The global 5G infrastructure market will reach $95,88-billion by 2030 – with a CAGR of 22,9% from 2024 to 2030 – according to a new report by Grand View Research.

A surge in demand for 5G connections globally is vital in driving industry growth. The demand for a 5G network is high due to its ability to offer high-speed & low-latency Internet connectivity. Businesses across the globe are increasingly focusing on leveraging the Internet of Things (IoT) ecosystem to optimise their operations and improve overall performance. IoT comprises a network of interconnected devices equipped with sensors, software, and network connectivity enabling them to gather and share information.

The rapidly increasing number of Industrial Internet of Things (IIoT) devices is expected to generate massive demand for enhanced data connectivity. As a result, it is anticipated to boost the adoption of 5G services in industrial applications which, in turn, is expected to spur market growth. Key market players are partnering to offer 5G solutions to consumers.

For example, in June 2023 Nokia and Virgin Media O2 extended their ongoing partnership by three years. In this deal, Nokia will continue to supply its RAN equipment from its AirScale portfolio. With this agreement, Virgin Media O2 will continue to offer improved connectivity to its customers in the UK.

The Covid-19 pandemic significantly impacted the global economy and 5G infrastructure deployment.

Lockdown measures in countries like the US, China, and India caused supply chain disruptions and delayed deployments of 5G infrastructure. Spectrum auctions for 5G frequencies were also postponed by telecom authorities and governments including in the UK, France, Italy, and Spain.

These delays further hampered the global rollout of next-generation network infrastructure limiting industry growth.

Asia Pacific is expected to dominate the global industry over the forecast period owing to the rapid rollout of 5G in several countries in the region. In addition, the high demand for digital transformation across Asia Pacific will support the regional market growth.

Additional highlights from the report include:

• The hardware component segment dominated the market in 2023 owing to a significant rise in investments in deploying centralised RAN or 5G cloud across key countries such as the US, the UK, China, and Japan.

• The private type segment dominated the market in 2023. The growing demand for enhanced security, low latency, and customised solutions from industries such as manufacturing and healthcare are driving the segment’s growth.

• The sub-6 GHz spectrum segment dominated the market in 2023. The segment growth is attributed to the high focus on releasing sub-6 GHz frequency bands by federal governments across key countries to deliver high-speed data services.

• The standalone network architecture segment is expected to register the highest CAGR from 2024 to 2030. Growing investments in installing a standalone 5G network to deliver ultra-reliable low-latency connectivity for applications such as connected vehicles are estimated to drive segment growth.

• In terms of vertical, the industrial segment is expected to register a significant CAGR from 2024 to 2030 owing to the growing need to provide unified connectivity to several industrial sensors and collaborative robots.

• Asia Pacific dominated the global market in 2023. Favourable government initiatives and growing deployment and adoption of 5G networks in countries such as South Korea, China, and India are propelling the regional market growth.