Reportlinker.com announces the release of the report “5G Services Global Market Report 2022″ The global 5G services market is expected to grow from $40.0 billion in 2021 to $95.0 billion in 2022 at a compound annual growth rate (CAGR) of 137.5%. The change in growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. The market is expected to reach $561.49 billion in 2026 at a CAGR of 55.9%.
The 5G services market consists of sales of 5G and its related services. 5G is 5th generation services that evaluate networks to interconnect people, control machines, devices, and objects. 5G services will deliver the high levels of efficiency and performance that will empower to connect new industries and new user experience. 5G delivers the speed as high as 20 Gbps and is likely to refine a broad range of services in industries ranging from transportation to retail, education to entertainment, medical to an automotive and wide array of the internet of things (IoT).
The main communication type of 5G services are fixed wireless access (FWA), enhanced mobile broadband (eMBB), ultra-reliable and low latency communications (uRLLC) and massive machine-type communications (mMTC).Fixed Wireless Access (FWA) is a method of providing wireless connectivity between two fixed points via radio links.
The services are used for smart cities; smart buildings; connected factories; smart utilities; connected healthcare; connected retail and others by manufacturing, energy and utilities, media and entertainment, IT and telecom, transportation and logistics and healthcare.
Asia Pacific was the largest region in the 5G services market in 2021.North America was the second largest region in the 5G services market. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Rising demand from the Internet of Things (IoT) is anticipated to contribute to higher demand for 5G services in order to deliver high performance and efficiency. According to the Federation of Indian Chambers of Commerce & Industry (FICCI), the global market revenue for the Internet of Things (IoT) is projected to reach $1.1 trillion by the end of 2025. The IoT connections across the globe is expected to increase to 25 billion by 2025, growing at a CAGR of 17%. Therefore, growing demand for IoT and the requirement to connect smart devices with high-speed internet boost the revenue for the 5G services market over the forthcoming years.
The high cost of 5G smartphones and related devices is expected to limit the growth of the 5G services market in the coming years.According to executives of leading companies such as Xiaomi, Samsung and OnePlus in January 2020, the price of 5G smartphone chipsets is twice as costly as the price of 4G smartphone chipsets.
Consequently, expensive parts result in a high cost of production leading to higher prices of 5G smartphones. This scenario is anticipated to adversely impact the growth of the 5G Services market over the forecast period. The introduction of AI-powered services is a major trend shaping the growth of the 5G services market.The commercial usage of 5G services is expanding rapidly.
The growth in the number of connections and cloud-based AR or VR is generating higher demand for 5G services with greater bandwidth, wide-coverage, and low latency networks.Huawei started applying AI to technical work and business processes to serve its customers and as of 2019, Huawei provided more than 5,80,000 cases of technical support on more than 1,700 networks across the globe.
Therefore, the introduction of AI in 5G services in order to increase the accuracy and agileness is to act as a major trend for 5G services market. In November 2020, Accenture, a professional services company based in Ireland acquired Acra for an undisclosed amount.The acquisition will enhance Accenture’s ability to drive comprehensive transformation across 5G deployment and network operations.
Acra is a Spain-based engineering company with a focus on network operations and business services. The countries covered in the 5G services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.