The 5G services market was valued at US$227.887 billion in 2022.
The 5G service industry is expected to grow, owing to reasons such as the rising telecommunication industry and capabilities enabling the fifth-generation (5G) wireless technology. Moreover, 5G provides faster data speed, high network capacity, and lower latency, which are one of driving factors of the growing 5G in the coming years.
According to the GSMA Mobile Economy Report 2023, the rising use of 5G is expected to deliver a huge portion in economic advancements across various industries. The services sector is expected to lead in taking the benefits of 5G, by accounting for 46% of the total, followed by the manufacturing sector, coming close to closely at 33%. This growth is expected to be driven by the rising application of 5G in smart grids, smart cities, and smart factories, which is expected to be leveraged by 5G in the projected period. Moreover, the rising IT and telecommunication industry is expected to provide a boost to the 5G service industry in the coming years. According to the International Trade Association, the United States software and information technology industry is expected to account for US$1.9 trillion value-added to the GDP, which is more than 10% of the total GDP of the country, and creates more than 12.1 million jobs in the country.
5G services market is expected to experience growth due to the rising demand for high-speed data connectivity driven by the surge in data traffic. Ensuring seamless user experiences now requires high-speed internet access, and the commercialization of 5G services is set to enable a wide range of anticipated applications. According to Ericsson, there was significant growth in mobile data traffic from 2021 to 2022. The data traffic per smartphone increased from 12.2 GB per month to 16 GB, highlighting the growing use of mobile devices for data-intensive activities. Similarly, data traffic per mobile PC and tablet also rose, from 17 GB to 20 GB and 9.5 GB to 11.2 GB per month, respectively. This trend reflects higher data consumption across various devices and technologies, underscoring the increasing demand for mobile data and the need for network providers to meet these evolving usage patterns.
Government regulations in Canada:
Through the release of a document, the Innovation, Science and Economic Development Canada (ISED), on behalf of the Minister of Innovation, Science and Economic Development Canada, announced the decision on a non-competitive local licensing framework, which included spectrum in the 3900-3980 MHz band as well as portions of the 26, 28, and 38 GHz bands.
ISED will be considering making certain band portions available for fixed, mobile, or flexible use services utilizing a non-competitive licensing framework for the local areas. ISED plans to establish an NCL licensing framework that can be applicable to multiple bands and will also be flexible to address the unique characteristics of each band. The NCL licensing enables the applicant to only apply for their specific area of interest, as opposed to the larger license areas pre-determined by the ISED.
During the forecast period, the dominant domestic 5G coverage compared to other major economies is one of the prominent factors in driving the overall 5G services market growth. For instance, a report by the wireless trade association CTIA showed that the United States is making thriving progress towards 5G. The wireless standards are expected to contribute US$1.5 trillion in GDP, and are anticipated to create more than 4.5 million jobs in the coming decade.
Additionally, the USA invested approximately 1/5th or 19% of the total global mobile capex investment made in 2021. The major investments in the country for mobile capex are further aiding the 5G services demand. In addition, the collaborations leading to increased scope for availing 5G services in the country are further anticipated to raise the 5G services market share in the United States. For instance, in October 2023, T-Mobile USA, Inc., and Seattle University joined forces to leverage the operator’s 5G network, aiming at the improvement of digital equity for students as well as advanced outcomes. The university will be deploying several 5G projects and use cases leveraging 5G services, facilitating security, and cellular services, among others.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| 5G Services Market Size in 2022 | US$227.887 billion |
| Growth Rate | CAGR during the forecast period |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in 5G Services Market |
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| Customization Scope | Free report customization with purchase |
The 5G Services Market is analyzed into the following segments: