Driven by Consumer Demand for Networks with Higher Levels of Control, Customization, Security, and Low Latency the 5G Equipment and Device Market in North America is forecasted to cross $320 Bn by 2030 says Ken Research Study
5G
is the 5th Generation mobile network technology that delivers lower latency,
which can enhance the functionality of corporate applications and other digital
experiences including online gaming, videoconferencing, self-driving cars, etc.
The market for 5G devices is predicted to rise as connectivity, digital apps,
and wearable technologies become more widely used. Additionally, modernizing
current support infrastructures, such as modems, towers, and other support
equipment, will open up a lot of doors for new players. As the adoption of 5G
technology has seen favorable signals globally, the rise of the 5G devices
market is anticipated to drive considerable prospects.
According
to Ken Research estimates, the North America 5G Equipment and Device
Market – which grew from around US$4 Bn in 2019 to nearly US$25 Bn in
2021 – is expected to grow further into a more than US$320 Bn opportunity by
2030.
1. North America has Witnessed Rapid Growth in
5G Adoption During COVID-19 Owing to People Relying on Mobile Networks, and is
Likely to Continue Momentum with ~20% CAGR Until 2030
The
North America 5G Equipment and Device Market witnessed rapid growth during the
forecast period 2022-2030 primarily due to a higher level of control, security,
and low latency. Furthermore, during the Covid-19 pandemic, the mobile
industry developed focus as people relied on mobile networks to stay connected
and access life-enhancing services. The market is forecast to reach 320 Bn by
2030 from 25 Bn in 2021, witnessing a CAGR of ~ 20% during this period.
2. Adoption of Advanced Technology and Surge in
Demand for 5G Owing to its Low Latency, Drives the 5G Equipment and Device
Market in North America during the Forecasted Period.
A
large number of research and development along with a higher rate of adoption
of advanced technologies is driving the growth of 5G equipment and devices in
North America. The increasing demand for 5G technology is boosting the 5G
equipment market. Owing to the surge in demand for 5G technology because of its
low latency, operators have started investing in 5G technology providing a
growth opportunity for the market.
According to the GSM Association (GSMA), North America Report in 2022, the deployment of the C-band spectrum is expected to drive the investment of US$ 293 billion for 5G by mobile operators in North America by 2025. It is expected to provide a middle ground for capacity and coverage of 5G networks.
3. The Higher Cost Associated with
Implementation of 5G equipment Deters Most Potential Participant and End User
Companies Limiting Market Prospects
The
high cost of implementation and integration of 5G equipment is a major
challenge for 5G Equipment and Devices in North America as moving from 4G to 5G
will require significant expenditure and investment. Deployment of 5G requires
network infrastructure components like small cells and macro cells. A macro
cell costs approx. US$ 2,00,000 to set up whereas small cells costs around US$
10,000 each. Along with this cost to buy spectrum, configuration, test, and
maintenance of network implement 5G are also highly expensive.
4. Smartphones Dominate the 5G Devices Market
Contributing Over 40% of the Revenue Share and They are Likely to Retain
Dominance Even During Forecast Period
Among
the device segments, smartphones remained the dominant segment during the
2019-2021 period contributing over 40% of the market revenue share. Further the
Research Study found that this segment is likely to retain dominance even by
2030. Their dominance is owing to the versatility offered through the many
applications as the smartphone is a portable computing device that combines
mobile telephone and computing functions in one unit. It is a cellular device
with advanced features owing to hardware capabilities and operating system
which provide software, internet, and multimedia functionality along with
calling and text messaging. The smartphone manufacturing companies are
proactively adopting the 5G technology as a next-generation communication
solution.
However,
the laptop segment is expected to witness the fastest growth during the
forecast period at about 30%. A laptop is a small, portable personal computer
with a screen and alphanumeric keyboard. It has the screen mounted on the
inside of the upper lid and the keyboard on the inside of the lower lid,
although laptops with the detachable keyboard are also available on the market.
The growth is owing to the growing need for high data speeds to use the
advanced graphics intensive applications and media.
5. Few Diverse Global Players Dominate the Market
Holding More than Half of Market Revenue Share Despite Presence of over 100
Competitors
The
North America 5G equipment and Device industry are highly competitive in nature
with over 100 participants comprising global players (having presence in 2 or
more continents), regional players (having presence in multiple countries
within North America), and Country-Niche Players (presence limited to just 1
country or very niche presence in the value chain). Most of Country-Niche’s
players are component or services suppliers for 5G equipment and device
manufacturers. Some of the Middleware and Firmware Solutions providers develop
hardware and software including operating systems, user interfaces, and
applications necessary for the implementation, maintenance, and operation of 5G
services.
However,
the Research study found that few diversified global players control a dominant
share of the market, and a significant number of these players are
headquartered within the North American region, enabling its strong production
and consumption balance.
For More
Information, refer to below link:-
5G
Network Equipment Manufacturers in North America
Related Report
Contact Us:-
Ken
Research
Ankur
Gupta, Head Marketing & Communications
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