Technavio, a leading global technology research and advisory company indicates in a report that the global 5G equipment market is anticipated to grow at a Compound Annual Growth Rate (CAGR) of more than 32 percent between 2016 and 2020, reports BusinessWire.
More data capable devices with high bandwidth applications mean more mobile data traffic and according to analysts, nearly 2.2 billion mobile connections will use LTE by 2020, according to Technavio.com. Couple that with technologies like software defined networking (SDN) and network functions virtualization (NFV) that shift carrier focus to software and server-based infrastructure as opposed to hardware-based network equipment, and the result is a ‘positive outlook in the coming years’ for 5G equipment.
IoT is also a tremendous force when it comes to the 5G equipment market. In 2013, approximately 35 million IoT connections were recorded in the U.S. alone, reports BusinessWire. Major carriers like Verizon and AT&T have partnered with network equipment providers like Huawei and Nokia to test the pending technology. According to Technavio.com, the top vendors in the global 5G equipment arena are Ericsson, Huawei Technologies, Nokia, Qualcomm, Samsung and ZTE. This is relevant for Ericsson which Inside Towers reported, suffered a 94 percent drop in quarterly operating profit and falling sales.
Geographically speaking, 80 percent of U.S. enterprises use IoT products and services and it is anticipated that around 30,000 small cell nodes will be needed to handle LTE-A and mobile 5G applications during the forecast period – contributing to Americas’ lead in the 5G equipment sector. In 2015, the Americas had 43 percent of the market share, reports Technavio.com.
The Americas were followed by EMEA with 36 percent market share and APAC with 21 percent. EMEA vendors are in a race to release their smart technology products and services, Nordic regions have their eyes set on smart city development and several African countries apply the technology for processes like fleet management and asset tracking, says BusinessWire. In APAC, urbanization of densely populated regions in India and China generate demand for further development and its early deployment of 4G LTE makes Japan a prime market for 5G technology.
October 26, 2016