Global 5G Services Market By Communication Type (Fixed Wireless Access (FWA), Enhanced Mobile Broadband (eMBB), Ultra-Reliable and Low-Latency Communications(uRLLC), Massive Machine-Type Communications(mMTC)), By Vertical (Consumers, Enterprises (BFSI, Healthcare, Manufacturing, IT & Telecom, Energy & Utility, Transportation & Logistics, Others), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global 5G Services Market size is expected to be worth around USD 3,299.8 Billion by 2033, from USD 88.5 Billion in 2023, growing at a CAGR of 43.6% during the forecast period from 2024 to 2033.

The 5G services market is rapidly expanding, driven by the need for faster internet speeds and increased connectivity across devices. As industries and consumers alike seek more efficient and reliable communication solutions, 5G technology is becoming a critical component in transforming digital landscapes. This growth is supported by significant investments in infrastructure development, such as towers and advanced technologies, which are essential for accommodating the higher data volumes and speeds that 5G offers.

One of the key drivers behind the growth of the 5G services market is the exponential increase in data consumption and the demand for faster and more reliable connectivity. With the proliferation of smartphones, Internet of Things (IoT) devices, and emerging technologies like augmented reality (AR) and virtual reality (VR), there is a need for networks that can handle high data volumes and provide seamless connectivity.

Another important factor driving the 5G services market is the potential for transformative applications across various industries. 5G’s low latency and high bandwidth enable mission-critical applications like autonomous vehicles, remote surgery, and smart cities. Industries such as healthcare, transportation, manufacturing, and entertainment can leverage 5G services to improve efficiency, enable innovative solutions, and unlock new revenue streams.

Furthermore, the 5G services market opens up opportunities for service providers and telecommunications companies. They can offer specialized services tailored to different sectors, such as smart home solutions, industrial automation, and virtual reality experiences. This diversification of services allows providers to cater to specific customer needs and create additional value.

However, the 5G services market also faces challenges. The deployment of 5G infrastructure requires significant investments in network upgrades and expansion. Building a robust and extensive 5G network infrastructure involves deploying new base stations, antennas, and fiber optic cables, which can be capital-intensive and time-consuming.

Additionally, there are regulatory and policy considerations that need to be addressed for the widespread adoption of 5G services. Spectrum allocation, privacy and security concerns, and interoperability standards are some of the challenges that need to be navigated to ensure a smooth transition to 5G.

According to recent survey data, 5G technology is capable of achieving speeds approximately 100 times faster than its 4G predecessor, with potential coverage reaching up to 10 Gbps. Typically, most users of 5G networks experience average speeds ranging from 150 to 200 Mbps, though peak speeds can surpass 1 Gbps.

Currently, there are 236 million 5G global subscriptions worldwide, highlighting the rapid adoption of this technology. The deployment of 5G and LTE networks has been extensive, with a total of 683 deployments worldwide. Among these, 135 5G networks comply with 3GPP standards, ensuring uniformity and reliability in network performance.

In the U.S. market, Samsung holds a dominant position with a 74% share of the 5G smartphone market. Globally, it is projected that 40% of smartphone shipments in 2021 will be 5G-enabled, indicating a strong shift towards advanced connectivity solutions. China leads the world in 5G coverage, with 341 cities covered, followed by the USA with 279 cities, and South Korea with 85 cities.

Key Takeaways

• The 5G Services Market size is expected to be worth around USD 3,299.8 Billion by 2033, growing at a CAGR of 43.6% during the forecast period from 2024 to 2033.
• In 2023, the Enhanced Mobile Broadband (eMBB) segment held a dominant market position, capturing more than a 43.5% share.
• In 2023, the Enterprises segment held a dominant market position, capturing more than a 76.8% share.
• In 2023, Asia Pacific maintained a dominant position in the 5G services market, commanding over a 41.5% share.

Communication Type Analysis

In 2023, the Enhanced Mobile Broadband (eMBB) segment held a dominant position in the 5G services market, capturing more than a 43.5% share. This leadership can be attributed to eMBB’s ability to provide significantly faster data speeds and more reliable connections compared to previous technologies, which has been instrumental in satisfying the soaring demand for high-definition video streaming, immersive virtual reality experiences, and other bandwidth-intensive applications.

