5G Enterprise Market By Type of Deployment (Public 5G Networks, Private 5G Networks), End-Use Industry (Manufacturing, Healthcare), Organization Size (Small and Medium-sized Enterprises (SMEs), Large Enterprises), & Region for 2024-2031

5G Enterprise Market Valuation – 2024-2031

The rising proliferation of Internet of Things (IoT) devices requires robust and reliable networks is propelling the adoption of 5G enterprise. Enterprises are increasingly adopting digital solutions and automation is driving the market size surpass USD 5.74 Billion valued in 2024 to reach a valuation of around USD 39.72 Billion by 2031.

In addition to this, the shift towards remote work and collaboration tools drives the need for reliable, high-speed networks is enabling the market to grow at a CAGR of 30.18% from 2024 to 2031.

5G Enterprise MarketDefinition/ Overview

5G enterprise refers to the application of 5G technology within business environments to enhance connectivity, productivity, and innovation. 5G offers significantly faster data speeds, lower latency, and greater network capacity compared to previous generations of wireless technology. This enables enterprises to leverage advanced digital tools and applications, facilitating seamless communication, real-time data transfer, and the integration of a wide array of Internet of Things (IoT) devices.

The applications of 5G in enterprises are diverse and transformative. In manufacturing, 5G supports smart factories with connected machinery and real-time monitoring, improving efficiency and reducing downtime. In healthcare, it enables remote diagnostics and telemedicine, enhancing patient care. In the retail sector, 5G enhances customer experiences through augmented reality (AR) and virtual reality (VR) applications. Additionally, 5G facilitates the deployment of autonomous vehicles and smart cities, revolutionizing transportation and urban management.

In the future, the scope of 5G enterprise is vast. As 5G networks become more widespread and mature, enterprises will increasingly adopt this technology to drive digital transformation.

How will the Proliferation of Internet of Things (IoT) Devices Increase Adoption of 5G Enterprise?

The 5G enterprise market is primarily driven by the need for enhanced connectivity and high-speed data transfer. 5G technology offers significantly faster data speeds and lower latency compared to its predecessors, enabling real-time communication and data processing. This is particularly crucial for enterprises that rely on instantaneous data transmission for critical operations, such as financial services, telemedicine, and emergency response systems. The superior connectivity provided by 5G ensures that businesses can operate more efficiently and effectively, enhancing productivity and service delivery. The GSMA reported that by the end of 2023, there were over 15 billion IoT connections globally, with 5G networks supporting a significant portion of these connections.

Another major driver is the proliferation of Internet of Things (IoT) devices within enterprise environments. 5G networks can support a vastly higher number of connected devices per square kilometer than 4G networks, making it possible to deploy a dense network of IoT sensors and devices. This capability is essential for industries such as manufacturing, where smart factories rely on a multitude of interconnected machines and sensors to monitor and optimize production processes. For instance, In April 2024, Cisco launched a new line of 5G-enabled edge computing devices designed specifically for enterprise use, targeting industries such as healthcare and retail. The ability to support a high density of IoT devices with reliable and fast connectivity accelerates the adoption of 5G in various sectors.

The push towards digital transformation and automation within enterprises also fuels the demand for 5G. Companies are increasingly adopting digital solutions to streamline operations, enhance customer experiences, and stay competitive in a rapidly evolving market. 5G’s high bandwidth and low latency are critical for enabling advanced applications such as augmented reality (AR), virtual reality (VR), and artificial intelligence (AI). These technologies require robust and reliable networks to function effectively. By facilitating the deployment of these cutting-edge applications, 5G empowers enterprises to innovate and transform their business models, driving the overall growth of the 5G enterprise market.

Will High Costs of 5G Enterprise Restrain Its Application?

One significant restraint in the 5G enterprise market is the high cost of deployment and infrastructure development. Establishing a 5G network requires substantial investment in new hardware, including antennas, base stations, and other networking equipment. For many enterprises, especially small and medium-sized businesses, the financial burden of upgrading to 5G can be prohibitive. Additionally, the costs associated with maintaining and managing the advanced 5G infrastructure further add to the overall expenses, potentially slowing down the adoption rate.

