5G Devices Market Size, Share & Trends Analysis Report By Form Factor (Modules, CPE (Indoor/Outdoor), Smartphone, Hotspots, Laptops, Industrial Grade CPE/Router/Gateway, Other Form Factors), By Spectrum Support (Sub-6 GHz, mmWave, Both Spectrum Bands) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global 5G devices market size was valued at USD 901.63 million in 2021. It is projected to reach USD 138,651.34 million by 2030, growing at a CAGR of 74.98% during the forecast period (2022-2030). 

The fastest and most secure wireless network is provided to customers thanks to 5G technology, which is the next generation of wireless communication. The way consumers connect, communicate, compute, and manage their linked devices, networks, and services will all alter as a result of 5G technology. To improve performance through high-quality communication services and quick Internet access, manufacturers of smart gadgets are incorporating 5G technology into smartphones, tablets, and other communication devices. Manufacturers of 5G devices offer capabilities like rapid document sharing, ultra-secure hotspots, and managed and secure connectivity to enhance the user experience.

Market Dynamics

Global 5G Devices Market Drivers

Sustained Increase in the Number of Devices and Endpoints Worldwide

The adoption of the Internet of Things (IoT) and the creation of new applications and business models have led to an increase in the number of connected devices and endpoints globally. Massive Machine-Type Communication (mMTC), a feature of 5G, has the potential to enable the wireless connection of tens of billions of network-capable devices. Modern communication systems already support numerous mMTC applications. Compared to 4G LTE, 5G can transfer data faster and with greater capacity. In the Internet of Things (IoT) environment, speed is not always better or even essential, mainly because it often uses more power from the end device. New device types, such as Cat-M1 (which works at a 1.4 MHz bandwidth) and narrowband, will thus be introduced by the 5G NR standard (NB-IoT). Cat-M1 and NB-IoT, two Massive IoT technologies, are still widely adopted worldwide. According to Ericsson, the number of Massive IoT connections is anticipated to have nearly doubled to 200 million connections.

Technological Innovations at a Component and Device Level

The market is seeing numerous device and component developments, boosting the use of 5G gadgets. For instance, several companies, like Qualcomm and MediaTek, are releasing chipsets that support 5G, and numerous smartphone makers are using these chipsets. In order to get more affordable chipsets into the market, mid-range smartphones also support 5G, which was previously limited to flagship handsets. The first 4-series mobile platform with compatibility for 5G technology, the Qualcomm Snapdragon 480 5G mobile platform, was unveiled by Qualcomm Technologies, Inc. Smartphone users will be able to access worldwide 5G connectivity thanks to the introduction of midrange processors like the Snapdragon 480.

Global 5G Devices Market Restraint

Regulatory and Standardization Delays

Government authorities frequently play a role in the deployment of 5G, especially when considering the additional infrastructure required to expand the network. It will be necessary for providers to set up new base stations, antennas, and repeaters. In addition, authorities will need to attack 5G services in waves across various vertical industries. Regulations governing EMF radiation, infrastructure sharing, spectrum accessibility, and cybersecurity are a few examples. All the leading US carriers are operating 5G networks with intermittent connectivity to specific markets. The Federal Communications Commission decided not to amend the rules governing the implementation of 5G or the RF frequency limits. The delay in the implementation of these regulations and standards can hinder the market growth.

