Driven by Consumer Demand for Networks with Higher Levels of Control, Customization, Security, and Low Latency the 5G Equipment and Device Market in North America is forecasted to cross $320 Bn by 2030 says Ken Research Study
5G is the 5th Generation mobile network technology that delivers lower latency, which can enhance the functionality of corporate applications and other digital experiences including online gaming, videoconferencing, self-driving cars, etc. The market for 5G devices is predicted to rise as connectivity, digital apps, and wearable technologies become more widely used. Additionally, modernizing current support infrastructures, such as modems, towers, and other support equipment, will open up a lot of doors for new players. As the adoption of 5G technology has seen favorable signals globally, the rise of the 5G devices market is anticipated to drive considerable prospects.
According to Ken Research estimates, the North America 5G Equipment and Device Market – which grew from around US$4 Bn in 2019 to nearly US$25 Bn in 2021 – is expected to grow further into a more than US$320 Bn opportunity by 2030.
1. North America has Witnessed Rapid Growth in 5G Adoption During COVID-19 Owing to People Relying on Mobile Networks, and is Likely to Continue Momentum with ~20% CAGR Until 2030
The North America 5G Equipment and Device Market witnessed rapid growth during the forecast period 2022-2030 primarily due to a higher level of control, security, and low latency. Furthermore, during the Covid-19 pandemic, the mobile industry developed focus as people relied on mobile networks to stay connected and access life-enhancing services. The market is forecast to reach 320 Bn by 2030 from 25 Bn in 2021, witnessing a CAGR of ~ 20% during this period.
2. Adoption of Advanced Technology and Surge in Demand for 5G Owing to its Low Latency, Drives the 5G Equipment and Device Market in North America during the Forecasted Period.
A large number of research and development along with a higher rate of adoption of advanced technologies is driving the growth of 5G equipment and devices in North America. The increasing demand for 5G technology is boosting the 5G equipment market. Owing to the surge in demand for 5G technology because of its low latency, operators have started investing in 5G technology providing a growth opportunity for the market.
According to the GSM Association (GSMA), North America Report in 2022, the deployment of the C-band spectrum is expected to drive the investment of US$ 293 billion for 5G by mobile operators in North America by 2025. It is expected to provide a middle ground for capacity and coverage of 5G networks.
3. The Higher Cost Associated with Implementation of 5G equipment Deters Most Potential Participant and End User Companies Limiting Market Prospects
The high cost of implementation and integration of 5G equipment is a major challenge for 5G Equipment and Devices in North America as moving from 4G to 5G will require significant expenditure and investment. Deployment of 5G requires network infrastructure components like small cells and macro cells. A macro cell costs approx. US$ 2,00,000 to set up whereas small cells costs around US$ 10,000 each. Along with this cost to buy spectrum, configuration, test, and maintenance of network implement 5G are also highly expensive.
4. Smartphones Dominate the 5G Devices Market Contributing Over 40% of the Revenue Share and They are Likely to Retain Dominance Even During Forecast Period
Among the device segments, smartphones remained the dominant segment during the 2019-2021 period contributing over 40% of the market revenue share. Further the Research Study found that this segment is likely to retain dominance even by 2030. Their dominance is owing to the versatility offered through the many applications as the smartphone is a portable computing device that combines mobile telephone and computing functions in one unit. It is a cellular device with advanced features owing to hardware capabilities and operating system which provide software, internet, and multimedia functionality along with calling and text messaging. The smartphone manufacturing companies are proactively adopting the 5G technology as a next-generation communication solution.
However, the laptop segment is expected to witness the fastest growth during the forecast period at about 30%. A laptop is a small, portable personal computer with a screen and alphanumeric keyboard. It has the screen mounted on the inside of the upper lid and the keyboard on the inside of the lower lid, although laptops with the detachable keyboard are also available on the market. The growth is owing to the growing need for high data speeds to use the advanced graphics intensive applications and media.
5. Few Diverse Global Players Dominate the Market Holding More than Half of Market Revenue Share Despite Presence of over 100 Competitors
The North America 5G equipment and Device industry are highly competitive in nature with over 100 participants comprising global players (having presence in 2 or more continents), regional players (having presence in multiple countries within North America), and Country-Niche Players (presence limited to just 1 country or very niche presence in the value chain). Most of Country-Niche’s players are component or services suppliers for 5G equipment and device manufacturers. Some of the Middleware and Firmware Solutions providers develop hardware and software including operating systems, user interfaces, and applications necessary for the implementation, maintenance, and operation of 5G services.
However, the Research study found that few diversified global players control a dominant share of the market, and a significant number of these players are headquartered within the North American region, enabling its strong production and consumption balance.
For More Information, refer to below link:-
North America Wearable Electronics Market Outlook and Forecast to 2027 – Driven by Growing Smartphone & Digital Device Adoption, Technological Advancement, and Heightened Awareness of Health-Related Activities
Ankur Gupta, Head Marketing & Communications