WELLESLEY, Mass., Aug. 14, 2018 (GLOBE NEWSWIRE) -- 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.
Research Highlights
- Industry participants, especially mobile network operators, are motivated by the declining opportunities for growth from 4G technology in most developed regions.
- While mobile network capital expenditures will remain flat or average at only a 2% increase over the next five years, the revenue hardware, software and services companies in the mobile industry can expect from 5G will grow at nearly 26.6%.
- Popular 5G applications will include smart phones with augmented and virtual reality capabilities and Internet of Things devices that are capable of massive and mission-critical transactions.
“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.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.