5G Infrastructure Market Size & Trends

The global 5G infrastructure market size was estimated at USD 16.69 billion in 2023 and is expected to grow at a CAGR of 22.9% from 2024 to 2030. The growing mobile data traffic and the rise of smart cities with IoT applications are key factors that are fueling market growth. Moreover, increased government and telecom investments in 5G networks are expected to create growth opportunities for the market. The increasing demand for connected devices for uses like smart buildings and remote healthcare is also contributing to market growth. Worldwide data traffic, especially mobile data traffic, has increased at exponentially over the past few years.

According to the Telefonaktiebolaget LM Ericsson’s Mobile Data Traffic Outlook report, at the end of 2023, total worldwide mobile data traffic (without traffic caused by fixed wireless access) reached 130 EB per month and is expected to increase by a factor of 3 to reach 403 EB per month by 2029.This growth in mobile data traffic, coupled with increasing preference for 5G networks, is creating significant opportunities for market growth. The growing number of smart cities in major countries, such as the U.S., Japan, China, Germany, Italy, the UK, and India, has increased the adoption of IoT technology for applications, such as transportation, energy management, and public safety & security.

Gather more insights about the market drivers, restrains and growth of the Global 5G Infrastructure Market

Component Insights

The hardware segment dominated the market in 2023 and accounted for a revenue share of 77.18%. The hardware segment is further classified into RAN, core network, backhaul & transport, fronthaul, and midhaul. RAN is an essential component of 5G infrastructure as it connects devices, such as smartphones, via a radio link. Key industry players are investing and innovating in RAN 5G infrastructure. In December 2023, Parallel Wireless, Inc. announced the availability of a hardware-agnostic standalone (SA) 5G software stack. This standalone solution allows public safety networks, private networks, and operators to deploy their RAN infrastructure across various processor hardware platforms. Such initiatives are anticipated to boost the growth of the RAN segment.

Type Insights

The private type segment dominated the market in 2023.The rising demand for ultra-reliable low-latency connections for Industrial Internet of Things (IIoT) applications, such as industrial cameras, collaborative robots, and industrial sensors, is the main factor driving the segment growth. A private 5G network offers enhanced security for businesses, ensuring that their infrastructure and data are protected from attacks. In addition, it is anticipated to become a crucial component when information secrecy is of the greatest importance. Therefore, it is predicted that from 2024 to 2030, business data storage applications as well as government and public safety will have significant traction, thereby driving the demand for private 5G infrastructure.

Spectrum Insights

The sub-6 GHz segment dominated the market in 2023. Sub-6 GHz networks operate within a frequency range of up to 6 GHz, with the widely used 3.5 GHz frequency being a common choice worldwide. Sub-6 GHz provides a lower frequency range of approximately 1 GHz to 6 GHz, offering broader coverage despite limitations in speed. This makes it a practical option for real-world implementation. In addition, the sub-6 GHz spectrum has been utilized in previous generation networks, making it a cost-effective and accessible approach for implementing 5G. The segment is further bifurcated into the low band (below 1 GHz) with greater coverage but lower speed and mid-band (1 GHz - 6 GHz), which strikes a balance between speed and coverage.

Network Architecture Insights

The non-standalone segment dominated the market in 2023. Non-standalone network architecture is a cost-effective solution that utilizes existing 4G infrastructure to enhance Enhanced Mobile Broadband (eMBB) services without requiring a complete infrastructure rebuild. It has played a crucial role in the initial rollouts of 5G networks, providing customers with higher data transfer speeds and acting as a transitional platform for both customers and carriers. The segment's growth is driven by the widespread adoption of non-standalone networks globally. Leading service providers like Verizon Communication, Inc., AT&T, Inc., and China Mobile Ltd. have already implemented 5G non-standalone networks for various applications, including UHD videos and cloud-based AR/VR gaming.

Vertical Insights

The enterprise/corporate segment dominated the market in 2023. The enterprise/corporate segment is experiencing significant growth due to the increasing need for higher data bandwidth in various corporate businesses. This surge in demand is driven by a wide range of use cases, such as virtual meetings, cloud computing, and the adoption of IoT-based smart workplaces. These applications rely on robust and uninterrupted connectivity to facilitate efficient communication and data exchange. As a result, enterprises are seeking enhanced connectivity solutions to meet their growing bandwidth requirements and ensure seamless operations.

