The 5G Services Market is expected to grow at a CAGR of 30% over the forecast period (2020-2025)

New York, May 07, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "5G Services Market - Growth, Trends, and Forecast (2020 - 2025)" - https://www.reportlinker.com/p05891621/?utm_source=GNW

- 5G is expected to unleash a massive IoT ecosystem that would allow networks to serve for billions of connected devices. For Instance, according to Ericsson’s Mobility Report of June 2019, More than 10 million 5G subscriptions are projected worldwide by the end of 2019. This is indicative of the fact that the market is poised to grow throughout the forecast period.
- Also, VoLTE is the foundation for enabling voice and communication services on 5G devices, The number of VoLTE subscriptions is projected to reach 5.9 billion by the end of 2024, accounting for more than 85 percent of combined LTE and 5G subscriptions. This is expected to boost market growth over the forecast period.
- 5G network being deployed majorly on mmWave has a few drawbacks because Because it’s so high-frequency, the waves don’t travel long distances. However, the industry players through research and development already looking for a solution. For instance, T-Mobile launched its 5G network using mmWave but is also now testing its low-band (600 MHz) spectrum to build out its 5G network.
- The impact of Covid-19 on 5G services market is expected to be significant in the short-run as 5G launch projects in various markets around the globe is being postponed due to the pandemic. For Instance, in France, the spectrum auction for the 5G networks has reportedly been postponed owing to the coronavirus pandemic which was due to take place in April 2020. United Internet’s construction of subsidiary 1&1 Drillisch’s 5G network, among other projects, has also been delayed.
- Also, decisions such as UK Government’s plans of cancellation of 5G contracts with Huawei in the wake of Covid-19 may negatively impact the 5G market. In the long-run, the 5G services market will boost owing to greater adoption of 5G services both by individual consumers as well as by the enterprise businesses.

Key Market Trends
Increasing Data Traffic and Demand for High Speed Data Connectivity will Drive the Market Growth

Mobile data traffic is experiencing exponential growth, driven by data-capable devices and high-bandwidth applications (APPs). Ericsson, through its Mobility Report November 2019, provides an insight on mobile data traffic which grew 68% year-on-year for Q3 2019.

- 5G supports applications such as 8K video streaming, and Augmented Reality (AR), the Energy, Transport, Banking, Health, and Industrial Control Systems are also expected to depend extensively on digital infrastructure and 5G network. With rapid 5G development and subscription expected to reach 13 billion by end of 2019 (Ericsson and GSA Survey, 2018), the users are expecting new applications to emerge such as new Flickrs, YouTubes or Snapchats experiences.
- 5G standards will support ultra-HD voice and video to come up withnew applications that rely on voice communication, for instance, telepresence. The 5G’s device density, low latency, security and video capabilities will support added value communications offerings, like Rich Communication Services especially for enterprise.

North America is Expected to Hold the Largest Share

- The region is home to some of the major players in the telecom industry such as the AT&T, Verizon, Ericsson and many more which are continuously investing in the building up and advancing their infrastructure to keep pace with the technological advancements. This is expected to boost the adoption of the 5G services over the forecast period.
- The service providers have already launched the commercial 5G services in the region, both for fixed wireless access and mobile. According to the Ericcson’s Mobility Report of June 2019, the region is expected to hold close to 270 million 5G subscriptions accounting for more than 60 percent of mobile subscriptions. This is indicative of the fact that the region has excellent potential for 5G services.
- The Canadian service providers are increasingly investing for the procurement of 5G licenses which in turn would boost the demand for the 5G services in the region over the forecast period.
- For instance, in April 2019, wireless carrier Rogers spent USD 1.7 billion dollars for 20-year licenses to 600MHz spectrum blanketing Ontario, Northern Quebec, Atlantic Canada, Manitoba, and all three territories, which it expects will enable its 5G network to achieve everything from urban building penetration to powering agricultural, mining, industrial, and transportation projects.

Competitive Landscape
The competitive rivalry among the players in the 5G services industry is high owing to the presence of some major players such as AT&T, Verizon, Nokia amongst others. Their ability to continually innovate their offerings would enable them to gain a competitive advantage over other players. Through research and development, strategic partnerships, and mergers and acquisitions these players have been able to gain a strong footprint in the market.

- December 2019 - Nokia partnered with the Aruba-based communications provider, Setar, to provide a full end-to-end 5G network transformation. Nokia will upgrade RAN access and modernize elements of the core and data management systems. This is the first end-to-end 5G deal for Nokia in Latin America.
- March 2019 - Xplornet, the Canadian telecom provider announced the plans to invest over USD 500 million over the next five years to deliver 5G wireless services.

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