The global 5G enterprise market was valued at USD 1.32 billion in 2020 and is expected to grow at a CAGR of 57.2% during the forecast period. This growth is due to federated network slicing which allows smooth platform sharing amongst the several operators globally for long lasting and best user experience. Various subscriptions purchased and availed by the users also surges the market growth coupling with huge demand for 5G-enabled mobile phones and high and fast speed internet. 5G is the advanced generation in the sequence of cellular communication technologies, operating in excessive radio frequency bands, allowing novel usage framework beyond current mobile broadband.
The regular requirement for upgrading enterprise network infrastructure will be crucially driving the global market. Enterprises globally are updating their network infrastructure, to redeem the several advantages of 5G. The adoption of 5G technology in big firms is estimated to inflate speedily in the forecast period, as it not only offers low latency but in addition also provides better efficiency. For big enterprises, 5G will offer un-interrupted wireless connectivity, irrespective of their geographical location. Moreover, 5G technology will efficiently ease an enterprise's value control and elasticity. Lately, a survey was organized with key opinion leaders (KOL) of several enterprises, starting from small to large scale. As per the survey, 65% of firms are strategizing to enable 5G by the end of 2020.
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Additionally, the increasing demand for software implementations in wireless communications further drives the market growth of 5G enterprises. For instance, in November 2018, the tele-communications provider, Nokia announced the introduction of upgraded CloudBand infrastructure software as a product. This new upgraded version CloudBand Infrastructure Software provides safe, unified virtual infrastructure software to secure 5G cloud installations. Software also allowed managing virtual machines (VM) and the containers in the cloud to simplify its transition to the multi-vendors, cloud-savvy environments supporting 5G environments.
The market is primarily segmented on the basis of Access Equipment, By Core Network Technology, By Services, By Organization Size, By End-Use, and by geographic region.
By Access Equipment
By Core Network Technology
By Organization Size
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Based upon access equipment, the global market is categorized into radio node, service node, DAS. In 2019, the radio node segment held the majority of share and is likely to maintain its share over the study time frame. This high share is attributed to its large deployments by the large scale organizations and the telecom operators. The growth is also favored due to the benefits it offers such as, provides complete network with reduced maintenance and operational costs, separate hardware flexibility, ability to complement with the current cloud based technologies, and has low barriers of cross domain innovation.
On focusing on core networking technology, in 2019, the network functions virtualization (NFV) contributes highest share in the global market as it commits to simplify the burden by offering service providers, and the elasticity to run network functions from devoted infrastructures. NFV emphasizes on integrating several network devices onto standard, high-volume servers, switches, and storage, thus making networks more graceful and effective by the use of standard IT virtualization technology.
On the basis of organization, the global market is categorized into small and medium (SMEs) and large enterprises. In 2019, large enterprises segment is predicted to witness highest CAGR during the forecast period as to monitor and control their difficult and massive network infrastructure all over diverse business units and multifaceted departments.
Based on end Use, the global market is bifurcated into BFSI, media and entertainment, retail and ecommerce, healthcare and life sciences, government and defense, transportation and logistics, manufacturing, agriculture, IT and telecommunications, Others. In 2019, BFSI holds largest share in the end use segment as it has always evolved the use of technology to provide the effective and best financial services to its users.
The less latency, and huge data capacity and authenticity of anticipating 5G networks will assist in generating a new platform for the delivery of banking and financial product and services. Real time stock exchange information and market fluctuations in this globalized world, requires full-proof network infrastructure, which is provided in the form of 5G to these multi-national firms.
Geographically, Europe is the largest revenue contributor in the global market owing to the significant presence of supreme market players in the region. Some prominent market competitors situated in the U.S. are AT&T, Hewlett Packard Enterprise, Juniper Networks, CommScope, Cisco, and Verizon. The North America will remarkably add to the North American region and hold a vital share.
Moreover, increasing government initiatives, like the National Security Council’s recommendation to the U.S. government for introducing and developing a government-owned 5G network, is further offers lucrative growth in the 5G enterprise market. For instance, in July 2019, Cisco and Acacia Communications declared that they signed a definitive contract under which Cisco has consented to acquire Acacia. An already surviving Cisco producer, Acacia designs and produces high-speed, optical interconnect technologies that offers web-scale organizations, service providers, and data center operators to survive in the fast-growing consumer demands for data scenario. Additionally, deployment of 5G enterprise equipment needs huge initial investments for up-gradation of existing network infrastructure.
Europe holds large potential to support 5G deployment owing to a well-established economy. Moreover, the region’s powerful financial sector is also surging the 5G enterprise market growth. The BFSI segment is well known for its early adoption of the recent network technologies, like 4G and 5G. With the largest GDP, Germany is predicted to lead the regional market. For instance, in 2018, Germany’s GDP was USD 4,029.14 billion.
Additionally, the adoption of core network technologies, like SDN and NFV, in European nations are fueling due to the development of favorable standards and networking regulations for swelling the SDN and NFV coupled with rising trends of innovative technologies like for example, cloud computing, mobility services and bring your own data device (BYOD).
The key market focused to emphasize their market share and product portfolio in 5G Enterprises by adopting strategies such as new product releases, expansions, agreements, joint ventures, partnerships, collaboration, and merges and acquisitions (M&A) to enhance their footprints in the market for long term.
Some of the major players operating the global market include Affirmed Networks, Airspan Networks, American Tower, AT&T Inc., China Mobile, Ciena Corporation, Cisco Systems Inc., Comba Telecom Systems, Commscope, EE Limited (BT Group), Ericsson, Extreme Networks, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies Co., Juniper Networks, Korea Telecom, Mavenir, NEC, Nokia, Qualcomm Technologies Inc., Samsung, SK Telecom Co. Ltd., T-Mobile, Verizon Communications, VMware, Inc., ZTE Corporation among others.