Regional Insights

The 5G infrastructure market in North Americais expected to witness significant growth from 2024 to 2030 due to the rising number of 5G connections fueling the demand for 5G deployment across the region. According to a study published by GSMA in 2021, in North America, 5G connections will account for 63% of all mobile connections by 2025. In addition, the presence of key players, such as T-Mobile USA, Inc., AT&T Inc., and Verizon Communications, Inc., is anticipated to support the regional market growth.

Key 5G Infrastructure Company Insights

Some of the key players operating in the market include Telefonaktiebolaget LM Ericsson, Cisco Systems, Inc., Nokia Corporation, Huawei Technologies Co., Ltd., and Samsung Electronics Co., Ltd.

• Telefonaktiebolaget LM Ericsson provides Information and Communication Technology (ICT) services across the globe. The company’s range of offerings spans various areas, including cloud software and services, networks, enterprise wireless solutions, global communications platforms, technologies, and new businesses, as well as IPR licensing
• Huawei Technologies Co., Ltd. provides smart devices and information & communication technology components to communications service providers, government agencies, and business enterprises. The company carries out its business through five operating segments namely, Cloud Computing Business, Consumer Business, ICT Infrastructure Business, Intelligent Automotive Solution Business, and Digital Power Business

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Key 5G Infrastructure Companies:

The following are the leading companies in the 5g infrastructure market. These companies collectively hold the largest market share and dictate industry trends.

• Huawei Technologies Co., Ltd.
• Samsung Electronics Co., Ltd.
• Nokia Corporation
• Telefonaktiebolaget LM Ericsson
• ZTE Corporation
• NEC Corporation
• Cisco Systems, Inc.
• Fujitsu Limited
• CommScope Inc.
• Comba Telecom Systems Holdings Ltd.
• Altiostar
• Airspan Networks
• Casa Systems
• Hewlett Packard Enterprise Development LP
• Mavenir
• Parallel Wireless
• JMA Wireless
• Ceragon
• Aviat Networks, Inc.

5G Infrastructure Market Segmentation

Grand View Research has segmented the global 5G infrastructure market on the basis of component, type, spectrum, network architecture, vertical, and region:

5G Infrastructure Component Outlook (Revenue, USD Million, 2018 - 2030)

• Hardware
• Services

5G Infrastructure Type Outlook (Revenue, USD Million, 2018 - 2030)

• Pubic
• Private

5G Infrastructure Spectrum Outlook (Revenue, USD Million, 2018 - 2030)

• Sub-6 GHz
• mmWave

5G Infrastructure Network Architecture Outlook (Revenue, USD Million, 2018 - 2030)

• Standalone
• Non-standalone

5G Infrastructure Vertical Outlook (Revenue, USD Million, 2018 - 2030)

• Residential
• Enterprise/Corporate
• Smart City
• Industrial
• Energy & Utility
• Transportation & Logistics
• Public Safety & Defense
• Healthcare Facilities
• Retail
• Agriculture
• Others

5G Infrastructure Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America
• U.S.
• Canada
• Mexico
• Europe
• UK
• Germany
• Italy
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Latin America
• Brazil
• Middle East & Africa (MEA)
• Kingdom of Saudi Arabia (KSA)
• UAE
• South Africa

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Recent Developments

• In October 2023, Nokia and Vodafone joined forces to pioneer a commercial 5G Open RAN trial in northern Italy. This pilot will leverage Nokia's containerized baseband software running on Red Hat OpenShift, a leading hybrid cloud platform powered by Kubernetes. The software will be hosted on Dell PowerEdge XR8000 servers, specifically designed for mobile edge computing and optimized for Open RAN workloads. For Layer 1 processing, these servers will be equipped with a Smart Network Interface Card (NIC), co-developed by Marvell and Nokia. This collaboration signifies a major step towards a more open and flexible telecom network infrastructure
• In June 2023, Orange SA and Telefonaktiebolaget LM Ericsson signed a collaboration agreement and secured contracts for the installation and maintenance of 5G network infrastructure on high-speed rail lines across Spain. With this achievement, Orange SA solidifies its position as a leading contributor to the development and implementation of 5G networks
• In June 2023, Charter Communications, a U.S.-based telecom company, selected Nokia to supply 5G infrastructure for its Spectrum Mobile service. Under this agreement, Nokia will provide its AirScale product portfolio including 5G RAN, which will support Charter Communications’ desired 5G connectivity deployment and design. With this collaboration, Charter Communications aims to enhance its mobile services by delivering mobile traffic efficiently in key locations across its operational presence in 41 U.S. states. The agreement reflects Charter Communications’ commitment to offering its customers an exceptional 5G service experience

About Grand View Research

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