment is anticipated to witness a significant CAGR from 2024 to 2030. The benefits offered by public 5G networks, such as better coverage, high resilience on multiple operators, scalability, and data security, are driving the segment growth. A public 5G network is often designed to offer large bandwidths for data-intensive applications like video telephony and streaming video. High bandwidth is a major selling point for mobile service providers that are currently deploying 5G in a number of nations worldwide. Users in urban areas can get very large bandwidths through small radio cells and high frequencies. The growing demand for high-speed and ultra-low latencies is driving the demand for public 5G infrastructure.

Spectrum Insights

The sub-6 GHz segment dominated the market in 2023. Sub-6 GHz networks operate within a frequency range of up to 6 GHz, with the widely used 3.5 GHz frequency being a common choice worldwide. Sub-6 GHz provides a lower frequency range of approximately 1 GHz to 6 GHz, offering broader coverage despite limitations in speed. This makes it a practical option for real-world implementation. In addition, the sub-6 GHz spectrum has been utilized in previous generation networks, making it a cost-effective and accessible approach for implementing 5G. The segment is further bifurcated into the low band (below 1 GHz) with greater coverage but lower speed and mid-band (1 GHz - 6 GHz), which strikes a balance between speed and coverage.

The mmWave segment is anticipated to grow at a significant CAGR from 2024 to 2030 owing to the higher radio frequency bands ranging from 24 GHz to 40 GHz, which offer super-fast 5G and deliver faster than usual internet speeds. The FCC in the United States has introduced several mmWave frequencies, including 47.2-48.2 GHz, 24.25-24.45 GHz, 38.6-40 GHz, and 24.75-25.25 GHz, to enable low-latency connectivity for applications like autonomous vehicles. Moreover, other countries, such as South Korea, Japan, and Italy, have also released mmWave frequencies to boost their data services. The concerted efforts of governments worldwide in releasing mmWave frequencies are expected to drive the segment growth in the forecast period.

Network Architecture Insights

The non-standalone segment dominated the market in 2023. Non-standalone network architecture is a cost-effective solution that utilizes existing 4G infrastructure to enhance Enhanced Mobile Broadband (eMBB) services without requiring a complete infrastructure rebuild. It has played a crucial role in the initial rollouts of 5G networks, providing customers with higher data transfer speeds and acting as a transitional platform for both customers and carriers. The segment's growth is driven by the widespread adoption of non-standalone networks globally. Leading service providers like Verizon Communication, Inc., AT&T, Inc., and China Mobile Ltd. have already implemented 5G non-standalone networks for various applications, including UHD videos and cloud-based AR/VR gaming.

The standalone segment is expected to witness significant growth from 2024 to 2030. Standalone 5G networks utilize a dedicated 5G core to handle crucial functions like connectivity, mobility, and user authentication. Unlike non-standalone architectures that rely on 4G LTE infrastructure, standalone networks enable the full range of 5G features and capabilities. The demand for standalone networks is expected to increase over the forecast period as industries embrace digitalization and seek uninterrupted machine-to-machine connectivity. There is also a growing need for ultra-reliable, low-latency connectivity, especially for applications in transportation and logistics. These factors drive the demand for 5G infrastructure, as businesses across various industries require faster data speeds to support their operations.

Vertical Insights

The enterprise/corporate segment dominated the market in 2023. The enterprise/corporate segment is experiencing significant growth due to the increasing need for higher data bandwidth in various corporate businesses. This surge in demand is driven by a wide range of use cases, such as virtual meetings, cloud computing, and the adoption of IoT-based smart workplaces. These applications rely on robust and uninterrupted connectivity to facilitate efficient communication and data exchange. As a result, enterprises are seeking enhanced connectivity solutions to meet their growing bandwidth requirements and ensure seamless operations.

The industrial segment is expected to witness a significant growth rate from 2024 to 2030 driven by the critical need for uninterrupted communication in various industrial applications, such as Automated Guided Vehicles (AGVs), wireless cameras, and collaborative/cloud robots, among other technologies. As industries transition toward implementing Industry 4.0, which relies on advanced connectivity, the demand for robust network infrastructure is expected to rise. The emphasis on seamless communication in industrial settings, coupled with the growing adoption of Industry 4.0 principles, creates favorable conditions for the expansion of the industrial segment.

Regional Insights

The 5G infrastructure market in North Americais expected to witness significant growth from 2024 to 2030 due to the rising number of 5G connections fueling the demand for 5G deployment across the region. According to a study published by GSMA in 2021, in North America, 5G connections will account for 63% of all mobile connections by 2025. In addition, the presence of key players, such as T-Mobile USA, Inc., AT&T Inc., and Verizon Communications, Inc., is anticipated to support the regional market growth.

U.S. 5G Infrastructure Market Trends

The U.S. 5G infrastructure market is expected to grow at a significant CAGR of 20.2% from 2024 to 2030. High data speed, ultra-low latency, massive network capacity, increased availability, and more reliability are some of the main features driving the demand for 5G services, thereby contributing to market growth.

The 5G infrastructure market in Canada is expected to grow at a significant CAGR from 2024 to 2030. 5G adoption has been comparatively slower in Canada, however, it is expected to exponentially increase from 2024 to 2030 owing to the benefits of 5G, thereby creating growth opportunities for the 5G infrastructure market.

