5G Infrastructure Market - Emerging Trends 2019

Fifth generation or 5G is the latest generation to succeed the 4G, 3G, and 2G systems of cellular mobile communications. 5G infrastructure consists of enhanced mobile broadband with reduced latency and targets data rate, cost-reduction, energy saving, and higher system capacity. It is likely to witness better spectrum management, data segregation, and routing. 5G infrastructure would promote enhanced content delivery, assisted driving & transportation services, and remote healthcare & medical intervention. In addition to faster means of communication, 5G would significantly benefit those working into robotics, industry-automation, and IoT.

The 5G infrastructure market is anticipated to witness high growth in the forecast period owing to driving factors such as increasing demands for high speed and broad network coverage for mobile data services. Furthermore, rising need for machine-to-machine communications for industrial applications and software implementation in communication network contribute to the growth of the global 5G infrastructure market. However, high initial capital expenditure for the deployment of network architecture model may hamper the growth of the 5G infrastructure market. Nonetheless, growing internet of things (IoT) technology would offer lucrative opportunities to the key players operating in the 5G infrastructure market during the forecast period.

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Numerous factors make the 5G era in the U.S. distinctive. For instance, the government institutions of U.S. are continuously making efforts for the progress of 5G with new spectrum allocations and working on the infrastructural deployment. In addition, the U.S. is one of the leading countries in terms of consumer digital engagement and speed of adoption of new technologies. As 4G is still in the current scenario and has been driving the transition from connected to digital consumers, 5G is expected to play a vital role in the transition to the augmented consumer in the long run.

Proliferation of M2M/IoT connections

Machine-to-machine (M2M) connectivity is a technology, which uses sensors to capture data and provide critical input to various types of machines to perform various tasks. This technology requires high bandwidth throughput and extremely low latency for enhanced performance. Increase in number of applications, which require M2M connections such as real-time shipping, smart logistics, autonomous driving, immersive commerce, drone delivery, flexible manufacturing, immersive entertainment, disaster management, and precision agriculture drive the need for 5G infrastructure industry. In addition, consumers are expected to adopt latest technologies, which require high-speed internet with low latency. For instance, smart speaker is the latest technological revolution dominating the consumer electronics market. The need of smart technologies is expected to increase with the evolution of 5G network, which in turn boost the growth of the 5G infrastructure market.

Privacy and security concern

According to the Huawei's recent White Paper, 5G Security: Forward Thinking, the network-based "hop-by-hop" security approach used today to secure the communication between two parties is not efficient enough to build differentiated end-to-end (E2E) security for various services. 5G is not confined to individual customers, as with 2G, 3G, and 4G. However, 5G would serve vertical industries, from which a huge diversity of new services is expected to develop. Internet of Things (IoT), connected vehicles, and augmented & virtual reality demand fast and ubiquitous network access. Security and privacy features for global 5G system cannot be integrated on top of other parts of the system design. Therefore, it is essential that security and privacy features must be built into the system design right from the beginning. In addition, players in the 5G technology market need to address privacy and technology concerns of consumers due to increase in awareness toward privacy of their data. Thus, privacy and security concern of consumers limit the growth of 5G infrastructure industry.

Rise in government initiatives for building smart cities in Asia-Pacific

A smart city is an urban area that incorporates information and communication technologies (ICT) to enhance the quality and performance of urban services such as energy, transportation, and utilities to reduce wastage, resource consumption, and overall costs. According to the United Nations, 68% of the world population is anticipated to shift in urban areas by 2050. In addition, the total expenditure on Internet of Things (IoT) in Asia-Pacific is expected to increase at a high rate. Moreover, other Asian governments intend to integrate IoT in their long-term development projects. Furthermore, the Central Government of China selected over 200 cities, which include Beijing, Shanghai, Guangzhou, Hangzhou, and others to pilot smart city projects. 5G wireless network is expected to be the backbone of smart cities. Hence, it provides lucrative opportunity for the 5G infrastructure market.

Reference: https://www.theinsightpartners.com/reports/5g-infrastructure-market

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