5G Base Station Market size is poised to reach USD 189 billion by the end of 2035, growing at a CAGR of 34% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of 5G base station was over USD 10 billion. The reason behind the growth is impelled by the growing demand for high-speed data with low latency. The 5G networks are expected to be 20 times faster than the 4G networks providing higher bandwidth with high data speed and negligible latency which has further resulted in high penetration and adoption of 5G technology among consumers.
Moreover, increasing demand for higher bandwidth among consumers and businesses for various applications such as entertainment and virtual meetings among other applications is estimated to boost the industry growth. For instance, it was estimated that there are expected to be around 1 billion 5G subscriptions by 2023 globally.
The rising penetration of smartphones across the globe is believed to fuel 5G base station market growth. For instance, it puts plenty of pressure on the network provider to provide high-speed internet as the number of smartphones is rising. For instance, globally the number of people using smartphones was expected to reach approximately 6 billion in 2023 up from nearly 3 billion in 2016.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~34% |
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Base Year Market Size (2022) |
~ USD 10 Billion |
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Forecast Year Market Size (2035) |
~ USD 189 Billion |
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Regional Scope |
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5G Base Station Type (Small Cells, Macro Cells)
The small cell segment in the 5G base station market is estimated to gain a robust revenue share, which is further bifurcated into microcells, femtocells, and picocells. The various notable features, such as cost-effectiveness, easy installation, enhanced capacity, and performance of small cells, are all responsible for segment growth. Small cells are used in specific spaces to provide 5G networks with targeted coverage; these cells are described as radio access nodes that can have a maximum range of 10 meters to a few kilometers. Small cells provide denser 5G networks, and consumers can use bandwidth more efficiently.
Additionally, small cells have low radio frequency, hence, they are most suitable to be installed indoors. For instance, the deployment of small cells across the globe was estimated to be around 5000 in 2021 which was an increase from 2000 in 2018 and 1500 in 2017.
End-User Application (Telecommunication Companies, Cloud & Data Centers, Memory & Storage, Security Companies)
The telecommunication companies segment is set to garner a notable share shortly driven by higher demand for telecommunication services across the globe owing to rapid growth in work-from-home trends is also projected to hike the segment growth over the forecast period. For instance, as more people work from home, there is an increase in network traffic since these activities frequently include exchanging files and accessing large datasets, both of which need additional bandwidth to ensure a smooth flow of information. Higher bandwidth and lower latency requirements are met by 5G base stations.
Our in-depth analysis of the global market includes the following segments:
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5G Base Station Type |
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End-User Application |
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Component |
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Core Network Technology |
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Area |
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APAC Market Forecast
5G Base Station market in Asia Pacific, is predicted to account for the largest share of 36% by 2035 impelled by rising investments in 5G-enabled smart devices and base stations. For instance, China is one of the biggest regional investments in 5G technologies, and it is anticipated that more than USD 210 billion will be invested by Chinese businesses in new infrastructure powered by 5G. As a result of this increased investment from the government would lead to the growing demand for 5G base stations to transmit and receive 5G signals in the region. More than 70% of APAC's investments in mobile networks will be made by 2025.
Europe Market Forecast
The Europe 5G Base Station market is estimated to be the second largest, during the forecast timeframe led by the higher availability of the Internet. Owing to the higher availability of the Internet, more and more people may use the Internet across various sectors which increases the demand for faster connectivity. As a result, the deployment of 5G base stations in the region may help in meeting this demand. According to estimates, the percentage of EU households having internet connectivity has increased from around 71% in 2011 to more than 90% in 2022.
Author Credits: Abhishek Verma, Hetal Singh
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