Visiongain has published a new report on 5G Infrastructure Market Report to 2031: Forecasts By Network Infrastructure (Solution {Radio Access Network (RAN), Core Network, Backhaul & Transport}, Services {Consulting & Implementation, Support & Maintenance, Training & Education}), By Network Technology (Software Defined Networking & Network Function Virtualization, Mobile Edge Computing, Fog Computing), By Network Architecture (Standalone, Non-Standalone), By Operational Frequency (Sub 6 GHz, Above 6 GHz), By End-User (Residential, Commercial, Industrial, Government). PLUS, Profiles of 5G Infrastructure Companies and Regional and Leading National Market Analysis. PLUS COVID-19 Recovery Scenarios.

Global 5G infrastructure market was valued at US$ XX billion in 2019 and is projected to reach a market value of US$ XX billion by 2031.

Rapid commercialization of 5G network and an increase in mobile data traffic are the factors driving the growth of 5G infrastructure market. The market seeks growth opportunities from rising adoption of virtualization technology in telecommunication and increasing M2M/IoT connections. However, the delay in standardization of spectrum allocation and challenges in technology design are some of the factors hampering the market growth during the forecast period.

COVID-19 Impact on 5G Infrastructure Market
The coronavirus outspread has affected the businesses and livelihood of the people at an unprecedented rate. The nationwide lockdown imposed by the governments of all the countries led to shutting down of the on-premise business process and manufacturing facilities which impacted the production of 5G infrastructure equipment. Moreover, disruptions in the supply chain owing to the trade restrictions have further impacted the market tremendously. The virus had a significant impact on the telecom businesses leading to delay in commercialization of the 5G networks which were on the verge of rolling out 2020. Also, the economic downturn has restricted the enterprises on minimizing the spend on R&D activities and IT activities, which is further expected to hamper the market growth. The market is expected to gain traction by the Q1 2021.

Market Drivers

Rapid Commercialization of 5G Network
5G technology is commercializing rapidly across various parts of the world. The US, South Korea, and China are the leading countries to develop and deploy 5G technology. The promising technology offers reduced latency, high bandwidth and capacity when compared to 4G. With the commercialization of 5G, the demand for 5G infrastructure equipment and technologies such as RAN, backhaul, virtualization, edge computing and fog computing among others increases. Thus, the advent of 5G technology for providing seamless and reliable connectivity is expected to provide substantial growth prospects of communications test and measurement market during the forecast years.

Increase in Mobile Data Traffic
Mobile data services are experiencing a remarkable growth leading to a considerable rise in data traffic. This high volume of data traffic is driven by rising penetration of smartphones which allows the connection to high-speed Internet for consuming Internet-based services such as on-demand videos and music. Moreover, the availability of new and innovative Internet-based services such as gaming, music platform, social media platforms, and video content has increased the demand for mobile data services which is expected to drive the growth for 5G network infrastructure market.

Market Opportunities

Rising Adoption of Virtualization Technology in Telecommunication
Virtualization technologies are witnessing an increasing demand over the years. The technology allows creating a software-based representation of applications, servers, storage, and networks. It allows the user to use the full capacity of the physical machine by distributing its capabilities among various users or environments. Adopting virtualization technology in telecommunication helps in achieving the agility required by the telco operators. Adopting the network function virtualization supports the telco operators to scale their capacity with ease, thereby improving the network performance. Moreover, NFV also helps telecom operators to personalized their network to deliver products & service as per the customer requirement, thereby increasing customer satisfaction and reducing the customer churn. Thus, the rising adoption of virtualizing technologies in telecommunication is expected to drive the growth of the 5G infrastructure market.

Increasing M2M/IoT Connections
The number of connected devices is growing at a tremendous rate. According to a study by Cisco Systems Inc., the number of devices connected to internet protocol (IP) network will be three times the global population estimated to reach 29.3 billion network devices by 2023. The IoT and M2M technology require a high speed, stable and reliable communication network with high bandwidth for the data transmission. 5G is expected to offer speed up to 10 times faster when compared to the 4G LTE network to allow seamless communication and data transfer rate, thereby driving the demand for 5G networks. Thus, the increasing M2M/IoT connections is expected to create growth opportunities for 5G infrastructure market.

Competitive Landscape
The 5G infrastructure market is highly competitive. The key market players are highly focused on the research and development activities to develop innovative 5G infrastructure equipment which consumes low power and highly efficient to offer a seamless and reliable network. Furthermore, the companies also emphasize collaborations and strategic acquisitions strategies to strengthen its product capabilities and position in the market. Some of the companies profiled in the report include Telefonaktiebolaget L M Ericsson, Huawei Technologies Co., Ltd, Nokia Corporation, Samsung Electronics Co. Ltd, ZTE Corporation, NEC Corporation, Cisco Systems Inc., CommScope Holding Company Inc., Qualcomm Technologies Inc., and Comba Telecom Systems.

September 2020, Ericsson partnered with Telefónica to launch 5G services in Spain. The partnership offered Telefónica with the Ericsson’s Spectrum Sharing on 4G/5G FDD (1800-2100MHz) frequencies. The partnership helped Ericsson to strengthen its position in the 5G infrastructure market.

September 2020, Nokia Corporation extends its partnership with BT. The strategic alliance allows BT to adopt Nokia’s 5G equipment and services helping BT’s radio access network to offer reliable and seamless 5G connectivity to the UK. Nokia also provides digital design and deployment services to BT for a faster time to market and to and technical support services.

Notes for Editors
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