5G Equipment Market Expected to Reach $23.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “5G Equipment Market," The 5g equipment market was valued at $6.4 billion in 2022, and is estimated to reach $23.9 billion by 2032, growing at a CAGR of 14.5% from 2023 to 2032.

5G technology offers significant advancements, such as faster speed, lower latency, improved connection density and wider coverage, thus enabling implementation of IoT, augmented reality & virtual reality (AR/VR) applications, factory automation, and other applications where security, reliability, quality of service and efficiency are critical. While the 5G industry is preparing businesses to experience digital transformation with equipment manufacturers, playing a crucial role in developing high performance components to support reliable implementation. However, major challenges to be addressed by manufacturers include managing extreme thermal conditions within increasing smaller encapsulated components and delivering high performance at low power. These challenges can be overcome through the use of high-performance materials. Such factors are expected to provide the lucrative opportunities for the 5G equipment market forecast.

Based on product, the global 5G equipment market size was dominated by the small cell segment in 2022 and is expected to maintain its dominance in the upcoming years. Increase in trend of remote work due to the outbreak of the COVID-19 pandemic is driving the deployment of 5G equipment among industries across the globe. This, in turn, is expected to boost growth of the segment. In addition, increase in network densification, rise in mobile data traffic, and the emergence of citizens broadband radio service (CBRS) band also boost the growth of the small cell segment. However, the macro cell segment is expected to witness the highest growth during the forecast period. The major advantage of using macro cell in 5G is that it can provide 5G services to a large geographic area. 5G macro cells also use Massive MIMO technology, which allows large transmission and reception of data.  

By region, North America dominated the market share in 2022 for the 5G equipment industry. As this region companies are contributing significantly to the development of 5G equipment, including radio units, antennas, and other infrastructure components. In addition, North America region has advanced technology ecosystem, along with numerous R&D centers, that foster innovative and cutting-edge solutions for the 5G equipment market. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. Rise in digitalization toward business process is anticipated to provide lucrative growth opportunities for the market in the Asia-Pacific region. For instance, Huawei, a Chinese company, launched a new solution, Telco Cloud Networking. The solution will assist carriers in providing innovative services that will empower 5G, IoT, and Virtual Reality (VR), which is anticipated to provide lucrative opportunities for the growth of the Asia-Pacific region.

The COVID-19 pandemic has positively impacted the 5G equipment industry. While the initial stages of the pandemic caused disruptions in global supply chains, manufacturing, and logistics, leading to delays in the production and deployment of 5G equipment, the industry has demonstrated resilience and adaptability. Increase in demand for remote work, online education, and digital services during lockdowns increased the importance of robust and high-speed connectivity, driving a sustained need for 5G infrastructure.

However, economic uncertainties and budget constraints faced by businesses and governments during the pandemic may have influenced investment decisions in 5G deployment. In addition, travel restrictions hindered the deployment of 5G networks in some regions. As the global economy recovers, the 5G equipment industry is expected to rebound, spurred by continued digital transformation efforts and a renewed focus on resilient, high-capacity communication networks. Further, the pandemic has served as a catalyst, emphasizing the critical role of 5G technology in fostering connectivity and enabling businesses and communities to thrive in a rapidly changing world. For instance, in September 2023, Siemens launched a private 5G infrastructure developed in-house for industry users. The solution enables industrial companies to build their own local 5G networks that provide optimal support for automation applications. 5G is crucial for applications such a mobile robots, autonomous logistics, and driverless transport systems in factories.  Consequently. this 5G infrastructure provides users sole control over the data in their 5G network, and they can custom-configure the network for their applications.

Key Findings of the Study

• By product, the small cell segment accounted for the largest 5G equipment market share in 2022.
• Depending on end-use, the retail sector accounted for the largest 5G equipment market share in 2022.
• Region wise, North America generated the highest revenue in 2022.

The key players that operate in the 5G equipment market analysis are Cisco Systems, Inc., Samsung Electronics, NEC Corporation, Huawei Technologies Co., Ltd., AT&T Inc., Verizon Communication, Qualcomm Technologies, Telefonaktiebolaget LM Ericsson, ZTE Corporation, and Nokia Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the 5G equipment industry.