Skip to main content

How 5G Will Generate $6.2 Trillion in Service Revenues

Telecom service providers across the globe have invested significantly in updating their network infrastructure to take advantage of the operational efficiencies enabled by each new generation of wireless communications technology. The next wave of investment has already begun.

According to the latest global market study by ABI Research, fifth-generation (5G) wireless is expected to have 12 million connections worldwide by the end of 2019. The number of 5G connections will then grow rapidly to 205 million worldwide at the end of 2020.

5G Infrastructure Market Development

The new generation is expected to grow much faster than anticipated, and it's believed that 5G connections will overtake 4G connections in 2025. ABI Research expects approximately 3 billion 5G connections in 2025 with 4G declining from its current 3.9 billion to 2.2 billion in the same year.

"Despite the challenges faced by early adopters and the relatively high prices of 5G-capable smartphones in 2019, ABI Research expects 5G to reach the mass market mid-2020, by which time China will start to dominate in terms of connections, and as a result, market interest and technology expertise," said Dimitris Mavrakis, research director at ABI Research.

The infrastructure value chain is maturing, handset vendors are manufacturing mid-tier 5G handsets, and mobile consumers are now discovering higher speeds, better user experiences, and new services -- including cloud gaming and augmented reality (AR) and virtual reality (VR) applications.

According to the ABI assessment, all of these market developments will contribute to the explosion of consumer 5G service offerings within 2020.

However, China will dominate 5G deployment after all mobile service providers launch in November 2019 -- having deployed 5G network infrastructure in 50 cities before launching.

Chinese mobile network operators are now forecast to have 143 million subscribers at the end of 2020, which will represent an overwhelming 70 percent of total connections worldwide.

In contrast, U.S. mobile network operators will reach approximately 28 million during the same year. Moreover, in 2025, China is expected to have 1.1 billion 5G subscribers and the United States, 318 million subscribers.

Outlook for 5G Infrastructure and Revenue Growth 

Globally, ABI Research expects mobile service providers to invest nearly $1.2 trillion in the next 5 years to build out their networks. That investment will likely generate nearly $6.2 trillion in service revenues from the mobile consumer communications market.

"Although most mobile 5G subscribers will be in China, mobile service provider revenues will still be higher in the United States in 2025, mainly driven by higher service subscription prices," Mavrakis concludes.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

GenAI Revolution: The Future of B2B Sales Apps

When B2B buyers consider a purchase they spend just 17 percent of that time meeting with vendors. When they are comparing multiple suppliers‚ time spent with any one salesperson is 5 or 6 percent. Self-directed B2B buyer online research has already changed procurement. IT vendors are less likely to be involved in solution assessment. Now, more disruptive changes are on the horizon. By 2028, 60 percent of B2B seller work will be executed through conversational user interfaces via Generative Artificial Intelligence sales technologies -- that's up from less than 5 percent in 2023, according to Gartner. Generative AI Market Development "Sales operations leaders and their technology teams must prepare for the convergence of new forms of artificial intelligence, dynamic process automation, and reinvented deal-planning activities that will transform the sales function," said Adnan Zijadic, director analyst at Gartner . According to the Gartner assessment, Generative AI (GenAI) s