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5G market set for massive growth

5G
(Image credit: Image Credit: Uverse internet)

Global revenue coming in from 5G network infrastructure is expected to grow 39 percent year-on-year, according to fresh figures from analyst firm Gartner. That would put the revenue at $19.1 billion for the year, up from $13.7 billion last year

Gartner’s latest report on the mobile connectivity technology says communications service providers (CSP) in mature markets have sped up their 5G development in the past two years, as the Covid-19 pandemic significantly increased demand for ultrafast internet. 

That makes 5G the fastest-growing segment in the wireless network infrastructure market and also the only “significant” opportunity for investment growth. Investment in legacy wireless generation is “rapidly deteriorating”, Gartner added.

North American CSPs are expected to earn as much as $4.3 billion this year, up from $2.9 billion the year before, mostly due to increased adoption of dynamic spectrum sharing and millimeter wave base stations.

In Western Europe, CSPs are focusing on licensing spectrum, modernizing mobile core infrastructure and navigating regulatory processes. Gartner expects the region to earn $1.6 billion this year, up from $794 million last year.

However, the Greater China region is still expected to remain number one when it comes to revenue derived from 5G projects, hitting $9.1 billion, up from $7.4 billion last year.

According to Michael Porowski, Senior Principal Research Analyst at Gartner, the demand is only going to increase going forward - both in the office, as well as at home.