Global 5G Devices Market Opportunities

Anticipated Rise in Demand from the Industrial Sector

The industrial sector will advance significantly with 5G. Businesses are investing in a new, densified network infrastructure with new antennas, more and smaller cells, and more potent processors, even though most 5G networks will be built on top of 4G infrastructure. By enabling several breakthroughs, such as visual quality checks using cameras, computer vision, and machine learning, 5G is positioned to spur the next wave of industrial automation. Many industrial businesses decide how to use this technology in their daily operations. Once 5G is commercially available, 10 Gbps data speed is usually considered reasonable.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global 5G devices market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the most significant shareholder in the global 5G devices market and is expected to grow at a CAGR of 74.8% during the forecast period. China has one of the most widespread 5G networks in Asia-Pacific. The ministry of industry and information technology states that wireless modules are necessary for communication between IoT terminals and base stations. The first data call and end-to-end data transmission services under China Mobile's Standalone-Structured 5G network were completed by Fibocom's 5G modules, FG150 and FM150, according to a company that provides cellular embedded wireless module solutions for the Internet of Things (IoT). The download speed was over 100Mbps. TCL, a company based in China, recently unveiled a brand-new router to utilize 5G better mobile network speeds. TCL HUBLINK 5G CPE is delivered in a thin, cylinder-shaped design. The 5G hub is advertised as simple to set up and operate and has extra connectivity features, including NFC, Bluetooth 5.1, and Zigbee 3.0. Even though 5G has not yet been introduced in India, the device ecosystem has already begun to develop. This indicates that the devices are 5G ready and may use the telecom operators' services as soon as they become available.

Europe is expected to grow at a CAGR of 75.3%, generating USD 36,491.68 million during the forecast period. Many European nations have highlighted 5G as a crucial tool for pandemic recovery. 5G is considered a crucial instrument in Germany for accelerating mobile coverage and minimizing white patches. Furthermore, according to a study by Barclays, the technology might boost the UK economy by GBP 15.7 billion annually by 2025. Even in its infancy, 5G technology is being used in the media and entertainment sector. The BBC News camera is connected to 5G modems, allowing the channels to take advantage of the new network and the production teams to investigate various encoding solutions to compress and decompress the video for live playout. The EU did suggest that member states have the authority to bar crucial 5G infrastructure components from telecom carriers judged to pose a security risk. Microsoft, Dell, HP, and Lenovo all made announcements about supplying 5G-enabled laptops for the European market powered by Intel's XMM 8000 series modem.

North America is anticipated to grow significantly during the forecast period. Service providers in North America have commercially released mobile broadband-focused 5G services. Early adoption of the technology in the area will be made possible by introducing 5G devices that support all three spectrum bands. Currently, 5G services are combined with 4G services or switched over to 4G when a consumer travels from an area with 5G coverage to one without. By 2026, 5G will be necessary for 80% of North American mobile subscriptions, according to the Ericson Mobility Report. With the greater accessibility of 5G-capable devices, the number of subscriptions and the pace of 5G deployments are projected to increase dramatically. In collaboration with Rogers, a Canadian communications provider, Ericsson revealed plans to roll out the nation's first 5G network. To utilize its 4G assets to introduce 5G, the Canadian service provider also aims to use 3.5GHz airwaves and Ericsson Spectrum Sharing technology. The deployment of Ericsson goods and services in core, transit, and radio industries may also be part of the 5G rollout.

Compared to other parts of the world, Latin America now trails in terms of productivity and economic growth. However, the region will benefit from both due to the adoption of digital transformation. The "Why 5G in Latin America" paper by Omdia and Nokia claims that the area needs significantly improved broadband connections, including 5G. As the availability of 5G devices, ranging from smartphones to fixed-wireless equipment, increases, dynamic spectrum sharing may play a role in hastening the debut of 5G in Latin American countries that have recently granted more frequencies for mobile broadband. Due to a shortage of devices and economies of scale, Latin American nations might not see a rapid uptake of recently introduced 5G network services. Many Gulf nations focus on digital development to attract foreign capital and promote domestic prosperity. The general use of fifth-generation (5G) mobile communication networks is crucial to these digital changes.

Segmental Analysis

The global 5G devices market is segmented by form factor and spectrum support.

On the Basis of Form Factor

Based on form factor, the global 5G devices market is bifurcated into indoor/outdoor), smartphone, hotspots, laptops, industrial grade CPE/router/gateway, and other form factors.

