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August 23, 2019

Global 5G network infrastructure revenue to reach $4.2 billion in 2020


August 23, 2019

ISLAMABAD: The worldwide 5G wireless network infrastructure revenue will reach $4.2 billion in 2020, an 89 percent increase from 2019 revenue of $2.2 billion, US-based research and advisory firm Gartner said.

Additionally, Gartner forecasts in the report titled “Forecast: Communications Service Provider Operational Technology, Worldwide, 2017-2023, 2Q19 Update” that investments in 5G New Radio network infrastructure will account for six percent of the total wireless infrastructure revenue of communications service providers (CSPs) in 2019, and that this figure will reach 12 percent 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, reported.

In 2020, CSPs will roll out stand-alone 5G technology, which will require 5G New Radio equipment and a 5G core network.

This will lower costs for CSPs and improve the performance for users. 5G services will launch in many major cities in 2019 and 2020. Services have already begun in the US, South Korea and some European countries, including Switzerland, Finland and Britain.

CSPs in Canada, France, Germany, Hong Kong, Spain, Sweden, Qatar and the United Arab Emirates have announced plans to accelerate 5G network building through 2020. As a result, Gartner estimates that seven percent of CSPs worldwide had already deployed 5G infrastructure in their networks.

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,” Fabre said.

Germany has set aside the 3.7GHz band for private networks, and Japan is reserving the 4.5GHz and 28GHz for the same. “National 5G coverage will not occur as quickly as with past generations of wireless infrastructure,” Fabre added.

“To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer, by upgrading 4G infrastructure around 5G areas of coverage.”

He also said, “A less robust 4G legacy layer adjoining 5G cells could lead to real or perceived performance issues as users move from 5G to4G/LTE Advanced Pro.” “This issue will be most pronounced from 2019 through 2021, a period when 5G coverage will be focused on hotspots and areas of high population density, he added.

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