The total 5G and 5G-related network infrastructure market for 5G RAN, 5G NG core, NFVI, routing and optical backhaul will grow from $528 million in 2018 to $26 billion in 2022 at a compound annual growth rate (CAGR) of 118 percent.
Telecom equipment makers such as Ericsson, Nokia, Huawei, ZTE and Samsung are looking for 5G equipment deals.
The IDC report said 5G RAN will be the largest market sub-segment through the forecast period, in line with prior mobile generations.
5G network related routing will increase at CAGRs of 146.1 percent over the forecast period.
5G network related routing and optical backhaul will grow at 129.6 percent over the forecast period, IDC said.
Demand for backhaul routers and an improved optical underlay will be critical to enable 5G service evolution.
There will be 1.3 billion 5G connections by 2025, GSMA Intelligence says. GSMA today said the achievement in 5G subscriber base will depend on the availability of 5G spectrum.
The progress in 5G business is slowing down considering the fact that 5G smartphones will be available in 2019. The main concern with 5G smartphones will be the huge price for the advanced devices.
The other concern about the demand for 5G use cases in developing nations including India, Indonesia, Malaysia, among others.
GSMA earlier warned that telecom operators cannot focus on 5G connectivity for residential customers as a strong focus area. The indication from GSMA is that mobile service providers need to get 5G revenue from enterprises.
Juniper Research says mobile operator revenue from 5G will reach $300 billion or 38 percent of total operator billed revenues by 2025, despite the anticipated 1.5 billion 5G connections only accounting for 14 percent of all cellular connections in the same year.
Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure, said early 5G adopters are laying the groundwork for long-term success by investing in 5G RAN, NFVI, optical underlays, and next-generation routers and switches. Many are also in the process of experimenting with the 5G NG core.
The benefit of making these investments now will be when the standards-compliant SA 5G core is combined with a fully virtualized, cloud-ready RAN in the early 2020s.
IDC said 5G NR represents a key milestone in the next mobile generation, enabling faster speeds and enhanced capacity at lower cost per bit. Even as select cities begin to experience 5G NR, 5G’s potential will take years to arrive, which will require additional standards work and trials, particularly related to a 5G NG core.
Baburajan K
