5G Fixed Wireless Access Market

Market Overview

The global 5G fixed wireless access market size was valued at USD 24.3 billion in 2022 and is projected to reach a value of USD 508.5 billion by 2031, registering a CAGR of 40.2% during the forecast period (2023-2031). The increased deployment of advanced technologies such as the Internet of Things (IoT) millimeter-wave drives the 5G fixed wireless access market growth.

5G wireless communication technology is used to deliver high-speed broadband internet access to homes, companies, and other fixed places and is referred to as 5G Fixed Wireless Access (FWA). In contrast to typical wired broadband services, which rely on physical wires (such as fiber-optic or copper cables), 5G FWA provides internet connectivity via wireless signals. The market is expanding because of the growing demand for high-speed internet access and the growing use of cutting-edge technologies like millimeter-wave and Internet of Things (IoT) in 5G fixed wireless access (FWA). 5G FWA technology uses 5G networks' capabilities to provide homes and businesses with high-speed internet access without requiring actual fiber connections.

In addition, there will probably be a greater need for high-speed internet connectivity due to the trend toward remote employment and online education. As solution providers continue to look for affordable ways to meet the growing demand for high-speed internet access, this is expected to fuel further growth in the 5G Fixed wireless access market share market.

Market Dynamics

Global 5G Fixed Wireless Access Market Drivers:

High-Speed Internet Demand

Consumers and organizations desire faster internet services such as streaming, online gaming, video conferencing, and other bandwidth-intensive applications. For example, 85% of Americans use the internet daily. They spend an average of 6 hours and 58 minutes every day online. The increase in distant employment and online learning, exacerbated by the global COVID-19 pandemic, has increased the demand for high-speed internet. Individuals require strong connections to participate in video conferencing, virtual collaboration, and access educational resources. According to Forbes, 65% of workers aspire to work full-time from home. Another 32% prefer a blended timetable. This mixes the flexibility of remote work with the opportunity for cooperation that comes with in-office work. Furthermore, because it is flexible, accessible, and cost-effective, online learning is considered the future of education. It also has a diverse curriculum offering and high-quality student-tutor relationships.

Furthermore, the popularity of video and music streaming services such as Netflix, YouTube, and Spotify needs high-speed internet to provide a seamless and uninterrupted user experience. From September to December 2022, the number of households with video streaming climbed by 2.5 million in the United States. With 89% penetration, this raised the total to 115.6 million households. The average household currently has access to 5.4 streaming providers. Furthermore, The International Data Corporation (IDC) predicts that the number of connected IoT devices worldwide will exceed 41 billion by 2025, highlighting the growing requirement for connectivity to support IoT ecosystems. As a result, the growing need for high-speed internet across various applications emphasizes the significance of the 5G Fixed Wireless Access market trend.

Global 5G Fixed Wireless Access Market Restraints:

Infrastructure Cost

Installing 5G infrastructure, including base stations and related equipment, is expensive. Service providers and telecommunications corporations face difficulties financing the infrastructure required for widespread 5G FWA coverage. Investing in 5G infrastructure upgrades was predicted to cost roughly USD 1 trillion. According to GSMA (GSM Association) research, the predicted global spending on 5G network infrastructure over the next few years would be hundreds of billions of dollars. For example, between 2020 and 2025, total capital spending on mobile infrastructure, including 5G, is estimated to reach USD 1.1 trillion.

Due to the necessity for additional base stations and the use of higher frequency bands, the cost of building 5G infrastructure, particularly in heavily populated urban areas, can be much greater than that of deploying 4G networks. According to a McKinsey & Company report, the total cost of ownership for 5G infrastructure can be up to 2.5 times that of 4G. The study stresses the importance of carefully considering the economic ramifications, particularly in cost-sensitive sectors. The deployment of 5G infrastructure includes radio access networks (RAN), core networks, and transport networks. Each component contributes to the overall infrastructure cost by being upgraded or deployed.

Global 5G Fixed Wireless Access Market Opportunity:

Bridging the Digital Divide

By offering high-speed internet connectivity to underserved and rural areas, 5G FWA has the potential to overcome the digital divide. It provides a low-cost method for extending broadband connectivity to areas where standard wired infrastructure is impracticable. 5G FWA can be a game changer in areas where traditional wired internet infrastructure is limited or difficult to establish, such as distant rural areas. In a small town, for example, with insufficient fiber-optic or cable infrastructure, 5G FWA can provide a cost-effective alternative for delivering internet connection to homes and businesses.

According to the International Telecommunication Union (ITU), broadband connectivity is a crucial driver of social and economic progress. The International Telecommunications Union (ITU) underlines the relevance of wireless technologies, particularly 5G, in providing cost-effective options for extending broadband service to remote and rural areas, thereby helping to reduce the digital divide. Furthermore, according to a World Bank analysis, access to high-speed internet in rural areas can spur economic growth by connecting people to online markets, information, and education. Bridging the digital gap helps to reduce poverty and advances overall development goals. 

For example, the Federal Communications Commission (FCC) maintains several programs focused on increasing broadband access in rural and isolated locations in the United States. These programs include funding for broadband infrastructure deployment, including wireless technologies such as 5G FWA.

Regional Analysis

The global 5G fixed wireless access market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global 5G fixed wireless access market shareholder and is estimated to grow at a CAGR of 40.4% over the forecast period. The United States is a major contributor to the North American 5G Fixed Wireless Access (FWA) market. Several significant service providers and network operators are engaging in 5G network deployment in the region. The US government has also launched several initiatives and programs to aid in implementing 5G infrastructure, which is projected to promote the region's 5G FWA market growth. The United States government announced its US$ 45 billion "Internet for All" plan in May 2022 to provide Americans with inexpensive, high-speed internet access. During the evaluation period, such variables are likely to boost the market. AT&T's CEO stated that the company plans to roll out fixed wireless access 5G in the United States in 2023.

Additionally, the demand for high-speed internet connection is fast expanding in North America, particularly in rural areas where traditional wired broadband services are limited or unavailable. 5G FWA can offer high-speed, dependable internet connectivity without needing fiber optic lines, making it an alternate solution for such places. Overall, the North American market for 5G FWA is likely to expand substantially in the coming years, owing to rising demand for high-speed internet access, advancements in 5G technology, and supportive government efforts.

Asia-Pacific is anticipated to exhibit a CAGR of 40.6% over the forecast period. According to 5G fixed wireless access market insights, China, South Korea, and Japan are the world's fastest-growing and most powerful industrialized economies. The country is undergoing dynamic changes due to adopting new technology and improvements across industries. As the region's 5G footprint expands, technology adoption as a percentage of total connections will rise in Asia-Pacific. Several additional nations, including India and Vietnam, will be able to provide commercial 5G services in the coming years. The significant rise in demand for M2M technology will likely encourage the adoption of connected devices, increasing market size during the projection period.

Furthermore, evolving economies such as India and China have realized the value of M2M and are taking steps to increase M2M adoption, which will benefit the market in the coming years. For example, the Indian government launched the Digital India campaign to emphasize the significance of digitalization. The movement increased the demand for intelligent technologies. According to the FICCI, India will have 5 billion devices by 2022. Growing positive activities by players might also assist the industry. For example, in May 2022, Wireless Tech and Semiconductor, Qualcomm India, posted a job opening for 100 techies to support the development of 5G WLAN and 5G Fixed Wireless Access.

Europe offers significant untapped potential for 5G FWA, particularly in rural areas lacking traditional broadband infrastructure. According to some, 5G is becoming a justifiable investment that can compete with cable broadband and LEOs in several European countries. The European Commission has identified 5G standards as one of five priority topics under the Digitizing European Industry agenda. 5G is a critical asset for European competitiveness and sustainability and a significant enabler for implementing future digital services.

Segmental Analysis

The global 5G fixed wireless access market is segmented based on offering, operating frequency, demography, Application, and region.

