5G Technology ROI Market Size, Share, and Trends 2024 to 2033

The global 5G technology ROI market size was estimated at USD 24.71 billion in 2023 and is predicted to hit around USD 84,885.49 billion by 2033, growing at a CAGR of 125.32% from 2024 to 2033.

Key Takeaways

• North America dominated the market with the largest share in 2023.
• Asia Pacific is observed to witness the fastest expansion during the forecast period of 2024-2033.
• By industry vertical, the automotive segment held the largest share of the 5G technology ROI market in 2023.
• By industry vertical, the industrial machinery segment is expected to grow significantly during the forecast period.

5G Technology ROI Market Overview

The 5G technology ROI market offers next generation wireless communications services for multiple industries. The telecommunication industry is evolving rapidly. This encompasses new capabilities and creates significant opportunities for businesses, individuals, and society. The advent of 5G technology is transforming the digital era to become more advanced and offer internet speed at least 40 times faster than 4G LTE. Telecom operators are heavily investing in 5G technology to gain the maximum benefits. With the deployment of cutting-edge technologies, it aims to advance society and provide potential opportunities. 5G is the future communication technology that is likely to support autonomous vehicles, virtual reality, and smart cities around the world.

5G Technology ROI Market Data and Statistics

• In December 2023, in a technology transfer agreement, a consortium of institutions, including IIT Madras, IIT Kanpur, and SAMEER, licensed a 5G Radio Access Network (RAN) technology to Tejas Networks, a Tata Group Company for INR 12 Crore and it is one of the largest such deals from academia in India, showcasing the country's strides in indigenous technological development.
• In January 2024, Nokia announced an investment plan worth USD 391 million in microelectronics and 5G Advanced/6G technology in Germany. The investment will develop energy-efficient software, hardware, and high-performance microelectronics for use in future mobile communications systems based on future 5G-Advanced and 6G specs from 3GPP and ITU-R standards.

5G Technology ROI Market Scope

5G Technology ROI Market Dynamics

Driver: Increasing demand for industrial automation

The rising demand for industrial automation is expected to boost the expansion of the 5G technology ROI market in the coming years. The adoption of Industry 4.0 is fueling the manufacturing digitization processes. Companies are forced to optimize their operations in dynamic business markets to gain a competitive edge. The Internet of Things (IoT) has become an indispensable factor in managing manufacturing data.

5G technology revolutionized the way industrial automation works in manufacturing companies. In industrial settings, 5G technology enables the use of advanced robots and autonomous machines that perform complex tasks appropriately with less risk involved and improve the overall quality of production. Thereby driving the growth of the 5G technology ROI market.

• In February 2023, At MWC Barcelona 2023, Schneider Electric, Capgemini, and Qualcomm Tecnologies, Inc. announced their collaboration to accelerate 5G industrial automation to accelerate 5G industrial automation. The three companies have joined efforts on the design and installation of the solution at Schneider Electric's hoisting lab in Grenoble, France.

Restraint: Lack of infrastructure

The lack of infrastructure is anticipated to hamper the market's growth. The 5G network requires highly expensive infrastructure investment to broaden coverage and operate. Several lower and middle-income countries lack 5G technology infrastructure, which is likely to limit the expansion of the global 5G technology ROI market.

Opportunity: Growing demand for autonomous and connected cars

The rapidly rising demand for autonomous and connected cars is projected to offer lucrative opportunities to the key players in the 5G technology ROI market during the forecast period. Advancements in artificial intelligence (AI) and the Internet of Things (IoT) have increased the adoption of autonomous vehicles and connected cars, which improves safety and reduces the risk of accidents caused by unpredictable and reckless driving. In addition, such cars are consistently alerted to potentially dangerous roads and weather conditions based on big data analytics. Therefore, considering these factors, the deployment of AI in autonomous and connected cars contributes to the growth of the market.

• In June 2023, ZTE Corporation and Tianyi Transportation Technology jointly unveiled the industry's first 5G+ intelligent connected vehicle system with Vehicle-Road-Cloud integration at the Mobile World Congress (MWC) Shanghai 2023. These two companies have signed a strategic cooperation agreement aimed at accelerating the commercialization of autonomous driving services.

Industry Vertical Insights

The automotive segment dominated the market in 2023. Automotive firms are embracing the benefits of 5G technology and building an effective infrastructure for connected and autonomous vehicles. Companies are leveraging 5G to improve vehicle features and capabilities such as vehicle-to-infrastructure (V2I), autonomous driving, vehicle-to-network (V2N), vehicle-to-pedestrian (V2P), and vehicle-to-vehicle (V2V) communications.

