August 14, 2018
WELLESLEY, Mass., Aug 14, 2018 – Due to redefining mobile infrastructure and end-user applications for a new generation, the global market for 5G technologies is undergoing strong growth, according to a new report from BCC Research.
In 2018, the global market for 5G technologies was valued at $32.4 billion. The market is expected to reach $105.4 billion by 2023, indicating a compound annual growth rate (CAGR) of 26.6%, according to the report Global Markets for 5G Technologies.
The mobile industry has passed the inflection point where the cost of providing mobile services per bit has overtaken the revenue per bit obtained from selling data services. With voice revenue declining due to competition and data revenue not keeping up with costs, the mobile industry cannot afford to stop growing — even though its services and devices have achieved near global penetration. These business economics are spurring 5G as much as the applications. Most large mobile operators can simply not afford to skip the technology and the race to be first is in full swing lead by operators in Japan, China and the U.S.
“5G itself constituted only 5% of capital expenditures in 2017,” said BCC Research analyst and report author Michael Sullivan. “However, this spending will quickly ramp up in the later years of the forecast as 5G becomes the primary focus of mobile operators.”
Journey to 5G Fraught with Challenges
The journey to full implementation of 5G, which is expected to take at least 10 years, is fraught with challenges for industry participants. Standards within each technology area within 5G are awaiting agreement as well as technical feasibility. Regulatory regimes, which need to address spectrum shortages and economic imbalances, will play a major role.
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Global Markets for 5G Technologies( IFT147A )
Publish Date: Jun 2018