5G network infra revenue to reach $4.2 Bn

In 2020, worldwide 5G wireless network infrastructure revenue will reach $4.2 billion, an 89% increase from 2019 revenue of $2.2 billion, according to Gartner.

Additionally, Gartner forecasts that investments in 5G NR network infrastructure will account for 6% of the total wireless infrastructure revenue of communications service providers (CSPs) in 2019, and that this figure will reach 12% in 2020.

“5G wireless network infrastructure revenue will nearly double between 2019 and 2020,” said Sylvain Fabre, senior research director at Gartner.

“For 5G deployments in 2019, CSPs are using non-stand-alone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio (NR) equipment can be rolled out alongside existing 4G core network infrastructure,” added Fabre.

In 2020, CSPs will roll out stand-alone 5G technology, which will require 5G NR equipment and a 5G core network. This will lower costs for CSPs and improve performance for users.

Although consumers represent the main segment driving 5G development, CSPs will increasingly aim 5G services at enterprises. 5G networks are expected to expand the mobile ecosystem to cover new industries, such as the smart factory, autonomous transportation, remote healthcare, agriculture and retail sectors, as well as enable private networks for industrial users.

Equipment vendors view private networks for industrial users as a market segment with significant potential.

“It’s still early days for the 5G private-network opportunity, but vendors, regulators and standards bodies have preparations in place,” said Fabre.

Germany has set aside the 3.7 GHz band for private networks, and Japan is reserving the 4.5 GHz and 28 GHz for the same.

 

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