The world is witnessing the next wave of 5G expansions that will bring along enhanced mobility, flexibility, reliability, and security. Enterprises of size will benefit the most, with 5G taking IoT and industrial applications to altogether new levels. Businesses have realized the potential industry digitalization holds in improving their growth landscape, building and extending beyond connectivity.
With the value of 5G going beyond mobile broadband, the market is expected to perceive significant growth in the next few years. Market Research Future (MRFR) expects the global 5G market to reach a valuation of USD 198.44 BN by 2030, growing at a 47.6% CAGR throughout the assessment period (2020-2030). Industry digitalization opens new opportunities for 5G service providers across different ecosystems.
5G service providers would be seen playing a causal role in industry digitalization, offering connectivity provisioning, delivery, and end-user application creation services. Various multinational telecom companies are working on to accelerate the delivery of fast and secure 5G applications, benefiting from reliable & low-latency connections. Many organizations are already using 5G and mobile edge computing (MEC) to drive efficiencies.
Combining an on-site 5G network with edge services can bring more computing power allowing businesses to create extremely low lag experiences. Therefore, telecom companies strive to provide an on-site 5G Edge network that can enable ultra-low latency, many times faster than the blink of an eye. 5G Edge network can help enterprises tap into real-time data analysis & delivery to obtain quality control in their pick and pack process using computer vision.
Impact of 5G Rollout on Telecom & Smartphone Markets
The global telecom industry is at the crossroads of connectivity and digital engagement. The impact of 5G expansions can be seen predominantly in developing regions. Operators are selecting business and operational models that can quickly adapt to new threats and opportunities. They are geared up to offer converged digital experiences, optimally accelerating their 5G use case viability, future innovations, immersive experience offerings, and new monetization opportunities.
Industry experts predict that the 5G arrival would provide additional impetus to the smartphone market. Experts also believe that the impact of 5G rollouts worldwide could too boost the overall smartphone shipments in emerging regions. Industry experts anticipate that if telecom can offer 5G services at competitive prices, it would trigger a boost in smartphone shipments. With higher demand, the supply chain cost and 5G phone costs would significantly come down in the upcoming quarters.
North America, the Largest 5G Market
Rapid 5G rollouts across the region and the strong presence of notable technology providers & telecom companies increase the market value. Besides, the rising uptake of advanced technologies, such as IoT, and increasing smart city projects in the region substantiate the 5G market growth.
The US, Canada, and Mexico hold considerable shares in the regional market. Also, high-speed network performance requirements and assessment of 5G technology frequencies by the Federal Communications Commission (FCC) boost market revenues. Moreover, rising application areas of 5G technology foster the market in this region.
Strategies Industry Players Follow to Gain Significant Competitive Advantage
The fiercely competitive 5G market appears fragmented, with several well-established players forming a competitive landscape. Industry players incorporate strategic approaches such as collaboration, mergers & acquisitions, expansion, and product & technology launches to gain a larger competitive share.
They work on scaling 5G applications and commercialization of 5G opportunities with business plans for communications service providers. The market is likely to witness the introduction of innovative 5G services with cutting-edge solutions for the consumer market, such as education, gaming, and entertainment.
Notable Industry Updates
On Aug.02, 2022, Jio Platforms Limited (JPL), a leading telecom operator in India, announced its plan to tap into the global 5G market and offer 5G solutions to global operators. Jio has formed a strategic partnership with Optiva, a leading provider of business support systems (BSS) software & services to the telecommunications industry in Canada.
Under the terms of the collaboration, JPL will offer its cloud-native 5G core to Optiva and other telcos globally to accelerate the monetization of a wide range of 5G services and use cases. Partners aim to enable leading telecom operators to unlock 5G consumer, enterprise, and private business opportunities by combining innovation with scale.