5G Services Market Size, Share, and Trends 2024 to 2034

5G Services Market Size and Companies

The global 5G services market size was estimated at US$ 64.54 billion in 2021 and is expected to hit around US$ 1.87 trillion by 2030, poised to grow at a CAGR of 44.63% during the forecast period 2022 to 2030.

Growth Factors

The growth of global 5G services market is being driven by the growing demand for high-speed connectivity and growing data traffic. The mobile or smartphone users expect new applications such as YouTube, Flickrs, or Snapchat experiences to develop as 5G development and subscriptions reach 13 billion by the end of 2019, as per the GSA and Ericsson Survey, 2018. In addition, the growing healthcare expenditure is also driving the growth and development of global 5G services market. The National Health Expenditure Accounts of the U.S., for example, predicts the total healthcare expenditure in the nation will exceed $6.2 trillion by 2030, with a CAGR of approximately 7% from 2022 to 2030.

The connection revolutions are predicted to grow at a 3 to 4 times quicker rate than the transition to the 5G environment. This is mainly due to the rapid development of networking virtualization as well as the rising number of applications that require a latent free connection. Due to these aforementioned elements, rapid acceptance and adoption of 5G services is expected, followed by a rapid deployment of 5G services by other emerging nations.

The growing reliance on machine-to-machine communication and the growing volume of mobile data traffic are driving the worldwide 5G services market. by boosting the quantity of data transmitted across a wireless system based on high frequency and superior antenna technology, 5G services offer a fully mobile environment. The 5G services market is also developing due to the surge in demand for broadband subscriptions and the rising requirement for high speed and comprehensive network coverage. In addition, the incorporation of 5G services with internet of things in daily activities has permitted high speed data communication in applications such as smart home energy management, resulting in a 5G services marketforecast.

As various regional telecom service providers funding in next generation infrastructure deployment, the worldwide market is tremendously competitive. This will assist businesses in building a large consumer base. Additionally, to strengthen their position in the worldwide 5G services market, these key market players are actively concentrating on acquisitions and mergers. Furthermore, major market participants are spending a lot of money to get the frequency they need. The market players would be able to strengthen their overall portfolios and grow their subscriber base across multiple nations if they had appropriate spectrum.

Report Scope of the 5G Services Market

Communication Type Insights

The enhanced Mobile Broadband (eMBB) segment dominated the market in 2021 with revenue share of around 43%. The enhanced Mobile Broadband (eMBB) will be first commercial 5G services to introduce as a supplement to existing 4G internet services, but they will provide far more than just greater download speeds. The enhanced Mobile Broadband (eMBB) will be one of the first 5G services, primarily as an enhancement to existing 4G services. By 2023, Ericsson predicts that 1 billion 5G eMBB subscriptions will have been purchased worldwide, with North America and Asia likely to be the first to do so.

The massive Machine-Type Communications (mMTC) segment is fastest growing segment of the 5G services market in 2021. The massive Machine-Type Communications (mMTC) is a sort of communication between machines that takes place through wireless or wired networks with little or no human participation. It’s a subset of machine-to-machine communication. The massive Machine-Type Communications (mMTC) is a significant step in the transition from the Internet of Things to the Internet of Everything since it focuses on wireless communication and networking among huge numbers of machines.

Vertical Insights

The IT & telecom segment accounted largest revenue share of over 22% in 2021. Due to considerable expenditures by major companies in the modern communication technologies, the IT & telecom segment is likely to maintain its dominance over the forecast period. The IT & telecom industry is expected to rise due to rising demand for greater data speeds for commercial and households applications.

The manufacturing sector segment is fastest growing segment of the 5G services market in 2020. The manufacturing industry is increasingly digitizing. As a result, manufacturing lines are continually being automated in order to improve overall productivity. As a result, flawless wireless communication between sensors, robots, and other devices put in manufacturing facilities has become necessary.

Region Insights

Asia-Pacific region accounted largest revenue share 39% in 2021. China, Japan, and South Korea dominates the 5G services market in Asia-Pacific region. One of the significant factors driving the growth of Asia-Pacific 5G services market is the adoption of new and advanced technologies. The market players are adopting innovative technologies such as blockchain, edge computing, and 5G core technology for the development of 5G services market in the region. In addition, the expansion of information technology sector is also contributing towards the growth and development of 5G services market in Asia-Pacific region.

North America is expected to develop at the fastest rate during the forecast period. The growing demand for 5G network is driving the growth of 5G services market in North America region. As per the Ericcson’s Mobility Report from June 2019, the region would have close to 270 million 5G subscriptions, representing for about 60% of all mobile subscriptions. This shows that the region has a lot of potential for 5G services. In addition, the market players operating in Canada are spending lot of money for the development of 5G services market. For example, Rogers paid $1.7 billion in April 2019 for 20-year licenses to 600MHz spectrum in Ontario and Atlantic Canada will allow its 5G network to strengthen every industry.

Key Developments

• Ericsson and T-Mobile announced an agreement in September 2018 to help T-5G Mobile’s deployment in the U.S. 

• American Tower and T-Mobile launched a deal long term agreement in September 2020 that improves T-access Mobile’s to meet American’s wireless requirements for years to come, allowing the company to accelerate its 5G deployment. 

• In April 2018, BT Group PLC’s Enterprise unit paid $426.5 million for 40 MHz of 3.4 GHz spectrum. The firm intends to use the bandwidth to create improved next generation internet services in the UK. 

• AT&T debuted its 5G+ services in various prominent regions and events around Tampa in January 2021, including Channel District and Raymond James Stadium in the U.S. 

• Xplornet, a Canadian telecom company, declared in March 2019 that it will invest more than $500 million over the next five years to deploy 5G wireless services.

Some of the prominent players in the global 5G services market include:

• SK Telecom Co., Ltd.
• Verizon Communications, Inc.
• T-Mobile USA, Inc.
• Rakuten Mobile Inc.
• AT&T, Inc.
• BT Group plc
• China Mobile Ltd.
• China Telecom Corporation Ltd.
• Saudi Telecom Company
• Vodafone Group

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Communication Type

• FWA
• eMBB
• uRLLC
• mMTC

By Vertical

• Manufacturing
• Public Safety
• Healthcare & Social Work
• Media & Entertainment
• Energy & Utility
• IT & Telecom
• Transportation & Logistics
• Aerospace& Defense
• BFSI
• Government
• Retail
• Mining
• Oil & Gas
• Agriculture
• Construction
• Real Estate

By End Users

• Consumers
• Enterprises

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa