5G technology is a new kind of network that enables everyone to connect virtually, including machines and devices. The increasing internet traffic with the increasing number of internet of things (IoT) demands for more resilient network. The 5G network is anticipated to accommodate the growing demand for high-speed mobile broadband.
The low latency, high speed, and high capacity of 5G network enables the data-intensive applications perform efficiently. As a result, 5G network can handle massive number of devices that is considerably high than 4G LTE. The peak download speeds of 5G network being as high as 20 gigabits per second enables a wide array of IoT applications such as healthcare, energy, education, and transportation.
According to a new report published by Allied Market Research, titled, “5G Technology Return on Investment Market by Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2020–2026,” the 5G technology return on investment market size was valued at $2.0 billion in 2020, and is projected to reach at $320.1 billion by 2026, growing at a CAGR of 132.8% from 2020 to 2026. 5G technology is expected to be the next biggest leap in communication technologies.
5G technology is propelling the advancements in next-generation technologies such as remote precision medicine, virtual and augmented reality, and connected cars.
Ultrareliable and low latency communications (URLLC), massive machine-type communications (mMTC), and enhanced mobile broadband (eMBB) are the driving the 5G technology market. International standardization of 5G will expand the capabilities of businesses. Besides, growing adoption of edge computing, rapidly rising number of IoT devices, surge in content streaming services, and increase in demand for low latency connectivity in industrial automation are some of the prominent driving factors that fuel the growth of 5G technology. However, availability of frequency bands, deployment of 5G infrastructure, and adequate investments are some of the major factors obstructing the growth of 5G technology roll out.
The investments in 5G technology is gaining momentum for industrial and commercial applications in the near future. There is an enthusiasm among businesses to capitalize on next-generation equipment to give a spearhead competition and strengthen their market position. For instance, Ford Motor Company, Volkswagen AG, and Volvo Cars AG are some of the leading players in the automotive industry that have initiated to invest in 5G technology for the development of autonomous and connected cars.
In industrial machinery, key market players such as Murata Manufacturing Co, Ltd., Sony Corporation, and LG Corporation are the few early adopters of 5G technology at their production sites. The early investors of 5G technology from healthcare and life sciences industry are Rush University System for Health in the U.S., The Royal Liverpool University Hospital in the UK, Siemens Healthcare, and People’s Liberation Army General Hospital in China.
In 2020, Asia-Pacific is leading in the deployment of 5G technology, followed by North America. South Korea, China, and the U.S. are leading in the building and deploying 5G infrastructure. AT&T Inc., China Mobile, and KT Corporation are some of the leading telecom operators that are continuously developing the 5G technology. Furthermore, Nordic countries also witness significant developments in 5G technology in the coming years.
Some of the major 5G technology investors are KT Corporation, SK Telecom, NTT DOCOMO, INC., KDDI Corporation, China Mobile, Huawei Technologies Co., Ltd., Telefonaktiebolaget LM Ericsson, Nokia Corporation, Telekom Deutschland GmbH, Infineon Technologies AG, AT&T Inc., and Verizon Communications Inc. Market players have adopted various strategies such as collaboration & partnership, joint venture, and acquisition to expand their foothold in the 5G technology market.