Global 5G Transport Networks Market to be Driven by New Investments in 5G Infrastructure

The Global 5G Transport Networks Market Is Driven by High Investments in 5G Infrastructure Around the World and Is Expected to be Driven by Commercial Launches of 5G Products into The Market.

A transport network, also known as a transportation network, is a realization of a spatial network. A transport network offers transparent transmission of data between devices. This network establishes and maintains point-to-point connections between devices. A transport network is independent of the higher-layer network, which exists between customers. Commercial and mass deployments of 5G technology are on the rise and this technology is expected to be limited to mobile phones, handsets, and sensors. Companies are focusing on radio access for connecting end-user with a network. Telecom operators are rapidly deploying 5G networks for evolving mobile broadband services and widening the applicability of 5G technology in various industry verticals. This has led to a growing need for a transport network that can enable 5G. 5G transport network applications can be categorized into ultra-reliable Low-latency Communications (URLLC) uses, enhanced Mobile Broadband (eMBB) uses, and massive Machine-Type Communications (mMTC) uses. 5G networks are more distributed and denser than previous cellular network technologies, as these networks have to deal with a large amount of load. Telecom operators have to meet these challenging standards related to the transport network. 5G is used for enhanced mobile broadband (eMBB) focused mainly on higher bandwidth, massive machine-type communication (mMTC) emphasized on the Internet of Things (IoT) uses, and critical machine-type communication (cMTC) focused on various industrial IoT applications that need high reliability and low latency.

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Top Market Players

Some of the essential players operating in the 5G transport networks market, but not restricted to include Huawei Technologies Co., Ltd., Telefonaktiebolaget LM Ericsson, Ciena Corporation, ZTE Corporation, Fujitsu Limited, Nokia Corporation, Cisco Systems, Inc., among others.

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5G technology experienced growth at a rapid pace in recent years both in terms of deployment and number of subscribers around the world. Many telecom operators are expected to launch their 5G network commercially during the period 2021-2022. Further, there may be mass-market launches in years ahead as many companies complete their pre-commercial trials. This trend may lead to an increase in the number of 5G subscriptions around the world. It is expected that the number of 5G mobile subscriptions globally is expected to reach nearly by the end of 2.7 billion and the Asia Pacific and North America regions are expected to contribute significantly to the number of 5G mobile subscriptions worldwide. As the number of 5G mobile users is expected to increase in the future, operators are heavily investing in 5G infrastructure. This is expected to drive the global 5G network infrastructure market. It is expected that the 5G network infrastructure market worldwide was worth around USD 0.53 billion in 2018 and the 5G network infrastructure spending is expected to be worth nearly USD 8.13 billion by the end of 2020. This growing infrastructure spending by various operators is expected to drive the global 5G transport networks market. Further, there has also been an increase in the wireless 5G infrastructure spending. In 2019, the wireless 5G network infrastructure spending was nearly USD 4.2 billion, and the wireless 5G infrastructure spending is expected to reach a value of approximately USD 8.2 billion by the end of 2020. Also, the 5G mobile infrastructure spending globally is expected to hit a value of USD 2.3 billion by the end of 2021. Such trends are anticipated to drive the global 5G transport networks market.

In terms of geography, the North America region is expected to hold a major share in the global 5G transport networks market in 2020. North America 5G transport networks market is expected to be driven by growing 5G infrastructure spending and rapid deployment of 5G technology. Owing to the rapid deployment of 5G technology, the 5G connections around North America are expected to reach a value of approximately USD 410 million by the end of 2025. Moreover, the Asia Pacific region is expected to grow at the fastest rate over the forecasted period. The Asia Pacific comprises rapidly growing telecom markets such as India, China, Japan, and South Korea. Mass deployment of deployment 5G technology in countries like India, China, and South Korea is expected to create new opportunities for the Asia Pacific 5G transport networks market.

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The taxonomy of the 5G transport networks Market by its scope and segmentation is as follows:

Global 5G Transport Networks Market: Component Analysis

  • Hardware
  • Consulting & Integration Services
  • Support & Maintenance Services

Global 5G Transport Networks Market: Type Analysis

  • Backhaul
  • Midhaul
  • Fronthaul

Global 5G Transport Networks Market: End User Analysis

  • Enterprises
  • Telecom Operators

Key Insights from Primary Research

  • According to our primary survey respondents, commercial launch, as well as the mass-market launch of 5G technology, is expected to drive the market in the future.
  • The use of 5G technology for applications like autonomous vehicles, smart city infrastructure, industrial and factory automation, wearables and mobile, etc. is expected to create lucrative opportunities for the global 5G transport networks industry.
  • Based on the components, the hardware segment is anticipated to dominate the 5G transport networks market in 2019.
  • In terms of type, the backhaul segment is expected to contribute significantly to the growth of the global 5G transport networks market in the years ahead.

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