The Global 5G Module Market Anticipated to Generate a Revenue of $468,271.9 Million, Growing at a CAGR of 70.8% from 2021 to 2028Download Sample Reports Overview
The global 5G module market size is estimated to be valued at $468,271.9 million by 2028, surging from $7,400.00 million in 2020, at a CAGR of 70.8%.
COVID-19 Impact on the 5G Module Market
During the COVID-19 pandemic, the global 5G module market trends are projected to be negatively impacted. The core notions of 5G services have altered as a result of several legislative directives. The pandemic has halted the building of the 5G foundation in several locations. The steps taken to stop the disease from spreading have had an influence on the schedule for the completion of the 5G infrastructure. During the coronavirus pandemic, these elements impacted the 5G module market.
Global 5G Module Market Analysis
The desire for high-speed internet and wide network coverage for a number of applications, such as distance learning, autonomous driving, multiuser gaming, videoconferencing, live streaming, telemedicine, and augmented reality, is expected to drive the 5G module market. The demand for mobile broadband technology, high-speed data transport, and data & information processing is driving the development of 5G cellular technology. It is also likely to increase mobile network performance and reduce the gap between today's network generations' (3G/4G) poor to minimal network coverage and data connectivity.
Transitioning from 4G to 5G technology would necessitate massive investments. The cost of 5G infrastructure is influenced by the required throughput density, periodic interest rate, and base station pricing. These costs must be lowered in order to deploy effective and ultra-dense micro cells. The challenge for communication service providers (CSPs) in making the transition to 5G is justifying multibillion-dollar investments in new network equipment needed to convert their network to a virtualized architecture, migrate services from 3G to 4G to 5G, and protect their businesses from ever-increasing interruptions and cyber threats.
Due to the growing popularity of IoT use cases in a range of industries that require wide-area connectivity and the ability to handle a large number of connections, massive IoT solutions are in high demand. Massive IoT is gaining traction as a new area of concentration for IoT connectivity. Massive IoT is an appealing alternative for 5G, but Telcos are depending on current cellular IoT standards, such as NB-IoT, in the early stages of the technology. 5G networks are expected to enable widespread deployment of intelligent IoT nodes in a variety of scenarios. It will also provide a firm platform for the widespread adoption of critical communications services.
Global 5G module Market, Segmentation
The global 5G module market is segmented based on applications, end-users, and region.
The applications sub-segment is further classified into fixed wireless access customer premises equipment, router, internet of vehicles, and others. The internet of vehicles sub-segment is anticipated to experience fastest growth in the global market and register a revenue of $123,201.9 million with a CAGR of 71.8% during the forecast period.
In the near future, the growing demand for connected automobiles in both developed and emerging countries is expected to drive market expansion. Over the next few years, rising demand for accident tracking, security, and sharing of accident information with emergency contacts are expected to drive up market demand.
The end-users segment is further divided into IT & telecom, manufacturing, healthcare, transportation & logistics, and others sub-segments. The transportation & logistics sub-segment is anticipated to have the fastest market growth during the forecast period and generate a revenue of $138,765.8 million by 2028, growing from $2,090.5 million in 2020, at a CAGR of 72.2%.
The high-speed 5G connectivity is helping security personnel in order to monitor roads and other sites using cameras and get data on security breaches and accidents in real time. Furthermore, the transportation & logistics sub-section is likely to benefit from more extensive electronic traffic signaling systems that can help with efficient traffic flow management.
The market for 5G module in Asia-Pacific is anticipated to be the fastest growing market and reach $106,719.2 million by 2028, with a CAGR of 72.1%.
This increase is mostly owing to the existence of significant network providers, as well as key industry participants, who are expected to promote the region's growth. Businesses are becoming more competitive and focusing on offering excellent customer service as a result of the Asia-Pacific region's enormous mobile subscriber base. The region is positioned to dominate 5G, edge computing, blockchain, and 5G core technologies because of strategic leadership by countries like Singapore, South Korea, China, Australia, and Japan.
Key Players in the Global 5G Module Market
Some of the leading global 5G module market players are
- Sierra Wireless
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global 5G module Market:
- Bargaining Power of Suppliers: 5G Module market contains huge concentration of distributors and suppliers and hence, the distributors and supplier control is expected to be moderate, resulting in moderate bargaining power of dealers.
Hence, the bargaining power of the supplier is moderate.
- Bargaining Power of Buyers: Buyers will have moderate bargaining power, significantly because of high players operating in the 5G module market.
Hence, the bargaining power of the buyer is moderate.
- Threat of New Entrants: In the modern world, new entrants may face multiple new barriers like legal and government policies.
Hence, the threat of the new entrants is moderate.
- Threat of Substitutes: There are few alternate products for 5G module.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: Robust presence of key players such as AT&T, Sierra Wireless is creating massive rivalry in the local as well as international market. Also, high spending on business expansion and strategic tie-ups are some of the main factors rising competitive rivalry among the companies.
Thus, the competitive rivalry in the market is high.