The smartphone segment is the highest contributor to the market and is expected to grow at a CAGR of 74.2% during the forecast period. Ultra-high bandwidth, ultra-low latency, and massive connections are becoming increasingly in demand, which is likely to create market expansion prospects. In addition, it is predicted that the demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as energy management and smart home goods, will rise over the projection period. Manufacturers of smartphones are concentrating on baseband development to diversify their 5G portfolio in response to the rising demand. As an illustration, Huawei and Samsung have been creating baseband for their own devices to lessen their reliance on other chip producers and to improve their ability to differentiate their products by fusing software and hardware. Additionally, it is predicted that demand for 5G smartphones will increase throughout the projection period due to the growing trend of smartphone-connected healthcare devices, autos, and fleet management activities.

Customer Premise Equipment (CPE) is also known as "Customer Terminal Equipment" in the business world. CPE can receive wireless signals from routers, base stations, APs, etc., in its capacity as a wireless terminal access device. Additionally, it can transform 5G/4G signals into Wi-Fi signals and provide them simultaneously to several hardware devices for Internet access. Therefore, CPE can be widely utilized for wireless Internet access in rural, urban, institutional, industrial, hospital, community, and other settings, minimizing the expense of installing the wired network and resolving the network's last-mile problem. CPE allows the problem of the signal relay to be fixed while effectively expanding the signal's reach. CPE is split into indoor versions (emission power 500–1000 mW) and outdoor models (emissions up to 2000 mW), which can withstand harsher circumstances. This has encouraged businesses to invest in the market, accelerating segment growth.

On the Basis of Spectrum Support

Based on spectrum support, the global 5G devices market is bifurcated into sub-6 GHz, mmWave, and both spectrum bands.

The sub-6 GHz segment owns the highest market share and is expected to grow at a CAGR of 9.6% during the forecast period. Low and mid-frequency bands below 6GHz are referred to as sub-6 GHz. Midbands fall between 3.4GHz and 6GHz, whereas low-frequency bands are less than 1 GHz. Compared to mmWave spectrum bands, the Sub-6 GHz frequency spectrum has slower speeds but a broader reach, making it suited for cellular communications. Networks operating at sub-6 GHz operate between mmWave and LTE speeds. For the United States, OpenSignal's investigation of actual 5G speeds in multiple countries in August 2020 produced results that were around 50.9Mb/s, compared to 28.9Mb/s on LTE, because the majority of the country's coverage at the time was Sub-6GHz. To obtain a competitive edge in the market by converting 4G LTE users to the new 5G technology, telecom providers are also deploying sub-6 GHz networks, which are low-frequency bands. The use of dynamic spectrum sharing (DSS), which enables the radio to be shared to broadcast both 4G and 5G without requiring any new gear, will further assist in the transition from 4G to 5G.

High-frequency bands from 26 GHz to 60 GHz are referred to as mmWave. These 5G networks have a very narrow range yet are extremely fast. In areas with high capacity needs, such as metropolitan centers in Europe, North America, and China, mmWave spectrums are utilized. A more affordable alternative for high-speed, low latency 5G with higher bandwidth will be offered by mmWave. Furthermore, nations including Japan, South Korea, and the US have already allocated a 5G mmWave spectrum. The development of technology in 5G devices has been aided by technological advancements, including Massive MIMO (Multiple Input and Multiple Output), flexible beamforming, and the downsizing of sophisticated antenna processing operations. Faster mmWave networks are required as high-speed internet becomes essential for industrial and commercial use. The market is seeing a push from several vendors to use mmWave to attain faster speeds.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• February 2022- ZTE Corporation, a major international provider of telecommunications, enterprise, and consumer technology solutions for the mobile internet, announced that its 5G FWA and MBB series reached the million-shipment milestone globally and officially unveiled the 4th Gen of ZTE 5G FWA and MBB family at the Mobile World Congress 2022 (MWC 2022).
• May 2022- Qualcomm launched Snapdragon 8 Gen 1 SoC, with clock speeds up to 3.2 GHz for major smartphone implementation. The processor features the fourth-generation Snapdragon X65 5G Modem-RF System, bringing 5G speeds of up to 10 Gbps.
• August 2022- Samsung shared plans to launch more smartphones in the Indian market after recording sales of INR 600 crore in less than 12 hours for its new generation 5G-enabled foldable devices. The company would launch the devices ahead of the 5G roll-out in India in 2022.