5G technology offers potential to revolutionise the
telecommunication industry as it is estimated to cater faster communication
than any other existing technologies. Data speeds in 5G
are anticipated to be approximately in the range of 0.5 - 10 Gbps with less
than 2-5 millisecond latency, depending upon network
configuration.5G advancements are estimated to benefit in
driving innovations in vehicle to vehicle, vehicle to infrastructure,vehicle to pedestrian
and person to person connectivity. Moreover, international standardisation
brought about in the field is projected to fast-track the implementation of
industrial automation and connected cars on a bulk level.
5G Technology Market Trend
The international market for 5G technologies is estimated
to be at $5.53 billion in 2020, and is expected to grow to $667.90 billion by
2026, recording a CAGR of 122.3% from year 2021 to year 2026. Asia-Pacific will
be on the top in contributing to the international market, with $2.20 billion
in 2020, and is assessed to reach $329.09 billion by 2026, recording a CAGR of
130.7% in projected duration.
Key Growth Factors
As we know, necessity is the mother of invention. The foremost driving force of 5G technologies is the ever increasing need for an enriched mobile internet experience, in association with increasing enthusiasm for smartphone among users. As per Ericsson Mobility Report 2019, 5G has the capacity to reach to 65 percent of the world population in 2025. In 2025, 5G networks are expected to carry nearly 50 percent of the world’s mobile data
Source: Ericsson
Mobility Report 2019
In a nutshell, 5G is estimated to gain significance in
2020, empowered by coverage roll-out and accessibility of devices. It is
evident that 5G in contrast to earlier cellular radio technologies would not be
limiting itself because of shortage of user devices.
In
India, 5G services are estimated to be offered in 2022 and is expected to have 11% of mobile subscribers at the end of 2025
while 74% of North Americans are estimated to avail 5G services in 2025.
Source: Ericsson
Mobility Report 2019
Top Impacting Factors
As per Allied Market Research, the foremost drive
factors for 5G technology market comprise increase in numbers for IoT devices,
rise in requirement for content streaming services and an increase in requirement
for connections with less latency in industrial automation.
- Increase in the numbers for IoT devices: As mentioned by Gartner, the number of IoT devices is expected to grow to 50 billion by the time year 2020 is over. The same data is experiencing growth at an exponential rate. The technology would deal with increase in requirement of bandwidth, need for future application services and enhanced acceptability of the Internet of Things (IoT). This technology is expected to facilitate the delivery of unprecedented data speeds while at the same time, making improvement in the complete user experience and significantlyenhancing realtime data processing competences in IoT devices. It is expected to have 28% of cellular IoT connections as broadband IoT, with 4G/5Guniting them by the time 2025 gets over.The collective number of all types of IoT connections is estimated to be 25 billion by the year 2025.
• Implementation of edge
computing: Edge computing permits a great volume of data to be handled near
the source of the data, helps in real time assessment with lesser response time
and at the same time enhancing reliability and total response and it also helps decrease
privacy and security troubles.
• Rise in requirement for
content streaming services: Content streaming would enhance expansion of
services in the media and entertainment sector at an exponential rate. As
per vXchnge- a major colocation and
edge data center contributor in the US, 70% US subscribers opt for minimum one streaming
service however an average user subscribes to more than three streaming
services.
• Increase in investment in
smart cities: The rise of Machine-to-Machine Communication is increasing in
industries because of requirement of more and more devices in applications like
smart homes, smart cities etc., thereby, making it more sensible to enhance mobile
network communications with accelerated speed, thus becoming a key driver in
the expansion of market. Involvement of lot of money in developing smart
cities will generate huge opportunities
for the deployment of 5G technologies within smart cities.
• Opportunities in Autonomous Vehicle
Industry:Autonomous vehicle market at international level is growing rapidly
and is estimated to cross $550 billion by 2026. Chief automotive vendors i.e.Toyota,General
Motors, and Ford, have made collective investment of more than $1 billion in
self driving start-ups and Artificial Intelligent technologies. Furthermore, 5G
communication is estimated to support transfer of large amount of data and to
provide better processing which is more effective and improves the total
performance henceforth, drive the increase in autonomous long distance
transportation. As per Ericsson Mobility Report 2019, the automotive industry
is estimated to be one of the four leading
industries for providing prospects for 5G enabled services in 2030.
