How Is 5G Technology Driving Telecom Network Infrastructure Trends?
Market to hit $100 billion by 2026, according to GMI
Trends, such as the 5G revolution and ongoing developments in internet of things (IoT), are expected to reshape the telecom sector and drive innovation on a massive scale. Global Market Insights Inc. forecasts the global telecom network infrastructure market will hit $100 billion in value by 2026.
The use of smartphones has increased exponentially in recent years. Robust advances in mobile tech are not only enabling consumers to communicate more effectively but also to shop, pay bills, and control connected devices in their homes and cars. Strong economic development, particularly in developing countries, has significantly fueled smartphone ownership trends.
According to GSMA Intelligence, there will be more than 5.9 billion unique mobile subscribers in the world by 2025. This equals nearly 71% of the global population. It is anticipated that this growth will be largely driven by emerging economies, including China, India, Bangladesh, Indonesia, and Pakistan as well as those in Latin America and sub-Saharan Africa.
Although developing regions account for majority of the growth in smartphone ownership, an increasing number of consumers in developed countries now prefer mobile devices for accessing the internet. Younger people in particular are much more digitally connected compared to older generations. Younger age groups are also much more likely to use mobile internet for accessing social media platforms and online video and music streaming services.
5G technology has been under testing for quite some time and is expected to launch in several countries throughout 2020. Increasing consumer demand for greater mobile bandwidth is accelerating the demand for reliable 5G network infrastructure. Recognizing the economic benefits of the technology, including its immense potential to foster digital transformation, governments in many regions have taken active steps toward the deployment of 5G.
For instance, the European Union had introduced the 5G action plan in 2016 with an aim to provide uninterrupted 5G coverage to all urban areas along with major roads and railways. The plan also included a target to make the technology commercially available in at least one major city across each EU Member State by 2020.
The growing trend of smart cities has fueled the demand for IoT connectivity sensors and other devices. In addition, emerging applications, such as autonomous mobility, augmented reality (AR) and virtual reality (VR), will foster future telecom network infrastructure industry trends.
Vulnerability to cyberattacks, along with a number of interoperability issues, might slightly impact the industry dynamics in the coming years. However, strong demand for private LTE networks and widespread use of LTE technology in smarty city applications will propel the telecom network infrastructure market outlook.