[October 24, 2016] |
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Global 5G Equipment Market to Grow at an Impressive CAGR of Over 32% Through 2020, Says Technavio
The global
5G equipment market is expected grow at a CAGR of more than 32%
during the period 2016-2020, according to Technavio's latest report.
In this report, Technavio
covers the market outlook and growth prospects of the global 5G
equipment market for 2016-2020. In addition, the
report discusses the major drivers that influence the growth of the
global 5G equipment market. It also outlines the challenges faced by
vendors and the market at large, as well as the key emerging trends.
"Proliferation of smartphones and tablets is fueling the growth
opportunities of this market. In addition, telecom operators globally
have observed rising demand for enhancing their network management
capabilities to provide strong and stable connectivity solutions for
smart applications," says Abhishek Sharma, a lead M2M
and connected devices research expert from Technavio.
Technavio's ICT research analysts segment the global 5G
equipment market into the following regions:
In 2015, with a market share of 43%, Americas dominated the global 5G
equipment market, followed by EMEA with 36% and APAC with 21%.
Americas: expansion of wireless networks to meet the rising
customer demand
In 2013, approximately 35 million IoT connections were recorded only in
the US region. Smart solutions are widely used in different sectors,
including energy and utilities, automotive,
and logistics. International expansion by US-based operators to provide
IoT solutions will contribute to the market growth.
Nearly 80% of the enterprises in the US have been using the IoT products
and services, with the support of cloud platforms and data analytics to
improve their business efficiency. With the penetration of Internet of
Everything, all industries are highly in need of efficient and reliable
communication networks to process business operations. This trend is
expected to continue during the forecast period. The US is expected to
witness approximately 30,000 small cell nodes to handle LTE (News - Alert)-A and mobile
5G applications.
The demand for high speed broadband access network has been increasing
rapidly. In addition, advent of several online applications and social
media has put pressure on telecom operators to provide high quality
services. This has led telecom operators to expand wireless networks to
meet the rising customer demand and implement power-efficient solutions
to reduce power usage. For instance,Verizon (News - Alert) is looking to expand its
power efficiency program to help deploy more small cell nodes for LTE
networks and reduce operational expenses (OPEX) on energy by half of its
current OPEX by 2020. Similarly, Sprint (News - Alert) has decided to replace almost
one-third of its cell sites with high-efficiency nodes.
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EMEA: growing number of connected devices drive the adoption of 5G
technology
Telecom vendors such as BT, Vodafone (News - Alert), and Deutsche Telekom are competing
to release their smart technology products and corresponding package
services, which act as a key enabler to the growth of this market.
Increased adoption of sensors in the automotive and healthcare sectors
and growing number of connected devices drive the adoption of 5G
technology in this region. Nordic regions like Sweden, Norway, Denmark,
and Finland have an objective to develop smart cities and hence, huge
investments have been allocated for the development of 5G technology.
In some African countries like South Africa, Kenya, and Nigeria, smart
mobility technology is widely used in applications such as fleet
management, asset tracking, POS, and pay-as-you-go insurance. The rapid
adoption of mobile media by enterprises for promoting products and
services and the increasing adoption of location-enabled searches by
individual users are among the factors that will increase market growth.
Service providers are seeking to improve the performance of network
connectivity to enhance user experience with the roll-out of LTE
networks across the region. In addition, some of the African governments
have established regulations to enforce smart monitoring of electricity
and water meters, driving the use of 5G communications in the energy and
utility sectors. Saudi Araba is also set to invest USD 70 billion in
various smart city projects and is planning to invest heavily in IoT
technologies.
APAC: increasing rate of urbanization and development of smart
cities to boost growth
The increasing rate of urbanization in the world's most populated
countries such as India and China is creating a demand for economic and
environmental development. Government investments in the development of
cities are rising and numerous central government programs (designed to
promote urban developments) have been proposed.
Japan is the major contributing country in this region. Due to the early
deployment of 4G LTE networks, Japan is a potential market for 5G
technology. As service providers have already been offering effective 3G
and 4G solutions, the demand for low latency wireless mobile technology
is expected to grow during the forecast period. Other potential
countries in the region are South Korea and Singapore. "As APAC has the
largest penetration of mobile internet, it is expected to accelerate the
demand for 5G services among individual consumers," says Abhishek.
A few Asian countries including Indonesia, Malaysia, and Thailand are
investing in ICT technologies to help develop efficient and enhanced
public services in the interest of sustainable city management. These
countries are investing in intelligent transportation systems, smart
grid technologies, smart buildings, and smart water management
systems. In addition, Australia and China are investing in IT
infrastructure to support smart city projects designed to promote
quality cities and accelerate economic growth.
The top vendors in the global 5G equipment market highlighted in the
report are:
-
Ericsson
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Huawei Technologies
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Nokia (News - Alert)
-
Qualcomm
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Samsung
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ZTE
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About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
If you are interested in more information, please contact our media team
at [email protected].
View source version on businesswire.com: http://www.businesswire.com/news/home/20161024006268/en/
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