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Analyst predictions for the global 5G infrastructure market 


Analyst predictions for the global 5G infrastructure market 

Estimates vary, but all point to vast growth: increased 5G spending should result in vast 5G uptake increase across major cities worldwide.

According to Gartner, 5G will be the dominant mobile access technology making up 49% of all mobile subscriptions by the end of 2027. This will provide a huge impetus for the worldwide 5G infrastructure market. Generally, 5G infrastructure is defined as small and macro-cell base stations with edge computing capabilities - which requires significant amounts of fibre.

  • Adroit Market Research expect the global 5G infrastructure market to reach US$ 48 bn by 2025.
  • Mordor Intelligence expect this market to reach US$ 53 bn by 2026.
  • Allied Market Research predict it will hit US$ 58 bn by 2025.
  • Market Study Report puts the market at US$ 58 bn by 2026.
  • BCC research expects this market to grow to a significantly higher US$ 115.4 bn by 2026, at a CAGR of 55% for the period 2021-2026.
  • Maximize Market research predict a level of nearly US$ 44.69 bn in 2027.
  • Fortune Business Insights put the global 5G infrastructure market at US$ 80.06 bn by the end of 2027.
  • Grand View Research predict this market size will reach US$ 80.5 bn by 2028.
  • NMSC places the global 5G infrastructure market at US$ 131.4 bn by 2030.
  • Markets and Markets size put the global market size for 5G services at US$ 249.2 bn by 2026.
  • Grand View Research believe this market will reach US$ 664.75 bn by 2028 - a CAGR of 46.2% from 2021 to 2028.
  • Furthermore, Gartner forecasts that end-user spending on public cloud services will reach US$ 482 bn in 2022. 

According to Gartner, 5G coverage provided by communications service providers in tier-1 cities will grow from 10% in 2020 to 60% by 2024. 

The research firm states that this shift in customer behaviour is driving growth in the global PON market. As the price difference between 10-Gb-capable symmetric-PON (XGS-PON) and other technologies becomes smaller, CSPs are increasingly willing to invest in XGS-PON in order to stand out in terms of network quality and customer experience. Gartner estimates that by 2025, 60% of Tier-1 CSPs will adopt XGS-PON technology at large-scale to deliver ultrafast broadband services to residential and business users. In 2020, this figure stood at less than 30%.

Communication service providers investments are driving market growth, as 5G infrastructure is deployed to offer improved data services across industry verticals. 5G networks are expected to reduce latency, increase speed, improve wireless network flexibility, and enable faster data processing. Supportive regulations and policies are also expected to drive growth of the 5G infrastructure market. APAC, with its leading domestic and international players, is forecast to be a key region for the global 5G infrastructure market

Source: Gartner (August 2021)