5G infrastructure provides low latency coverage for large data streams that power IoT devices, semi-autonomous vehicles, and virtual reality. 5G infrastructure refers to a network of macro and small-cell ground stations with edge computing capability required for the 5th generation technology standard for wireless networks. The rising demand for high-speed network connectivity has enabled enterprises to install upgraded network infrastructure to enhance operational efficiency and reduce process costs. Hence, robust implementation of upgraded network infrastructure across firms to deliver improved services to their users is estimated to boost the demand for 5G infrastructure worldwide.
The continuous increase in data traffic and the need for network capacity expansion drive the demand for 5G infrastructure. Internet traffic has increased dramatically in the last year due to the lockdowns and restrictions imposed during the pandemic. Due to the COVID-19 pandemic, millions of people worldwide are using videoconferencing for work and learning from home, among other things. The three powerful platforms reported 700 million daily users in March–April 2020. When other platforms were included, the total number of users was approximately one-tenth of the world's population.
In addition, the need for low latency has created a massive demand for 5G infrastructure. Latency is defined as the data packet's gap or transmission time. The time between when a package is sent and received by the recipient is called one-way latency. In contrast, roundtrip latency is the time between packet transmission and acknowledgment reception. The use of advanced concepts such as IoT, connected devices, artificial intelligence, and augmented and virtual reality, among others, is rapidly increasing.
However, due to high latency, industries cannot fully leverage the potential of these technologies. As a result, 5G is becoming more popular because it offers low latency and a better user experience. Telemedicine, in which hospitals and healthcare providers can access real-time data without delay during a life-threatening situation, could be one of the essential applications of low latency. The low latency rate of this technology is likely to lead to remote robotics surgeries in the near future.
Cities now house more than 54 percent of the world's population, indicating that global urbanization is accelerating. Many Chinese cities have more than 10 million people, including Beijing, Shanghai, Guangzhou, and Shenzhen. Cities have grown in size and complexity in recent years, posing many risks, concerns, and management challenges.
Municipal leaders should take several steps to encourage telecom operators to invest in deploying next-generation infrastructure in their municipalities to support the increased density of small cells required to achieve both the economic and Smart City benefits enabled by 5G wireless networks.
Due to the internet of things (IoT), artificial intelligence (AI), cloud computing, and fast communication networks, cities are becoming more innovative in operating, delivering services, and supporting residents and businesses. The continued deployment of 5G networks, with significant increases in speed, bandwidth, and data throughput, will only hasten the global development of smart cities.
Asia-Pacific is the largest and fastest-growing region in the market. It is estimated to reach USD 78 billion by 2030 at a CAGR of 52.6%. This is due to the combative deployment of 5G New Radio infrastructure by significant telecom service providers such as KT Corporation, China Mobile Limited, and NTT Docomo Inc. In addition, the presence of several 5G and communication services is expected to drive the demand. China is expected to dominate the market.
Europe stands second for global demand in the 5G infrastructure market due to predominant vendors and carriers' investments in launching the technology in this region. It is estimated to reach a predicted value of USD 131.5 billion by 2030 at a CAGR of 49.6%. The European Commission and the European ICT industry's public-private partnership (5G PPP) to provide 5G infrastructure will deliver solutions, architectures, technologies, and standards for another generation.
Airspan Network, Affirmed Networks Inc, American Tower, AT&T, China Mobile, Cisco Systems, Comba Telecom, CommScope, Ciena Corporation, Ericsson, Extreme Networks, Hewlett Packard Enterprise, Huawei Technologies Co., Ltd, Juniper, Korea Telecom, Mavenir, T-Mobile, SK Telecom, and Others.