The market is further segmented by offering Hardware and services.

Services hold the major share of the market.

Services

Intangible offerings that support the implementation, maintenance, and optimization of 5G FWA networks are included in the services sector. These services are critical for guaranteeing the hardware components' proper operation and performance. The services sector dominated the market in 2022, accounting for more than 65% of global revenue, owing to the global improvement of cellular communication networks to meet increased internet demand. Businesses and consumers expect faster and more dependable connectivity as data-intensive apps increase and the Internet of Things (IoT) takes off. The global market for 5G services, including deployment and managed services, is expanding. Service providers play an important role in this ecosystem as corporations seek specialized knowledge to develop and manage 5G networks.

Hardware

This category contains physical components of the 5G Fixed Wireless Access (FWA) ecosystem. The physical infrastructure and devices required for deploying, operating, and optimizing 5G FWA networks are hardware components. As 5G networks expand globally, demand for base stations, antennas, and related Hardware is projected to surge.

The segment can be further bifurcated by operating frequency into SUB-6 GHz, 24 GHz-39 GHz, and Above 39 GHz.

SUB-6 GHz accounts for the largest share.

SUB-6 GHz

This frequency range works at frequencies lower than six gigahertz (GHz). It is also known as the "sub-6" band. Sub-6 GHz frequencies are noted for covering larger areas and penetrating through obstacles like buildings. In 2022, the Sub-6 GHz category led the market, accounting for over half of worldwide revenue. The potential of the Sub-6 GHz operating frequency to provide more effective coverage across obstacles such as buildings and walls and a greater connection for indoor and outdoor locations is a primary driver driving category growth.

24 GHz-39 GHz

This frequency range, often known as millimeter wave (mmWave) frequencies, works between 24 and 39 GHz. Millimeter waves have higher data speeds but shorter coverage distances and are susceptible to obstructions. Millimeter wave frequencies in the 24 GHz-39 GHz range are important in reaching the ultra-fast speeds promised by 5G. However, due to their limited coverage range, their deployment is frequently centered in high-density metropolitan environments.

The market is sub-segmented based on Urban, Semi-Urban, and Rural demography.

Urban demography influenced the market growth.

Urban

Urban regions are characterized by high population density, significant infrastructure, and a concentration of companies and residential buildings. They frequently have a wide range of connectivity requirements and a significant demand for broadband services. Several factors, including rising demand for high-speed internet, increased acceptance of smart city programs, an increase in the number of connected devices, and developments in 5G technology, are driving the expansion of 5G FWA solutions in urban areas.

Semi-Urban

Semi-urban areas are transitional zones with a moderate population density, sometimes with a mix of urban and rural characteristics. They may differ in terms of infrastructure development. Due to students' adoption of online education and e-commerce by customers to get better educational and shopping facilities, the semi-urban category is expected to demonstrate the greatest CAGR throughout the forecast period.

Based on Application, the market is fragmented into Residential, Commercial, Industrial, and Government.

Residential Applications are a significant contributor to the market.

Residential

The implementation of 5G FWA to deliver high-speed internet connectivity to households is called residential applications. Delivering internet services for entertainment, communication, and smart home applications is part of this. The segment's growth is driven by the increasing adoption of smart home technologies, the rise in remote work and telecommuting, and the rising demand for high-speed broadband. 

Commercial

Commercial applications entail deploying 5G FWA to address the connection needs of enterprises, such as offices, retail establishments, and other commercial assets. Growing improvements in IoT technology and increased acceptance of video conferencing solutions are important factors driving market growth.

Recent Developments

• November 2023- Ericsson and MediaTek demonstrated global ecosystem support for the licensed 5G frequency at 6 GHz.
• February 2023- Fastweb received an end-to-end 5G FWA solution from Samsung, which includes core 5G Radio Access Units that use millimeter wave (mmWave) spectrum to deliver high-density coverage and ultra-high-bandwidth connectivity to 5G home routers.