The global 5G Services market size is expected to reach USD 498.3 billion by 2027 according to a new study by Polaris Market Research. The report “5G Services Market Share, Size, Trends, Industry Analysis Report, By Communication Type (FWA, eMBB, uRLLC, mMTC); By End-Use (Smart Cities, Connected Workers, Connected Vehicles, Connected Factories, Smart Buildings, Smart Utilities, Connected Healthcare); By Industry Vertical (Energy & Utility, Media & Entertainment, IT & Telecom, Transportation & Logistics, Healthcare, Retail, Agriculture, O&G and Mining, BFSI, Construction, and Real Estate); By Regions; Segment Forecast, 2021 – 2027” gives a detailed insight into current market dynamics and provides analysis on future market growth.
5G is the next generation cellular technology, offers download speeds approximately 100 times faster than 4G LTE networks. 5G services improve telecommunication service providers and businesses to deploy and operate 5G network. 5G technology is being increasingly commercialized in different parts of the globe, with China leading the race. Moreover, it has a higher consistency & lower latency in comparison to the previous technologies.
The growing incorporation of AR/VR technology across various verticals, such as aerospace & defence, automotive, medical, and retail, is also expected to fuel the product demand in the coming years. The prominence of OTT services such as Netflix, Amazon Prime, Hulu, Disney+, etc. has disrupted the media and entertainment industry and on-demand content is being increasingly preferred by the younger generation.
Robust deployment of 5G services, networks, and infrastructure advancement to provide enhance services for the customers is projected to drive the demand in the forecast years. Collaboration between the smartphone manufacturers, chipset providers and telecommunication providers will help in the acceleration of commercial 5G services. Therefore, the demand for 5G services can likely be engineered 5G component to make its use in a cost-effective manner.
Market participants such as AT&T Inc., Bharti Airtel Limited, BT Group plc, China Mobile Ltd., China Telecom Corporation Limited, Deutsche Telekom AG, KT Corporation, NTT Docomo, Reliance Jio, SK Telecom Co., Ltd., Sprint Corporation, Telecom Italia, Telstra, Verizon Communications Inc., and Vodafone Group are some of the key players operating in the global market.
Recent key initiatives by the key industry players show expresses the need of such services. For instance, recently Airtel renewed its partnership with Ericsson to enhance the performance of Airtel’s cellular networks and customer experience through Ericsson Operation Engine across India. Moreover, Reliance Jio and Google has made a strategic move by making a deal to manufacture an affordable 5G Android based operating system smartphone and launch services as well. Telefonica Deutschland has signed contracts with multiple vendors to build 5G cellular network across Germany.
The 5G services manufacturers are focusing on enhanced mobile broadband (eMBB) segment to deliver higher capacity and higher user mobility that will enable broadband services of mobile in moving vehicles including car, buses, trains and planes. In China, for instance, the government has drastically reduced licensing costs to speed up the rolling out of 5G services. Furthermore, the IT and telecom vertical are expected to rise in the coming years as the growing demand for higher data speeds and enhanced virtual business meetings.