5G’s Market Surge and the Race to Build
The race to rollout 5G networks has been suspended this year, due to COVID-19, but currently 5G is making it’s come back and stronger than ever.
5G was launched commercially in early 2019 and is currently used in three key types of connected services, including IoT, mobile broadband, and communications. As of today, the 5G network build seems to be back on track and growing everyday with more importance to the Healthcare Field, School Districts and Emergency Services. The importance of a reliable low-latency network has contributed to the current rise in market shares for 5G infrastructures such as: Chipsets, Telecom Industries and Tower Providers. The growing demand for seamless network and internet connectivity will create a massive platform for the companies operating in this network. Telecom has catapulted 5G onto the global scale and will continue to increase in market value with no signs of slowing down.
Merges and Market Presence
Industries across the world have decided that collaboration between companies is the best opportunity to progress on a massive scale and escalate market growth. In March 2020, Nokia Network announced that it has teamed with Intel Corporation for the development of a new 5G radio and cloud infrastructure. By joining industries 5G networks are making massive strides to produce a 5G infrastructure with a notable branding platform. Several leading telecom operators including AT&T, Verizon Communications and China Telecom Corporation Limited are investing aggressively in deploying 5G network infrastructure to provide high-speed connectivity to their customers.
Snapshot of Market Values
- 5g technology market size is anticipated to be at USD 5.53 Billion in 2020 and is projected to reach USD 667.90 Billion by 2026, registering a CAGR of 122.3% from 2021 to 2026.
- 5G infrastructure market size was valued at USD 371.4 Million in 2017 and is projected to reach USD 58.174 Billion by 2025, growing at a CAGR of 95.8% from 2018 to 2025.
- 5G chipset market size was valued at USD 1.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 63.4% from 2020 to 2027.
The growth in market presence for 5G has increased at an exponential rate and will only keep growing for years to come. Devices that run on a 5G network are decreasing in price and will allow consumers to use the network sooner. Consumers will still benefit from 5G networks while using their devices but may need to wait a couple years to experience 1-Gigabit speeds. For 5G infrastructures to be produced there are various factors that contribute to the build of the fastest global network including chipsets, land grabs and the production of massive radio towers.
Radio towers and the presence of radio wave effects have been a hot topic for decades. Despite this controversy the build continues and has become more important with continuous stay-at-home orders across the globe. There has also been push back on the erection of these massive towers on city corners due to their enormous size and unsightly presence. In most cases these towers can reach over fifty meters in height and have become an eye-sore for residents across the country. 5G runs on various frequencies that travel from tower to tower, these (RF) waves have trouble passing through buildings, trees and may be affected by the weather. Citizen groups and some scientists argue that radio frequency (RF) energy exposure particularly the high-frequency part of the spectrum used by 5G is dangerous to people and the environment. Despite complaints from residents, scientists and telecom companies have tried to prove there are no lasting effects on cells and do not cause cancer. In March 2020 it was announced that the International Commission on Non-Ionizing Radiation Protection (ICNIRP) has formally deemed 5G to be safe as a result of extensive research. 5G radio lies in the same scope of the electromagnetic spectrum as the rest of cellular data, which is all made up of non-ionizing radiation. That means that it all lacks the energy needed to remove electrons from atoms and degrade cells.
Smart Home Advantage
Integrating 5G technology into your home has loads of benefits including energy saving technology, faster internet speed and seamless connectivity for all devices. 5G will work with low-power devices, making it useful for a broader array of connected products whether it will work with battery-powered devices remains to be seen, however. The new wide-area network will allow any plugged-in device to connect directly to 5G, bypassing Wi-Fi for more reliable performance. This also means that all devices will be able to connect using the same protocol to start interacting more effectively. Using 5G networks to realize the potential of smart home tech to provide a truly unified system of devices will not only improve the speed and reliability of systems but will also expand demand for smart home devices. Energy efficient homes have been a growing trend for the last few decades and by creating a singularity between devices there will be more automation and less manual interaction. Utilizing smart technology can benefit the user and can also have positive effects on the environment by consuming less energy overall.