5G Services Market Size - By Application (Consumer Applications, Industrial Applications, Connected Vehicles, Smart Cities, Healthcare, Agriculture, Retail Transportation & Logistics), End User (Consumers, Enterprises), Communication Type & Forecast, 2024-2032

5G Services Market Size - By Application (Consumer Applications, Industrial Applications, Connected Vehicles, Smart Cities, Healthcare, Agriculture, Retail Transportation & Logistics), End User (Consumers, Enterprises), Communication Type & Forecast, 2024-2032

5G Services Market size

5G Services Market size was valued at USD 98.9 billion in 2023 and is projected to register a CAGR of 31% between 2024 and 2032. The demand for high data speeds and capacity is propelling the market as data-intensive applications, remote work, IoT, and emerging technologies require seamless and rapid data transmission. For instance, in February 2023, Reliance Jio recently unveiled its high-speed 5G services, now operational in 20 cities spanning 11 states and union territories. This high-speed network infrastructure can also boost various segments in their operations such as, e-governance, automation, artificial intelligence.

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The ultra-low latency is a prominent driver for the 5G services market, enabling real time responses for various applications such as, autonomous vehicles, remote surgeries, virtual reality, and augmented reality. While reducing the delays to milliseconds, 5G services ensure seamless interactivity, enhancing the user experience. Furthermore, industries such as gaming, industrial automation, and healthcare benefits from the ultra-low latency. As these innovative use cases gain momentum, the demand for 5G's ultra-low latency capabilities fuels its adoption and market growth.

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The technical complexity of 5G services networks introduce a challenge to their widespread infrastructure. The 5G service has intricate network architectures and technologies such as, millimeter-wave frequencies and massive MIMO (Multiple-Input, Multiple-Output) systems. The setup, maintenance, and troubleshooting of these networks demand specialized expertise, leading to higher operational costs. The need for skilled professionals and specialized equipment can potentially extend deployment timelines, hindering the rapid expansion of 5G services across various regions.

COVID-19 Impact

The COVID-19 pandemic exerted both positive and negative influences on the 5G services market. While it accelerated the demand for robust and high-speed connectivity to facilitate remote work, virtual collaboration, and online services, it also caused delays in network deployment due to disruptions in supply chains and reduced workforce availability. Additionally, economic uncertainties during the pandemic led some organizations to postpone or scale back their 5G investment plans, affecting market growth to some extent.

5G Services Market Trends

The increasing demand for enterprise-grade extended reality (XR) solutions, encompassing virtual reality (VR) and augmented reality (AR), is a strong driver of the 5G services industry. These immersive technologies require ultra-low latency and high data speeds for real-time interactions and seamless experiences. As industries adopt XR for remote training, product design, and collaborative work, the capabilities of 5G networks become essential. This growing need for reliable and high-performance connectivity is propelling the expansion of 5G services to meet the demands of the XR ecosystem.

5G Services Market Analysis

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Based on end user, the enterprises segment generated revenue of around USD 56 billion in 2023, due to their increasing reliance on data-intensive applications. For instance, in February 2022, Cisco partnering with worldwide partners to provide Private 5G as-a-Service, offering enterprises decreased technical, financial, and operational uncertainties in overseeing private 5G networks. Cisco's Private 5G simplifies financial aspects, employing pay-as-you-use models that save customers from upfront infrastructure expenses. The subscription model offered to enterprises can determined as profitable for the 5G service providers.

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Based on communication type, the enhanced mobile broadband segment held a dominant share in 5G services market revenue in 2023.  Partnerships are playing a crucial role in propelling the Enhanced Mobile Broadband (eMBB) segment of the market.

For instance, in June 2023, Charter Communications unveiled a collaboration with Nokia to implement 5G connectivity solutions. Through this partnership, Charter endeavors to bring extensive access to accelerated speeds and improved mobile services to its clientele, reinforcing its prominence as a foremost provider of broadband connectivity solutions. With eMBB, users can expect seamless streaming of 4K and even 8K videos without buffering, enabling immersive and high-quality content consumption.

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Asia Pacific 5G services market accounted for 37% of the revenue share in 2023. In As a region with a large and diverse population, the demand for enhanced connectivity and data-intensive applications is surging. This trend aligns with 5G's capabilities, driving significant interest. With the increasing use of smartphones for entertainment, commerce, and communication, the Asia Pacific market stands to benefit from the seamless, high-speed, and immersive experiences that 5G services offer.

5G Services Market Share

Major companies operating in the 5G services industry are

• AT&T, Inc
• BT Group plc
• China Mobile Ltd
• China Telecom Corporation Ltd
• Bharti Airtel Ltd
• NTT Docomo
• KT Corp
• Saudi Telecom Company
• Vodafone Group
• Deutsche Telekom AG
• SK Telecom Co., Ltd

Intense competition among key players in the 5G services industry driven by innovations, network infrastructure, service quality, and market share battles.

5G Services Industry News

• In July 2023, Airtel Zambia unveiled its 5G network. The event highlighted the prowess of Airtel's 5G services, offering attendees a chance to explore high-speed network connectivity through smartphones, virtual reality (VR) encounters, immersive VR gaming, VR Golf simulations, 8K streaming, and an array of exciting experiences. The launch event was a vibrant showcase of Airtel Zambia's cutting-edge 5G capabilities.
• In October 2022, in collaboration with Mitsui Knowledge Company, JTower, and Airspan Networks, Cisco has implemented an indigenous 5G Open RAN (O-RAN) ecosystem for sharing in-building infrastructure. The primary objective is to introduce localized 5G networks within Japan, focusing on enhancing in-building connectivity and network capabilities.

The 5G services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Communication Type

• Fixed Wireless Access
• Enhanced Mobile Broadband
• Massive Machine-Type Communication
• Ultra-Reliable Low-Latency

Market, By Application

• Consumer Applications
• Industrial Applications
• Connected Vehicles
• Smart Cities
• Healthcare
• Agriculture

Market, By End Users

• Consumers
• Enterprises
• Manufacturing
• Media & Entertainment
• Government
• Energy & Utilities
• Transportation & Logistics
• Healthcare
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

What is the size of the global 5G services market?

The market size of 5G services reached USD 98.9 billion in 2023 and is set to observe 31% CAGR from 2023 to 2032, backed by the demand for high data speeds and capacity.

How will enterprises segment contribute to 5G services industry growth?

The enterprises segment held a market share of around 32% in 2022, due to the increasing reliance of organizations on data-intensive applications.

Why is Asia Pacific 5G services market witnessing expansion?

Asia Pacific market with a major revenue share of around 37% in 2023. As a region with a large and diverse population, the demand for enhanced connectivity and data-intensive applications is surging, favoring the industry growth.

Who are the key players in 5G services landscape?

AT&T, Inc., BT Group plc, China Mobile Ltd., China Telecom Corporation Ltd., Bharti Airtel Ltd., NTT Docomo, KT Corp., Saudi Telecom Company, Vodafone Group, Deutsche Telekom AG, and SK Telecom Co., Ltd.