The LTE and 5G market is growing strongly at a CAGR of 10.9%. Higher upload and download rates, lower reaction time, enhanced safety with layered data encryption, and greater coverage are all advantages of 5G over 4G and this is seeing growth in the LTE and 5G market finally accelerating.
According to the latest data from Future Market Insights, 5G’s overall speed, dependability, and user-friendly roaming capabilities are expected to drive widespread adoption of the technology.
The study finds that emerging economies in Asia Pacific are focusing on developing smart cities, which is expected to impel the adoption of LTE & 5G in the years to come. For instance, the Indian government in July 2019 announced $1.2bn to develop smart cities in the country. Likewise, the initiative is also expected to bring in nearly $ 1.9bn in the form of investments by private organisations.
Such developments and investments are expected to offer substantial revenue opportunities to LTE & 5G providers.
On the other hand, several industries ranging from oil & gas to manufacturing and utility to mining are upscaling their investments on technologies to expedite industrial processes that need higher bandwidth. On these lines, the adoption of private LTE and 5G is also to invigorate the LTE and 5G market.
Reluctance to transition away from legacy infrastructure is projected to limit the LTE and 5G market growth. From the consumer side, although the world has mostly upgraded to 4G, there are still regions that lag on the technological front.
Most of the devices that are currently in use are not compatible to leverage the advantages of 5G technology and an upgrade or purchase of novel devices is expensive.
Likewise, the existing network infrastructure in the large-scale enterprise cannot support the high data rates.
As upgrading to 5G requires an investment on the consumer side, it is likely to hold back the growth of the market to a certain extent.
5G was earlier set for a wide-scale roll-out in 2020 but has been delayed in the wake of Covid-19 pandemic.
Although the pandemic is not likely to adversely impact the market growth, it has certainly brought the trials and roll-out process to stand-still, thus delaying the consumer and business migration to 5G by a year.
Furthermore, the unavailability of components owing to the disruption of the supply chain is also limiting the deployment of 5G.
North America and the Asia Pacific are expected to lead the race in the LTE & 5G market owing to increased spending on technologies in the region, coupled with the presence of major market players.
Furthermore, high expenditure by governments of emerging economies such as Mexico, India, Indonesia, and Brazil are expected to boost the market growth in Latin America and the Asia Pacific.
Likewise, Western European countries such as Germany, France, and the U.K. are also expected to remain prominent regional markets for the LTE & 5G market.
The growth of the European region is attributed to high spending by enterprises on developments of network infrastructure coupled with growing expenditure by players on research.
As a result of the pandemic, market players are using the time to prepare for the massive deployment in the years to come. Moreover, players continue to invest significantly to enhance their services.
On these lines in 2017 and 2018, Huawei Technologies which is a private LTE & 5G network ecosystem invested nearly US$ 1.4 Bn in 5G product development. KT, Verizon Wireless, China Unicom, Telstra, Reliance (Jio), Qualcomm, Samsung Electronics, Huawei, Cisco, ZTE are some other major companies leading the LTE and 5G market.