5G Services Industry Overview

The global 5G services market size was valued at USD 84.31 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 59.4% from 2024 to 2030.

5G wireless mobile services enable a fully mobile and connected environment by delivering a wide range of use cases and business models to consumers. Moreover, faster data speeds and extremely low latency offered by 5G technology would enhance the user experience while using 5G services for several use cases, such as Virtual Reality (VR) and Augmented Reality (AR) gaming, seamless video calling, and Ultra-High Definition (UHD) videos, among others. Growing demand for high-speed data connectivity for unified Internet of Things (IoT) applications, such as smart home energy management, is estimated to propel the adoption of these services over the forecast period.

Gather more insights about the market drivers, restrains and growth of the 5G Services Market

Moreover, the rising focus on building partnerships by 5G system integration providers with telecom operators is estimated to augment the adoption of these services. Many industry verticals are focusing on technological transformations along with 5G forums for information sharing to improve their overall productivity and operational efficiency as part of efforts to sustain in a highly competitive environment. 5G wireless technology holds the potential to help in realizing remarkable transformations across all these verticals through reductions in overall costs and enhancement in productivity. Continued emphasis on improving energy monitoring and management, as well as gaining better control of the energy generation and distribution network, is also expected to boost market growth over the forecast period.

For instance, the concept of Vehicle-to-anything (V2X) communication has paved the way for connected vehicles and autonomous driving. 5G services would play a crucial role in providing seamless Vehicle-to-Infrastructure (V2I) communication and Vehicle-to-Vehicle (V2V) communication to reduce the chances of accidents on roads. The growing emphasis on ensuring a safe and enhanced driving experience with connected vehicles is expected to drive market growth over the forecast period. Next-generation 5G technologies are increasingly being used in public transportation applications. At the same time, governments across the globe are also planning the deployment of 5G networks through a 5G service roadmap including the expansion of coverage areas and the implementation of new infrastructure.

The 5G edge cloud network and services market also plays a crucial role in enhancing and expanding the capabilities of the overall 5G services market owing to the reduced latency, enhanced performance, and better scalability and flexibility. 5G technologies can provide broadband access for public transportation systems, such as buses and high-speed trains, to provide high-speed internet in transit for entertainment, information, and interaction with smart mobility components. This, in turn, is expected to fuel market growth. Moreover, the strong emphasis on providing reliable and robust communication during natural disasters, such as floods, hurricanes, and earthquakes, is further estimated to spur the adoption of 5G services. However, governments are quoting significantly high prices for service providers for procuring the 5G spectrum. Service providers would have no other option but to pass on these costs to the end-users.

These technologies can provide broadband access for public transportation systems, such as buses and high-speed trains, to provide high-speed internet in transit for entertainment, information, and interaction with smart mobility components. This, in turn, is expected to fuel the market growth. Moreover, the strong emphasis on providing reliable and robust communication during natural disasters, such as floods, hurricanes, and earthquakes, is further estimated to spur the adoption of 5G services. However, the governments are quoting significantly high prices for service providers for procuring the 5G spectrum. Service providers would have no other option but to pass on these costs to the end-users.

Thus, high spectrum prices and the subsequent hike in 5G service subscription prices are expected to hinder market growth to some extent. As the market is in the introduction phase, several key service providers across the globe are investing in deploying modern network infrastructure to tap the maximum subscriber base in their region. However, the outbreak of COVID-19 has put the deployment of several 5G cores and base station infrastructures on hold across the globe. In addition, spectrum auctions for 5G services have been postponed by several federal governments across key countries, such as Spain, the U.S., and France, which will hinder market growth.

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5G Services Market Segmentation

Grand View Research has segmented the global 5G services market on the basis of communication type, vertical, and region:

5G Services Communication Type Outlook (Revenue, USD Billion, 2020 - 2030)

• FWA
• eMBB
• uRLLC
• mMTC

5G Services Vertical Outlook (Revenue, USD Million, 2020 - 2030)

• Consumer
• Enterprises
  • Manufacturing
  • Public Safety
  • Healthcare Social Work
  • Media Entertainment
  • Energy Utility
  • IT Telecom
  • Transportation Logistics
  • Aerosapce Defense
  • BFSI
  • Government
  • Retail
  • Mining
  • Oil Gas
  • Agriculture
  • Construction
  • Real Estate

5G Services Regional Outlook (Revenue, USD Billion, 2020 - 2030)

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Russia
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East Africa (MEA)

Key Companies profiled:

• ATT, Inc.
• BT Group plc
• China Mobile Ltd.
• China Telecom Corp. Ltd.
• Bharti Airtel Ltd.
• NTT Docomo
• KT Corp.
• Saudi Telecom Company
• Vodafone Group
• Deutsche Telekom AG
• SK Telecom Co., Ltd.
• Verizon Communications, Inc.
• T-Mobile USA Inc.
• Rakuten Mobile Inc.

Recent Developments

• In June 2023, ATT, Inc. and Cisco Systems, Inc. entered into a strategic collaboration aimed at assisting businesses in enhancing connectivity to meet the growing needs of a workforce that relies heavily on mobile devices. Together, these companies are looking forward to providing SD-WAN connectivity along with additional services, such as 5G and broadband, ensuring that businesses of all scales can experience an optimized and seamless experience.
• In June 2023, Vodafone UK merged with Three UK for creating one of Europe’s best in class 5G network service with reliability, great coverage, and high-speed data connectivity.
• In June 2023, T-Mobile USA Inc. collaborated with the City of Bellevue to jointly launch a network-based Cellular Vehicle-to-Everything (C-V2X) technology. This technology along with T-Mobiles’s 5G network service will provide real-time communication between traffic infrastructure, vulnerable road users, and cars.
• In June 2023, BT Group Plc partnered with Lyca Mobile for providing customers of Lyca with cost-effective mobile connectivity of 4G and 5G radio access network.

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