As consumers and enterprises continue to seek enhanced multimedia experiences and improved internet services, eMBB has emerged as a crucial driver of 5G adoption. The dominance of the eMBB segment is further bolstered by its foundational role in enabling other emerging technologies that require robust, high-speed internet connections.

For instance, eMBB facilitates the efficient operation of smart city applications and advanced industrial automation, which rely on the transmission of large amounts of data in real time. This capability is essential not only for enhancing consumer applications but also for transforming industrial processes through increased connectivity and data-driven decision-making.

Moreover, the eMBB segment benefits from substantial backing from both government and private sectors, which prioritize the development of infrastructure capable of supporting high-speed, high-capacity broadband services. This investment is driven by the potential of eMBB to boost economic growth and improve the quality of digital services, positioning it as a key area of focus within the broader 5G deployment strategy.

Overall, the Enhanced Mobile Broadband (eMBB) segment’s leadership in the 5G services market is a result of its alignment with current consumer demands and industrial needs, coupled with significant investment in relevant infrastructure. As the 5G landscape continues to evolve, eMBB is expected to maintain its pivotal role, driving forward innovations that capitalize on its high-speed and high-capacity capabilities.

Vertical Analysis

In 2023, the Enterprises segment held a dominant position in the 5G services market, capturing more than a 76.8% share. This considerable market share is largely due to the transformative impact of 5G technology across various industries within the enterprise sector.

Industries such as manufacturing, healthcare, IT & telecom, and transportation & logistics have increasingly integrated 5G to optimize operations, improve communication efficiencies, and enable new services that were not feasible with older technologies. The driving force behind the predominance of the Enterprises segment is the critical need for ultra-reliable and low-latency communications (uRLLC) in industrial operations and mission-critical applications.

For example, in manufacturing, 5G enables real-time monitoring and control of machinery, which significantly enhances operational efficiency and safety. In healthcare, it facilitates telemedicine and remote surgeries, which demand high data speed and reliability to ensure patient safety and care quality.

Additionally, the rapid expansion of IoT devices in sectors like energy and utilities and smart city initiatives necessitates a robust network backbone, which 5G provides. The ability of 5G to handle massive machine-type communications (mMTC) allows enterprises to deploy thousands of sensors and devices, making data-driven decision-making more comprehensive and accurate.

Overall, the Enterprises segment’s lead in the 5G services market is supported by its ability to meet the growing demands for connectivity solutions that are both powerful and reliable. With continued technological advancements and expanding use cases, the segment is poised to maintain its significant influence and drive further innovations in the 5G landscape.

Key Market Segments

By Communication Type

• Fixed Wireless Access (FWA)
• Enhanced Mobile Broadband (eMBB)
• Ultra-Reliable and Low-Latency Communications(LLC)
• Massive Machine-Type Communications(mMTC)

By Vertical

• Consumers
• Enterprises
• BFSI
• Healthcare
• Manufacturing
• IT & Telecom
• Energy & Utility
• Transportation & Logistics
• Others

Driver

Increasing demand for high-speed internet and enhanced mobile broadband experience

The increasing demand for high-speed internet and enhanced mobile broadband experience significantly drives the 5G service market. This demand stems from several factors that underscore the necessity and benefits of 5G technology. 5G promises vastly improved data speeds and lower latency compared to its predecessors, such as 4G LTE.

This enhancement is crucial for supporting bandwidth-intensive applications and emerging technologies like virtual reality (VR), augmented reality (AR), and the Internet of Things (IoT). Industries ranging from healthcare to manufacturing are increasingly reliant on real-time data transmission, making high-speed internet a fundamental requirement.

The proliferation of connected devices continues to rise exponentially. The advent of smart cities, autonomous vehicles, and advanced industrial automation necessitates a robust network capable of handling massive data traffic efficiently. 5G networks are designed to accommodate these diverse and demanding connectivity needs seamlessly.

Restraint

Higher cost of infrastructure development

The higher cost of infrastructure development poses a significant restraint for the 5G service market, impacting various stakeholders involved in its deployment and expansion. 5G networks require a denser infrastructure compared to previous generations like 4G. This involves deploying a larger number of small cells and base stations to ensure adequate coverage and capacity, especially in urban areas where demand is highest.

