5G Infrastructure Market - By Component (Hardware, Software, Services), By Spectrum (Sub-6 GHz, mmWave), By Network Architecture (Standalone (SA), Non-Standalone (NSA)) By Deployment Mode, By End Use & Forecast, 2024 - 2032

5G Infrastructure Market Size

5G Infrastructure Market was valued at USD 6.65 billion in 2023 and is anticipated to grow at a CAGR of over 45% between 2024 and 2032. With the rise of smart cities, IoT applications, and autonomous vehicles, there is a significant need for faster and more reliable communication networks.
 

For instance, in August 2024, V.tal, a global provider of digital infrastructure solutions, expanded its business by launching complete 4G and 5G infrastructure services for outdoor and indoor environments in Brazil.
 

The increasing investment from governments and private sectors in 5G deployment is a significant growth driver. Globally, countries are acknowledging 5G's critical role in fostering economic growth and technological innovation. Governments are allocating spectrum, offering subsidies, and implementing policies to expedite 5G rollout. Meanwhile, telecom operators and tech companies are heavily investing in infrastructure upgrades to support 5G, anticipating new revenue opportunities from enhanced mobile broadband, ultra-reliable low-latency communication, and massive machine-type communications.
 

The rise of industry 4.0 is also fueling the demand for 5G infrastructure. As industries adopt automation, AI, and machine learning, the need for robust and real-time communication networks becomes imperative. 5G's capabilities, such as network slicing and edge computing, enable industries to implement advanced applications like remote monitoring, predictive maintenance, and smart manufacturing. This industrial transformation is a significant driver for 5G infrastructure, as companies seek to enhance efficiency, reduce costs, and remain competitive in an increasingly connected world.
 

One of the primary challenges in the 5G infrastructure market is the high deployment costs associated with building and maintaining the necessary infrastructure. The shift to 5G requires a dense network of small cells, fiber optic cables, and advanced antennas, which are significantly more expensive than the infrastructure used for previous generations of wireless networks. These costs can be prohibitive, particularly for telecom operators in developing regions where financial resources may be limited. Additionally, the ongoing maintenance and upgrade requirements for 5G infrastructure add to the financial burden, making it challenging for operators to achieve a quick return on investment.
 

The rollout of 5G depends heavily on access to high-frequency spectrum bands, which are often limited and subject to strict government regulation. Delays in spectrum allocation or overly restrictive regulations can slow down the deployment process, impacting the speed at which 5G networks can be established. In some regions, regulatory frameworks are not yet fully developed to support 5G, leading to uncertainty and potential delays. Furthermore, the need for international harmonization of spectrum bands adds another layer of complexity, as inconsistencies between countries can create challenges for global 5G deployment and interoperability.
 

5G Infrastructure Market Trends

The growing adoption of Open RAN (Radio Access Network) technology is significantly impacting the 5G infrastructure industry. By enabling telecom operators to integrate hardware and software from various vendors, Open RAN fosters greater flexibility, innovation, and cost efficiency in 5G network deployment. This approach not only reduces reliance on single-vendor solutions but also speeds up the rollout of 5G networks, especially in underserved areas. Additionally, Open RAN promotes competition and lowers costs within the telecom industry, making 5G more accessible and scalable on a global scale.
 

For instance, In August 2023, Fujitsu provided NTT DOCOMO with an O-RAN ALLIANCE-compliant 5G virtualized RAN solution for its commercial network. This marks the first time NTT DOCOMO has selected an O-RAN-compliant solution, highlighting Fujitsu's commitment to flexibility, reliability, and cost-effectiveness in the deployment of 5G infrastructure.
 

5G Infrastructure Market Analysis

Based on components, the market is divided into hardware, software, and services. The hardware segment is expected to reach a value over USD 100 billion by 2032.
 

• The deployment of 5G networks requires a substantial investment in various types of hardware, including base stations, antennas, and network routers. The scale and complexity of 5G infrastructure, which involves a dense network of small cells and advanced antennas, drives significant hardware expenditures.
   
• As telecom operators upgrade their existing networks and expand to new regions, the demand for advanced 5G hardware increases. This includes not only the initial installation of new equipment but also ongoing upgrades to meet evolving technology standards and performance requirements.
   

Based on spectrum, the 5G infrastructure market is divided into sub-6 GHz, and mmWave. The mmWave segment is the fastest growing segment with a CAGR of over 50% between 2024 and 2032.
 

• Recent advancements in mmWave technology, including improved antenna designs and signal processing techniques, have made it more feasible to deploy mmWave networks. These technological improvements have reduced costs and expanded the practical applications of mmWave frequencies.
   
