Increase in demand for mobile broadband services and proliferation of M2M/IoT connections drive the growth of the global 5G infrastructure market.

PORTLAND, Ore., March 7, 2022 /PRNewswire/ -- Allied Market Research published a report, titled, "5G Infrastructure Market By Communication Infrastructure (Small Cell, Macro Cell, Radio Access Network, and Distributed Antenna System), Network Technology (Software Defined Networking, Network Chipset Type Virtualization, Mobile Edge Computing, and Fog Computing), Chipset Type (Application Specific Integrated Circuit, Radio Frequency Integrated Circuit, mmWave Integrated Circuit, and Field Programmable Gate Array), Application (Automotive & Transportation, Energy & Utilities, Healthcare, Retail, Consumer Electronics, Industrial Automation, and Others): Global Opportunity Analysis and Industry Forecast, 2021–2030". According to the report, the global 5G infrastructure industry was estimated at $2.06 billion in 2020, and is anticipated to hit $83.62 billion by 2030, registering a CAGR of 45.3% from 2021 to 2030.

Drivers, Restraints, and Opportunities

Increase in demand for mobile broadband services and proliferation of M2M/IoT connections drive the growth of the global 5G infrastructure market. On the other hand, high initial investment impedes the growth to some extent. However, high demand from Asia-Pacific especially in the consumer electronics and industrial automation segments is anticipated to create lucrative opportunities in the industry.

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COVID-19 Scenario:

• The outbreak of the pandemic gave way to postponement of a number of industrial projects that call for 5G infrastructure, especially during the initial period. This factor impacted the global 5G infrastructure market negatively.
• However, the market is anticipated to revive soon.

The Macro Cell Segment to Dominate By 2030

Based on communication infrastructure, the macro cell segment accounted for nearly two-fifths of the global 5G infrastructure market share in 2020, and is anticipated to rule the roost by 2030. This is due to the fact that with the emergence of 5G, macro cell is expected to play a crucial role to efficiently deliver high-speed broadband and numerous other low latency applications. The Radio Access Network (RAN) segment would also cite the fastest CAGR of 49.0% throughout the forecast period. This is attributed to the fact that RAN components include base station and antennas that cover a particular region as per their capacity.

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The Mobile Edge Computing Segment to Maintain the Dominant Share

Based on network technology, the mobile edge computing segment held more than two-thirds of the global 5G infrastructure market revenue in 2020, and is expected to lead the trail by 2030. The same segment would also manifest the fastest CAGR of 48.3% from 2020 to 2030. This is because MEC is a network architecture that allows IT and cloud-computing capabilities at the edge of the cellular network. In addition, it is also designed to be incorporated at cellular base stations giving high deployment of applications and other customer services.

Asia-Pacific, Followed By Europe and North America, Garnered the Major Share in 2020

Based on region, Asia-Pacific, followed by Europe and North America, accounted for the major share in 2020, generating around one-third of the global 5G infrastructure market. The same region would also grow at the fastest CAGR of 47.7% by 2030. Rise in government initiatives for building smart cities in Asia-Pacific and upcoming long-term investments in smart technologies drive the growth of the market.

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Key Players in the Industry

• AT&T
• Huawei Devices Co. Ltd.
• Ericsson
• Intel Corporation
• Mediatek Inc.
• Nokia Corporation
• Qualcomm Technologies Inc.
• Hewlett Packard Enterprise
• Samsung Electronics Co. Ltd.
• Verizon

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