The cost of acquiring and installing these small cells, along with associated backhaul infrastructure, can be substantial. Upgrading existing infrastructure to support 5G technology involves significant capital investment. Telecommunication providers must invest in upgrading their network equipment, including antennas, routers, and transmission systems, to support the higher frequencies and data rates characteristic of 5G.

Moreover, implementing new technologies such as beamforming and massive MIMO (Multiple Input, Multiple Output) requires additional investment in specialized equipment. Regulatory and compliance costs further add to the financial burden. Telecommunication companies must navigate regulatory frameworks that govern spectrum allocation, site permits for installing new infrastructure, and compliance with stringent health and safety standards.

Opportunity

Development in IoT Technology

The development in IoT (Internet of Things) technology presents a significant opportunity for the 5G service market, leveraging the capabilities of 5G networks to propel IoT applications to new heights of functionality and efficiency.

IoT devices are expected to proliferate across various sectors, including smart cities, healthcare, transportation, agriculture, and industrial automation. These devices require reliable, high-speed connectivity to transmit and receive data in real-time. 5G networks offer ultra-low latency and high data transfer speeds, which are essential for supporting the massive number of connected devices and ensuring responsive communication between them.

The enhanced capacity of 5G networks allows for simultaneous connections of a large number of IoT devices within a confined area. This capability is crucial for scenarios such as smart buildings where thousands of sensors and actuators need to communicate seamlessly to optimize energy consumption, security, and maintenance.

5G’s ability to support massive machine-type communications (mMTC) enables IoT deployments on a scale not previously feasible with older network generations. This scalability is essential for deploying IoT solutions across wide geographic areas, facilitating comprehensive monitoring and management of assets, resources, and infrastructure remotely and in real-time.

Challenge

Cybersecurity concerns

Cybersecurity concerns present a substantial challenge for the 5G service market, posing significant risks to network integrity, user privacy, and overall trust in the technology. The increased complexity of 5G networks introduces new potential vulnerabilities. With a larger number of connected devices and a denser network infrastructure, the attack surface for cyber threats expands.

This complexity includes not only the core network components but also the numerous IoT devices and endpoints that leverage 5G connectivity, each potentially serving as entry points for malicious actors. The adoption of virtualization and software-defined networking (SDN) in 5G networks introduces new cybersecurity challenges.

These technologies enable dynamic allocation of network resources and rapid deployment of services, but they also create new points of attack if not properly secured. Vulnerabilities in virtualized network functions or misconfigurations in SDN controllers can be exploited to compromise network security.

The massive amounts of data transmitted over 5G networks, including sensitive information from IoT devices and high-definition multimedia content, become attractive targets for cyberattacks. Threats such as data breaches, identity theft, and ransomware attacks pose significant risks to both individuals and businesses relying on 5G services.

Growth Factors

• Increased Data Speeds and Lower Latency: 5G technology offers significantly faster data speeds and lower latency compared to previous generations, enabling real-time applications and enhancing user experiences.
• Support for Emerging Technologies: It facilitates the adoption of emerging technologies such as IoT, AI, augmented reality (AR), and virtual reality (VR), which require robust, high-speed connectivity.
• Expanded Network Capacity: 5G networks can support a massive increase in connected devices per square kilometer, accommodating the growing number of IoT devices and smart city initiatives.
• Enhanced Mobile Broadband Experience: Consumers and businesses benefit from improved mobile broadband experiences, including seamless streaming, high-definition video conferencing, and faster downloads/uploads.
• Industry-Specific Applications: Industries like healthcare, manufacturing, automotive, and entertainment leverage 5G for applications such as remote surgery, smart factories, connected vehicles, and immersive media experiences.
• Economic Growth and Innovation: 5G deployment stimulates economic growth through job creation, increased productivity, and innovation in various sectors by enabling new business models and revenue streams.