• The development of new and emerging use cases that require high-speed, low-latency connectivity drives the demand for mmWave technology. Applications such as smart cities, autonomous vehicles, and advanced industrial automation benefit significantly from the capabilities offered by mmWave frequencies.
   

North America dominated the global 5G infrastructure market in 2023, accounting for a share of over 30%. The region is home to some of the world's most advanced technology companies and early adopters of cutting-edge technologies. North American telecom operators and service providers are quick to adopt and deploy new technologies, including 5G, driving significant investment and infrastructure development.
 

The U.S. market continued to exhibit robust growth, driven by extensive investment and innovation. The country’s leadership in 5G deployment is supported by significant capital expenditures from major telecom operators like Verizon, AT&T, and T-Mobile. Additionally, the U.S. government has played a pivotal role by allocating spectrum for 5G use and supporting infrastructure development through initiatives such as the Rural Digital Opportunity Fund.
 

China 5G infrastructure market is experiencing rapid growth, driven by extensive government support and massive investments from leading technology companies. The Chinese government has prioritized 5G as a strategic national initiative, with significant funding allocated for network expansion and technological development. Major players like Huawei and ZTE are at the forefront, contributing to a robust supply chain and accelerated deployment across urban and rural areas.
 

South Korea’s 5G infrastructure industry is expanding rapidly due to its early adoption and a strong focus on integrating 5G technology into various high-tech applications. The government’s proactive policies and significant investments in smart city projects and autonomous vehicles create a conducive environment for 5G growth. The presence of advanced technology firms and telecom operators such as SK Telecom and KT Corporation, which are leading in 5G innovations and deployments, further fuels market expansion.
 

Japan 5G infrastructure market is growing due to a competitive telecom sector and a strong focus on enhancing technological capabilities. The Japanese government’s support through regulatory frameworks and spectrum allocation plays a crucial role in facilitating 5G rollout. Additionally, Japan's emphasis on integrating 5G into industrial applications, such as robotics and manufacturing, drives demand for advanced network solutions. The collaborative efforts between major telecom operators like NTT Docomo, SoftBank, and KDDI, along with the country’s strong emphasis on innovation and technology adoption, contribute significantly to the market’s growth.
 

5G Infrastructure Market Share

Huawei Technologies Co., Ltd. and Ericsson AB hold a significant share in the 5G infrastructure industry. Huawei, with its extensive portfolio of 5G solutions and global reach, is renowned for its comprehensive range of hardware, software, and services that support the deployment and optimization of 5G networks. Ericsson, equally influential, is known for its innovative network equipment and services that enhance both the radio and core network aspects of 5G. Their large market shares reflect their dominance and pivotal roles in shaping the future of 5G technology, driven by their extensive investments in research and development, broad customer bases, and global operational capabilities.
 

Some other major players in the market are Cisco Systems, Inc., NEC Corporation, Fujitsu Limited, AT&T Inc., Verizon Communications Inc., China Mobile Ltd., NTT DOCOMO, Inc., T-Mobile US, Inc., SK Telecom Co., Ltd., Deutsche Telekom AG, Vodafone Group Plc, and Telefonica S.A.
 

5G Infrastructure Market Companies

Major players operating in the industry are:

• Ericsson AB
• Huawei Technologies Co., Ltd.
• Intel Corporation     
• Nokia Corporation
• Qualcomm Incorporated
• Samsung Electronics Co., Ltd.
• ZTE Corporation
   

5G Infrastructure Industry News

• In August 2024, JTower, in collaboration with AGC Corporation and NTT Docomo, introduced Japan's first "glass antenna" that transforms windows into 5G Sub6 base stations. This innovation, implemented at the Shinjuku 3-chome East Building, aims to enhance 5G coverage efficiently while integrating infrastructure sharing, marking a significant advancement in urban 5G deployment.
   
• In December 2023, AT&T and Ericsson unveiled a $14 billion plan to advance 5G infrastructure in the U.S. through Open RAN technology. By late 2026, 70% of AT&T’s wireless traffic will utilize open-capable platforms, enhancing innovation, competition, and efficiency in 5G network deployment.
   

The 5G infrastructure market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Component

• Hardware
  • Radio Access Networks (RAN)
  • Core Network
  • Transport Network
  • Backhaul
  • Antennas
• Software
  • Network Management Software
  • Network Orchestration Software
• Services
  • Consulting
  • Implementation & Integration
  • Maintenance & Support

Market, By Spectrum

• Sub-6 GHz
  • Low Band
  • Mid Band
• mmWave

Market, By Network Architecture

• Standalone (SA)
• Non-Standalone (NSA)

Market, By Deployment Mode

• Urban
• Rural
• Remote

Market, By Organization Size

• Small and medium enterprises (SME)
• Large enterprises

Market, By End Use

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

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA