New research from GlobalData has claimed that global 5G subscriptions will likely reach 1.5 billion in 2024, driven predominantly by high demand for faster speeds.
Due to the limited coverage and lack of 5G-ready devices, the initial adoption of 5G technology will be slow, the research claims. However, as more and more areas and companies embrace 5G, the demand will rise rapidly.
The Asia Pacific region will be the biggest market
The analyst predicts that the Asia Pacific region will be the biggest market with almost a billion (924 million) subscriptions. North America will be second, with 254 million subscriptions. And Europe will be a close third, with 242 million subscriptions. Africa, Middle East and Latin America will be slower to pick up 5G.
“While there is excitement around some of the early network launches in markets such as South Korea, the US, the UK and United Arab Emirates (UAE), the global 5G market will really accelerate over the next two years as more handset manufacturers bring 5G capable devices to the market,” explains Malcolm Rogers, senior technology analyst at GlobalData.
“Currently each operator with 5G service availability only has a handful of compatible smartphones on offer and usually at the flagship tier,” says Rogers. “Once 5G devices become more mainstream and competitively priced, we expect a large uptick in 5G subscription and revenue growth.”
In terms of revenue, GlobalData analysts expect global earnings of $301 billion (£245 billion) in just five years. Obviously, the Asia Pacific region is expected to contribute the most, as it’ll have the most subscriptions, contributing a huge $122 billion (£99 billion). While North America will see the highest portion of total mobile revenue coming from 5G services at $110 billion (£89 billion).