Though the industry is only just five years old, the growth of 5G network infrastructure is just getting started, and according to research from Frost & Sullivan, it will provide opportunities for the next decade and more, driving a market worth tens of billions of dollars per year.
Frost Radar 5G Network Infrastructure 2024 The report surveyed over 100 industry participants globally and uniquely analyzed the top 23 companies in the 5G communications technology market. These companies are either overall market leaders, specific segment leaders or thought leaders in their specific segments.
The survey revealed that the emerging 5G network infrastructure industry is building on the established 4G network infrastructure sector, and it is no surprise that 4G technology leaders are earning strong recognition in 5G.
He added that the 5G architecture will open up the possibility of many suppliers working together in each area of the network infrastructure, including the radio access network (RAN), the core and edge network, and the transport network. In other words, the core network will likely not be provided by a single supplier, but by many suppliers, each offering one or more network functions. Frost & Sullivan said this will open the field to new suppliers, increasing competition and raising the level of innovation.
Overall, the analysis calculates that global communications service providers (CSPs) will invest just over $60 billion (depending on what’s included) in mobile and wireless network infrastructure in 2023. This investment is projected to grow at a compound annual growth rate (CAGR) of around 2.1% over the next five years.
Most of that spending will be directed towards the RAN, with less on transport and core networks. Last year, CSP network infrastructure spending flattened out globally, especially on public cellular networks, and the study noted that some of that slowdown could be offset by growth in private cellular networks.
While the 5G era is underway, the analysis highlights that investments in 2G, 3G and 4G networks will continue, with 4G infrastructure remaining the majority now and for the next few years. That said, investments, while still substantial, have already plateaued and will soon start to decline. In contrast, investments in 5G networks are predicted to accelerate and become mainstream; investments in 2G and 3G networks are limited and declining.
Open RAN and Virtual RAN, covering 5G and earlier generations, are niche markets but are set to grow significantly over the next decade. This could be the year they take off, as at least two major suppliers of traditional RAN (Ericsson and Nokia) have committed to offering open and virtual RAN services in the coming months. Private 4G and 5G networks are also small submarkets but are set to grow significantly over the next few years. Frost & Sullivan says each offers growth opportunities that all 5G network infrastructure suppliers should consider.
In terms of key technology providers, Ericsson ranked highest in Frost Radar, followed by Nokia and Huawei. Both of these companies are leaders in 4G network infrastructure and continue to lead in 5G network infrastructure with products including RAN, transport networks, and core and edge networks. The top five suppliers collectively account for approximately 85% market share. Most of the remainder focus on a narrow portion of the infrastructure market and/or are smaller suppliers.
