DUBLIN--(BUSINESS WIRE)--The "5G Services Market - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The 5G Services Market is expected to grow at a CAGR of 30% over the forecast period (2019-2024). 5G networks offer low latency, higher data transfer speed, and the capacity to carry a large number of connections.
- The imminent arrival of 5G will not only allow the communications industry but also to other end-user industries to launch new products and services not previously possible, in the markets and increase productivity.
- 5G is expected to unleash a massive IoT ecosystem that would allow networks to serve for billions of connected devices. For Instance, according to Ericsson's Mobility Report of June 2019, More than 10 million 5G subscriptions are projected worldwide by the end of 2019. This is indicative of the fact that the market is poised to grow throughout the forecast period.
- Also, VoLTE is the foundation for enabling voice and communication services on 5G devices, The number of VoLTE subscriptions is projected to reach 5.9 billion by the end of 2024, accounting for more than 85 percent of combined LTE and 5G subscriptions. This is expected to boost market growth over the forecast period.
- The increasing data traffic is expected to drive the 5G services market, with mobile data traffic per smartphone per month expected to grow at a CAGR of 14% from 6.8 GB (gigabyte) in 2018 to 15 GB in 2024 according to Ericcson.
- Some of the prominent players such as Verizon, AT&T, SK Telecom, T-Mobile have already commercialized 5G services in some countries. For instance, in April 2019, three mobile players such as SK Telecom, LGU+, and KT jointly launched 5G commercial service in South Korea with the subscriptions already crossing the 1 million subscriber milestone.
- 5G network being deployed majorly on mmWave has a few drawbacks because it's so high-frequency, the waves don't travel long distances. However, the industry players through research and development already looking for a solution. For instance, T-Mobile launched its 5G network using mmWave but is also now testing its low-band (600 MHz) spectrum to build out its 5G network.
Major Market Trends
Automotive Sector to Hold a Significant Share
- The advent of Fully autonomous, self-driving cars, is expected to boost the adoption of 5G services over the forecast period as it continuously shares the data with the OEMs and the user itself. Thereby making enhanced connectivity integral for its operation.
- The greater state of connectivity results in multiple new technological innovations and business models such as in-car payments, connected commerce, new fleet management solutions, usage-based auto insurance, remote diagnostics, and OTA updates and many more require huge volumes of data exchanges. 5G services are expected to provide the OEMs of the infotainment systems a new advanced medium for connecting with the drivers.
- From Volkswagon to Honda, leading automotive retailers are integrating cars with e-commerce and digital entertainment capabilities which makes connectivity an important component. The adoption of 5G would allow these players to better serve their consumers and provide an excellent experience.
North America is Expected to Hold the Largest Share
- The region is home to some of the major players in the telecom industry such as the AT&T, Verizon, Ericsson and many more which are continuously investing in the building up and advancing their infrastructure to keep pace with the technological advancements. This is expected to boost the adoption of the 5G services over the forecast period.
- The service providers have already launched the commercial 5G services in the region, both for fixed wireless access and mobile. According to the Ericcson's Mobility Report of June 2019, the region is expected to hold close to 270 million 5G subscriptions accounting for more than 60 percent of mobile subscriptions. This is indicative of the fact that the region has excellent potential for 5G services.
- The Canadian service providers are increasingly investing for the procurement of 5G licenses which in turn would boost the demand for the 5G services in the region over the forecast period.
- For instance, in April 2019, wireless carrier Rogers spent USD 1.7 billion dollars for 20-year licenses to 600MHz spectrum blanketing Ontario, Northern Quebec, Atlantic Canada, Manitoba, and all three territories, which it expects will enable its 5G network to achieve everything from urban building penetration to powering agricultural, mining, industrial, and transportation projects.
The competitive rivalry among the players in the 5G services industry is high owing to the presence of some major players such as AT&T, Verizon, Nokia amongst others. Their ability to continually innovate their offerings would enable them to gain a competitive advantage over other players. Through research and development, strategic partnerships, and mergers and acquisitions these players have been able to gain a strong footprint in the market.
Recent Industry Updates
- March 2019 - Xplornet, the Canadian telecom provider announced the plans to invest over USD 500 million over the next five years to deliver 5G wireless services.
Key Topics Covered
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Demand for Ultra-Low Latency Connectivity
4.3.2 Increasing Data Traffic
4.3.3 Increasing Demand for High Speed Data Connectivity
4.4 Market Restraints
4.4.1 High Deployment Cost
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Technology Snapshot
4.6.1 By Type
22.214.171.124 Enhanced Mobile Broadband (eMBB)
126.96.36.199 Ultra-reliable low latency communications (uRLLC)
188.8.131.52 Massive Machine Communications (mMTC)
5 MARKET SEGMENTATION
5.1 By End-user Industry
5.1.1 IT & Telecom
5.1.2 Media & Entertainment
5.1.4 Energy & Utility
5.1.5 Aerospace & Defense
5.1.6 Other End-user Industries
5.2.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.2.4 Latin America
126.96.36.199 Rest of Latin America
5.2.5 Middle East & Africa
188.8.131.52 United Arab Emirates
184.108.40.206 Saudi Arabia
220.127.116.11 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Nokia Corporation
6.1.2 Huawei Technologies Co. Ltd.
6.1.3 AT&T Inc.
6.1.4 Verizon Communications Inc
6.1.5 Sprint Corporation
6.1.6 T-Mobile US Inc.
6.1.7 Deutsche Telekom AG
6.1.8 Telefonaktiebolaget LM Ericsson
6.1.9 Swisscom AG
6.1.10 Vodafone Group
6.1.11 BT Group
6.1.12 Telstra Corporation Limited
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/n4du43