5G Equipment Market Size, Share, Growth Analysis, By Type(SDN, NFV, and MEC), By Application(Automotive, Commercial, Consumer Electronics, Manufacturing), By Region - Industry Forecast 2024-2031

Drivers

Growing Utilization of Data-intensive Applications

• Increasing demand for 5G devices due to high data-intensive applications is driving the market growth. Accordingly, the increasing use of connected devices such as smartphones and tablets are fueling the growth of the market. Additionally, individuals and organizations rely on data-driven services. In addition to this, high-quality video streaming, cloud-based applications and online sports all require sufficient bandwidth. Additionally, the increasing need for improved and faster connectivity due to increasing remote work culture, online learning and telemedicine for better market outlook. Furthermore, 5G can provide higher data rates and latency output ground enabling users to achieve smooth and efficient connectivity to their devices and applications. The increasing adoption of 5G devices in interested organizations contributes to the market's growth. Data-intensive applications running in the cloud require high-speed connectivity for optimal performance.

Increasing Adoption Of 5G Technology

• The increasing adoption of 5G technology is driving the demand for 5G devices, driving growth of the market. The number of global 5G wireless connections grew by a whopping 76% between the end of 2021 and the end of 2022, reaching 1.05 billion According to the latest data from Omdia, there are 455 million new global 5G connections by 2022.

• Global 5G network growth is expected to peak by 2024, with an estimated 2.23 billion connections. By the end of 2027, this number is expected to reach 5.9 billion. As more telecom companies upgrade their infrastructure to support 5G networks, the need for compatible equipment such as base stations, antennas, routers and switches increases.

Restraints

• High Initial Investment

The large initial investment required for the 5G equipment market includes a variety of costs, including upgrading existing infrastructure, deploying new hardware, and implementing advanced technologies This significant financial commitment is often a barrier to entry for many companies. Additionally, the costs are broader than just purchasing equipment. They include costs associated with spectrum acquisition, regulatory compliance and talent acquisition to manage the complex 5G ecosystem.

Such investments require careful budgeting and can have a negative impact on the bottom line of telecommunication companies, especially smaller ones. In addition, uncertainty about the return on this investment makes decision-making more difficult. Consequently, although the potential benefits of 5G technology are enticing, reasonable up-front costs often require strategic planning. Wider adoption may be delayed until economic benefits become more apparent.

Technological Challenges Hampering Market Growth

• 5G technology brings new technological challenges related to network infrastructure, networking, and integration with existing infrastructure. Network operators and equipment manufacturers must overcome these challenges to ensure smooth deployment and use of the 5G network.