5G infrastructure market will hit $496.6bn by 2027, report claims

By Dan Oliver
published

A new report from Grand View Research looks at the global market for 5G communication infrastructure over the next seven years.

(Image credit: Dan Oliver)

According to the California-based company Grand View Research, The global 5G infrastructure market size – valued at $1.9bn in 2019 – is expected to reach $496.6bn by 2027. 

5G infrastructure is predominantly made up of a combination of Radio Access Network (RAN), core network, and backhaul and transport, with the backhaul and transport network including fiber optics or microwave antennas. (In terms of value, RAN dominated the 5G infrastructure market with a share of 46.2% in 2019. This is attributable to a robust deployment of 5G RAN with several small cells and macrocell base stations across the globe.)

And as technologies such as mmWave 5G become more widespread, so too does the need for the latest hardware (both at primary cell sites, but also at small cell sites, which we will begin to see more and more in urban areas).

Highlighted findings from the report include:

  • RAN technology is estimated to reach a market size of $214.7bn by 2027, expanding at a CAGR of 112.3% from 2020 to 2027, owing to a significant rise in investments for deploying 5G cloud or centralized RAN across key countries such as the US, UK, Japan, and China
  • With the growing need to provide unified connectivity across IIoT devices and collaborative robots, the demand for 5G technology and related infrastructure in industrial segment will see considerable growth over the forecast period.
  • Huge investments made by infrastructure providers in installing a 5G standalone network to deliver ultra-reliable low latency connectivity for connected vehicle applications is expected to drive market growth over the forecast period.
  • The sub-6 GHz segment is expected to account for the largest market size of $302.4bn by 2027, largely attributed to governments focusing on releasing sub-6 GHz frequency bands for high-speed data services across major developed economies.

RAN technology

RAN technology is estimated to reach a market size of $214.7bn by 2027, expanding at a CAGR of 112.3% from 2020 to 2027, owing to a significant rise in investments for deploying 5G cloud or centralized RAN across key countries such as the US, UK, Japan, and China

With the growing need to provide unified connectivity across IIoT devices and collaborative robots, the demand for 5G technology and related infrastructure in industrial segment will see considerable growth over the forecast period.

Huge investments made by infrastructure providers in installing a 5G standalone network to deliver ultra-reliable low latency connectivity for connected vehicle applications is expected to drive market growth over the forecast period.

The sub-6 GHz segment is expected to account for the largest market size of $302.4bn by 2027, largely attributed to governments focusing on releasing sub-6 GHz frequency bands for high-speed data services across major developed economies.

The report also highlighted how companies such as Telefonaktiebolaget LM Ericsson and Nokia Corporation are highly focused on establishing partnerships with leading service providers to enhance their geographical presence and overall market share.

Additionally, due to the Covid-19 pandemic, key countries such as China and US have seen a decline in the exports of telecom equipment for 5G New Radios (NR) to the global market. And although the overall outlook is good, these factors are collectively expected to pose challenge to the market growth, especially over the next couple of years.

You can view more insight, with the option to purchase the full report, here. 


Dan Oliver
Dan Oliver

Dan is a British journalist with 20 years of experience in the design and tech sectors, producing content for the likes of Microsoft, Adobe, Dell and The Sunday Times. In 2012 he helped launch the world's number one design blog, Creative Bloq. Dan is now editor-in-chief at 5Gradar, where he oversees news, insight and reviews, providing an invaluable resource for anyone looking to stay up-to-date with the key issues facing 5G.