The global 5G technology market is estimated to exhibit substantial growth from 2016 to 2024 (forecast period). 5th generation wireless systems, or widely known as 5G, indicate the next stage mobile telecommunication standards beyond the 4G standards. It offers faster internet access as against 4G. With the advent of analogue cellular systems, radio technologies have become a rapidly evolving and multidirectional platform. This has led to the extensive use of digital wireless communication systems aimed at meeting the needs of people globally. Widespread adoption of internet-enabled services worldwide will drive the market.
Previous generation communication systems, such as the 3G, were a breakthrough in the world of communications technology. The 3G cellular system receives a signal from a nearby mobile phone tower and utilizes the same for messaging, data transfer, and phone calls. The 4G and 3G cellular systems work in the exact same manner. However, unlike 3G, 4G exhibits lower latency (the time lag between cause & effect) and ensure faster internet connectivity. The 4G cellular systems is nearly five times faster than the existing 3G system and it offers download speeds that almost reach 100 Mbps. 5G technology is faster than 4G, enabling enhanced productivity across all proficient devices, with a download speed of almost 10,000 Mbps. Furthermore, a higher bandwidth provides faster download speed, and also the ability to operate various complex internet apps on mobile phones.
The usability and features of this cellular system are much beyond the expectations human beings. With its super high speed, it will revolutionize the concept of “mobile phone usability”. Apart from exhibiting minimal latency, the 5G technology offers more gaming and multimedia options. Without compromising the quality of files, this technology promotes the uninterrupted exchange of superior quality HD videos, sounds, and other media files. It boasts of an extensive range of applications, with a speed of nearly 10 Gbps, faster response time, greater software options to upgrade, universal connectivity, and higher capacity.
On the downside, this technology will lead to high implementation costs. While the latest smartphones will most likely have it catered for and installed; other mobile phone models could be outdated. A reliable wireless connection of the internet depends on the number of gadgets linked to one channel. With the introduction of 5G to the wireless spectrum, there could be the risk of congestion in the frequency range. It provides sophisticated features and high bandwidth for different smart devices and for mobiles. Moreover, it considered highly endurable for Wireless World Wide Web (WWWW). It is expected to support M2M/IoT (Internet of Things), millimeter wave, device-centric network architectures, and multiple-input & multiple-output (MIMO) application. This would also include spectrum sharing functionalities.
Various factors, such as the adoption of mobile broadband, demand for tablets, iPads, and advanced machine-to-machine communication in companies will augment the global industry over the estimated years. Higher rates of data transfer coupled with low energy consumption will positively influence the industry. The 5G cellular system provides internet speed from 10 Gbps to 100 Gbps. It offers ultra low latency ranging between 1 ms and 10 ms. This enables users to live stream and watch events and/or sports over the World Wide Web without buffering. This is done with the help of steerable antennas possessing Millimeter Wave (mmWave) technologies. Demand for high internet speed to attain real-time responses will be a prominent driver in the market over the next few years. However, the dependence of 5G on other technologies, such as the millimeter wave propagation and IPv6 transmission protocol can pose certain challenges in this industry.
The various features offered comprise bi-directional large bandwidth shaping, high resolution, precise traffic statistics, and supervision tools for fast action supporting almost over 65,000 connections. This will boost market growth over the next eight years.
The global 5G technology market is categorized into applications, technologies, and regions. The applications sector includes government & utilities, individual users, offices, defense & military, healthcare, and retail. With high investments in the research & development, the government & utility segment would dominate the overall market in the forecasting horizon. The research & development is mainly directed towards the procurement of technology at the earliest.
The current status of the 5G technology for cellular systems is still in the nascent stage and is not yet available in the market for fully functional usage by anyone. Technologies comprise Radio Access Technologies (RAT), Wi-Fi, Worldwide Interoperability for Microwave Access (WiMAX), Global System for Mobile (GSM), and High-Speed Package Access (HSPA). The RAT system needs to be refurbished to put up the new mobile paradigm offering fast speed and high capacity.
While the networking market is trying to increase the availability of 4G services, it is also required to future-proof for the 5G cellular system. This system will however not be operational until 2019 or perhaps 2020. A number of universities have established research units for developing technologies for 5G services. It is also required of mobile phone vendors to build the necessary network infrastructure along with the end user gadgets, such as 5G enabled mobile phones. The availability of spectrum may pose a technical challenge in the face of market progress. Several technologies to be utilized for 5G will first emerge in the 4G systems and then in the former. This will entail a systematic mode of transition.
Geographically, the global 5G technology market is segmented into Europe, North America, Asia Pacific, and Rest of the World. The Asia-Pacific market will witness considerable growth in the near future. Economies such as India, Korea, and China will contribute significantly due to a number of ongoing developments & initiatives. The government of South Korea has invested huge sums in the R&D of 5G technology. It has also promised a trial of this latest technology next year. The U. S. market will register the highest growth rate over the next few years. This can be attributed to the growing number of subscriptions in the region.
The key market players in the global market are Samsung Group, Nokia Networks, Telefonaktiebolaget LM Ericsson, AT&T Inc., and Qualcomm Inc. Telefonaktiebolaget LM Ericsson signed a contract with SK Telecom Co. Ltd. in 2014 for further research and development.
