5G Fixed Wireless Access Market Analysis

Application Segment Analysis

The residential segment is projected to hold a dominant 37.3% revenue share by the end of 2035, owing to a surge in demand for smart home devices as smart cities increase. Moreover, the COVID-19 pandemic created a ripple effect across the workforce worldwide and promoted the popularity of remote work, which, in turn, has driven demand for high-speed connectivity in residential spaces. According to the Federal Communications Commission (FCC) report, between December 2022 and December 2023, residential fixed connections rose by about 2.0% to roughly 121 million, while mobile connections with full internet access increased by 2.9% to 340 million. High-speed adoption is also remarkable, as in December 2023, nearly 97% of residential fixed connections offered at least 10 Mbps downstream, 93% 25 Mbps, and over 53% delivered 100 Mbps or more. This rising demand for reliable, high-speed internet is fueling 5G FWA deployment, granting a cost-effective and scalable solution to meet the connectivity needs of residential users, especially in areas where fiber rollout is limited.

Operating Frequency Segment Analysis

The sub-6 GHZ band segment is poised to account for a major revenue share in the market. The sub-6 GHZ frequencies offer improved propagation characteristics, which in turn allow signals to effectively penetrate solid obstacles such as buildings and walls seamlessly. The band’s ability to provide improved coverage and ability to navigate the obstacles make them ideal for deployments in the urban and rural areas. Moreover, to keep up with the demand, the network operators have aimed to expand the 5G coverage with the sub-6 GHz band projected to be a key component in the expansion plans.

Demography Segment Analysis

The urban segment is expected to register rapid growth during the forecast period as cities face rising demand for high-speed broadband to support streaming, gaming, smart homes, and remote work. In urban areas, 5G FWA is revolutionizing broadband connectivity by offering high-speed internet without the need for extensive fiber installations. This is especially advantageous in densely populated regions where traditional broadband infrastructure is restricted or costly to deploy.

The Federal Communications Commission (FCC) has been actively supporting the expansion of 5G FWA through the Rural Digital Opportunity Fund (RDOF), which grants up to USD 20.4 billion over the next decade to provide fixed broadband and voice services to millions of unserved homes and small businesses in rural areas of the U.S. This federal support has supported providers to extend high-speed internet services to urban neighborhoods, enhancing connectivity for residents and businesses alike.

Our in-depth analysis of the global market includes the following segments: