5G infrastructure grow at 45.3 percent CAGR through to 2030
A new report by Allied Market Research estimates that the global 5G infrastructure industry reached $2.06 billion in 2020, and anticipates the market to hit $83.62 billion by 2030, registering a CAGR of 45.3 percent from 2021 to 2030.
Increasing demand for mobile broadband services and the proliferation of M2M/IoT connections are driving the growth of the global 5G infrastructure market. On the other hand, high initial investment impedes this growth to some extent. However, high demand from Asia-Pacific especially in the consumer electronics and industrial automation segments is anticipated to create lucrative opportunities in the industry.
The outbreak of the pandemic gave way to the postponement of a number of industrial projects that call for 5G infrastructure, especially during the initial period. This factor impacted the global 5G infrastructure market negatively. However, the market is anticipated to revive soon.
Based on communication infrastructure, the macro cell segment accounted for nearly two-fifths of the global 5G infrastructure market share in 2020, and is anticipated to rule the roost by 2030. This is due to the fact that with the emergence of 5G, macro cell is expected to play a crucial role to efficiently deliver high-speed broadband and numerous other low latency applications. The Radio Access Network (RAN) segment would also cite the fastest CAGR of 49.0 percent throughout the forecast period. This is attributed to the fact that RAN components include base station and antennas that cover a particular region as per their capacity.
Based on network technology, the mobile edge computing segment held more than two-thirds of the global 5G infrastructure market revenue in 2020, and is expected to lead by 2030. The same segment would also manifest the fastest CAGR of 48.3 percent from 2020 to 2030. This is because MEC is a network architecture that allows IT and cloud-computing capabilities at the edge of the cellular network. In addition, it is also designed to be incorporated at cellular base stations giving high deployment of applications and other customer services.
Based on region, Asia-Pacific, followed by Europe and North America, accounted for the major share in 2020, generating around one-third of the global 5G infrastructure market. The same region would also grow at the fastest CAGR of 47.7 percent by 2030. A rise in government initiatives for building smart cities in Asia-Pacific and upcoming long-term investments in smart technologies are driving the growth of the market.
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