6G Market

Market Overview

The global 6G market was valued at USD 5.05 billion in 2023. It is estimated to reach USD 69.40 billion by 2032, growing at a CAGR of 33.8% during the forecast period (2024–2032). In recent years, with increasing digitization, there has been a surge in the proliferation of smart devices and the Internet of Things (IoT); the need for hyperconnectivity has surged, thereby propelling the demand for 6G networks. Moreover, the emergence of 6G presents lucrative opportunities for several end-user industries to innovate and develop new products and services tailored to the capabilities of this advanced network.

6G refers to the sixth generation of wireless technology, succeeding 5G. It promises even faster data speeds, lower latency, and more reliable connectivity than its predecessor. Expected to revolutionize communication, 6G aims to support emerging technologies like holographic communication, seamless virtual reality, and advanced artificial intelligence applications. It may operate in terahertz frequencies, enabling unprecedented bandwidth and data transmission rates, potentially reaching tens of gigabits per second. Moreover, 6G could enhance connectivity in remote areas and underwater, facilitating global internet access. However, its development is still early, with standardization efforts and research underway. As with any new technology, challenges such as infrastructure deployment, security, and regulatory frameworks must be addressed before widespread adoption.

Highlights

• Smartphones dominated the devices segment
• North America is the highest shareholder in the global market

Market Dynamics

Global 6G Market Drivers

Demand for Hyperconnectivity 

The demand for hyperconnectivity is driven by the expansion of smart devices and the IoT, which are reshaping ‘how we interact with the world around us.’ The number of internet-connected devices keeps skyrocketing, from smartphones and smart homes to connected vehicles and industrial machinery. According to the latest IoT Analytics study, "State of IoT—Spring 2023," global IoT connections grew 18% in 2022, resulting in a total of 14.3 billion active IoT endpoints.

Furthermore, the report also predicts that the worldwide count of connected IoT devices is projected to grow by 16% in 2023, reaching a total of 16.7 billion active endpoints. This exponential growth necessitates seamless communication between devices, applications, and systems, fueling the need for ultra-fast and reliable connectivity. Industries leverage hyperconnectivity to optimize operations, enhance productivity, and deliver personalized consumer experiences. As digital transformation accelerates across sectors, the demand for robust, high-speed networks like 6G intensifies, promising to unlock new possibilities and drive innovation in the hyperconnected world of tomorrow.

Global 6G Market Restraint

High Infrastructure Cost and Spectrum Scarcity

One prominent restraint in the global 6G market is spectrum scarcity. As the demand for higher data rates and bandwidth intensifies, the available radio frequency spectrum becomes increasingly congested. Spectrum allocation for 6G networks requires coordination among governments, regulatory bodies, and telecommunications companies, often involving complex negotiations and lengthy approval processes. Moreover, the allocation of suitable spectrum bands for 6G operation poses technical challenges due to the need for wider bandwidths and compatibility with existing spectrum allocations.

Another notable restraint is the high infrastructure development costs associated with 6G deployment. Building robust 6G networks requires substantial investments in research, development, and infrastructure upgrades, including the installation of advanced antennas, base stations, and backhaul infrastructure. Moreover, transitioning from existing 5G or 4G infrastructure to 6G entails significant capital expenditures for telecommunications operators and network providers. These upfront costs may deter the widespread adoption of 6G technology, especially in regions with limited financial resources or uncertain regulatory environments.

Global 6G Market Opportunities

Emerging Applications

The emergence of 6G technology presents many market opportunities across various industries. With its promise of ultra-fast speeds, ultra-low latency, and ultra-reliable connectivity, 6G opens doors to transformative innovations and applications. Industries such as healthcare, manufacturing, transportation, entertainment, and education stand to benefit significantly from 6 G's capabilities.

For example, in healthcare, 6G can enable remote surgeries and real-time monitoring of patients, revolutionizing healthcare delivery. In manufacturing, it can allow the implementation of smart factories and predictive maintenance systems, optimizing efficiency and reducing downtime. Similarly, 6G can power autonomous vehicles and smart traffic management systems in transportation, enhancing road safety and efficiency. The opportunities for leveraging 6G technology to create new products, services, and business models are vast, promising to reshape industries and drive economic growth in the digital age.

Regional Analysis

North America Dominates the Global Market

Based on region, the global 6G market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global 6G market shareholder and is expected to expand during the forecast period. North America stands as a pioneering region in the 6G market, leading the charge in the research, development, and deployment of next-generation telecommunications technologies. With robust infrastructure and a dynamic tech landscape, the region is poised to play a major role in shaping the future of connectivity.

The U.S. 6G market is primarily propelled by its vibrant tech ecosystem and significant investments in research and development. Companies like Google, Apple, Qualcomm, and Intel heavily invest in research and development initiatives to pioneer 6G technology and drive its commercialization. With initiatives like the National Science Foundation's Platforms for Advanced Wireless Research (PAWR) program and collaborations between academia, industry, and government agencies, the USA fosters an environment conducive to 6G innovation.

Moreover, in May 2024, Brown University and Rice University scientists identified a method to deflect terahertz waves that carry data past obstacles, thus opening the path for the development of ultrafast 6G technology. Such innovations are anticipated to boost the U.S. 6G market.

Canada’s 6G market, with its thriving tech industry and commitment to innovation, is another key player. Canadian companies, including BlackBerry, Ericsson, and Bell Canada, are actively involved in 6G research and development, collaborating with domestic and international partners to drive technological advancements. Moreover, Canada's supportive regulatory environment and government initiatives, like the Strategic Innovation Fund and the Canada 5G Innovation Network (ENCQOR), foster a conducive ecosystem for 6G innovation and deployment. The Canadian government's investments in 6G infrastructure and digital connectivity initiatives aim to bridge the urban-rural divide and ensure access to high-speed internet nationwide.

