Worldwide revenue for 5G-network infrastructure would nearly double to US$4.2 billion next year from US$2.2 billion this year, Gartner Inc said in a report on Thursday last week.
While revenue in segments including 2G, 3G, LTE and 4G are expected to decline, overall revenue in wireless infrastructure would reach US$35.97 billion next year, slightly increasing from US$35.92 billion this year, the US-based research firm said.
Several nations, including South Korea, the US, the UK, Switzerland and Finland, have already started offering 5G services in major cities, and Gartner estimated that 5G rollout would accelerate by next year, as communications service providers (CSP) in Canada, France, Germany, Hong Kong, Spain, Sweden, Qatar and the United Arab Emirates have announced plans to accelerate 5G network deployment.
“For 5G deployments in 2019, CSPs are using non-standalone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio [NR] equipment can be rolled out alongside existing 4G core network infrastructure,” Gartner senior research director Sylvain Fabre said in the report.
It forecast that investments in 5G NR network infrastructure would account for 6 percent of overall revenue for CPSs’ wireless infrastructure this year and climb to 12 percent next year.
While the individual consumer market remains the largest segment driving 5G growth, CSPs would increasingly target enterprise clients, as 5G networks are expected to expand the mobile ecosystem to cover new industries such as smart factories and autonomous transportation, while not forgetting sectors such as healthcare, agriculture and retail, the report said.
Moreover, equipment vendors have viewed private networks for industrial users as a market segment with significant potential, it said.
Despite equipment vendors, regulators and standards setters making preparations for 5G, nationwide coverage would not happen as quickly as for past generations of wireless infrastructure, Fabre said.
“To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer by upgrading 4G infrastructure around 5G areas of coverage,” Fabre said. “This issue will be most pronounced from 2019 through 2021, a period when 5G coverage will be focused on hot spots and areas of high population density.”
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