Skip to main content

5G Network Infrastructure Revenue to Reach $26B

The deployment of new communications technology could disrupt parts of the traditional broadband marketplace. According to the latest study by International Data Corporation (IDC), that's a key finding from their assessment of the worldwide 5G wireless network infrastructure market.

It follows the release of IDC's initial forecasts for Telecom Virtual Network Functions (VNF) and Network Functions Virtualization Infrastructure (NFVI).

5G Wireless Market Development

With the first instances of 5G services rolling out in the fourth quarter of 2018, 2019 is set to be a seminal year in the mobile telecommunications industry. Moreover, 5G smartphones will begin to reach the market and end-users will be able to experience 5G technology benefits firsthand.

From an infrastructure standpoint, the mobile telecom industry continues to trial innovative solutions that leverage new spectrum, network virtualization, and machine learning (ML) and artificial intelligence (AI) to create new value from existing network services.

While these and other enhancements will play a critical role, 5G NR represents a key milestone in the next mobile generation, enabling faster speeds and enhanced capacity at a lower cost per bit.

However, even as select cities begin to experience 5G NR today, the full breadth of 5G's potential will take several years to arrive, which will require additional standards work and trials, particularly related to a 5G NG core.

In addition to 5G NR and 5G NG core, procurement patterns indicate communications service providers will need to invest in adjacent domains -- including backhaul and NFVI -- to support the continued push to cloud-native, software-led architectures.

Combined, IDC expects the total 5G and 5G-related network infrastructure market (5G RAN, 5G NG core, NFVI, routing and optical backhaul) to grow from approximately $528 million in 2018 to $26 billion in 2022 at a compound annual growth rate (CAGR) of 118 percent.

According to the IDC analyst's latest view, 5G RAN will be the largest market sub-segment through the forecast period, which is in-line with prior mobile generations.

Outlook for 5G Wireless Applications

"Early 5G adopters are laying the groundwork for long-term success by investing in 5G RAN, NFVI, optical underlays, and next-generation routers and switches. Many are also in the process of experimenting with the 5G NG core," said Patrick Filkins, senior research analyst at IDC.

The long-term benefit of making these investments now will be when the standards-compliant SA 5G core is combined with a fully virtualized, cloud-ready RAN in the early 2020s.

This development will enable many communications network service providers to expand their value proposition and offer customized services across a diverse set of enterprise verticals through the use of network slicing.

Popular posts from this blog

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c