Latest Trends

• Deployment of Standalone (SA) 5G Networks: Moving beyond Non-Standalone (NSA) deployments, SA 5G networks are becoming more prevalent, offering full 5G capabilities independently of existing 4G infrastructure.
• Expansion of IoT Connectivity: The integration of 5G with IoT is accelerating, enabling massive machine-type communications (mMTC) and ultra-reliable low-latency communications (URLLC) to support diverse IoT applications.
• Edge Computing and Mobile Edge Computing (MEC): 5G enables low-latency edge computing, facilitating faster processing and real-time data analytics closer to the end-user or device, enhancing application performance and efficiency.
• Virtualization and Network Slicing: Virtualization technologies and network slicing are increasingly utilized in 5G networks to create customized network slices tailored to specific applications, optimizing network resources and performance.
• 5G in Smart Cities and Infrastructure: Cities worldwide are leveraging 5G to deploy smart city initiatives, including smart transportation, energy management, public safety, and environmental monitoring, enhancing urban living and sustainability.
• Enhanced Mobile Broadband (eMBB): 5G’s ability to deliver significantly faster speeds and improved capacity is driving enhanced mobile broadband experiences, supporting high-definition streaming, gaming, and multimedia applications.

Regional Analysis

In 2023, APAC held a dominant position in the 5G services market, capturing more than a 41.5% share with a revenue of USD 36.7 billion. This significant market share can be attributed to the rapid industrialization and urbanization across major APAC economies, such as China, Japan, South Korea, and India.

These countries have been forefront in adopting and implementing 5G technology, driven by supportive government policies aimed at enhancing their technological infrastructure to boost economic growth and improve connectivity. The leadership of APAC in the 5G market is further reinforced by the high density of population and the increasing penetration of mobile devices.

There is a substantial demand for high-speed internet and data services in this region, which has propelled investments and developments in 5G technology. Moreover, major telecommunications players in APAC have aggressively expanded their 5G networks, which has led to increased adoption among businesses and consumers alike.

Additionally, APAC benefits from a robust manufacturing sector that is increasingly relying on IoT and smart factory solutions to optimize production processes and reduce operational costs. The integration of 5G services facilitates these advancements by providing the necessary bandwidth and latency to handle large volumes of data efficiently and reliably.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The 5G services market is characterized by a dynamic and competitive environment, with several key players driving innovation and market growth through strategic acquisitions, product launches, and mergers. Among these, AT&T, Verizon Communications, and China Mobile Ltd. stand out due to their significant market influence and extensive investment in 5G infrastructure.

AT&T and Verizon Communications have been at the forefront in the U.S., both launching numerous 5G services across various cities and continually expanding their 5G coverage. For instance, Verizon recently enhanced its 5G network capabilities through the acquisition of spectrum assets, which significantly improves its network performance and service offerings. AT&T, on the other hand, has focused on new product offerings that integrate 5G technology to provide enhanced customer experiences, particularly in high-bandwidth applications like streaming and gaming.

In Asia, China Mobile Ltd. and China Telecom Corporation Ltd. have led the market with aggressive infrastructure deployment and new 5G services tailored to both consumer and enterprise needs. China Mobile, in particular, has launched several innovative 5G solutions that leverage massive machine-type communications (mMTC) and ultra-reliable low-latency communications (uRLLC), targeting industries such as manufacturing and healthcare.

Top Key Players in the Market

• AT&T, Inc.
• British Telecommunications plc
• China Mobile Ltd.
• China Telecom Corporation Ltd.
• Bharti Airtel Limited
• KT Corp.
• Saudi Telecom Company
• Vodafone Group Plc
• Deutsche Telekom AG
• SK Telecom Co., Ltd.
• Verizon Communications, Inc.
• T-Mobile USA, Inc.
• Rakuten Mobile, Inc.
• Verana Networks
• Celona
• Mangata Networks
• Other Key Players

Recent Developments

• January 2023: AT&T announced the expansion of its 5G network, now covering 290 million people across nearly 24,000 cities and towns in the U.S. They also emphasized the growth of their 5G+ network, which has doubled the number of venues and airports covered​.
• February 2023: T-Mobile launched its 5G Home Internet service in more rural and suburban areas, aiming to provide high-speed internet access to underserved regions​.
• May 2023: Vodafone announced a partnership with Ericsson to deploy advanced 5G network slicing technology in Europe, aimed at offering dedicated network resources for specific applications and industries​.
• June 2023: Deutsche Telekom expanded its 5G network to cover additional rural areas in Germany, focusing on increasing coverage and connectivity in less populated regions​.

Report Scope