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The global 5G equipment market is expected to post a CAGR of close to 71% during the period 2019-2023, according to the latest market research report by Technavio.
A key factor driving the growth of the market is the adoption of 5G networks for smart cities. The focus on developing smart cities across the globe has been increasing. Smart cities are urban cities that would have information and communication technologies incorporated for developing connected and harmonized public amenities and infrastructure. Communications is the central focus of a smart city. The Development of IT and related infrastructure forms the backbone of smart cities. Communications include Internet, land-line, and wireless services that are required for commercial use. The adoption of 5G networks can facilitate the implementation of Massive Machine Type Communications (MMTC). This would which allow large-scale machine-to-machine communications, with minimum human input. This can lead to the realization of various smart city applications such as smart traffic management and autonomous driving. Therefore, the adoption of 5G networks for smart city projects across the globe will increase.
This market research report on the global 5G equipment market 2019-2023 also provides an analysis of the most important trends expected to impact the market outlook during the forecast period. Technavio classifies an emerging trend as a major factor that has the potential to significantly impact the market and contribute to its growth or decline.
In this report, Technavio highlights the strategic collaboration among market participants as one of the key emerging trends in the global 5G equipment market:
Global 5G Equipment Market: Strategic Collaboration among Market Participants
Market participants from different industries such as information technology solutions, telecommunication network infrastructure, utilities, and semiconductor integrated circuit (IC) are aggressively investing in the 5G technology. Various governments are also working on a collaboration with market participants to accelerate the deployment of 5G networks. The 5G technology has the potential to provide network transmission speed of very high magnitudes compared with that of the 4G network. The integration of HMI technologies across the end-user industries such as automotive, aerospace and defense, consumer electronics, healthcare, and utility is driving the demand for networks that can support high bandwidth applications with low latency. As a result, an increasing number of companies are focusing on developing 5G compatible devices and establishing networks, as a part of the 5G network ecosystem. For instance, as of September 2018, Telefonaktiebolaget LM Ericsson had agreements with 41 telecommunications operators for establishing 5G networks. Therefore, with such collaborations, the market is expected to register a positive outlook during the forecast period.
“Apart from the strategic collaborations, other factors boosting the growth of the 5G equipment market are growing number of pre-commercial 5G trials, government initiatives for high-speed network connectivity, and the increasing penetration of smart devices,” says a senior analyst at Technavio for research on machine to machine (M2M) and connected devices.
Global 5G Equipment Market: Segmentation Analysis
This market research report segments the global 5G equipment market by product (microcell and small cell) and geographical regions (APAC, EMEA, and the Americas).
The Americas led the market in 2018 with a market share of over 42%, followed by EMEA and APAC respectively. However, during the forecast period, the APAC region is expected to register the highest incremental growth of over 8%.