Another challenge is the complexity of integration with existing systems. Many enterprises have legacy systems that are not compatible with 5G technology, necessitating significant upgrades or replacements. Integrating 5G into existing IT infrastructure can be a complex and time-consuming process, requiring specialized knowledge and skills. This integration challenge can lead to operational disruptions and increased costs, making some enterprises hesitant to fully embrace 5G technology.

Regulatory and security concerns also pose restraints to the 5G enterprise market. The deployment of 5G networks involves navigating a complex regulatory landscape, with varying standards and requirements across different regions. Additionally, the increased connectivity and data transfer capabilities of 5G raise concerns about cybersecurity. Enterprises must invest in robust security measures to protect sensitive data and prevent cyberattacks. These regulatory hurdles and security challenges can slow down the widespread adoption of 5G technology in the enterprise sector.

Category-Wise Acumens

Will Rise in Adoption of Public 5G networks Drive 5G Enterprise Market Growth?

Public 5G networks are dominating the 5G enterprise market due to their widespread availability and cost-effectiveness. According to a report by ABI Research, public 5G networks accounted for approximately 70% of enterprise 5G connections in 2023, with this share expected to remain dominant through 2025. Enterprises can leverage existing public 5G infrastructure rather than investing heavily in building private 5G networks. This accessibility allows businesses of all sizes to benefit from high-speed connectivity and low latency without the significant capital expenditure associated with private network deployment. The extensive coverage provided by public 5G networks also ensures that enterprises can maintain seamless connectivity across various locations. As of March 2024, public 5G networks covered approximately 65% of the global population, according to data from Ericsson’s Mobility Report.

The dominance of public 5G networks is further supported by advancements in network slicing technology. Network slicing enables service providers to create multiple virtual networks within a single physical 5G network, tailored to specific enterprise needs. This capability allows enterprises to enjoy dedicated and optimized network performance for critical applications without the need for a private network. By utilizing public 5G networks with customized slices, businesses can achieve the desired level of security, reliability, and performance for their operations. For instance, In February 2024, Verizon announced an expansion of its 5G Business Internet service to 20 additional cities, bringing high-speed 5G connectivity to more enterprise customers.

Which Factors Enhance the Use of 5G Enterprise in Manufacturing Sector?

Manufacturing is dominating the 5G enterprise market due to its substantial need for enhanced connectivity and real-time data processing. A survey by Deloitte in late 2023 found that 68% of manufacturing companies were either implementing or planning to implement 5G technologies within the next two years. 5G technology enables smart factories where interconnected machines, sensors, and systems communicate seamlessly to optimize production processes. The low latency and high reliability of 5G networks support critical applications such as predictive maintenance, automated quality control, and real-time monitoring, significantly improving operational efficiency and reducing downtime.

The adoption of 5G in manufacturing is also driven by the increasing integration of advanced technologies such as robotics, artificial intelligence (AI), and the Internet of Things (IoT). Ericsson’s Mobility Report from March 2024 projected that the number of 5G IoT connections in manufacturing would reach 1.2 billion by 2025. These technologies rely on the fast and reliable data transfer capabilities of 5G to function effectively. For instance, autonomous robots in manufacturing plants can perform complex tasks more efficiently with 5G, while AI-driven analytics can process vast amounts of data in real time to enhance decision-making and production strategies. This technological synergy positions manufacturing at the forefront of 5G enterprise adoption. A study by McKinsey in late 2023 found that manufacturers leveraging 5G and AI together saw an average 20% improvement in overall equipment effectiveness (OEE). ABB launched a new line of 5G-compatible industrial robots in March 2024, designed specifically for smart manufacturing environments.

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Country/Region-wise Acumens

Will Rapid Technological Advancements Drive Market Growth of 5G Enterprise in Asia Pacific?

Asia Pacific is dominating the 5G enterprise market due to the region’s rapid technological advancements and substantial investments in 5G infrastructure. According to a report by GSMA Intelligence, the Asia Pacific region accounted for approximately 45% of global 5G enterprise connections in 2023, the largest share among all regions. Countries like China, South Korea, and Japan are leading the way in 5G deployment, with extensive network rollouts and significant support from government initiatives. NEC (Japan) launched a new 5G enterprise platform in January 2024, specifically designed for the Asia Pacific market, focusing on integration with local cloud providers. These nations are also home to some of the world’s largest and most innovative technology companies, which are driving the adoption of 5G technology across various industries. The region’s proactive approach to 5G development ensures that enterprises in Asia Pacific have access to cutting-edge connectivity solutions that enhance productivity and innovation.

