Discover trends, market shifts, and competitive outlooks for the 5g infrastructure equipment industry through 2025-2034 with The Business Research Company’s reliable data and in-depth research

What is the Anticipated CAGR of the 5G Infrastructure Equipment Market, and What Factors Will Drive It?

The market size for 5G infrastructure equipment has seen substantial growth over the past few years. Its expansion is predicted to grow from $10.63 billion in 2024 to $19.8 billion in 2025, marking a compound annual growth rate (CAGR) of 86.4%. Factors contributing to this growth in the historical period include the rise in mobile data use, development of the internet, increased presence of smart devices, business and industry needs, as well as growth within the telecom industry.

The market size of 5G infrastructure equipment is forecasted to experience a significant surge in the coming years. It is predicted to reach $46.82 billion by 2029, growing at a compound annual growth rate (CAGR) of 24.0%. Factors contributing to this growth during the forecasted period include improved data speed and capacity, the integration of IoT, network enhancements and broadening, a heightened emphasis on security and privacy, and the integration of edge computing. The forecasted period will also see key trends such as network slicing, open RAN (radio access network), densification and small cells, the technology of massive MIMO (multiple input multiple output), and the integration of AI and automation.

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What External and Internal Drivers Are Contributing to the Growth of the 5G Infrastructure Equipment Market?

The primary driver of growth in the global 5G infrastructure market is the use of 5G in smart city networks. Greater features such as high speed, minimal or zero delay, expansive bandwidth, universal platform, the ability to connect a larger number of devices, and extended battery life provided by 5G networks are revolutionizing urban areas by making smart cities more efficient. For example, zero latency allows sensors and devices in the city’s transportation and traffic system to automatically reroute traffic and send alerts to autonomous vehicle systems about road conditions. Additional 5G capabilities, including enhanced security (allowing for immediate video transfer from security cameras), swift response to emergencies, and personalized healthcare, are set to offer urban dwellers increased digital engagement. From automated grocery shopping and delivery to complex management of a building’s infrastructure, 5G will allow people to live according to new norms. As a result of these advancements, the demand for 5G networks is growing, and hence, the use of 5G in smart city networks is propelling the 5G infrastructure equipment market.

What Segment Types Define the 5G Infrastructure Equipment Market Structure?

The 5G infrastructure equipment market covered in this report is segmented –

1) By Communication Infrastructure: Small Cell, Macro Cell, Radio Access Network (RAN), Distributed Antenna System (DAS)

2) By Network Technology: Software Defined Networking (SDN) and Network Function Virtualization (NFV), Mobile Edge Computing (MEC), Fog Computing (FC)

3) By Application: Energy & Utilities, Automotive, Healthcare, Retail, Other Applications

Subsegments:

1) By Small Cell: Femtocells, Picocells, Microcells

2) By Macro Cell: Cell Towers, Base Stations, Antennas

3) By Radio Access Network (RAN): Centralized RAN (C-RAN), Virtualized RAN (VRAN), Open RAN (O-RAN)

4) By Distributed Antenna System (DAS): Active DAS, Passive DAS, Hybrid DAS

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Which Geographic Areas Hold the Strongest Growth Potential in the 5G Infrastructure Equipment Market?

Asia-Pacific was the largest region in the 5G infrastructure equipment market in 2023. North America was the second largest region in the 5G infrastructure equipment market. The regions covered in the 5g infrastructure equipment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

What Long-Term Trends Are Transforming the Competitive Landscape of the 5G Infrastructure Equipment Market?

The Internet of Things (IoT) is not only revolutionizing businesses and personal lives, but also fuelling further innovations. It has surfaced as a primary growth engine for 5G telecommunication service providers. Several aspects are catalyzing the adoption of IoT, such as heightened consumer and enterprise demand, and the accessibility of cost-effective devices. This surge in IoT usage is predicted to steer the evolution of 5G infrastructures. The propulsion of 5G will chiefly come from IoT applications like remote healthcare, traffic regulation and safety, smart grid automation, industrial control and implementation, alongside remote manufacturing, education, and surgeries. The advancement in IoT technology will lead to a considerable increase in operator investments in 5G technology, spectrum, and infrastructure.

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What Is the Definition of the 5G Infrastructure Equipment Market?

5G infrastructure equipment refers to a network of macro and small cell base stations with the advanced computing capabilities required for the functionality of the 5th generation mobile network technology standard.

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