The introduction of 5G wireless technology in the automotive industry is gaining momentum in the world of technology. 5G Automotive makes the cars work safer and more efficiently, along with low latency and improved connectivity. The adoption of 5G in the automotive industry offers benefits to connected and driverless vehicles and intelligent transportation systems.

• In October 2022, Hyundai Mobis, a South Korean auto parts and mobility solution maker, developed a 5G module for automotive use to improve the performance of connected car systems, including autonomous driving. The new 5G communication module for automotive use is designed to provide ultra-high-speed connections, ultra-low latency, and hyperconnectivity.

Moreover, the advent of 5G technology in automotive solutions enables cars to communicate with each other and the surrounding infrastructure, which results in improving road safety. Nearly 70% of IT executives believe that the automotive industry will be disrupted to a larger extent by the adoption of 5G technology. Such factors make the segment attractive in the global 5G technology ROI market.

The industrial machinery segment is projected to grow at a rapid CAGR rate during the forecast period. 5G technology is playing an important role in industrial automation. With 5G technology, industrial automation is becoming more advanced and improving machine-to-machine communication, faster response times, and real-time monitoring, which boosts productivity, reduces downtime, and optimizes production processes. 5G technology assists in monitoring machines in real-time and detects faults or errors immediately, and it also facilitates machines being repaired or replaced before any downtime or production delays.

Regional Insights

North America held the dominating share of the 5G technology ROI market in 2023. The dominance of the region is attributed to the rapid pace of urbanization, increasing use of industrial automation, increasing investment in 5G technology, rising demand for reliable connectivity, technological advancement, rising demand for autonomous cars, and increasing internet penetration rates, which facilitate the high adoption of 5G technology in the region.

The United States is one of the major contributors to the expansion of the 5G technology ROI market. The country's leading telecom operators are aggressively investing in 5G technology. The wide use of the Internet of Things (IoT) and advanced technologies coupled with the digital revolution of the telecommunications sector are increasing demand for 5G technology.

• In July 2023, the federal government allocated nearly USD 42.5 billion to expand broadband connectivity across the United States. 5G is gaining attention. The funds have been allocated to all 50 states, the District of Columbia, and five U.S. territories: American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.

The Asia Pacific 5G technology ROI market is witnessing robust growth in the forecast period. The growth of the region is driven by the increasing investment in the 5G infrastructure, rising digitalization, growing demand for higher speeds and low latency across various industries, the presence of prominent market players, rapid advancements in network technology, increasing deployment of 5G network, and supportive government initiatives that accelerate the growth of 5G technology ROI.

China's 5G technology ROI market is growing at a significant CAGR. The country's growth is attributed to the early deployment of 5G-capable vehicles, growing demand for 5G smart healthcare networks, favorable government support in infrastructure capabilities, and rising consumers for advanced technology inside and outside of the vehicle.

• According to the Government Services and Data Management Bureau of Nanshan District, to support city-level administration and services, Nanshan, a developed administrative region in the first-tier city, adheres to a thorough top-level design plan powered by cutting-edge 5G + technology. The program addresses the majority's most urgent requirements by considering governance, public services, and industry development. A super-large city-level cognitive network with 5G + IoT capability has been developed from terminals to networks.
• A 5G smart healthcare network integrating MEC and AI, built by China Unicom and Huawei, has expanded medical care reach and efficiency across the tropical province of Hainan. The partners deployed telemedicine equipment in every city and county hospital, in 340 township health centers, and in 2693 village clinics.

Recent Developments

• In February 2023, in collaboration with SK Telecom, Intel announced the Intel Infrastructure Power Manager for 5G core reference software, which provides a 30% average run-time CPU power savings.
• In May 2023, the Uttar Pradesh Government in India announced the launch of a 5G technology training program for youth in the future employable technologies. The Uttar Pradesh government will launch a 5G technology training program under its Skill Development Mission; at least 1,000 youths have to be trained and given jobs under this program in 8 months.
• In May 2023, Apple, a tech giant, unveiled a USD 430 billion deal with Broadcom to produce new 5G radio frequency components in the United States. The Broadcom deal covers a range of 5G wireless connectivity components, including FBAR filters and acoustic resonators that enable iPhones to connect to 5G networks.

5G Technology ROI Market Companies

• KDDI Corporation
• Verizon Communications Inc.
• China Mobile
• Telekom Deutschland GmbH
• Telefonaktiebolaget LM Ericsson
• SK Telecom
• NTT DOCOMO, INC.
• Nokia Corporation
• KT Corporation
• Infineon Technologies AG
• Huawei Technologies Co., Ltd.
• AT&T Inc.

Segments Covered in the Report

By Industry Vertical

• Automotive
• Industrial Machinery
• Infrastructure
• Healthcare and Life Science

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa