5G Network Equipment Market will Exhibit a Steady Growth of US$ 18,200 Mn by 2026

5G is yet to be introduced in the global market. However, early involvement of companies in the market can benefit them in many ways and network equipment manufacturers would have developed mature products before the commercial deployment of 5G commences. A new research report by Persistence Market Research depicts the clear scenario of the upcoming 5G equipment market and the opportunities that are likely to emerge in the coming years. According to the report projections, the global 5G network equipment market is expected to witness a market value of over US$ 1,100 Mn in 2019 and increase to more than US$ 18,200 Mn in just six years. The market is anticipated to grow at an exponential CAGR of 59.3% during the forecast period 2019-2025.

Inherent Challenges in Small Cells Deployment

There are various components in the 5G equipment market including small cells, macro cells, AAU, RRU, BBU, etc. Among these components, the global market is expected to witness an explosion in the number of small cells. The macro cells that were in use till now, provide radio coverage to a wide geographical area and small cells were connected and dependent on macro cells. The major challenge in the deployment of a dense network of small cells pertains to a significant rise in the capital expenditure. These expenses would be harder to recover from telecom subscribers, considering the cost consciousness prevalent among consumers. These networks are also required to be energy efficient, weight efficient and compact.

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“Most of the developments being carried out around the commercialization of 5G involves the use of mmWave bands, as a huge spectrum is available for telecom usage at mmWave. However, the propagation at mmWave is characterized with poor performance in Non Line-of-sight networks, and also faces signal loss owing to atmospheric factors. To meet the demands of high data rates in areas with high device density, and to counter high signal loss, carriers will have to deploy a network of small cells, thus bringing the network closer to end users.” — Analyst – IT & Telecommunication, Persistence Market Research

Competitive Landscape

Companies are planning to bring 5G integrated products on the floor from 2019. Top companies that are planning to launch antenna units include Qualcomm, Samsung, and NEC Corporation. Major auxiliary unit providers include Huawei, Ericsson, and ZTE Corporation. This report also introduces the other companies in this market such as Analog Devices, Siemens, and Schneider Electric that will provide supporting components.

Some of the key offerings expected by big brands include Qualcomm’s 5G modems and Samsung’s 5G enabled chips. Qualcomm is working on its Snapdragon X50 5G modem for early 5G networks, which uses advanced MIMO techniques. This modem is designed to support cloud connected devices that will require high broadband speeds of up to 5 gigabits per second. Qualcomm has followed ongoing industry developments to augment its operations in the 26 GHz millimeter wave band. Samsung on the other hand has developed a 7nm fabrication process that will be used by Qualcomm to manufacture its first 5G chips.

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The projected market forecast has instilled optimism in companies about their future growth in the market. Industry experts are of the opinion that the opportunities in the global market are immense, while the scale of deployments itself is unprecedented. Semiconductor companies, pure-play 5G technology companies and even traditional equipment providers will all benefit from 5G.

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