Furthermore, the diverse and dynamic economic landscape of Asia Pacific fuels the demand for 5G in enterprises. The region encompasses a wide range of industries, from manufacturing and logistics to healthcare and retail, all of which can significantly benefit from the high-speed, low-latency capabilities of 5G. The increasing adoption of digital technologies and the growing focus on Industry 4.0 further drive the need for advanced 5G networks. As businesses in Asia Pacific continue to embrace digital transformation, the demand for 5G enterprise solutions is expected to grow, solidifying the region’s leading position in the global 5G enterprise market. A report by IDC in early 2024 predicted that 5G-enabled smart city initiatives in Asia Pacific would grow by 30% annually through 2027.

Will Significant Investments in 5G Infrastructure and technology in North America Mature 5G Enterprise Market?

North America is experiencing rapid growth in the 5G enterprise market, driven by significant investments in 5G infrastructure and technology. According to a report by the CTIA (Cellular Telecommunications Industry Association), the North American 5G enterprise market grew by 42% in 2023, reaching a value of $18.5 billion. The United States and Canada are at the forefront of 5G deployment, with major telecom operators rolling out extensive 5G networks across the region. This expansion is supported by substantial government backing and favorable regulatory environments, which encourage the adoption of advanced connectivity solutions. As a result, enterprises in North America are increasingly leveraging 5G technology to enhance their operations, improve efficiency, and enable new business models.

The rapid growth of the 5G enterprise market in North America is also fueled by the region’s strong focus on innovation and digital transformation. A survey by Accenture in early 2024 found that 65% of North American enterprises were either implementing or planning to implement 5G technologies within the next 18 months. Industries such as manufacturing, healthcare, and logistics are integrating 5G to support IoT devices, real-time data analytics, and automated processes. The region’s emphasis on cutting-edge technology, combined with a robust ecosystem of tech companies and startups, accelerates the development and implementation of 5G-enabled solutions. As businesses continue to explore the potential of 5G, North America’s 5G enterprise market is poised for continued expansion and leadership in the global market. For instance, In February 2024, Verizon (USA) announced the expansion of its 5G Ultra Wideband network to cover 80% of the U.S. population, with a focus on enterprise applications in manufacturing and healthcare.

Competitive Landscape

The 5G enterprise market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the 5G enterprise market include

• Ericsson
• Nokia
• Huawei Technologies Co., Ltd.
• Samsung Electronics Co., Ltd.
• ZTE Corporation
• Cisco Systems, Inc.
• Qualcomm Technologies, Inc.
• Intel Corporation
• AT&T Inc.
• Verizon Communications Inc.
• T-Mobile US, Inc.
• Sprint Corporation (now part of T-Mobile)
• Deutsche Telekom AG
• SK Telecom Co., Ltd.
• China Mobile Ltd.
• NTT Docomo, Inc.
• Vodafone Group Plc
• BT Group plc
• Orange S.A.
• Telstra Corporation Limited

Latest Developments

• In April 2024, Qualcomm announced partnerships with multiple enterprise companies to integrate 5G into industrial IoT solutions.
• In March 2024, Verizon Business launched a 5G-enabled private network service tailored for enterprise customers in the manufacturing sector.
• In February 2024, AT&T introduced a new suite of 5G edge computing services aimed at enhancing real-time data processing for enterprise applications.
• In January 2024, Huawei collaborated with enterprise software providers to develop 5G-powered smart city solutions focusing on public safety and infrastructure management.
• In December 2023, Samsung Electronics expanded its 5G enterprise portfolio with solutions designed for healthcare providers to enhance telemedicine and patient care.
• In November 2023, Ericsson partnered with a leading logistics company to deploy 5G-enabled supply chain management solutions, optimizing warehouse operations and inventory tracking.

Report Scope

5G Enterprise Market, By Category

Type of Deployment

• Public 5G Networks
• Private 5G Networks

End-User Industry

• Manufacturing
• Healthcare
• Transportation and Logistics
• Retail
• Energy and Utilities

Organization Size

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

Region

• North America
• Europe
• Asia-Pacifi
• South America
• Middle East & Africa

Research Methodology of Market Research

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