Asia Pacific 5G Infrastructure Market Trends

The Asia Pacific infrastructure market dominated the market in 2023 and accounted for a revenue share of 45.25%. The governments across several countries in Asia Pacific, such as China and India, are taking initiatives to enhance the digital and network infrastructure owing to growing internet penetration. The rapid rollout of 5G owing to continuous digital transformation is anticipated to boost market growth. As stated in GSMA’s ‘The Mobile Economy Asia Pacific 2023’ report, by 2030, the percentage of 5G connections (excluding licensed cellular IoT) in Asia Pacific will reach 41% from 4% in 2022. This anticipated growth in the percentage of 5G connections is expected to drive regional market’s growth.

The 5G infrastructure market in China is expected to grow at a significant CAGR of 26.1% from 2024 to 2030.According to the GSMA’s The Mobile Economy China 2023 report, by the end of 2022, the number of 5G base stations in China surpassed 2.3 million, with around 887,000 being built within the year. The increasing number of 5G connections across China is driving the 5G infrastructure market’s growth.

The Japan 5G infrastructure market is expected to grow at a significant CAGR from 2024 to 2030. Favorable government initiatives and strategic initiatives by major providers to boost 5G connectivity are benefiting the domestic market growth.

The 5G infrastructure market in India is expected to grow at a significant CAGR from 2024 to 2030. Telecom operators in the country are leveraging the growing demand for high-speed networks in the country and are investing heavily in 5G infrastructure to gain profits. This, in turn, is driving the market growth in India.

Europe 5G Infrastructure Market Trends

The Europe 5G infrastructure market is expected to grow at a significant CAGR from 2024 to 2030. Consumer adoption of 5G in Europe is fueled by the huge economic benefits the 5G network offers. Moreover, governments across Europe are investing in improving their networking infrastructure, which is creating growth opportunities for the regional market.

The 5G infrastructure market in the UK is expected to grow at a significant CAGR from 2024 to 2030. The continuous digital transformation and rapid 5G rollout are leading to increased growth prospects for 5G infrastructure providers in the country.

The Germany 5G infrastructure market is expected to grow at a steady CAGR from 2024 to 2030. In January 2024, Telekom Deutschland GmbH announced the expansion of its 5G network coverage, which led to 5G coverage for 96% of the population. Such initiatives are fueling the market demand in Germany.

MEA 5G Infrastructure Market Trends

The 5G infrastructure market in MEA is expected to grow at a significant CAGR from 2024 to 2030. The growing demand from consumers for faster broadband services, such as 5G is creating growth opportunities for the 5G infrastructure market in the region.

The UAE 5G infrastructure market is expected to grow at a significant CAGR from 2024 to 2030. Key market players are engaging in collaborations and partnerships to avail high-speed broadband services in UAE, which is driving the market’s growth.

Key 5G Infrastructure Company Insights

Some of the key players operating in the market include Telefonaktiebolaget LM Ericsson, Cisco Systems, Inc., Nokia Corporation, Huawei Technologies Co., Ltd., and Samsung Electronics Co., Ltd.

• Telefonaktiebolaget LM Ericsson provides Information and Communication Technology (ICT) services across the globe. The company’s range of offerings spans various areas, including cloud software and services, networks, enterprise wireless solutions, global communications platforms, technologies, and new businesses, as well as IPR licensing

• Huawei Technologies Co., Ltd. provides smart devices and information & communication technology components to communications service providers, government agencies, and business enterprises. The company carries out its business through five operating segments namely, Cloud Computing Business, Consumer Business, ICT Infrastructure Business, Intelligent Automotive Solution Business, and Digital Power Business

Recent Developments

• In October 2023, Nokia and Vodafone joined forces to pioneer a commercial 5G Open RAN trial in northern Italy. This pilot will leverage Nokia's containerized baseband software running on Red Hat OpenShift, a leading hybrid cloud platform powered by Kubernetes. The software will be hosted on Dell PowerEdge XR8000 servers, specifically designed for mobile edge computing and optimized for Open RAN workloads. For Layer 1 processing, these servers will be equipped with a Smart Network Interface Card (NIC), co-developed by Marvell and Nokia. This collaboration signifies a major step towards a more open and flexible telecom network infrastructure

• In June 2023, Orange SA and Telefonaktiebolaget LM Ericsson signed a collaboration agreement and secured contracts for the installation and maintenance of 5G network infrastructure on high-speed rail lines across Spain. With this achievement, Orange SA solidifies its position as a leading contributor to the development and implementation of 5G networks

• In June 2023, Charter Communications, a U.S.-based telecom company, selected Nokia to supply 5G infrastructure for its Spectrum Mobile service. Under this agreement, Nokia will provide its AirScale product portfolio including 5G RAN, which will support Charter Communications’ desired 5G connectivity deployment and design. With this collaboration, Charter Communications aims to enhance its mobile services by delivering mobile traffic efficiently in key locations across its operational presence in 41 U.S. states. The agreement reflects Charter Communications’ commitment to offering its customers an exceptional 5G service experience

5G Infrastructure Market Report Scope

Global 5G Infrastructure Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the 5G infrastructure market report based on component, type, spectrum, network architecture, vertical, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

    • Radio Access Network (RAN)

    • Core Network

    • Backhaul & Transport

    • FrontHaul

    • MidHaul

  • Services

    • Consulting

    • Implementation & Integration

    • Support & Maintenance

    • Training & Education

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Pubic

  • Private

• Spectrum Outlook (Revenue, USD Million, 2018 - 2030)

  • Sub-6 GHz

    • Low Band

    • Mid Band

  • mmWave

• Network Architecture Outlook (Revenue, USD Million, 2018 - 2030)

  • Standalone

  • Non-standalone

• Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • Residential

  • Enterprise/Corporate

  • Smart City

  • Industrial

  • Energy & Utility

  • Transportation & Logistics

  • Public Safety and Defense

  • Healthcare Facilities

  • Retail

  • Agriculture

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa