Aug 19, 2022
4G is old news - and 5G is making headlines! BCC Research predicts exponential growth throughout the forecast period. We anticipate the market to reach a momentous $115.4 billion in 2026 – that's a compound annual growth rate of 55%. It’s clear to see why the 5G market has everyone talking.
5G enables a network designed to virtually connect everyone and everything, such as electronics, machines, objects, and devices. Like 4G on your phone's data plan, 5G acts in an equivalent way however promises low latency under 5 milliseconds compared 60-90 milliseconds with 4G.
5G wireless technology is intended to provide:
5G enables enhanced digital experiences using machine learning (ML) -based automation. There is a consistent demand from various manufacturers, including automotive, for response times within fractions of a second that require 5G networks. The demand from the automotive industry stems from companies wanting the 5G infrastructure technology embedded in the growing trend of fully autonomous driving, safe vehicles, and telemedicine.
5G offers urban innovators striving to create smart city services: higher data rates, increased traffic capacity, ultra-low latency, and high connection density.
The key drivers for the global market for 5G infrastructure communication technology include:
With a lucrative future predicted, there are many companies dipping their metaphorical toes into the market.
Singapore is launching a $40 million challenge grant to boost 5G investments, of which the Samsung, M1 and IBM partnership is a part of. Singapore's fiberoptic investments have made a remarkable difference in the nation's ability to persevere with life, work, and education during COVID-19. The ongoing COVID-19 pandemic has bolstered the importance of a resilient and robust, digitally connected infrastructure. It enables the smooth functioning of essential services, including healthcare and banking. It enables businesses and workers to continue essential commercial functions from home and it helps all segments to stay connected with one another.
Each generation of technology is opening new prospects for telecommunications players. The 5G value chain is investing billions of dollars and implementing innovative solutions to constantly expand and strengthen the base of 5G technology within network and business application infrastructure. The investment and implementation of 5G will drive sustainable long-term returns to global real GDP.
As with most of the world, the COVID-19 pandemic devastated a lot of industries and economies in various ways. The pandemic also offered a re-think in how we communicate effectively online. With people being struck with a work from order and others isolating online, communication seemingly held communities and families together when they were forced to be apart. The COVID-19 pandemic has shown the critical importance that telecommunications infrastructure plays a key role in keeping businesses, governments and societies connected and functioning.
Some telecom companies have been strengthened by the short-term spike in data traffic and increased use of broadband services, as more people are working from home and rely on video conferencing to hold meetings. Traffic growth has, in fact, demonstrated increased reliance on connectivity and digital services, as per the International Finance Corp. (IFC).
Whilst the industry still suffered the grueling effects of the pandemic, moving on from it the market will provide a boost to the economy as it still recovers. With the overall market being predicted at 2.8% lower than originally forecasted, its gross output also took a minor beating, being 0.6% lower than predicted.
According to SDxCentral, it is estimated by 2035, 5G will support 22.8 million jobs and deliver $3.8 trillion in economic output. This indicates that 5G development and deployment may provide a post-pandemic economic boost, but it also points to how critical 5G will become within the technology sector and the world in general.
To explore the market in more detail such as the regional, end- user and operational market value breakdown, click here to purchase the full report.
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