• Health Sector: 5G is estimated
to provide speed up to 10Gb/s and would decrease latency time to 1 millisecond
or less. This transmission would be highly efficient and with no connectionloss,
subsequently benefiting the crucial applications in healthcare and other sectors.
Dominant Market Players
The top players reported in the market are Qualcomm Inc, Ericsson,Orange
S.A., Deutsche Telekom AG, Telstra,Huawei Technology, Nokia, Intel Corporation,
Telecom Italia, andT-Mobile.
Tech Mahindra is
another player entering the 5G market. They are developing 5G use cases with USA-based
hospitals to provide support for managing devices from a remote area and ultimately
managing surgery from a distant area that would necessitate uninterrupted network availability
to efficiently control the operations in the hospitals.
Vodafone is
undergoing trials for 5G and developing out tests in various areas of United
Kingdom. Other leading vendors e.g. EE , Telia are also aggressively conducting
the tests in the region which eventually would help them to be prospective buyers
of the 5G enabled projects.
Nokia and FAW Group will be using 5G to fast-track digital revolution of
automotive segment of China. It would be deploying a 5G testing network to upkeep
Research & Development in self-directed driving and connected vehicle simple mentations.
It will also unite with FAW to provide services required for digital revolution
such as data centres, big data,cloud, and 5G network slicing solutions.
Single
purpose provider evaluation
|
Multi-purpose
provider evaluation
|
Leader: Ericsson,
Samsung
|
Leader:Hewlett
Packard Enterprise/ Aruba, Cisco Systems
|
Follower: Huawei,
Nokia
|
Follower: Dell
EMC
|
Laggard:
ZTE
|
Future
Player: Lenovo
|
As per Moor Insights and Strategy report published
on Forbes.com,Ericsson is the winner on the single-purpose
infrastructure side and Hewlett Packard Enterprise/Aruba is for
multi-purpose infrastructure. Ericsson is also doing a wonderful job of distinguishing itself by investing into Artificial Intelligence.
5G High Level council is established in 2017 for setting up a network to
provide 5G services in India and end orsechanges in policy and action plan to accomplish
the vision. In India, telecom industries are keenly involved in launching
commercial 5G by investing in Research & Development,
by creating trial beds, by making
technological tests for implementation and analysis of use cases. Following are
the steps taken in the direction of implementation of 5G environment in India.
- Fibre backhaul is critical for deployment of 5G network infrastructure with high speed. India targets to increase its fibre layout to 2.5 million km under the government’s leading program ‘Bharat Net’by 2022 as compared to existing 1.5 million km.
- Few network providers initiated 5G tests with Indian operators in the year 2017 only.
- The 5G committee of the telecom ministry plans to offer 6,050MHz spectrum for 5G services in 2020.
- As per the latest report published in Economic Times of Feb 2020, the department of telecommunication has already collected applications from Bharti Airtel,Vodafone Idea,Bharat Sanchar Nigam Ltd.(BSNL) and Reliance Jio in mid January for 5G field tests.
References
- Ericsson Mobility Report 2019. November 2019. Retrieved from https://www.ericsson.com/en/mobility-report
- Valuates Reports, Allied Market Research. 2020.5G Technology Market by Offering, Connectivity, Application, and End User: Global Opportunity Analysis and Industry Forecast, 2020–2026.Retrieved from https://reports.valuates.com/market-reports/ALLI-Manu-1C7/5g-technology-marke
- Confederation of Indian Industry and Deloitte Analysis Report. 2018. 5G: The catalyst to Digital Revolution in India. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-telecommunications/in-tmt-the-catalyst-report-one-noexp.pdf
- Market Insight Reports. November 2019.5G InfrastructureMarket – Growth, Trends And Forecast (2019 – 2025). Retrieved from https://www.marketwatch.com/press-release/5g-infrastructure-market-growth-trends-and-forecast-2019-2025-2019-11-19
- Moor Insights and Strategy Report.2019. Who Is 'Really' Leading in Mobile 5G, Part 4: Infrastructure Equipment Providers. Retrieved from https://www.forbes.com/sites/moorinsights/2019/07/19/who-is-really-leading-in-mobile-5g-part-4-infrastructure-equipment providers/?ss=enterpriseandcloud#776840ba9130
Dr. Sharda Vashisth
HOD-Electrical, Electronics and Communication Engineering Department
The NorthCap University, Gurugram
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