Consequently, these factors are estimated to boost the growth of the North American 6G market.

The Asia-Pacific 6G market is expected to experience the most rapid growth. The region is poised to play a critical role in adopting and developing 6G technology, driven by the region's rapidly growing economies, burgeoning tech landscape, and strategic investments in telecommunications infrastructure.

India's 6G market has higher adoption and implementation due to its huge population and fast-growing digital infrastructure. The Indian government's Digital India initiative aims to transform the nation into a digitally empowered community and knowledge economy, driving investments in advanced technologies like 6G. There has also been a rise in investment in the research and development of 6G technology. For instance, in March 2024, Rakuten Symphony, a Japanese company specializing in open RAN technology, which is a part of Rakuten Mobile, intends to allocate USD 10 million for investment in India this year. The investment aims to improve artificial intelligence skills and perform research focusing on 6G technology.

Japan's 6G market stands out as the country is a frontrunner in 6G technology development, with plans to debut 6G networks by the early 2030s. Leading Japanese companies like NTT Docomo and SoftBank actively invest in research and development to pioneer 6G innovations. Moreover, in May 2024, Japan unveiled the world's first 6G device, which boasts internet speeds that are 20 times quicker than those of 5G. The device, distinct from a smartphone, was developed in a collaborative endeavor by telecommunications providers in Japan. This is estimated to boost the market expansion in this region.

Thus, the abovementioned factors are estimated to boost Asia-Pacific's 6G market growth.

Segmental Analysis

The global 6G market is segmented by technology, device, and end-user. 

Based on technology, the global 6G market is divided into integrated circuits, antennas, network infrastructure, and others. 

The integrated circuits (ICs) segment within the 6G market encompasses the development and manufacturing of semiconductor chips specifically designed to power the next generation of communication networks. These ICs serve as the backbone of 6G technology, facilitating high-speed data processing, efficient power management, and seamless connectivity in various devices and infrastructure components. With 6G promising unprecedented levels of speed, capacity, and reliability, the demand for advanced ICs tailored to meet these requirements is expected to surge.

Innovations in IC design, such as novel materials, miniaturization techniques, and advanced packaging technologies, are driving the evolution of 6G networks. Moreover, the integration of AI and ML capabilities within ICs is poised to enhance network performance, optimize resource allocation, and enable new use cases in areas like edge computing and autonomous systems.

Based on devices, the global 6G market is bifurcated into smartphones, IoT devices, wearables, autonomous vehicles, smart appliances, and others. 

The smartphone segment dominates the global market. The smartphone segment within the 6G market represents a pivotal area of innovation and growth, driven by the promise of ultra-fast speeds, low latency, and enhanced connectivity. With 6G technology, smartphones are poised to become even more integral to everyday life, serving as the primary gateway to a multitude of advanced applications and services. Consumers can expect 6G-enabled smartphones to deliver seamless streaming of high-definition content, lightning-fast downloads, and immersive augmented reality experiences.

Manufacturers are investing reasonably in research and development to produce smartphones that leverage the capabilities of 6G networks, incorporating features such as advanced AI processing, enhanced camera capabilities, and improved battery efficiency. As the demand for connectivity and mobility continues to rise, the smartphone segment presents lucrative opportunities for manufacturers, service providers, and app developers to innovate and cater to changing consumer preferences in the 6G era.

Based on end-users, the global 6G market is segmented into automotive and transportation, healthcare, telecommunication, manufacturing, agriculture, education, and others. 

The manufacturing sector stands to undergo a transformative shift with the integration of 6G technology. 6G's ultra-reliable, low-latency communication capabilities will revolutionize industrial processes, enabling real-time monitoring, predictive maintenance, and seamless automation. By leveraging 6G-enabled IoT sensors, robotics, and AI, manufacturers can optimize production workflows, enhance quality control, and minimize downtime. Smart factories powered by 6G connectivity will facilitate agile and adaptive manufacturing, allowing for rapid customization and flexible production schedules to meet dynamic market demands.

Moreover, 6G's support for edge computing and augmented reality (AR) technologies will empower workers with real-time insights and immersive training experiences, improving overall productivity and efficiency. As a result, the manufacturing segment is poised to experience significant advancements and efficiencies, driving innovation and competitiveness in the global market.

Recent Developments

• April 2024- The Bharat 6G Alliance of India and the Industry Alliance 6G of Europe are poised to establish a relationship aimed at facilitating collaboration in the advancement of 6G technology.
• March 2024- NVIDIA introduced a 6G research platform that provides researchers with a unique method to advance the development of future wireless technology. The NVIDIA 6G Research Cloud platform is characterized by its openness, flexibility, and interconnectedness. It provides researchers with comprehensive tools to enhance artificial intelligence for radio access network (RAN) technologies.

Analyst’s Perspective

According to our research analyst, the telecommunication sector stands at the forefront of innovation as the world continues its relentless march toward technological advancement. With each generational leap from 2G to 5G, we've witnessed transformative changes in how we communicate, connect, and conduct business. Now, on the horizon lies the dawn of 6G—a paradigm shift that promises to redefine the very fabric of our digital infrastructure. The evolution toward 6G represents a watershed moment for the telecommunication sector—one that promises to reshape the digital landscape for generations to come. We must continue to monitor and analyze the dynamic developments unfolding in the realm of 6G, ensuring that we remain at the forefront of this technological revolution.